I move:
That Dáil Éireann approves the terms of the Convention establishing and the Operating Agreement relating to the European Telecommunications Satellite Organisation `EUTELSAT'.
EUTELSAT Convention: Motion.
The European Telecommunications Satellite Organisation — EUTELSAT — is an inter-Governmental organisation which was established in order to provide the full range of telecommunications services, telephone, telex, data, satellite business systems etc., via satellite on a regional basis in Europe.
EUTELSAT originated in the early seventies, when, in order to promote European Space Technology, the European Space Agency, of which Ireland is a member, undertook in collaboration with the Telecommunication Administrations of the Conference of European and Postal Administrations a study of the technical and economic aspects of a possible European regional satellite system. Following this study and discussions between representatives of the European PTTs and of the ESA, 18 of the PTTs of the CEPT joined together in 1977 in an organisation called Interim EUTELSAT in order to provide a legal entity for European satellite systems.
Interim EUTELSAT, which has its headquarters in Paris, has as its objective the operation of commercial satellite telecommunications services in Europe. It was established in order to provide the full range of telecommunications services: telephone, telex, data, television using the European Communications Satellite.
It was decided in 1981 that Ireland should become a member of Interim EUTELSAT following a decision by that organisation that it would provide in addition to telephone services a western European satellite business system which would enable a business with offices or factories in different locations in Europe to provide satellite links between its various premises.
In November 1981 the Government authorised the Minister for Posts and Telegraphs to accede to the agreement on the Constitution of a Provisional European Telecommunications Satellite Organisation, Interim EUTELSAT and the supplementary agreement relating to the Space Segment of the Satellite Telecommunications Systems for the Fixed Service.
The agreement and supplementary agreement relating to Interim EUTELSAT, were signed in Paris in December 1981, by the Secretary of the Department of Posts and Telegraphs. Ireland took a financial investment share of 0.22 per cent in Interim EUTELSAT at an estimated cost of IR£140,000 up to and including 1985.
Interim EUTELSAT, as the name suggests, is a provisional organisation and it was intended since its establishment in 1977 that it should be replaced by a definitive international inter-governmental organisation and thus enjoy the same status as the global telecommunications satellite organisation INTELSAT.
To this end an inter-governmental conference was convened and met in Paris from 3 to 14 May 1982. It was attended by representatives of 26 European States. Ireland was represented at this conference by delegates from the Departments of Foreign Affairs and Posts and Telegraphs. Following at times difficult discussions and negotiations, a convention establishing EUTELSAT as a definitive organisation for European satellite telecommunications and an operating agreement relating to EUTELSAT were agreed at this conference. The Final Act of the conference was signed on behalf of Ireland by the Secretary of the Department of Posts and Telegraphs.
Both the convention and the operating agreement were opened for signature on 15 July 1982. Under the terms of these agreements it is open to this country to become a member of EUTELSAT on the same terms and conditions as applied to our membership of the interim organisation if we do so within an 18-month period dating from the opening for signature of the convention and operating agreement, 15 July 1982, up to 15 January 1984, the final date for ratification of the convention.
Accordingly, the Government gave their authority on 26 May 1983 for the signature of the convention on behalf of Ireland. The convention was signed on behalf of Ireland by our Ambassador to France in Paris on 3 June 1983, Ireland taking a 0.22 per cent financial share in EUTELSAT. At the time that the Government gave their authority for signature of the EUTELSAT convention, they also gave their authority for the moving in Dáil Éireann of this motion for a resolution approving the terms of the convention and operating agreement and, following Dáil approval, the signature on behalf of Ireland of the operating agreement.
It should be pointed out that while the convention has already been signed on behalf of Ireland, it will not enter into force for this country until the operating agreement has been signed. It should, perhaps, also be noted that while the convention is signed on behalf of the Government, it is usual in international agreements of this nature — as, for example, was the case with the INTELSAT agreement — that the operating agreement is signed by the designated telecommunications entity of the Government, in this case the Department of Posts and Telegraphs, who then become the signatory.
Turning now to the agreements themselves, it could be said that the convention sets out the aims and scope of activity of the organisation, together with the rights and obligations of the parties — the governments who sign the convention — while the operating agreement in essence states how the provisions of the convention are to be executed.
The convention contains 26 Articles and two Annexes, the first of which defines the terms used in the agreement, the second establishes EUTELSAT as the definitive organisation for satellite communications in Europe, and the third sets out in detail the objectives of the organisation, its scope of activity. Article IV provides that EUTELSAT shall have legal personality and in order to provide for this in Irish law it is necessary to make an order under section 40 (1) of the Diplomatic Relations and Immunities Act, 1967. This matter will be dealt with in a separate memorandum to the Government at a later date.
The financial principles of EUTELSAT are set out in Article V of the convention and the manner in which they are to be applied is set out in Articles 4 to 13 of the operating agreement.
Article V (d) of the convention states that "Each Signatory shall contribute to the capital requirements of EUTELSAT and shall receive capital repayment and compensation for use of capital in accordance with the Operating Agreement". The amount of the initial capital ceiling of EUTELSAT is set at 400 million European Currency Units (ECUs) in Article 5 of the operating agreement. In accordance with the provisions of Article 4 of the operating agreement, the maximum extent of this country's liability for capital contributions to EUTELSAT would amount to 0.22 per cent of 400 million ECU equal to .88 million ECU, which at a current rate of exchange — IR£.69=1 ECU — would be equivalent to £607,000 approximately. To date, our contributions to EUTELSAT, including retrospective payments due on our accession to Interim EUTELSAT in 1981, amount to an estimated £99,000. It is estimated that contributions for 1984-85 will come to £40,000, bringing our total contributions for 1981-85 to approximately IR£140,000, as originally estimated when we joined Interim EUTELSAT in 1981. Our capital contributions from 1986-87 onwards will increase somewhat as payment for the European Communications Satellites will fall due at that time. The figure of 400 million ECU as the initial capital ceiling was chosen to cover the cost of a first and possible second generation of ECS satellites.
It is expected that when the EUTELSAT satellite system becomes fully operational in 1984-85, and revenue begins to flow into the organisation, we will begin to receive interest on capital and capital repayment in line with that which we receive from the International Telecommunications Satellite Organisation (INTELSAT). We receive interest on capital at a rate of 14 per cent per annum from INTELSAT. The full cost of our membership will in due course be met by charges to our subscribers of the system.
Articles XIV, and 17 of the convention and operating agreement, respectively, which deal with Procurement Policy are also of interest. Article XIV of the convention establishes that the Procurement Policy of EUTELSAT shall be such as to encourage the widest possible competition. The principle of open international tender shall apply. It further states that:
Contracts shall be awarded in the best interest of EUTELSAT, to bidders offering the best combination of quality, price, delivery time and other important criteria of relevance to EUTELSAT, it being understood that, if there are bids offering a comparable combination of the above mentioned criteria, contracts shall be awarded with due consideration to the general and industrial interests of the Parties. (Article XIV (c)).
This provision was included in the convention to safeguard the position of the European space industry, and in particular that of the European Space Agency (ESA) of which Ireland is a member. Ireland has benefited considerably from our membership of ESA, many firms here having won contracts for components for the agency's activities in manufacture of satellites and launch vehicles. The organisation structure of EUTELSAT, the composition and functions of its various organs are dealt with in Articles VI-XII of the Convention. The remaining articles in the convention and operating agreement deal with the Rights and Obligations of Members; Amendments; Withdrawal and Suspension Settlement of Disputes; Co-ordination with other users of the space segment; relationships with other international organisation; procedures for use of the satellite system etc.
Ireland participated fully in the drafting and agreement of the terms of both the EUTELSAT Convention and Operating Agreement and as has been stated earlier is among the 20 European States to have signed the Convention to date. As has also been pointed out, we must now sign the operation agreement before the convention can enter into force for this country.
EUTELSAT has already one satellite in orbit and fully operational. This satellite was successfully launched aboard the ESA launch vehicle Ariane on 16 June last. The main mission satellite which will provide the full range of telecommunications services, as well as European satellite business systems, is due to be launched in May 1984 and will be fully operational by the end of next year.
However, before EUTELSAT can be established as the definitive organisation, its convention must be ratified by two thirds of the states holding between them two thirds of the financial investment in EUTELSAT. This ratification procedure must be complete, under the terms of the convention by 15 January 1984.
It is essential therefore that we are in a position to sign the operating agreement at the earliest possible date and proceed with arrangements to have the convention ratified in time, not only to allow for entry into force of these agreements for this country, but also to facilitate the entry into force of the convention for EUTELSAT, so that it may enjoy inter-Governmental status and become the definitive organisation for satellite communications in Europe.
In order therefore to affirm our commitment to EUTELSAT I now move that Dáil Éireann approves the terms of the convention establishing, and the operating agreement relating to the European Telecommunications satellite Organisation, EUTELSAT.
On behalf of Fianna Fáil I welcome in general the establishment of the European Telecommunications Satellite Organisation, EUTELSAT. We regard this as an historic step in European communications. I feel confident that with the establishment of EUTELSAT it will add to the development of relations between ourselves and our European neighbours and bring about better understanding in the economic, social and cultural fields.
Our support at this stage is subject to clear assurances to be given by the Minister that the organisation EUTELSAT or its satellite facilities will not be used by the North Atlantic Treaty Organisation for military or other purposes which would infringe our clearly stated position regarding neutrality. I want to make this point clear because the satellite organisation will have an important role in communications in the European area and it is absolutely essential that we retain our clearly enunciated policy regarding neutrality.
On page 6 of the convention it states clearly that the item I referred to should not be considered. I am making the point at this stage in case the Government, who have certain ambivalence in relation to neutrality should be warned that we will oppose this convention if an assurance is not given that the possibility of using the EUTELSAT organisation for any military purpose by NATO will not be accepted by the Government.
With regard to the convention, the need for EUTELSAT is quite obvious particularly in relation to a situation where communications are so important. The telephone has become such an integral part of our daily life that it is sometimes surprising to recall that this marvel of communications was invented only 100 years ago. There was no telephonic communication with America by cable until 1956. Radio telephone links on which trans-Atlantic communications had depended during the previous 30 years were subject to fading and total black-out. In recent years tremendous progress has been made in relation to direct communication with America and throughout the rest of the world.
The continuous growth of telecommunications is no longer conceivable without an increasing use of space techniques. The International Telecommunications Union estimate that the volume of long distance telephone calls will grow by anything between 15 per cent and 27 per cent per year for the foreseeable future. Moreover, while the industrial aspect of telecommunications make them an important sector of economic activity they also play an important role in other essential functions such as production, marketing and administration. The mastery of space communications, therefore, has major industrial, economic and even political significance.
Satellite communications can be divided into three areas of activity: (1), point to point communications; (2), mobile services, such as maritime and aeronautical communications and (3) direct broadcasting into the home. That was dealt with by the Minister in the last few days at a press conference. I appeal to Minister Mitchell to bring any proposals in relation to satellite broadcasting before the Dáil first. It is an insult to the House if the Minister regards a press conference as being adequate to outline his plan. The Minister embarked on something new today in the Irish Independent by writing an article under the heading “The Brave New World of Satellite Television”. Journalists should be warned about this new movement by Ministers to get into the field of journalism. Instead of relying on reputable journalists to write articles Ministers have now decided to write their own articles. A Minister with specific proposals should outline them to the House first. Before the Chair rules me out of order, I should like to point out that the matter I have mentioned is relevant to this debate.
The Chair did not say anything yet.
I was monitoring the Deputy's contribution. A passing reference is in order.
From 1980 the European Space Agency has provided satellites for point-to-point communication links capable of carrying a large part of intra-European telephone, telegraph and telex traffic and the relaying of Eurovision programmes to broadcasting organisations, like RTE, throughout Europe. Traffic forecasts made by European posts and telegraphs organisations show that the operational satellite system needs to be able to carry about 20,000 simultaneous telephone transmissions in 1990 as against a figure of 5,000 in 1980. That will be tremendous increase and it makes obvious the need for additional satellite communication services.
The management of this European regional system has been entrusted to EUTELSAT, created by European posts and telegraphs organisations.
EUTELSAT will be complementary to INTELSAT which is a single global communications satellite system with 230 earth stations and 108 member nations. On 16 June this year the European rocket, Ariane, put the first EUTELSAT into orbit in a geostationary position ten degrees east. This is capable of providing 12,000 telephone circuits and two television channels. It is interesting to note that the Uplink frequency band is 14-14.5 giga-hertz and that research was carried out at University College, Cork, to overcome the adverse propagation conditions at these frequencies. I should like to compliment the professors and research staff of UCC on their work in relation to this. Their success highlights the advantage of having the expertise here to avail of new technologies. Three more of these satellites will be placed in orbit between now and 1990 to provide telephone and television circuits as well as specialised telecommunications services such as voice data and telex transmission between oil production platforms and shore stations.
What I have said so far about what is with us will pale into insignificance when direct broadcast satellites come along. Then the viewers will be reached directly in their homes without a complicated network of land-based transmitters and microwave links. The satellite television transmitters will have a large coverage area known as footprints, which will spill over to neighbouring countries. Each footprint will have five separate channels and this will give the originator of the signal a potential audience of several hundred million people. Already in the USA almost one dozen companies have applied for permission to start transmitting there although the first satellite of this kind is nowhere near being launched. In England the BBC hope to start transmitting on two channels in 1986. Channell 1 will be the best of BBC 1 and BBC 2 television programmes and the second channel will be pay television. Both channels will be free of advertising. RTE should endeavour to be in a position to provide at least an additional channel carrying advertising around this time.
Major confrontations could arise between neighbouring countries faced with unwanted but technically unavoidable spill-overs. This could be the case where relations become strained, even temporarily, between members. Each will accuse the other of undertaking propaganda exercises and so on. It is appropriate that when we are discussing an international convention we should discuss broadcasting generally. Though EUTELSAT is not directly involved with the satellite television stations which are expected to come on stream in the next few years this matter is relevant to the area of communications in the years ahead. Our national station, RTE, should be gearing itself for the future exciting possibilities and potentials. In 1977 in Geneva organisations responsible for telecommunications in all European countries anticipated the development of satellite broadcasting. The major countries thought is would be a positive idea to allocate to countries like us orbital positions far removed from their own. That will leave us in a good position to provide services throughout Europe.
Technology advances very quickly and today aerials are available that can receive direct satellite broadcast signals from different orbital positions. Unlike the receiving dish which has been in use until recently these aerials have a type of curved focal bar instead of a focal point and they can easily pick up satellites far removed from each other without moving. They are cheaper and easier to mount than the dish receiver aerial ensuring that they will be mass produced when direct satellite broadcasting becomes a reality. This new technical development has reopened doors which were closed firmly by the larger European countries in Geneva in 1977. To take full advantage of direct satellite broadcasting Ireland, through its national broadcasting organisation, RTE, must be in a position to start broadcasting at the same time as BBC. Early penetration in Britain is essential as a first step into Europe. Income would greatly exceed RTE's present total income for a penetration of 10 per cent. Every percentage point above this would be a licence to print money. This can be achieved easily with the right type of programmes and marketing of such.
The Chair does not think that the quality of programme or the type of programme can be dealt with on this motion. The mechanics of broadcasting or television are in order but we cannot have a complete roam around programmes and such matters.
The convention deals with communications and there was mention of two channels by EUTELSAT. In that regard there is a connection between television broadcasting and EUTELSAT because the two channels would be availed of by RTE to, for instance, bring the Eurovision song contest to Ireland. The Olympic Games will be broadcast directly to Ireland and RTE will be using EUTELSAT's satellites to avail of that.
That would be more appropriate for the Estimate for the Department. The Chair should like to refer the Deputy to the Minister's speech which sets out precisely what is involved.
I accept that but it is fair, when the Minister is not giving me an opportunity to discuss other aspects of satellite broadcasting, to refer to this particularly when he has availed of another method of communication.
We cannot have an Estimate-type speech on this debate.
The organisation will be based in paris. I appreciate that we have only a percentage of the total involvement in this organisation but we should have some say in the job potential being created, particularly in production of material for the satellites, ground stations and so forth. The IDA should involve themselves in studying this organisation and the convention to ensure that our industry would be geared to providing some facilities to avail of the great achievements, possibilities and potential of this organisation. It is unfortunate that it is based in Paris; naturally we would like some part of it associated with our capital city.
The creation of jobs at this stage is essential. We have already geared ourselves to receiving European satellites at our earth station at Elfordstown, Midleton, County Cork, and this will come into operation in the second half of 1984. I understand that the capital cost of the project is estimated to be in the region of £7 million. We have geared ourselves to receive signals from direct satellite communication facilities and, in a sense, we are ahead as we will have those facilities available in the middle of 1984. Costs in relation to this technology are enormous but the net results and advantages for our country are evident.
Communications and contact with the EUTELSAT organisation has been going on for a number of years and successive Governments have enthusiastically endorsed the development of this communications system. At this stage we are in a position to avail of the technical side of this development and we should be in a position to avail of the potential for job creation here. Our representatives at this convention should brief the IDA on the potential that can be achieved in that matter.
Many areas here cannot receive some of our present stations and the Minister and Minister of State should investigate the possibility of setting up small deflectar units to solve the problem. I believe that the Minister is considering the rebroadcasting of RTE 1 and RTE 2 to community groups in isolated parts of the country, with a contribution from RTE to assist the local community. I take this opportunity of asking the Minister to investigate the poor signals received in different parts of the country——
If the Deputy goes on in this vein, we could have an in-depth discussion on the telephone system and you know where that might lead us.
Well, we can discuss that too.
The Chair does not think we could.
I will not go into that any further. We must ensure that EUTELSAT will not be used for anything except peaceful communications between member countries. This organisation will have immense benefits as far as telephone communications throughout the world are concerned and many of our own subscribers — I could go on at length in relation to ——
A reference to trans-Atlantic telephone services appears to be in order because the motion deals with that but references to the telephone system in County Roscommon or even County Cavan would not be in order.
I welcome the setting up of the convention. It is a new development and I ask the Minister to give the House an opportunity to discuss satellite television broadcasting at the earliest possible opportunity. It is of major importance to the this country, and, linked with EUTELSAT, is an important development. I hope the Minister will outline his schemes for this development.
I will confine my speech to ET developments and will not mention telephones. Ireland's participation in the sphere of satellite communications covers a broad spectrum and dates back to the early sixties and the founding of the International Telecommunications Satellite Organisation (INTELSAT) which is an intergovernmental organisation. Ireland was one of the 19 founding States instrumental in drawing up the INTELSAT agreements and in initiating the operation of the world's only global satellite telecommunications system. Today INTELSAT boasts a membership of 109 states and 134 states (members and nonmembers) now use the satellite system which provides two thirds of the world's trans-oceanic satellite telecommunications and virtually all overseas television transmissions.
INTELSAT operates satellites in the three main ocean regions. i. e. in the Atlantic, Pacific, and Indian Ocean Regions. The latest series of INTELSAT satellites each has a capacity of 12,000 circuits and can handle that number of telephone calls simultaneously, as well as providing two TV channels. Generally, communication satellites were located in the equatorial orbit and are stationary relative to the earth's surface. Potentially, they cover half the earth. In order to communicate through the satellite, an earth station is required at the originating and receiving ends and the earth station originating communication transmits a signal to the satellite which transmits it back to the receiving earth station.
Ireland's use of the satellite system began in 1965 with the bringing into service of two satellite circuits from this country to the United States. These circuits were routed via an earth station in Goonhilly, Cornwall, in the United Kingdom in which this country had a financial investment share. Over the years, the number of satellite circuits used by this country has increased gradually and traffic growth has now reached a point which requires us having an earth station of our own to cater for telecommunications facilities on the North Atlantic route. The INTELSAT Atlantic Ocean Region Satellite serves the United States and Canada, as well as South Africa.
To cater for this development and future requirements, a site for an Irish earth station, which will access the INTELSAT Atlantic Ocean region satellite, was purchased at Elfordstown, Midleton, County Cork in 1981. Work is now in progress on the construction of the earth station and is well on target for a completion date at the end of March 1984. The earth station will be fully operational by mid-1984 at which time all of our satellite circuits serving the Atlantic Ocean route will be transferred from the United Kingdom earth stations, on which they are at present routed, to Elfordstown; this will provide us with direct, totally independent satellite circuits to the United States, Canada and South Africa.
For technical reasons, it is not possible to access the Indian Ocean Region satellite of the INTELSAT system, which serves Australia, New Zealand and Japan, from an earth station located at the Elfordstown site. Our traffic on this route has been routed via earth stations in the United Kingdom until recently. However, we have joined with the telecommunications administrations of the Netherlands, Belgium and the Nordic countries in co-ownership of an earth station, located at Burum in the Netherlands, which will give us independent access to INTELSAT Indian Ocean Region satellites. This investment will result in reduced costs for routing our traffic on this route.
INTELSAT has been at the forefront in technological development of satellite communications and will once again be first in the field with the introduction of its satellite business systems at the end of this year. INTELSAT business systems will offer a global system which will enable a business with offices or factories in different locations throughout the world to avail of private satellite links between its various premises. This should be of enormous benefit and attraction to multinational companies, many of whom are sited here.
INTELSAT proposes to offer its satellite business systems on an "unprotected" basis, that is, no back up in the event of satellite failure, in the Atlantic Ocean Region from 1984, and on a fully "protected" basis in all regions in 1985. At this time we will be able to offer this service to the Irish business community using our own earth station at Elfordstown or small earth station which can be located near a user's premises.
As can be seen from the above, Ireland has participated fully in INTELSAT since its foundation and has derived tremendous benefit from its membership of that organisation, both in terms of the facilities of which we have been able to avail and of the services we are able to offer to subscribers. It should be added also that our financial investment in INTELSAT has also proved very fruitful. In addition to the repayment of the initial capital, we received a return of 14 per cent per annum on our investment. Indeed the organisation has proved so efficient in its operations that utilisation charges for the use of the satellite system have been reduced or maintained at present level for the last 12 successive years.
INTELSAT has been phenomenally successful over the years and Ireland can and should be proud of the role it has played in the foundation of the organisation and in its participation in the activities which have led to the development and growth of the world's most advanced satellite tellecommunications system. In this we are shareholders.
Following the lead of INTELSAT, a provisional organisation for the provision and operation of commercial telecommunications satellites in Europe, "Interim EUTELSAT" was founded in 1977. Ireland has participated from the beginning in experiments with EUTELSAT's pre-operational satellite — OTS — orbital test satellite.
Ireland joined Interim EUTELSAT in 1981, taking a financial investment share of 0.22 per cent at an estimated cost of £140,000 up to and including 1985, in order to be in a position to avail of satellite facilities and to offer the full range of telecommunications services, telephone, telex, data, satellite business systems and so on, via satellite on an intra-European basis at the same time as our partners in Europe.
As a member of Interim EUTELSAT Ireland was able to participate fully and to have a significant input into the preparation of the draft convention and operating agreements put before the intergovernmental conference which was held from 3 to 14 May 1982. During this conference Ireland played an important role in the discussions and negotiations leading to final agreement by representatives of the 26 European states which took part in the conference of the terms of the convention establishing EUTELSAT as the definitive organisation for European satellite telecommunications and the operating agreement. To date 20 of those states have signed the Convention and 17 have signed the operating agreement.
The EUTELSAT convention was signed on behalf of Ireland at Paris on 3 June last. At a meeting of the Council of EUTELSAT which was held in Dublin Castle from 6-10 June 1983 our commitment to EUTELSAT was re-affirmed with the announcement that it is planned to introduce an Irish earth station to operate with the EUTELSAT satellites by 1986.
Our participation in the European Communications Satellite System will be advantageous to this country, just as the INTELSAT has been. At present all of our telecommunications traffic to Europe is carried on the terrestrial network, that is to say by submarine cables and microwave links. With the introduction of an Irish earth station which will access EUTELSAT satellites we will be able to provided telephones, telex, data, TV relay services via satellite to any destination in Europe. Arrangements have been completed recently with our partners in Europe to route some of our main telecommunications traffic via EUTELSAT from 1986 on. In addition it is planned to have a EUTELSAT Satellite Multiservices System in service by late 1984, early 1985. We will be able to offer this service to our customers using special small earth stations which may be located at sites convenient to customers premises.
The practical advantage of using the EUTELSAT satellite system may summed up as follows:—
1. The availability of satellite business systems which may help to promote industrial development in Ireland and will certainly be an advantage in competing for mobile investment.
2. Satellite links to Europe will provide us with diversity of routing — that is, back-up facilities — in the event of system failure of the terrestrial links to Europe.
3. Satellite service to Europe will provide us with a measure of independence from our major partners in Europe, which we do not enjoy at present as our terrestrial links to Europe must transit other countries at present.
4. Opportunity for "spin-off" contracts for Irish firms through our association with the European Space Agency, which is the contractor for the first generation of EUTELSAT satellites.
5. Transfer of technology which will result from our involvement in EUTELSAT.
In addition to all of these it should be pointed out that as a signatory of the EUTELSAT Convention we are assured of a repayment of capital and compensation for use of capital. Indications are that compensation for use of capital could well be similar to that presently received on our investment in INTELSAT, at about 14 per cent per annum.
Our interests in EUTELSAT will be looked after at two levels:
Governmental — by our representation on the Assembly of Parties and
Operational — by our representation on the Board of Signatories.
We will also have an opportunity to have an input at both the technical and financial levels by our representation on the technical and financial committees of EUTELSAT.
In summary, therefore, I should like to reiterate that our participation in the sphere of satellite communications goes back many years and covers many fields. Ireland has benefited considerably from this involvement. I have cited INTELSAT as an example of the fruitfulness of Ireland's early and full participation in the sphere of telecommunications satellite growth and development.
There is every reason to expect that Ireland's involvement in EUTELSAT will be equally beneficial in the European context. It is worth saying again that we have participated fully in the drafting and negotiation of the terms of the EUTELSAT Convention, which was signed on behalf of Ireland in June last, and the operating agreement, which may signed on behalf of Ireland when the House approves the terms of these agreements.
On a practical level the urgency attached to the timing of our signature of the EUTELSAT operating agreement should be stressed again. The convention will not enter into force for this country until the operating agreement has been signed, and the convention must be ratified by two thirds of the states who are party to it, and holding two-thirds of financial investment, by 15 January 1984, in order to effect its entry into force and establish EUTELSAT as the intergovernmental organisation for satellite communications in Europe.
As Deputy Leyden said, there was another ET development during the week when the Government decided to seek proposals for an Irish direct broadcasting satellite service. These proposals are being sought from national and international groups. Of course, the matter will be brought before the Dáil at the appropriate time. The Deputy referred, too, to the 1977 International Convention in Geneva when we were given a particularly advantageous orbital position with five channels. This will give reception for Irish television for the first time in the whole of the UK, in parts of Holland, Belgium, France, Denmark, Germany, Luxembourg and Norway. This is the first time that this could be done while conforming fully to international laws. It is a revolutionary development.
Of course it also extends out in the other direction to the west and south of the country. As at present there is nobody there to receive it. Presumably, when it comes on stream by 1987 the operational staff of the oil rigs will be glad of this service for entertainment in their leisure time. The DBS represents a revolutionary new opening of the airways. It transcends national boundaries in a totally legal sense in conformity with all international organisations. It offers great possibilities. Also, because it is totally new, it represents a journey into the unknown. While our footprints cover this vast area so also do the footprints of other countries, other television stations, which can be received here.
It is only right that we should compliment the committee set up to examine satellite broadcasting on their excellent report and the speed with which it was produced. The Government have reacted very quickly in inviting these proposals because time is of the essence. We may face the stage here, in 1987 or perhaps later, when we shall have a choice of 15 to 20 outside channels coming in here not at present available. We must take our decisions. We have the best possible advice available to us now. We have invited proposals. Of course we must be careful but we must also have courage in this area. In passing I may say there is very great interest in the development and in the invitation we have recently offered for proposals.
To revert back to EUTELSAT — which is the motion before the House — there are two main reasons that it is of the utmost importance that the deadline for ratification of the convention, 15 January 1984, is met. First, from an economic point of view, any delay in the entry into force of the convention will result in a consequential delay in the conclusion of a headquarters agreement. This agreement will grant privileges and immunities leading directly to a reduction in the cost of the Organisation and, hence, in the financial contributions into EUTELSAT.
Secondly, from the operational point of view, it should be noted that different principles underlie the interim and definitive arrangements for the establishment and operation of the space segment; the latter offering a more flexible approach. It is of particular concern, that, in its interim status, EUTELSAT may have to acquire in 1984 the satellites which will replace the existing ECS system but without the benefit of any provisions in interim agreements establishing the organisation's procurement policy.
For those reasons I support the motion before the House and would urge the House to approve the terms of the convention establishing, and the Operating Agreement relating to, EUTELSAT.
I thank the Minister and Deputy Leyden for their participation in this debate. It is remarkable how the scope of a debate can be so widened. We are dealing specifically here with the EUTELSAT Convention and Operating Agreement. However, at the request of Deputy Leyden, we have listened to the Minister, Deputy Nealon, give us a very informative review of what we may be able to receive at some stage in the future. One wonders are we going to become a nation of television watchers? How many stations do we need in this country? Certainly there is need for more than we have at present. In certain areas of the country two stations only are received, that is RTE 1 and RTE 2, whereas those people living along the east coast benefit from a number of other stations. Therefore, it would appear that in the not too distant future, certainly by the end of this decade, we, the forgotten people living in the western regions will have available to us the same number of stations and benefits as have our eastern cousins at present.
As has been said earlier, Ireland has been involved in the sphere of satellite telecommunications for many years and has derived considerable benefit through this involvement. I am confident that our involvement in and commitment to EUTELSAT will be as beneficial to this country as our participation in the International Telecommunications Satellite Organisation (INTELSAT) proved to date. The advantages of using the EUTELSAT satellite system have already been put before you. I should like to sum them up again here and to emphasise the importance and, indeed, practical reality that access to the EUTELSAT satellite system represents for this country.
On a practical level, participation in the satellite system will provide us with satellite links to Europe and thus diversify routing of our traffic in the event of failure of the terrestrial links to Europe. In terms, less clearly "definable", but of equal importance, satellite service to Europe will provide us with a measure of independence from our major European partners on whom we are dependent at present for transmitting facilities for our terrestrial links. It will also enable us to provide service, such as satellite business services, at the same time as our European partners, the importance of which, in relation to the competitive environment in Europe for mobile investment should be emphasised again.
The implications of our involvement in EUTELSAT for Irish industry I am sure have not been lost on the House. I shall refer in a moment to the point the Deputy made himself. There is a real opportunity for "spin-off" contracts for Irish firms through our association with the European Space Agency which is the contractor for the EUTELSAT satellites. The benefits of the transfer of technology which will also result from our involvement in EUTELSAT, should not be underestimated. And, of course, we are guaranteed a repayment of our capital investment in the organisation, and compensation for use of capital.
With regard to our actual investment in EUTELSAT, some of you may be wondering, why, in view of the benefits likely to result from our participation in the satellite system, Ireland has taken such a small investment share, 0.22 of 1 per cent. I should explain that at the time of our joining Interim EUTELSAT in 1981, it was envisaged that our use of the satellite system would be limited initially to the provision of satellite business systems to our customers. It was decided therefore to take a small percentage share, equal to the lowest percentage share of an existing participant in Interim EUTELSAT, 0.22 of 1 per cent. Under the terms of the convention, it was open to us to join the definitive organisation on the same terms as applied to our membership of the provisional organisation. It was decided therefore that we should retain our percentage investment in EUTELSAT at 0.22 of 1 per cent on signing the convention in June last. This small investment share will in no way limit our use of the capacity of the system but it will have the effect of keeping our capital contributions at a reasonable level.
I should like to assure the House that the EUTELSAT satellite system is not being used for any type of military purpose, as the Deputy hoped it would not. There is no reason to believe that it will; in fact it definitely will not. That is specifically excluded under the terms of Article III paragraph (e) of the convention.
The Deputy also referred to direct broadcasting satellites. The EUTELSAT system is not intended to provide direct broadcasting services. The satellite can be used in the same way as ground telecommunications systems to carry television material live between different locations for subsequent broadcasting by the appropriate television and radio authorities. Deputy Leyden referred also to the need to have the IDA fully briefed on the industrial possibilities for Ireland. That is a most important point. Discussions have already taken place with the IDA and will continue in that direction. Our small share in this is 0.22 of 1 per cent, as one of 20 nations sharing its cost. I should say, for the information of the House, that the people sharing the larger part of the cost are the United Kindgom at 16.40 per cent; France with a similar share; Italy, 11.48 per cent, the Federal Republic of Germany, 10.82 per cent and Belgium, 4.92 per cent. One other place has a contribution similar to ours but quite a number of them are less than 1 per cent.
Finally, I reiterate that we have participated fully in the negotiations leading to and in the drafting of the EUTELSAT Convention and Operating Agreement now before the House. We are fully satisfied with the terms of these agreements and have signed the convention on behalf of Ireland. Therefore, I urge the House to give its approval to the terms of the EUTELSAT Convention and Operating Agreement in order to facilitate the speedy signature of the operating agreement on behalf of Ireland and the ratification of the convention on the due date of 15 January 1984.
Question put and agreed to.