Dáil Éireann díospóireacht -
Thursday, 1 Nov 2007

Vol. 640 No. 5

Adjournment Debate.

Health and Safety Regulations.

Deputy Joe Costello

The issue pertains to the question of EU standards for toy safety and my request for the Minister for Enterprise, Trade and Employment to raise the issue at the next EU Council meeting. I raised this issue in the Dáil last September when it came to my attention that approximately 2 million toys that had been produced in China under contract for Mattel in particular, which is the largest toy company in the world, had to be recalled because there were dangers of lead poisoning due to excessive levels of lead in the paint. This recall took place in August. I note there was a further recall last week of approximately 55,000 toys, 12,000 of which have been sold in Ireland and Britain since June. This is the fourth recall in the past six months of toys that have been produced under contract by Mattel and which are perceived to be dangerous to the health of children.

The number of recalled toys that have been on sale on the world market appears to be extraordinary and I do not understand how this has been allowed to continue. I understand the European Commission has rather belatedly agreed to undertake a review of its toy safety rules. The original toy safety directive from the European Union is 20 years old and the regulations that were produced arising from it were made in 1990. These govern issues such as marketing, classification and labelling of toys that are sold on the Irish market. Obviously, as 12,000 toys have been recalled within the past month, the regulations have not been successful. What will happen in this regard? When is it likely that a new or revised directive will be produced? When will such a directive be transposed into Irish regulations or law?

One should note that even before Hallowe'en, the marketing of toys and Christmas goods had already begun. There is a particular onus on the Government to ensure that the largest component of the Christmas market, namely, the toy market, is safe for children which would give ease and peace of mind to those parents who purchase toys for their children. I raise the issue now to impress upon the Minister that at the next EU Council meeting, he should argue strongly for the revision of the European Union directive. This should be done on the basis of urgency in order that the necessary safety regulations would be in place to avoid a recurrence of the same scenario that has taken place four times in recent times globally and occurred in Ireland only last week.

The safety of the children of this country is paramount. The responsibility for that safety rests squarely on the Minister who makes the laws and regulations that govern this area. I call on the Minister to make sure that action is taken urgently.

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Tony Killeen)

I thank Deputy Costello for raising this matter on the Adjournment. I will be taking it on behalf of the Minister for Enterprise, Trade and Employment, Deputy Martin.

The House will be aware of recent voluntary recalls on toys placed on the market by the Mattel Corporation and EU-wide concerns for the safety of children in the wake of such recalls. In Ireland, the European Communities (Safety of Toys) Regulations, SI 32 of 1990, which transposed Council Directive 88/378/EEC concerning the safety of toys, governs the marketing, classification and labelling of toys placed on the Irish market. These regulations are enforced by the National Consumer Agency, NCA. Under these regulations a toy may not be placed on the market unless it is safe, appropriately labelled and compliant with the essential safety requirements of the directive. Toys are defined as "any product or material clearly intended for use in play by a child of less than 14 years".

The directive and associated regulations also provide that any toy placed on the market must carry a CE mark to show that it conforms to the essential safety requirements of the directive. The CE mark on a toy also shows that it complies with relevant Irish and European standards and is safe provided it is used as intended. The general product safety directive also imposes a duty on all persons in the supply chain to ensure that products placed on the market are safe and do not pose a danger to health and safety.

The NCA is the market surveillance authority for Ireland and is also the contact point for RAPEX notifications. RAPEX is a system for rapid exchange of information about dangerous products in the European Economic Area. The system is coordinated by the European Commission and links market surveillance authorities in 30 European countries. When authorities take restrictive measures concerning a product which poses a serious risk for the health and safety of consumers, such as a ban on sale, withdrawal from the market, or a product recall, they must notify the Commission, which in turn notifies the authorities in all other member states. Member state authorities are then obliged to take follow-up measures on their national markets and to inform the Commission of their actions. The NCA has stated that it is confident that the RAPEX system is operating as it should and the fact that recalls are taking place is an indicator that traders are taking the safety issue seriously.

Following the Mattel recalls the NCA made direct contact with Mattel to obtain full details on all aspects of the notification. Mattel has indicated that it expects to have figures on stock returns by November. I stress that the details of the recalls were placed on the NCA website and the agency actively engaged in radio and television interviews on the issue. Mattel, an American toy company, is one of the largest toy companies in the world. Paint with excessive lead content was used on toys manufactured on its behalf in China, thus giving rise to the recalls.

Between November 2006 and October 2007 Mattel issued six voluntary recalls on toys due to high lead contents in paints used on toys or dangers relating to magnetic toys. The NCA contacted toy operators advising them of the recalls and requested that they make appropriate arrangements to carry out an effective recall of any of the toys that had been placed on the Irish market. They were also asked to report back to the NCA with details of their progress. Of the 22 million recalled toys on the world market between 2002 and 2007, approximately 118,300 toys were on the Irish market. The NCA is awaiting final data on stock retrieved from stores and on returns made by consumers.

In a follow-up action, the NCA wrote to toy operators to establish whether they had toys of a similar type to those of Mattel and to confirm that such toys were safe and, in particular, that they did not contain small magnetic parts or paint with excessive lead content. In the event of an unsafe product being found, they were required to issue a recall and to notify the NCA of any action taken. I have been informed that no notifications of similar products have been received to date.

The NCA informs me that toys are imported into Ireland mainly via the United Kingdom or other EU member states. In addition, the NCA understands that some operators also import directly from third countries. The NCA asked the customs authority for a list of these importers, and it provided a list of 73 traders who import directly from outside the European Economic Area. The NCA is currently preparing letters to alert these traders of their obligations under the legislation enforced by the NCA and to invite them to be placed on the NCA alert system and to take appropriate action to remove any product that presents a hazard.

I also understand from the NCA that the British Toy and Hobby Association, BTHA, has agreed a new code with which its members will comply. The main importers into Ireland have indicated either that they are subscribers to this code or that they will follow its guidelines. The code is an interim step to deal with powerful magnets contained in toys. It requires specific warnings to be displayed on packaging pointing out that these products contain magnets that can be hazardous if swallowed. The instructions-for-use leaflets accompanying such toys will also highlight the dangers and the necessity of seeking immediate medical attention if magnets are swallowed or inhaled.

The NCA has also issued a consumer guide to toy safety. This booklet informs the consumer of the current legislation, provides advice on toy safety, and includes a common-sense checklist. It is worth noting that the NCA actively pursues any complaints made regarding the safety of toys and its actions have resulted in a number of recalls of toys considered to be dangerous.

Arising from concerns generated by the Mattel recalls, the European Commissioner for Consumer Protection, Ms Meglena Kuneva, announced her intention on 29 August to carry out a review of the strengths and weaknesses of the consumer product safety mechanisms currently in place in Europe. This review has involved extensive work with national market surveillance authorities, the Chinese and US authorities, the European toy industry and retailers, as well as consultations with the European Parliament. The NCA has also been engaged in this review. The review is currently in its final stages and Commissioner Kuneva will present the results of this stocktaking and analysis at the Competitiveness Council on 22 November 2007 in Brussels. I look forward to receiving the conclusions of this review and to making progress on any actions recommended.

In addition to this review, I also understand that the European Commission intends to present a proposal for a revision of the toy safety directive by the end of this year with a view to enhancing safety requirements for toys and improving the efficiency and enforcement of the directive by national market surveillance authorities. Furthermore, a draft Council regulation which will enhance market surveillance activity generally is currently being debated by EU member states and the European Parliament. Adoption of this regulation is a high priority for the Council and will further enhance the present market surveillance regimes.

It will be clear from the above that the issue of product safety, particularly toy safety, is a high priority for the European Commission, my Department and the NCA. The meeting of the Competitiveness Council to which I referred will provide an opportunity for debate on this important issue and any proposals to enhance the legislative or administrative frameworks to ensure the safety of toys will be strongly supported.

Unemployment Levels.

Deputy Dinny McGinley

I thank the Leas-Cheann Comhairle for once again giving me the opportunity of raising the matter of chronic unemployment in Donegal on the Adjournment. What prompted me to raise this issue again this evening is the planned closure of the Seagate plant in Limavady. This highlights once more the continuous high level of unemployment in the north west and particularly in Donegal, where unemployment is at the appalling rate of four times the national average.

Since 1997, almost 10,000 industrial jobs have been lost throughout County Donegal, not just in my own constituency but in the entire county. In my own parish, Gweedore, a small Gaeltacht parish with which I am sure the Minister of State, if not the Leas-Cheann Comhairle, is familiar, 1,200 industrial jobs have been lost in the last few years. This is perhaps the equivalent of 100,000 jobs in my colleague Deputy Varadkar's city of Dublin. For example, 115 jobs were lost in Dianorm, 300 jobs in RMT, 50 jobs in Europlast, 280 jobs in Qualtron, 200 jobs in Comerama, 60 jobs in MDR, and 120 jobs in BMR. The list goes on.

These high levels of unemployment are not confined to my own parish. Last year we lost 600 jobs at Hospira in Donegal town, preceded by the loss of 120 jobs at Nena Models in Ballybofey and Stranorlar. There was also the closure of the Fruit of the Loom plants, which were located in five areas of Donegal, with the loss of 3,200 jobs. Almost 10,000 industrial jobs have been lost in ten years. What a terrible record for any Government or two successive Governments. As a senior trade union official in Donegal, who is leaving the county, said last week, the county has been shamefully neglected by this Government and its two predecessors. It is time something was done about this. We have had plans, task forces, suggestions and much talk. Everything has been delivered except jobs.

Three areas must be given priority in the county to attract industry and jobs because our industrial base is decimated. First, there is need for a major improvement in the infrastructure in the county, whether through access to the county, communications and telecommunications within it or facilities such as sewerage and water, recreation and education.

Having said that, our educational facilities in the north west are excellent. LYIT in Letterkenny is excellent and there is something similar in Galway, with graduates being produced every year. We all are invited to conferrings this at time of the year and I cannot see any reason that positions should not be available to some of these highly qualified, trained, eager, anxious young people in their areas.

The second area the Government must improve is access to the county, whether through the Republic or through Northern Ireland. Perhaps this is an area where both Administrations, the new devolved Government in Northern Ireland and ourselves, could get together with the support of Westminster.

Third, and perhaps most important, a county such as Donegal, with four times the national unemployment rate and which has lost 10,000 industrial jobs in the past ten years, is crying out for tax designation. This has been provided in other parts of the country. A number of years ago it was given to the upper Shannon basin — parts of Cavan, Sligo, Roscommon, Leitrim, etc. Last year in the budget it was again extended to the lower or mid-Shannon basin by the Minister for Finance. Something imaginative such as that must be provided for Donegal if we are serious about tackling in a meaningful way this chronic, long-lasting continuous unemployment problem.

Deputy Tony Killeen

I thank Deputy McGinley for raising this matter. I am taking the debate on behalf of the Minister, Deputy Martin.

On the unemployment rate for Donegal quoted by the Deputy, I point out that the Central Statistics Office does not compile county-by-county unemployment data. CSO data for the second quarter of 2007 show an unemployment rate of 5.3% for the Border region as against a national average of 4.5%. While it is recognised that Donegal has suffered particular difficulties in the past owing to the demise of traditional industries such as agriculture, fishing and textiles, there is clear evidence that the county is successfully engaged in a transition to the new economy. Live register figures at 8,340 and 8,370 for September 2006 and September 2007, respectively, are lower then any year going back to 1993.

The interdepartmental group report on Donegal, which my colleague, the Minister for Enterprise, Trade and Employment, Deputy Micheál Martin, launched last year, identified the various infrastructure developments required to support enterprise development in the county. The report noted not just that much progress had been made but also that financial provisions were available to complete major infrastructure projects, especially new roads, to equip Donegal further as an attractive location for enterprise development.

IDA Ireland has identified Donegal as a key target location, with the county now competing for a different type of business from labour-intensive manufacturing on which it relied successfully in the past. The overseas investor now seeks locations for more knowledge intensive manufacturing or office-based solutions, to a great extent depending on advanced skills and higher value-added activities. This has required a significant change of strategy by IDA Ireland with a focus on a limited number of key locations nationally.

IDA Ireland has developed a new modern business park in Letterkenny with modern building solutions capable of competing with other locations nationally and internationally. IDA Ireland has been working with the third level sector in the region, namely, Letterkenny Institute of Technology and the third level sector in Northern Ireland, to offer the necessary courses aimed at its target areas of medical technologies, international and financial services and high-end engineering.

Progress has been made over recent years in securing new investments from PacifiCare, Pramerica, SITA and Abbott Diabetes, with approximately 1,200 new jobs being added in the county by overseas firms over the past five years. These companies continue to recruit and are actively seeking new staff.

Pramerica Systems is expanding its services centre in Letterkenny to create 70 new jobs in software development and testing, operations, call centre and financial services with added capacity to recruit a further 80 personnel. Abbott, one of the world's largest health care companies, is establishing a manufacturing facility for its diabetes care products in Donegal town with the creation of 155 high quality jobs at full production. Abbott has now taken possession of its plant from Hospira and recruitment of key executives is under way along with the redevelopment of the site to meet the needs of its new occupant. SITA will expand its software operation in Letterkenny, leading to the creation of 123 high quality software development jobs. Zeus Industrial Products has made a capital investment of more than €7 million, principally in state-of-the-art premises, production machinery and equipment. There are 71 permanent staff members employed in the firm and recruitment is ongoing.

With regard to the Enterprise Ireland input in Donegal, during the years 2004 to 2006, a total of 1,156 jobs were created in Enterprise Ireland client companies in County Donegal, as against job losses of 980, leaving a net gain of 176 jobs.

The following are some specific Enterprise Ireland initiatives in County Donegal. Enterprise Ireland supports the CEIM enterprise platform programme, in partnership with Letterkenny Institute of Technology, the Institute of Technology in Sligo and Border Action, in providing a training programme for entrepreneurs wishing to set up their own businesses. This programme is now going into its fourth year.

Enterprise Ireland, in partnership with Invest Northern Ireland and the special EU programmes body, commenced recruitment in May 2007 for the Transform programme, a new cross-Border enterprise incubation programme. The programme was launched in September 2007 with a total of 43 participants, nine of whom are from the north-west region.

In 2006 Enterprise Ireland approved support of €650,000 for the provision of enterprise space in Carndonagh and Donegal town as part of the community enterprise centre scheme. Enterprise Ireland has approved a sum of €2.54 million to extend the business development centre at Letterkenny Institute of Technology to cater for increasing demand and the building work is due to commence in 2008.

Enterprise Ireland's policy objectives for balanced regional development are reflected in the structure of its funding offer whereby funding for existing company expansion and start-up businesses is biased towards regions. The maximum grant level is higher than in Dublin and the mid-east and a higher proportion of this funding is non-repayable.

In addition to the above, Donegal County Enterprise Board, funded by the Department of Enterprise, Trade and Employment, provides support to micro-enterprises in the start-up and expansion phases to promote and develop indigenous micro-enterprise potential and to stimulate economic activity and entrepreneurship at local level. Financial support is available in the form of capital grants, employment grants and feasibility study grants. From the board's inception in 1993 to date, it has paid out more than €6.7 million in grant assistance to more than 300 clients, which has assisted in the creation of 1,385 jobs.

The Department of Enterprise, Trade and Employment made additional funding available to Donegal CEB to develop and deliver two new initiatives, namely, a business information service and a "Let's Do Business" schools programme. The business information service involves the provision of a comprehensive business information service to individuals and businesses in the county. The "Let's Do Business" schools programme seeks to develop a spirit of enterprise within national and secondary schools through active learning in a range of enterprise competitions, events and enterprise clubs.

I assure the Deputy that funding supports and initiatives for enterprises in County Donegal is, and will remain, a priority for the State development agencies under the auspices of the Minister for Enterprise, Trade and Employment.

Schools Building Projects.

Deputy Leo Varadkar

I thank the Ceann Comhairle for giving me the opportunity to raise in the Dáil this issue which is obviously causing a great deal of confusion in my constituency and in the constituencies of Dublin North and Dublin North-East.

As the Minister may be aware, an announcement was made by Fingal County Council to the effect that somewhere between 13 and 17 school sites would be acquired in a very short period to provide much needed primary and secondary schools by September 2008, apparently under a form of new design and build contracts into which the Department is entering. Since then it has been impossible to establish whether the Department stands over this announcement or the location of any of these 13 sites. Are they in Balbriggan, Swords, Castleknock, Blanchardstown? We do not need to know their exact location but roughly whereabouts in our county of nearly 250,000 people these school sites will be.

Can the Department assure us that all these schools will be in place by September 2008? I have grave doubts about that. In many cases the sites are not acquired. When they are acquired, planning permission will take at least three months with the council and in some cases another four to five months through An Bord Pleanála. Then the schools must be built.

It seems this announcement made by Fingal County Council, but in the presence of Department of Education and Science officials, was quite irresponsible. I am asking for clarity from the Department. Does it stand over that announcement, will it inform the House where these sites are and can it guarantee parents and children in Dublin 15, Dublin North and Dublin North-East, who are concerned that just like last year they will not have a school to which to send their children, that these 13 schools will be in place and open by September 2008? If not, how many will be and how long will it take for all 13 to be delivered?

Deputy Tony Killeen

I am replying to this matter on behalf of the Minister for Education and Science, Deputy Hanafin. I thank Deputy Varadkar for raising this matter as it provides me with the opportunity to outline to the House the proactive approach being taken by the Department of Education and Science to provide up to 100,000 extra pupil places in rapidly developing areas throughout the country over the lifetime of the new national development plan.

Demand for additional school accommodation has escalated considerably in recent years due mainly to factors which include the growth in the school-going population in rapidly developing areas, including the impact of inward migration; the rapid expansion in teacher numbers, particularly in the area of special needs; the demands to cater for diversity through the recognition of new Gaelscoileanna and Educate Together schools; and population movements from older, more established urban areas to outer suburban areas.

Demographic increases in population are now the main driver of growth in demand for school accommodation. In the next five years alone, the Department is planning provision for a minimum increase in the national primary school-going population of up to 58,000 pupils.

The Department uses a number of sources of information to plan for the correct level of school accommodation. One of the most important sources is the local authority area development planning process. The Department is included among the prescribed authorities to which local authorities are statutorily obliged to send draft development plans or proposed variations to development plans. As a matter of course, there is ongoing liaison with local authorities to establish the location, scale and pace of any major proposed developments and their possible implications for school provision. Site reservations for new schools are made under this process.

A substantial amount of the time and the resources of the Department's school planning section are dedicated to ongoing contacts with the local authorities, especially in Dublin and within the Dublin commuter belt, to monitor housing development and to establish the timescale for the delivery of extra school accommodation. The Department is also represented on various bodies such as the Adamstown and Hansfield strategic development zone steering committees and the North Fringe Forum steering committee, among others, to obtain first-hand information on matters of relevance to school provision.

A practical example of positive output from these contacts is the arrangement entered into with Fingal County Council known as the Fingal school model agreement. Under this agreement, the Department and Fingal County Council have been working in partnership in recent years to acquire land for schools. While sites have already been acquired as a result of this co-operation, the focus at present is on finalising arrangements for the sites needed for the 2008 school year. The ability of the Department to open the required number of new schools in the Fingal area for next September is contingent on the lands in question being acquired very soon.

While the Minister for Education and Science is encouraged by the council's recent positive statement, she is also conscious that work on acquiring most of the sites has been ongoing for two years and she is anxious that their acquisition is finalised as soon as possible. To ensure the school buildings in question can be provided in record time, the Department has tendered for contractors to commence the construction of the schools off-site while planning permission is being sought. The system-built model of building schools off-site while planning permission is being sought has also already been used by the Department this year. It is planned to use it more widely as a means of delivering high quality school buildings in as little as four months.

The Government is aware of the school needs of the Fingal area and is doing all it can to deliver extra school places as quickly as possible. However, I wish to point out that while the scale of the work under way in Fingal is particularly newsworthy, the Department has in fact developed much closer working relations with local authorities all over the country in recent years and similar levels of activity are ongoing in all rapidly developing areas throughout the country.

Again, I thank the Deputy for raising this matter which has allowed me to illustrate both the extent of the work being carried out with local authorities and the importance which the Department of Education and Science attaches to relationships with them.

Telecommunications Services.

Deputy Michael Finneran

I call on the Minister for Communications, Energy and Natural Resources to address the need for the complete roll-out of broadband in the constituency of Roscommon-South Leitrim. An article appeared in a local weekly newspaper on 23 October 2007 which indicated there may be a delay or shelving of two important broadband projects for County Roscommon, namely one in the town of Castlerea and one in the town of Boyle.

The Minister should be aware that these projects were sanctioned over two years ago by the previous Government. The local authority was informed the towns of Castlerea and Boyle were included in the phase two MANs programme. It was invited to prepare contract documents following the investigation, which it has done. Those documents are to be submitted this month for approval with a view to construction early in the new year. I understand a 90% grant is available from the Government and the remaining 10% will be provided by the county councils. I also understand the cost payable by county councils can sometimes amount to 25%. The overall cost of the project is €3 million.

The people of the towns of Castlerea and Boyle and of other parts of County Roscommon will not accept the shelving of these two projects which have been approved and where the preparation documents have been put in place. The new priority list which excludes these two towns is not acceptable to the people in County Roscommon. Any such proposal would set back the hard work that has been done by Enterprise Ireland, Roscommon County Council, the enterprise boards and other development organisations in the county.

Currently, the county manager, in consultation with Enterprise Ireland and local development groups, is at an advanced stage of negotiations for a project that would bring 50 to 60 jobs to the town of Boyle for a call centre. If a proposal to defer or shelve the fibre optic cable proposal for the town of Boyle goes ahead, the opportunity for those jobs will be gone also. That is not acceptable to a town that has lost practically all of its manufacturing employment in the past seven or eight years.

Recently Enterprise Ireland, under the aegis of the Department of Enterprise, Trade and Employment, allocated €350,000 to provide a new enterprise centre in Castlerea. The local development association, in consultation with all the other agencies, decided it would be an IT-oriented enterprise centre. One can well ask where that would leave this project in the event of broadband not being rolled out early in 2008.

It appears certain persons in the Department, either with or without the consent of the Minister, are attempting to exclude important areas of population in the constituency I represent. That is not acceptable to the people there who were given a commitment over two years ago. Any attempt to row back on their entitlement at this stage will be vigorously opposed.

I cannot understand how we can ask people on the one hand to promote jobs in the IT sector while on the other hand a person in another area can decide not to introduce the communications system that would allow that to become a reality. I urge the Minister to ensure this project costing €3 million goes ahead. The county manager has indicated to me that the county council will carry the cost for 12 months in the best interests of the development of this project.

I hope we are in a position to allay the fears not alone of the elected members of Roscommon County Council, but also my fears as the Government Deputy and the fears of the good people of the towns of Castlerea and Boyle.

Deputy Tony Killeen

I thank the Deputy for raising this matter. A lag in the provision and take-up of broadband in rural areas is generally a feature across the EU and beyond due to the private sector being unable to justify the commercial provision of broadband services in some rural areas. However, the Government is determined to address any potential digital divide that may arise.

The provision of telecommunications services, including broadband, is a matter in the first instance for the private sector. Broadband service providers operate in a fully liberalised market, regulated, where appropriate, by the independent Commission for Communications Regulation, ComReg. The role of the Government is to formulate regulatory and infrastructure policies to facilitate the provision of high quality telecommunications services by competing private sector service providers. Nevertheless, the widespread provision of broadband services continues to be a priority for the Government. In that regard, the Department has undertaken initiatives to address the gaps in broadband coverage. These include providing grant-aid under the recently concluded group broadband scheme and investment in metropolitan area networks, MANs.

There are currently eight group broadband schemes in operation in south Leitrim and Roscommon. The MANs constructed under phase 1 of the MANs programme, including those in Carrick-on-Shannon in south Leitrim and Roscommon town, are complete and fully open for business. They have been handed over to the managed services entity, eNet, which manages, markets, operates and maintains the networks on behalf of the State. Products available to service providers on a wholesale basis on these networks include dark fibre, ducting and co-location facilities.

The group broadband scheme, which offered grant assistance for the installation of broadband services in small towns and rural communities, also played a part in driving broadband into the regions. It is being replaced by the national broadband scheme, which will address the issue of the last 10% of the country which will never have access to broadband without investment and support. All reasonable requests for broadband to houses and premises in unserved rural areas will be met under this scheme.

The first phase of the procurement process of the national broadband scheme, the pre-qualification questionnaire phase, is now complete. Eleven valid pre-qualification questionnaires were received and assessed, and four candidates have pre-qualified to enter the next phase of the procurement process for the scheme. The four candidates are, in alphabetical order, as follows: the BT Communications Ireland Limited consortium; Eircom; Hutchinson 3G Ireland Limited; and the IFA-Motorola consortium.

The Department anticipates that the national broadband scheme contract will be awarded during the second quarter of 2008, with the roll-out of the services due to begin as soon as possible thereafter. This timeline is subject to negotiations with candidates during the competitive dialogue phase of the procurement process. It is intended that the broadband service delivered under the national broadband scheme will be broadly comparable to the products enjoyed in the majority of currently served areas, now and in the future. This refers to both price and product specifications, which will have to evolve during the contract period to reflect trends in the broadband market. The most appropriate mechanism to achieve this aim will be decided during the competitive dialogue process.

The group broadband scheme — MANs and the national broadband scheme combined — combined with significant roll-out progress by the private sector operators, will make a huge contribution to the further availability of broadband throughout Ireland, particularly in rural areas. More generally, broadband penetration in Ireland has also increased significantly in recent years. I am pleased to state that broadband is now available in almost all parts of Ireland through a combination of digital subscriber line, fixed wireless, cable television, mobile and satellite technologies.

There are now 698,000 subscribers, according to the latest available official figures from ComReg, which, by OECD measures, is the equivalent of 16.48% of the population. This compares with less than 1% in 2002, 3% at the beginning of 2005 and 6.76% of the population at the beginning of 2006. We have narrowed the gap behind the EU average dramatically. At the end of the second quarter of 2006, the EU-25 average was 14% and our rate was 8%. At the end of the second quarter of 2007, the EU-25 average was 18.1% and our rate, including new mobile subscriptions, is at 16.48%. This is significant progress by any measure.

According to the latest available OECD broadband statistics, which apply up to the end of December 2006, the strongest per capita subscriber growth over the year came from Denmark, the Netherlands, New Zealand and Ireland. Each country added more than 5.8 subscribers per 100 inhabitants during 2006. As a result, Ireland has improved its position internationally and Government action through provision of an optimal regulatory regime and targeted infrastructural investment will continue to support this performance.

Although there is no connection, regulatory or otherwise, between Eircom and the Department, I welcome the recent announcement by Eircom that it is committing an extra €30 million to enabling 319 exchanges in the next couple of years to allow up to 140,000 new customers to connect to a broadband-enabled exchange. Other service providers have also announced investment plans which will improve the roll-out of high-speed infrastructure and services.

A draft policy paper on next generation broadband is being prepared by the Department, which will review current communications infrastructure policy and analyse policy options in light of industry developments. This will give guidance in regard to the optimum future role for Government in the planning and roll-out of broadband.

The Dáil adjourned at 5.25 p.m. until 2.30 p.m. on Tuesday, 6 November 2007.