The Minister for Community, Rural and Gaeltacht Affairs, Mr Ó Cuiv, has denied he supports the proposed abolition of the Western Development Commission (WDC).
Speaking to The Irish Times before receiving a commission critique on telecommunications in the regions yesterday, Mr Ó Cuiv said if his "simple idea" had been to abolish the WDC, he would have done it before now.
He said the west was "particularly scourged" with several agencies with small amounts of money.
The Minister has already said that no decision on the WDC's future will be taken before completion of a review of its functions, which he commissioned on taking office. The scrapping of the statutory body, which is responsible for development in seven western counties, was recommended by the Independent Estimates Review Committee as one of a series of cost savings.
The commission's key instrument, the Western Investment Fund, has already been cut from €6.35 million to €2 million. Two Independent TDs, Dr Jerry Cowley (Mayo) and Ms Marian Harkin (Sligo-Leitrim) have accused the Government of trying to prevent the WDC from doing the job it was established to do in 1997.
Mr Ó Cuiv said there were issues which needed to be examined in relation to the WDC, including its operation in Galway city, and its application in Co Clare given that Shannon Development already had a lead role in this area. There was also a need to co-ordinate the work and research provided by other agencies, the Minister said.
He denied that the WDC was being "punished" for producing a landmark report last year which identified a growing economic divide between east and west in spite of the National Development Plan (NDP).
The WDC's latest report, published yesterday, warns that an opportunity to bring investment and jobs to the west will be lost unless action is taken to ensure that modern telecommunications services are made available at a competitive price. Insufficient competition among telecommunications companies, poor services and high prices are among the problems described in the report. Many parts of the west don't have access to broadband, it states.
Pricing emerges as a key issue in the study, with companies facing higher costs for basic services in the west. There are two main providers in the region, Eircom and Esat BT, but only a few towns have a choice of provider. Low population densities mean that return on investment won't attract private companies, and additional targeted State funding is needed.
The report notes that the Government has responded to shortfalls at local level with its Metropolitan Area Networks programme, but it should ensure services are available at a competitive price. The report also calls for increased public investment in wireless and satellite technologies.
Telecommunications infrastructure "represents one last chance for the west to catch up", according to one of the report's authors, Dr Patricia O'Hara. Accepting the study, the Minister said that under the Economic Infrastructure Operations Programme 1994-1999, over €21 million was made available from EU structural funds to promote the development of the information society in Ireland.
Recognising that not all areas or sectors would benefit equally from profit-driven private investment, some €200 million was allocated in the NDP, with two-thirds of this earmarked for the Border, midland and western region.
Under the first round of NDP funding in January 2001, nine projects were awarded grants totalling €55 million. Overall, this grant-aided investment will result in a new additional national fibre backbone network and extensive rollout of Digital Subscriber Line services in some 75 centres.
A review of Government policy in 2001-2002 concluded that the key broadband infrastructure deficit was in local access networks, Mr Ó Cuiv said. The New Connections action plan commits the Government to securing the widespread availability of broadband infrastructure and services within three years.
Under the Clár programme, he had had ongoing discussions with the Department of Communications, Marine and Natural Resources in relation to the extension of broadband. Funding has been committed to fibre optics in Dungloe, Co Donegal, and Belmullet, Co Mayo, in association with Údarás na Gaeltachta.
