Vol. 536 No. 1
1 Mr. Higgins (Mayo) asked the Minister for Public Enterprise if she has received confirmation from Eircom that it has opted out of the £37 million programme in the national development plan to upgrade telecommunications and digital infrastructure in the Border, midlands and western region; and if she will make a statement on the matter. [13302/01]
(Mayo): Does the Minister realise how devastating a blow this has been for the Border, midlands and western region? This infrastructural project was viewed as crucial from the point of view of bridging the digital divide between Dublin and the remainder of the coun try. In fairness, the Government agreed to make available 12 million of the 37 million required. However, Eircom has suddenly decided to pull out. Has the Minister met representatives of Eircom to see if the company's decision can be reversed? What rationale is Eircom applying in this instance, apart from the fact that it appears to want to tighten its belt? Is it simply preparing for a further take-over by the bidders who are abroad in the marketplace? What plan has the Government to make up the deficit or to put in place an alternative plan? We cannot allow the situation to continue where one part of the country has the most modern ASD services and fibre optic cable, while the other part has literally nothing.
I was appalled when Eircom announced its decision. Funding for the project was allocated by the group which considered the applications and it appeared that Eircom's application was very good. I did not meet representatives of Eircom but my officials have been in discussions with them. Apparently, the financial director requested people's ideas about Internet access and called in media firms, etc., and the result was what appeared in the company's application.
There remain a huge number of other projects which, thankfully, have not dropped out of the race. When we advertised and received applications, there were many projects which did not obtain funding. Ironically, those responsible for the projects in question have proceeded with their work and want to expand it. We intend to approach the next applicant company on the list and offer it the funding that has been returned. There are projects already in train and awaiting funding; it is merely a matter of proceeding with allocation. Some of the projects which are apparently doing well or which, at least, want to extend their operations are situated in the midlands region, Longford, Kerry and other areas. It is not my place to offer an opinion on what will be the result of cheese-paring, but that is the type of activity in which Eircom has engaged.
That is what happens when we proceed with privatisation; we lose control.
(Mayo): We can discuss Objective One status and what it will do for the region, the plans of IDA Ireland, Forfás and Údarás na Gaeltachta, the Tánaiste's aspirations for further regionalisation and the achievement of a balance in that regard in terms of the creation of jobs, but if the proper telecommunications infrastructure is not in place and if people cannot download information on a par with people in the remainder of the country, the continent or the world, we will not be at the races. While the other plans and schemes to which the Minister referred are fine in that they make some reference to the west, the programme in question was specific to the Border, midlands and western region. Will the Government, as a matter of urgency, enter discussions with Eircom on this matter? If that means making up the balance in terms of funding, so be it. We will simply not be at the races in terms of job creation unless the required telecommunications infrastructure is put in place. If that means increasing the funding from 12 million to 37 million, let us do so. The gap is wide enough at present. We will fall hopelessly behind unless we put in place the proper telecommunications infrastructure. I plead with the Minister to take action on this matter.
I agree that we cannot allow a digital divide to develop. However, Eircom has taken a decision at board level and regardless of the number of discussions we have with its representatives, it will not reverse that decision. Many of the companies on the list of those awaiting funding are situated in the Border, midlands and western region and are proceeding with their operations. Eircom has taken a firm decision. I am aware that my officials spoke with its representatives because this decision was a source of major disappointment. This is despite the fact that money was returned to us and can now be reallocated within the relevant subhead. At present, the officials are considering how best to reallocate it.
The time is up, we must proceed.
I just want to finish this point. The Deputy will be aware of the Department's CAIT scheme. When this was launched, 440 community groups replied to advertisements placed by the Department in respect of what is a modest allocation of funding – £2.5 million. We are also continuing with other endeavours. In the event that the Deputy might be under the impression that discussing matters with Eircom might make a difference, I must inform him that its answer is a firm "no".
