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Dáil Éireann díospóireacht -
Thursday, 12 Mar 2015

Vol. 871 No. 3

Priority Questions

Broadband Service Provision

Michael Moynihan

Ceist:

1. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources the progress made by his Department in implementing the national digital strategy; if he is satisfied with the progress made to date on the national broadband scheme and its roll-out to rural areas; if he will fulfil in this term the promise under the 2011 programme for Government to deliver fibre to the home or kerb for 90% of homes and businesses; and if he will make a statement on the matter. [10595/15]

I wish to ask the Minister for Communications, Energy and Natural Resources about the progress made by his Department in implementing the national digital strategy, if he is satisfied with the progress made to date on the national broadband scheme and its roll-out to rural areas, if he will fulfil in this term the Government's promise under the 2011 programme for Government to deliver fibre to the home or kerb for 90% of homes and businesses, and if he will make a statement on the matter.

The national digital strategy, which was launched in July 2013, focuses on driving digital adoption in three key areas: enterprise, citizens and education. Implementation of initiatives across these three strands is progressing well. The trading online voucher scheme aims to get 2,000 small businesses trading online. More than 700 businesses have been awarded vouchers of up to €2,500. Roll-out of a further 1,300 vouchers continues. Early indications from the programme are that companies have experienced more sales and are expecting to recruit as a result.

Under the citizen component of the strategy, community and voluntary organisations are grant-aided to provide digital skills training to citizens. More than 116,000 training places have been delivered under the BenefIT scheme since 2008 and more than 30,000 citizens will be trained in 2015 at more than 700 locations nationwide.

Following the roll-out of 100 Mbps broadband to every second level school in Ireland, last year my Department and the Department of Education and Skills ran a series of so-called switch-on workshops for teachers to showcase how digital technologies can enhance teaching and learning.

In tandem with these measures to stimulate use of technology, the Government's national broadband plan aims to ensure that every citizen and business, regardless of location, has access to a high speed broadband service of at least 30 Mbps. This is being achieved through a combination of commercial investments and a State led intervention in areas where commercial services will not be provided.

Last November the Minister published a national high-speed coverage map for 2016. This map is available at www.broadband.gov.ie . The areas marked blue represent those areas that will have access to commercial high-speed broadband services by the end of 2016. The amber areas show the target areas for the State intervention.

Following further public consultation this summer, a detailed procurement process will be undertaken to select a preferred bidder or bidders. I anticipate that the first homes and businesses will be connected in 2016 and connections will continue thereafter, with the intention of having all premises connected within five years. This complex and ambitious project is a key priority for Government. It aims to address conclusively current connectivity challenges in Ireland.

I thank the Minister of State for his reply. The programme for Government 2011 promised that fibre would be delivered in its term to the home or kerb for 90% of homes. Has any millimetre of fibre been delivered by the Government in recent years? In respect of the broadband scheme, which was promised before the local elections in April 2014, where is it at in terms of state aid approval by the European Union? As we approach the first anniversary of that announcement, has it gone to the EU for approval and, if not, when is that likely to happen? Statistics show that in the region of 80% of the country does not have proper broadband. I had e-mails from parts of Dublin city and from colleagues on the local authorities in Dublin seeking information on broadband because some parts of their areas have very poor broadband facilities. As the commitment was given four years ago this week that fibre optic cable would be delivered to the home or kerb for 90% of homes, has any millimetre of that been rolled out? What is the position with the application to the European Union which was promised almost 12 months ago, prior to the local elections?

I thank the Deputy for his supplementary. It is important to point out that the new national broadband plan has to be technology neutral in terms of EU state guidelines. There has been much communication and consultation at European Union level. The Deputy's last question was about possible European Union funds and strands of funds. Consultation is under way to look at a combined package of money. Obviously, at this stage we cannot give a broad figure because the procurement process will start and it will be full steam ahead at the end of the year. In light of procurement, it is important we do not mention a figure. However, there has to be a bundle. There has to be national government funding, and there is possible European Investment Bank funding and a combination of funding.

In regard to the kerb, which was the Deputy's first question, there is investment by commercial operators, for example, by Vodafone and the ESB in 50 large towns and Eircom with a further roll-out at a commercial level. There is also fibre to cabinet delivery by semi-State companies for 70% of homes and businesses, with almost one third potentially having access to fibre to the premises.

Has any millimetre of fibre been delivered in the past four years under state aids or grants, given the commitment in the programme for Government? Where is it at? When the announcement was made last April in respect of the new broadband strategy, was it known at that time that application would have to be made to the European Union for state approval and was it a case of sending out a statement prior to the local and European elections that had no substance?

The track record in terms of trying to get broadband roll-out for the whole country was 4 Mbps to 5 Mbps in certain instances under the previous programme. However, in trying to roll out a minimum of 30 Mbps to every house, the biggest challenge for Government is to ensure that it follows EU competition guidelines. That is where the urgency and the focus have been in terms of ensuring that legally we are not pushing one technology over another. As the Deputy is aware, some parts of his constituency have wireless.

From listening to people, fibre is a possible solution. There is a backbone of cabling belonging to Eircom and infrastructure belonging to the ESB. These could form part of the solution. Those companies have been ploughing ahead and putting fibre on their backbones and Eircom has announced that it will bring broadband to more homes and premises. More than 1 million premises have it now. The critical issue for the Government is to get this right, that being, a minimum of 30 Mbps. It cannot be the maximum in the long term, especially with so much data.

About the State aid, when-----

I am sorry, but we must make progress.

Trade Agreements

Michael Colreavy

Ceist:

2. Deputy Michael Colreavy asked the Minister for Communications, Energy and Natural Resources if Ireland is at risk of hydraulic fracturing being introduced if the Transatlantic Trade and Investment Partnership, TTIP, agreement is introduced, especially from the investor-state dispute settlement, ISDS, aspect of the proposed agreement. [10730/15]

As the Deputy may be aware, in June 2013 EU member states authorised the European Commission to commence trade and investment negotiations with the US. These negotiations are ongoing. Their purpose is to reduce barriers to trade and investment to generate jobs and growth. Ireland stands to gain significantly from this because of the existing significant flows of trade and investment between Ireland and the US. Briefing and update material on the negotiations can be found on the website of the Department of Jobs, Enterprise and Innovation, www.enterprise.gov.ie. I assure the Deputy that the conclusion of an agreement will have no impact on the public policy approach adopted by Ireland towards the exploration for unconventional hydrocarbon resources.

The scope of the European Commission's mandate to negotiate with the US includes investment protection and the ISDS. Countries sign such agreements in order to set out certain ground rules when foreign companies invest in their territories. The Commission's mandate to negotiate clearly provides that the objectives of any investment protection provision would be without prejudice to the right of the EU and member states to adopt and enforce measures necessary to pursue legitimate public policy objectives, such as social, environmental, security, stability of the financial system, public health and safety, in a non-discriminatory manner.

I assure the House that no decision will be made on any proposal for the use of hydraulic fracturing as part of an unconventional gas exploration or extraction project in Ireland until there has been time to consider the outcome of the Environmental Protection Agency, EPA, research programme directed at examining the potential environmental impacts of hydraulic fracturing.

Many people are concerned by the way in which the TTIP and ISDS negotiations are being conducted. Most of the lobbying has been done on the part of big business. There is a great deal of debate, but little has emanated from the negotiations so that citizens might consider the directions taken in decision making. Some have pointed to the example of tobacco companies threatening to take governments to court because the former believed their markets might be damaged by the introduction of health legislation. It is a risk, particularly in light of the ISDS element. If tobacco companies and the like can legally threaten an elected government that is legislating on behalf of the population, TTIP is a bad agreement. It might improve investment and industrial processing, but it will destroy democracy.

In fairness, the Deputy's question was well thought out and I commend him on exploring whether there is a connection, but the answer is in black and white. In terms of the research into hydraulic fracking, the two main pillars for ensuring that the study is done comprehensively and in line with the consultation are the environment and health. The Deputy referred to the importance of people consulting. A high percentage of people have contributed to the pre-consultation stage of the EPA's study and their opinions must be reflected in it. Health is a key component in the consultation, although it was not at the beginning. Health is now represented in the EPA study to ensure that all outcomes and aspects are considered. Consultation is important.

As to the Deputy's question, there is no connection. The EPA's study on this matter is primarily focused on environmental and health issues and is not related to TTIP.

The key point is that we should not have granted an exploratory licence. We have brought in a company that pretends to be a friend to the Irish people, has been gathering information and will take the Government and the people to court to protect its imagined future profits. The Minister of State is aware that it has already taken legal action in connection with the Belcoo development. In the US, Canada and Australia, it has taken local and national governments to court because it felt that they were not facilitating its development plans. These are dangerous people. Their job is to take money from national governments. If their company does not take it from the ground in gas and the Government decides that, after all of the explorations, it will not get a licence, it will try the legal route to extract money from us as sure as night follows day. The exploratory licences should never have been granted and we should not treat the company as a potential friend.

The exploratory licences were granted. Although the European Commission will not necessarily set rules in respect of each country, it will have an important role in ensuring an EU-wide approach to anything that will affect the environment, for example, EPA studies and environmental impact assessments. Every private company can use court proceedings at a broad level.

The significance of the study is that it was done on a North-South basis. There is a role for the North-South Ministerial Council to ensure that, while the study is ongoing, the political conversation will be ongoing as well. I do not like the idea of an EPA study being boxed off for two years while, back at the ranch, there is no political conversation. The political mechanism is the North-South Ministerial Council and possibly our Good Friday Agreement committee and the British-Irish Parliamentary Assembly, BIPA. As the Deputy knows, there is a different attitude at governmental level in the UK to this type of process. We are keen to ensure that all of the collaboration and research is done on a North-South basis. That is why we want university expertise from both jurisdictions.

Renewable Energy Projects

Thomas Pringle

Ceist:

3. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources his views on placing a moratorium on the construction of onshore wind farms until all other possible renewable energy avenues have been explored, including offshore wind farms, to respect the concerns of local communities affected by such large-scale development; and if he will make a statement on the matter. [10593/15]

This question arises from the major concern across the country about the potential proliferation of industrial wind farms throughout the midlands. In our county of Donegal, a proposal for a large wind farm is causing many problems. In light of recent developments, however, it is no longer necessary that wind be the only source of renewable energy. In order to allow alternatives to be developed, I am asking the Minister of State to consider placing a moratorium on future projects.

I thank the Deputy. The overarching objective of the Government's energy policy is to ensure secure and sustainable supplies of competitively priced energy to all consumers. A well-balanced fuel mix is essential to meeting these objectives for consumers and businesses. Onshore wind contributes significantly to achieving these objectives. A 2014 Sustainable Energy Authority of Ireland, SEAI, report listed the benefits from wind electricity generation in 2012.

In summary, almost 600 kilotonnes oil equivalent of fossil fuels were displaced, valued at €180 million, with a consequent carbon dioxide saving of 1.5 million tonnes, valued at €11 million.

A report published by the Council for European Energy Regulators recently found Ireland to have one of the lowest levels of monetary support per unit of gross electricity produced. In other words, Ireland's approach to subsidising renewable electricity generation is amongst the most cost-effective in the EU.

As we make the transition to a low-carbon economy, we will continue to assess the alternative energy sources that are available to us, including offshore wind in the longer term. This was acknowledged in the Green Paper on Energy Policy, published in May 2014. More than 1,200 responses to the public consultation were received and 12 public seminars were held to enable public participation in the finalisation of a White Paper, which will be published in September.

It is essential that local communities are at the heart of the transition to a sustainable energy system. The Department is currently finalising a renewable electricity policy and development framework, which is to be underpinned by a strategic environmental assessment and an appropriate assessment. The proposed framework, which will be completed in 2015, will be a high-level strategic policy intended for the guidance of persons seeking development consent primarily for large-scale renewable electricity projects, as well as for the guidance of planning authorities, statutory authorities and the public. The next stage of public consultation will commence shortly with the publication of the scoping report. This work, along with a review of the existing wind energy guidelines currently being finalised by the Department of the Environment, Community and Local Government, will set a clear framework for the development of renewable energy infrastructure into the future.

The Minister of State says that we have a well-balanced fuel mix in terms of our energy supply. I would disagree with that. Our total renewable energy focus is on onshore wind. At the time the plan was developed, back in 2007 or so, wind was probably the only viable technology, but technology has moved on. Biomass has huge potential for meeting our renewable energy targets as well as for the creation of sustainable and renewable industry in rural Ireland. Ireland could be a leader in producing and delivering biomass.

The Minister of State says we have the lowest level of monetary support in the EU, but the investment of over €4.2 billion in upgrading the electricity infrastructure that is anticipated through Airtricity - solely to accommodate industrial wind farms - means that situation will change very quickly. We are already subventing wind farm operators by €90 million per year, while for a fraction of that investment we could generate a wood biomass industry. Simply converting Moneypoint to run off wood biomass would cost about €400 million per year but would meet our Kyoto and carbon dioxide reduction targets in one go. We need to look at this and we need a moratorium on onshore wind farms while we develop other alternatives.

I am certainly on the same page as the Deputy as regards exploring all potential alternatives. A reliance on one source, especially onshore wind energy, as a single solution for sustainability is not the way forward. I recently met a company looking to invest in Donegal in tidal energy, which was fostering the community approach in order to get community buy-in from day one. In the Deputy's original question, he mentioned Donegal and the midlands. I do not need to speak on behalf of the companies. They know that mistakes were made in terms of pre-announcements. For example, in the midlands, companies were saying they would build 10,000 wind turbines, which put the community's back up straight away. There was no exploration of or conversation around community dividend or what the benefits to the local community would be.

Deputy Pringle and I know that wind farms contribute about €1.8 million per year to the rate base of Donegal County Council, but that does not mean we should continue to plough ahead in building more wind turbines that will affect and upset communities. We have to be very careful and strategic. That is why I am delighted there is going to be a strategic look at this. There will be a consultation coming up shortly and there will be a more critical appraisal of how we meet community needs as well as the need for industry.

We have to look offshore. Industry people say that it may be too expensive off the west coast of Ireland, but we have to look at the west coast and the east coast as well. There were company developments in respect of the Irish Sea, and negotiations were taking place on a bilateral basis between the UK and Ireland. That is parked up until about 2018 or 2020, but there are still opportunities for offshore energy. I will be encouraging the Minister for Communications, Energy and Natural Resources, Deputy White, to include biomass as part of the mix in the context of the negotiations and consultations on energy.

While all these consultations are going on, the fact remains that the plans are there to develop 10,000 wind farms in the midlands, no matter how much the Minister of State does not say it. However much we try to get communities on board and so on, they are still going to be facing that prospect. We are still facing the prospect of having to invest €4.2 billion in electricity infrastructure simply to facilitate those wind farms, and that is the problem. Even if the communities accepted them and there was a dividend that put a few euro into the local community, we are still going to carry the cost of that. The €4.2 billion investment will be passed on to electricity consumers by Airtricity and the electricity companies. We have far better, more cost-effective options that can generate sustainable industries in rural Ireland as well. It would make far more sense to look at developing that rather than looking for ways to appease communities to get them to accept wind power.

One cannot go to a community and say, "This is going to be the way, and you have to accept that." Mistakes were made on the part of private industry, but I am certainly not going to speak on its behalf. We have to learn from the mistakes that were made and bring communities with us. Communities have to be at the heart of the solution for sustainable rural economic models. That is why it is important that the Department of the Environment and Local Government is going to have a role in ensuring that the proper and thorough processes are adhered to so that we do not have communities feeling upset and disenfranchised in that they are not getting a dividend.

We have to look at all the alternative potential, be it tidal energy, offshore wind or the Deputy's own suggestions of biomass. We have to look at the complete mix. We are importing 100% of our oil and 95% of our gas - which will change in a few months' time - and we have such a heavy reliance on fossil fuels, particularly considering the percentage mix in the 2020 targets for renewable energy. I know the Minister, Deputy White, is on the same page as me in believing that communities have to be at the heart of the solution, in terms of ensuring it is acceptable to communities and that they feel part of the dividend as well.

Energy Policy

Michael Moynihan

Ceist:

4. Deputy Michael Moynihan asked the Minister for Communications, Energy and Natural Resources following the publication of a new European Union energy package in which Ireland is singled out as one of the member states that is not sufficiently connected with other European Union countries, the steps he will take to achieve the electricity interconnection target of at least 10% of installed electricity production capacity by 2020; and if he will make a statement on the matter. [10596/15]

I wish to ask the Minister for Communications, Energy and Natural Resources his views on the new EU energy strategy in which Ireland is singled out as one of the member states which is not sufficiently connected with other EU countries, and what steps he will take to achieve the electricity interconnection target of at least 10% of installed capacity by 2020.

The European Commission’s energy union package is aimed at enhancing energy security, sustainability and competitiveness throughout Europe. It proposes that EU member states work collaboratively and intensively on a list of actions in pursuit of common energy policy goals. Included in the package is a Commission communication on achieving interconnection of at least 10% of installed electricity production capacity for all member states.

For energy consumers to participate fully in an integrated European internal energy market, poorly interconnected peripheral member states, including Ireland, will need improved electricity and gas interconnection. An enhanced regional approach to delivering full European energy market integration is proposed. In this regard, Ireland has witnessed the benefits of regional co-operation since the establishment of the single electricity market in November 2007.

The benefits of the single energy market include improved security of supply, competitive prices and increased penetration of renewable energy, each of which is a goal of the energy union proposals. The completion of the North-South transmission line project will significantly enhance Ireland's level of interconnection with the UK. Similarly, additional interconnections with France and the UK would further enhance our connectivity and bring benefits in security, competitiveness and sustainability.

To help the creation of an integrated EU energy market, the European Commission has drawn up a list of projects of common interest. These projects are proposed by infrastructure developers, and the list contains several possible projects relating to Ireland. While the projects are at various stages of development, with some of them still conceptual and possibly never coming to fruition, some of the projects could potentially underpin further integration into regional markets through additional interconnection. The North-South transmission line project is included on the list of projects, as is the possible interconnection with France. Several interconnectors with the UK are also listed, some of which relate to the possibility of trading renewable electricity with the UK after 2020.

Additional information not given on the floor of the House

The Department is engaging with the European Commission to clarify Ireland's current level of interconnection. Depending on the variables used in the calculation, the level of a country's interconnection can vary. I am advised that, at a minimum, Ireland has around 11% of electricity interconnection. Notwithstanding this, Ireland would welcome additional investment to increase our connectivity, and opportunities will be pursued where possible.

How advanced is the planning for the interconnector with France, what is the latest research on the project, and when is it likely to happen? What other interconnectors with the UK are envisaged in the near future?

The North Sea offshore grid is in the first priority list in the annex to EU Regulation No. 347/2013, which sets out guidelines for trans-European energy infrastructure. These guidelines cover integrated offshore electricity grid development and related interconnectors in the North Sea, the Irish Sea, the English Channel, the Baltic Sea and neighbouring waters aimed at transporting electricity from renewable offshore energy sources to centres of consumption and storage, and to increase cross-border electricity exchange. The member states concerned are Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Sweden and the United Kingdom.

The interconnector with France is at a conceptual stage, but from speaking with people in the industry, I am aware of the opportunities associated with it. If we are to move to a single energy market, we should not be restricted to connectivity with the United Kingdom. From a personal point of view, I see France as an option but it is at a conceptual stage and we need to continue the conversation by keeping it on the agenda, whether in Strasbourg, the European Commission or the European Council. We are all conscious of the importance of energy security given what is happening in eastern Europe. We need to develop plan B and plan C, and if the interconnector with France is an option, we have to keep it on the agenda.

It has to be kept on the agenda because it would reduce our reliance on interconnections with the UK. The Minister of State referred to wind farm interconnectors, which were intended to carry the electricity produced by a specific wind farm project, which has now fallen through, directly to the UK. There would be no benefit to the Irish energy economy from that project. It is vital that we have an interconnector with mainland Europe.

The community dividend from the North-South interconnector also has to be considered carefully. The way that project was handled was less than correct. It was a shambles from start to finish. We need a connection with the heart of Europe, and in this regard the interconnector with France must be kept on the agenda at EU level and certainly in Ireland.

I agree it must be kept on the agenda. If we want to keep something on the agenda, the question of resources and funding must be addressed. There could be a role in this matter for the European Investment Fund and the Connecting Europe Facility, which can attract capital at favourable interest rates and, in turn, leverage debt and equity financing to enable major energy infrastructure projects to proceed. The concerns of peripheral regions with inadequate interconnections and sources of energy can be addressed by these means. While our figure for connectivity is currently at 11%, we need to build on it. This debate needs to continue in this Parliament and in Europe, with a focus on the key issue of resources.

Broadband Service Provision

Thomas Pringle

Ceist:

5. Deputy Thomas Pringle asked the Minister for Communications, Energy and Natural Resources the amount of the roll-out of high speed broadband in rural areas that will be delivered by fibre wrapped cable on the electricity network; and if he will make a statement on the matter. [10594/15]

My question pertains to the potential for wrapped fibre on the electricity network as a means to deliver high-speed broadband to all parts of the country and not just areas covered by commercial operators.

I thank the Deputy for raising a question close to my own heart. The Government's national broadband plan aims to deliver a minimum high speed broadband service of 30 Mbps to every home and business in Ireland. This State intervention can be delivered over a number of different technology platforms and, in designing an intervention strategy and a procurement process, we must be mindful of complying fully with EU state aid guidelines by being technology neutral and not favouring one technology over another. These guidelines do, however, allow for fibre to be deployed as close to the end user as possible. Retail telecommunications providers would then be free to use a variety of technology platforms to reach the final customer. We also need to ensure that State investment delivers a network that can meet current and anticipated future demand. It must be capable of ensuring that there is no urban-rural digital divide and that rural based businesses and residents are not at a disadvantage compared with those in urban areas.

The planned intervention is being designed to deal conclusively with the rural connectivity challenge. The comprehensive mapping exercise we completed in late 2014 shows a clear fibre backhaul deficit in many parts of rural Ireland. This will need to be addressed in any intervention. The intention is to design a clear specification around the services we wish to see delivered and then allow the bidders to submit tenders based on their ability to meet these specification requirements.

I cannot avoid the conclusion that many parts of rural Ireland are going to be left with mobile broadband. One of the few good things the Government did was set out a legislative basis for using the electricity network to provide fibre wrapped broadband throughout the country. In respect of state aid rules, surely the Government could decide to provide a fibre wrapped network to every house and connection on the ESB network, which would then be made available to all the commercial operators. This would be similar to the way in which the Eircom network was unbundled. That option would ensure that the broadband deficit would be dealt with in a way that would give equal access to everybody in this country to the benefits of broadband. At this stage, speeds of 30 Mbps are nearly obsolete. We need to be looking at 100 Mbps or more to deliver an adequate broadband service. The only way of meeting this objective is by fibre wrapping the electricity network and subsequently opening it up to market forces, or whatever forces one wants, to provide the end service to consumers.

We have to get it right conclusively. The more than 60 towns that Eircom will be targeting and the 50 towns that ESB, along with Vodafone, will be working with in the initial stages of the plan comprise large urban areas. In rural areas, somebody employed by, for example, Pramerica in Letterkenny should be able to work from home in Malin Head or Killybegs. That is the critical issue. The national broadband plan aims to address areas in which commercial companies are not interested. It is not commercially viable to go into these areas. A potential solution, as Deputy Pringle correctly noted, is to wrap fibre around the ESB network.

However, the Government is constrained in what it can do because of EU guidelines and state intervention rules. Most of these rural areas have wireless broadband, so there are competition issues in terms of whether the State can go in and compete with another provider. We must be very clear in what we are doing and we must be technology neutral. The Deputy is correct that a potential option is wrapping fibre around the ESB network. That network goes to Arranmore Island, Tory Island and other peripheral areas. There is also the Eircom network, however, and the question then is which one to choose. Where we are at in the process is ensuring we are proceeding on a legally sound basis to deliver broadband, finally and conclusively, to rural areas. That is the challenge we face.

I certainly would not choose the Eircom network. I have looked at that company's plans for rolling out fibre to cabinet and I suspect that many people living close to the towns served will not actually receive an adequate service on that basis.

The Government can make a strategic decision to roll out fibre to every house in the country, at which point the service can be opened up to the markets by providing open access to the fibre and allowing them to compete as they choose. I cannot see any company opting to provide a fibre connection to Arranmore and Tory islands. That is a serious problem because the people living there are entitled to the same connectivity as everybody else. I do not accept that the Department is as constrained as the Minister of State has suggested in terms of being unable to pick one technology over another. We have to make all technologies available to people and they will decide which they want to access. That is what real competition is about, not deciding that because wireless is available in a particular area, the State will not compete with it. That is not competition; it is boxing off areas for the particular providers.

There is no question that we are constrained in the area of state-led interventions by EU rules and regulations. The Government cannot go into areas that are not viable from a commercial point of view and wrap fibre around a particular infrastructure of its choosing. There has been a lot of advice sought on this and a lot of legal advice given. As well as ESB and Eircom, any other provider, such as UPC, to give an example, can choose to compete. The process must be open to everybody, including wireless providers. It is not confined to those companies providing one particular technology. The firm advice we have been given is that we must be technology neutral.

The Deputy referred to the particular challenges that present in respect of the islands. I am very clear in my conversations with the officials that we should be treating all areas equally and ensuring we deliver to the most peripheral areas in the country, including the islands, even where they are not commercially viable.

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