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Seanad Éireann debate -
Thursday, 12 Feb 2009

Vol. 193 No. 14

Telecommunications Services.

I thank the Cathaoirleach for allowing me to bring this matter to the attention of the Minister.

In July 2008 I welcomed the fact that a €43 million telecoms boost would be made to the north west. I assume the Minister's response will be that there is still a €43 million telecoms boost for the north west. However, I could not resist putting down this marker to say we know what happened. I refer to the fact that a survey was done, a consultant's report was made and a decision was taken to try to advance a cross-Border telecoms project in the north west and Derry was chosen on the basis of disadvantage and as part of the gateway initiative linking with Letterkenny. To quote Mr. Mark Durkan, MLA:

It is now plain that the clear public policy reasons for this transatlantic connection being terminated at a Derry Telehouse were set out as far back as the independent PA Consulting feasibility report in April 2007... That report made clear arguments for Derry - in terms of cable technology, the advantages of Derry city's existing telecoms as a junction, and for the economic success of the whole link.

As he pointed out, the Department of Enterprise, Trade and Investment has failed to counter those arguments with real reasons or tenable points. Despite the fact the Minister for Communications, Energy and Natural Resources, many other Ministers and I welcomed the tender for a telehouse in Derry city, we now find that a middle-ranking official seems to have been able to give clarity to the winning operator to say it was not Derry city but Derry county and therefore it could build its facility in Coleraine not in Derry as planned.

I am not knocking the project. It is excellent and will give great opportunities to business. It will be as important to Donegal as anywhere else but the reason for raising the issue is a point of principle. Derry and the west of the North is as badly off as the north west in the geographical pull for resources, infrastructure, economic investment and employment opportunities. Gateway and disadvantaged status and the EU support body were put together specifically to raise difficult areas out of their disadvantage. This project was specifically intended to support the status of Derry city and the surrounding areas. When it came to the final hurdle we found the traditional east-west divide exists in Ulster, namely, from Coleraine across to Belfast. We are back to where nothing seems to be allowed to go west of the Bann.

That is not something I feel happy to talk about so many years after a peace process but I would be politically negligent if I did not support my colleagues in Derry in asking the Government to ask the relevant officials and Ministers in the department in the North to revisit the decision and to go back to the original tender for Derry city. I want to know when the Department, the gateway initiative and the special EU support bodies organisation were told there would be a change in location. Were concerns raised by us or by them? When was the decision to move taken? Will the Government support the request by Mr. Mark Durkan, MLA, and others for the Department of Enterprise, Trade and Investment to restore the original plan?

The type of answer I am bound to get is that the change will allow for more people in more areas to be supported such as Portadown and Newry. It was always intended to support Monaghan. I wish to be parochial. I could be parochial in supporting Coleraine because the car ferry that goes across the Foyle allows me to get there in 15 minutes. I come back to my original point, namely, the status and the confidence that says it is as easy for businesses to operate in Derry city as anywhere else. The point is not the jobs involved in the telehouse. The report originally pinpointed Derry because it had the critical presence in terms of BT, Eircom and Virgin. This was to be an economic multiplier on Kilroot and Maydown for power outages. The maximum latency was in Derry and if the project were based there it would have provided the maximum impact to encourage new industries into the area.

I refuse to pretend this did not happen. People can say we should not rock that boat, that it is great the Executive is making decisions up there. I do not accept that. There was an east-west divide for the past 40 years and that must stop. I pointed out the areas of disadvantage to Mr. Peter Robinson at a meeting in Enniskillen where he presented the facts when he was Minister for Regional Development. It is a fact that the west is not thriving like the east. That must stop and the cross-Border groups and the Minister, who has the potential to attend cross-Border ministerial meetings, must say we will not pander to any decisions that undermine due process, namely, that the project was to be facilitated in Derry.

I thank Senator Keaveney for raising this matter. I am happy to reply and to provide as much information as possible.

Project Kelvin will provide direct international telecoms connectivity between the north west of Ireland and North America and Europe by bringing a transatlantic submarine telecoms cable ashore in County Derry. This is a joint EU funded cross-Border co-operation project between the Department of Communications, Energy and Natural Resources and the Department of Enterprise, Trade and Investment in Belfast. The Kelvin project will bring high speed international broadband connectivity at a very competitive cost to the north west of Ireland, including Derry and Letterkenny. It will greatly enhance the region's attractiveness for business and foreign direct investment. As Senator Keaveney outlined, as well as Derry and Letterkenny, the benefits of the Kelvin project will extend to Monaghan, Castleblayney and Drogheda, and a number of towns in Northern Ireland.

Total investment in the project will amount to approximately €70 million. The Department of Communications, Energy and Natural Resources and the Department of Enterprise, Trade and Investment will contribute €30 million, which is 75% co-funded by the EU. Following an open tendering process, the contract to implement the Kelvin project has been awarded to Hibernia Atlantic, an international telecoms company which has two transatlantic submarine telecoms cables connected to Ireland. The contract was awarded following a full open procurement process involving both departments.

The Kelvin project involves building a spur from the transatlantic submarine cable, which runs off the north coast of Ireland, and bringing it ashore in Portrush, County Derry. The tender documentation for the project specified that the submarine cable could land along the coast of either County Antrim or County Derry. Hibernia Atlantic has chosen Portrush, County Derry as the most suitable location for the landing of the submarine cable for geographical and environmental factors. For technical and engineering reasons, Hibernia Atlantic has chosen Coleraine, County Derry, as the location for the telehouse for the Kelvin project, as that is the nearest point to Portrush where the Kelvin cable can be connected to the land-based telecommunications infrastructure. The proposed telehouse will be a small highly secure building containing some telecoms equipment which will be operated by Hibernia Atlantic on a remote unmanned basis.

The proposal to locate the telehouse in Coleraine was submitted as part of Hibernia Atlantic's response to the tender for the Kelvin project. The legal tender documents for the Kelvin project specified the provision of a telehouse facility in Derry. At a meeting which was held for prospective bidders for the Kelvin project at the Everglades Hotel, Derry on 21 July 2008, at which the Department of Communications, Energy and Natural Resources was represented, it was specifically clarified that the Kelvin telehouse could be located at any location in County Derry. The successful tender specified Coleraine, County Derry, and the contract for the Kelvin project has been awarded on that basis. The location of the telehouse in Coleraine does not in any way put Derry at a disadvantage as regards the main benefits of the Kelvin project - the provision of high speed international connectivity to Derry at a competitive cost.

The breakout points that Hibernia Atlantic is providing in the towns along the Kelvin route, including Derry and Letterkenny, all have identical transmission, service offerings and benchmarked pricing. Each town, including Derry and Letterkenny, where these services will be offered has the same opportunity to compete for any ancillary business connected to the Kelvin international connectivity, as all the services delivered by this project will be available at these breakout points.

The Kelvin project is a flagship cross-Border project with €30 million of EU and Exchequer funds in public investment on both sides of the Border in addition to substantial investment by Hibernia Atlantic. The funds made available for this project reflect its strategic benefits for the north west and for international connectivity for Ireland as a whole. The project is about providing the infrastructure businesses need to compete internationally and the project will, therefore, benefit Derry city and Letterkenny in a significant way.

I am not a legal person. However, the Minister of State said, "The legal tender documents for the Kelvin project specified ‘the provision of a Telehouse Facility in Londonderry'." When is a legal tender document subject to an interpretation that changes the fundamentals of what is being offered? Where the documentation stated "Londonderry" or "Derry", it was taken to be the city. What is the implication for the county? Will the Minister of State convey to me in writing as soon as possible who represented the Department at last July's meeting? How do they stand over the changing of the location in the legal tender document? Who made the decision? Was this a joint decision because the project is jointly funded?

The meeting took place on 21 July last year. The Department was represented but I do not have the names of the individual or individuals who attended but I would be more than happy to make further inquiries within the Department before coming back to the Senator. Each town, including Derry and Letterkenny, where these services will be offered has the same opportunity to compete for any ancillary business connected to the project and all the services delivered by this project will be available at these breakout points. I accept the issue raised by the Senator and I am happy to come back to her and provide further clarification.

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