Simon Coveney
Ceist:27 Mr. Coveney asked the Minister for Communications, Marine and Natural Resources if he will make a statement on the latest State broadband initiative involving the spending of ?140 million between now and 2007. [31608/03]
Priority Questions. - Electronic Communications Infrastructure.
Although the provision of telecommunications services is a matter in the first instance for the private sector companies operating in a fully liberalised market, it has been clear for some time that the market has not responded to the demand for broadband, either in the provision of services, the pricing of those services or their regional spread. In this regard, I welcome the announcement by Eircom in recent days of its intention to extend its DSL coverage to more than 150 locations by March 2005.
On Thursday last, the Minister for Communications, Marine and Natural Resources, Deputy Dermot Ahern, announced the Department's broadband action plan to make high-speed connectivity available to towns with an aggregate population of more than 350,000. The key elements of the plan are: the provision of open access, high-speed broadband infrastructure in towns with a population of more than 1,500; a Government supported group broadband scheme, similar to group water schemes, in which smaller communities can pool their demands and secure high speed connectivity from a range of providers in the market; funding of €140 million, committed under a multiannual budget approval by Government, representing €35 million annually between now and 2007; tougher fines against those infringing communications laws; new policy directions to the telecoms regulator focusing on delivering competitive pricing; and a website on which consumers demanding broadband can register and view competing prices from broadband providers. These initiatives complement other broadband initiatives taken in recent months and covered extensively in the House on previous occasions.
I welcome the progress made by the private sector in recent days on broadband roll-out and pricing, particularly wholesale pricing. On Monday, Eircom announced plans to roll out broadband to an additional 80 towns in the next 18 months. Today, it has been reported that Esat BT and the ESB have announced plans to reduce wholesale telecommunications tariffs in the regions outside Dublin to the level available in the capital. This is a welcome initiative which will reduce the cost of accessing broadband for many people.
I will focus, however, on the Minister's announcement last Thursday, which, as usual, was made through press releases and announcements as opposed to in the House. Will the Minister of State confirm that the promised funding is €140 million over the next years, which amounts to €35 million per year? Is it not misleading to announce that the funding is €140 million when only €35 million will be spent each year until 2007? Does the Minister of State expect the implementation of the strategy to roll out broadband to 83 new towns with a population in excess of 1,500 to take four years to complete? Is this the grand plan? Is he satisfied that €35 million per annum will be sufficient for this purpose in an area of such importance?
The group broadband scheme is supposedly available for rural villages and towns with a population of less than 1,500. While I welcome the Minister's effort to address this issue, he is going about it the wrong way. People in rural areas will have to pay 50% of the cost of rolling out broadband to their areas. Will asking people to pay half the cost, in contrast to the Government's undertaking to meet the cost of rolling out broadband to the 83 towns announced by the Minister, solve the digital divide between rural and urban areas? Instead of solving a problem for many people in rural areas, we are causing another one by asking them to pick up half the tab.
The Minister announced funding to roll out broadband in rural areas through group broadband schemes to which communities will be able to apply for grant aid. What he forgot to mention was that it was matching funding and the communities in question would have to pay 50% of the cost. Does the Minister of State accept that this may discourage some communities from securing broadband because they will see no hope of getting together a group of 30 people, the minimum required to apply for a grant and will also have to meet 50% of rolling it out?
As regards the Minister's grand broadband strategy, what will happen to people in rural areas, for example those living on farms or commuting to work in urban centres, who are unable to bring together a group of 30 people? Is there any hope for them under the strategy because I fail to see it? How does the State propose to ensure—
An Leas-Cheann Comhairle
As the time allocated for the Deputy's question has almost expired, the Minister of State will be unable to reply.
I ask the Minister of State to give brief and concise answers to my questions.
An Leas-Cheann Comhairle
The time allocated for the question has concluded. We cannot continue to allow questions to exceed the time allocated under Standing Orders.
I will be brief. The coverage in Ireland is 30%. In most other EU countries it is 70%. The Minister is determined that Ireland will achieve the 70% level within a reasonable period of time. Like Deputy Coveney I welcome the announcements by Eircom and Esat BT this week. Deputy Coveney is right, the Minister announced last week €140 million in funding from the Government between now and 2007.
It is not enough.
If further funding comes on stream works will be carried out before 2007. The Minister has set a target which will deliver broadband infrastructure to over 350,000 people who have no immediate prospect of access. The small rural communities outside of the urban areas can also get access to broadband based on initiatives similar to the group water schemes. People who live in rural Ireland are aware of how successful group water schemes have been in the past. Local communities have to make a contribution, in addition to the amount of money they will receive from the Department of the Environment, Heritage and Local Government. The Minister is saying matched funding is needed and recommending that groups of 30 people should apply. I will refer Deputy Coveney's concerns about individuals who cannot muster a group of 30 to the Minister. I am sure such cases will also be dealt with.
The main focus of the Department of Communications, Marine and Natural Resources is to achieve the 70% coverage that other EU countries have at present, through a combined initiative of Government and private enterprise. How this is achieved does not matter. The important thing is that we do it, working together with all the relevant sections of industry and the community. The sum of €140 million is not an insignificant amount.
That is over four years.
It is a large amount of money committed by the Government to be spent over the next four years and hopefully earlier, as further moneys come on stream and are available to the Minister.