Simon Hamilton
Strangford · Democratic Unionist Party · Northern Ireland
“I have emphasised to the Member and the House before, that, whilst I accept that those are not good enough — that is why we have been developing the plan — there are alternative technologies in place that can present opportunities for those who just cannot get acceptable speeds.”
“I thank the Member for his intervention. There are some initiatives that I believe will help and act as a driver to improve broadband access. One such intervention is the broadband universal service obligation (USO), which is being taken forward by Her Majesty's Government.”
“I thank the Member for his question. However, he is conflating two issues. I wrote to his party leader, and indeed to all Assembly party leaders, before making the announcement that I did last week about wanting to publish the details of the businesses in receipt of the non-domestic RHI scheme. It was my intention to do that tomorrow.”
“<BR /> <BR />The Chancellor, in his autumn statement, made some more funding available for telecommunications, and my Department is studying that and seeking to avail itself of that to the fullest possible extent.”
“In addition, my Department is managing a contract for the delivery of the superfast rollout programme, which, by 31 December, will provide access to superfast broadband with speeds of at least 24 megabits per second to a further 38,000 premises, both business and residential, across Northern Ireland, including in the Newry and Armagh cons…”
“I signalled the intention to do this a few weeks ago. The Member and the House will know that inspections of all installations would have taken place over the 20-year lifetime of the RHI scheme.”
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“A further supplementary consultation on NIRO closure to small-scale onshore wind was issued on 24 March and closed on 9 May. <BR /> <BR />The consultation proposed three options for closure: 30 June 2016, 30 September 2016 or 31 March 2017. In addition to and in line with the provisions for large-scale onshore wind, the consultation proposed exceptions to closure in the form of grace periods for projects that could meet certain specific criteria. <BR /> <BR />All the closure options were set against the backdrop of the Department of Energy and Climate Change taking powers in the Energy Act to make regulations restricting the tradeability of Northern Ireland renewables obligation certificates (NIROCs). Ultimately, that means that GB suppliers could not use NIROCs to meet their renewables obligation.”
“Responses to the consultation raised a number of valid arguments that there are differences between the large- and small-scale wind industries and that the two should not be treated in the same manner. In acknowledging these differences, and in order to provide legislative certainty, the NIRO closed to large-scale onshore wind on 1 April 2016.”
“This is a tremendous achievement for a region of our size and, with the amount of renewable electricity in the pipeline, it is anticipated that renewable electricity consumption could rise to as much as 30% by 2020. I take this opportunity to commend the renewables industry and electricity infrastructure providers on helping us to reach this impressive figure. <BR /> <BR />I now move on to the business that is before us. In March of last year, the former Department of Enterprise, Trade and Investment issued a consultation on the proposed closure of the NIRO. This resulted in closure of the NIRO to non-wind technologies in autumn 2015. On 30 September 2015, a further consultation was issued on closure for onshore wind projects of all sizes from 1 April 2016. This followed similar announcements in Great Britain.”
“This statutory rule is being made under powers contained in the Energy (Northern Ireland) Order 2003, which prescribes that this order must be laid in draft for approval by affirmative resolution of the Assembly. The Northern Ireland renewables obligation (NIRO) has been the main support mechanism for incentivising renewable electricity generation in Northern Ireland since 2005. The NIRO has been instrumental in increasing renewable deployment in Northern Ireland from just 3% renewable electricity consumption in 2005 to just over 25% today. This significantly exceeded the previous Executive's ambitious Programme for Government target of having one fifth of our electricity generated from renewable sources by 2015.”
“They are concerns and issues that could be and are raised by people who live in my constituency, as well as by those in other parts of Northern Ireland. I want to see us build on the £64 million that has been invested in broadband projects since 2008, which has brought about significant improvements. There is still more to do to improve broadband access, and I am committed to doing my best to achieve better broadband speeds for everyone in Northern Ireland.”
“Although still at a very early stage, it is already apparent that, if the ambitions of the draft Programme for Government on improving Internet connectivity are to be realised, further investment is likely to be required, no matter what technology we deploy. <BR /> <BR />I hope that the run-through of what we have been doing and the impact that that has been having has been beneficial in presenting to Members a record of achievements to date in the West Tyrone constituency, as well as providing an overview of what is ongoing to enhance telecommunication infrastructure across Northern Ireland and a summary of plans for future intervention at both a devolved and national level. I fully appreciate and understand the concerns and issues that have been raised by Members from West Tyrone.”
“In addition, initiatives have to be designed in a way that meets state-aid rules, which require us to be technology-agnostic and to ensure that any procurement is open and competitive, with the overriding aim of ensuring value for money and delivering the maximum benefit for public funding. Although public funds can and will be invested in the development of telecommunications networks, it is ultimately a business decision for providers to decide on how and whether they wish to participate in any scheme. In that context, neither I nor the Assembly can direct or compel a network operator on where or when it should invest and what technology can be used. <BR /> <BR />My Department is reviewing what has been achieved to date and considering what will need to be addressed after the current initiatives have been completed.”
“In January, my Department launched a scheme that allows consumers with a broadband connection of less than 2 megabits per second to access a subsidy towards the cost of having a satellite broadband service installed from a list of registered providers, subject to satisfying some eligibility criteria. <BR /> <BR />It might be helpful to remind Members of the constraints within which any intervention that is taken forward by my Department has to operate. As many Members will know, telecommunications matters are reserved at Westminster, meaning that my Department has only limited powers to intervene in what is a fully privatised and independently regulated market.”
“It is anticipated that, by the time that the projects have been completed, some 87% of premises across Northern Ireland will have access to services of at least 24 megabits per second, compared with 82% when the project began. <BR /> <BR />Alternative networks can also offer a viable option for the delivery of broadband services in the most difficult to reach and less densely populated areas. Over recent years, my Department has supported projects that have extended fixed wireless and satellite broadband networks across many parts of Northern Ireland, particularly in West Tyrone.”
“Additionally, my Department is managing a contract for the delivery of the superfast roll-out programme, which, by the end of 2017, will provide access to superfast broadband, with speeds of at least 24 megabits per second, to a further 39,000 premises, both business and residential, across Northern Ireland, including in West Tyrone. <BR /> <BR />Members may already be aware that Ofcom reported that 42% of rural premises and 2% of urban premises cannot currently achieve speeds of 10 megabits per second or better. That is largely due to Northern Ireland's premises having some of the longest line lengths in the UK, as a result of population spread. However, Ofcom did add that the deployment of my Department's superfast programme will change that landscape rapidly.”
“Although that presents a reasonably good picture overall, I recognise that more can always be done to increase the coverage of faster broadband services in places such as West Tyrone. That is why my Department is engaged in ongoing initiatives that are aimed at further enhancing our broadband infrastructure. For instance, under the broadband improvement contract, BT will reinvest certain revenues made when take-up exceeds a specific threshold. The final amount will not be known until the autumn when plans can be developed to improve further the coverage of faster broadband connectivity across Northern Ireland.”
“but there has been investment. I accept that it is not perfect, ideal or where anybody would want it to be at, but it is not right to say that there has been no investment. There has been investment, and we need to look at ways in which we can improve that investment, target it and use different technologies to ensure that those who are a little bit further away and harder to reach can get better broadband speeds. There has, however, been some investment. As a result and as the figures have shown, there has been some improvement in accessing better broadband speeds. <BR /> <BR />It was reported that, at 31 March 2016, almost 7,100 premises across West Tyrone could access new broadband services delivered through the project.”
“Carrickmore, Castlederg, Beragh, Drumquin, where Mr Buchanan is from, Fintona, Gortin, Newtownstewart, Omagh, Sion Mills and Strabane have all benefited from that £24 million investment in the broadband improvement scheme. <BR /> <BR />If I am quoting him correctly, Mr McCrossan said:”
“My Department's Northern Ireland broadband improvement project has already ensured that, for the first time, 48,000 premises that are largely in rural areas have received access to a broadband service of at least 2 megabits a second and that just over 29,000 premises can now access services of 30 megabits a second or better. I pointed out in the earlier debate that that £24 million broadband improvement project has, up to March 2016, led to broadband improvement work at 164 exchanges across Northern Ireland, many of which are in the West Tyrone constituency. Forgive me if I get some of the names wrong, but, looking through the list, I know some of the geography of the area.”
“Importantly, this suggests to me that some 30% of premises that can access a broadband service of 30 megabits a second or greater have not yet taken up a faster service. Anyone wishing to find out whether they can access a faster service should visit the Openreach website, where there is an availability checker that can search by phone number or postcode. The report also shows that the average broadband download speed across the West Tyrone constituency stands at almost 21 megabits a second, which I acknowledge is lower than the Northern Ireland average of 28·3 megabits a second. <BR /> <BR />I will set this in the wider context of our investment in improved services across Northern Ireland.”
“Over the last eight years, my Department has channelled some £64 million into a number of projects that have significantly raised the reach, speed and quality of broadband services across Northern Ireland and had, at a time, put us ahead of other UK regions. Those initiatives have undoubtedly had a positive impact in the West Tyrone constituency. <BR /> <BR />A briefing report produced by the House of Commons Library in January this year identified that 60% of premises across West Tyrone can access superfast broadband services of at least 30 megabits a second. In addition, it reports that, in the constituency, 88% of premises currently have a broadband connection of greater than 2 megabits a second, 56% of premises have a connection of greater than 10 megabits a second, and 30% have a connection of greater than 30 megabits a second.”
“<BR /> <BR />I begin by stressing that, as Minister for the Economy, I fully recognise the importance of access to fast, dependable Internet connectivity in the world of business as well as a growing reliance on online access for various educational and social needs. Broadband has quickly become essential for everyday life. I am, of course, familiar with many of the issues raised during the debate from personal experience in my constituency, particularly on broadband provision in rural areas. My Department is fully committed to working to deliver improvements to our telecoms connectivity as set out in the draft Programme for Government.”
“<BR /> <BR />Again, I congratulate the Member on securing the debate, and I am very happy, in due course, to visit Omagh in his West Tyrone constituency, particularly the Enterprise Centre, which I am familiar with already, and, indeed, some of the other superb businesses in the West Tyrone constituency. I do not think that anybody who contributed to the debate suggested for a second that West Tyrone was not a hive of some very good industries and businesses and, indeed, has the potential to be more. I am very happy to travel down to West Tyrone and visit some of those businesses over the coming months.”
“I congratulate the Member on securing the debate on broadband provision in West Tyrone, which developed into a debate on broadband provision in several other parts of the country as well. I think that this is my first opportunity to say this: I could almost refer Members to the comments that I made some hours ago, having debated the issue at length in the Chamber this morning. It is an opportunity to highlight some of the important issues that were discussed earlier during the debate on Northern Ireland's telecommunications network and to hone in specifically on West Tyrone.”
“— broadband availability, especially in rural parts of Northern Ireland.”
“Broadband is now viewed as every bit as essential a service as water or electricity, especially for businesses. I want us to continue to encourage the use of alternative technologies that already exist and can bring solutions to rural parts of Northern Ireland where fixed fibre is not feasible. <BR /> <BR />I fully understand and appreciate the frustrations of those who cannot access satisfactory broadband speeds. My message to them is that we will continue to work with private sector providers to improve —”
“In addition, the mobile market in the UK is highly competitive and fast-moving, and the operators are constantly evolving their networks and developing new products and services that can offer better coverage and more adaptable packages. <BR /> <BR />I hope that the Assembly will recognise that Northern Ireland has made significant progress on the reach and quality of the broadband services that are now available. We have made that progress within the confines within which the Department is required to operate in developing our telecommunications networks. I understand and appreciate the importance of having access to a good broadband service not just to rural dwellers but to the many businesses located in rural parts of Northern Ireland.”
“My Department is currently taking stock of what has been achieved and what is likely to remain to be done after the current initiatives have been completed. This is at an early stage, but it is already apparent that, if the ambitions of the draft Programme for Government with regard to improving Internet connectivity are to be realised — again, a point made by Mr O'Dowd — the costs, no matter what technology is deployed, are likely to require further investment. <BR /> <BR />I now turn briefly to mobile coverage. The UK Government have put in place an agreement with the mobile network operators through which the mobile industry will invest £5 billion in UK infrastructure to increase coverage by 2017. It is envisaged that mobile not spots in Northern Ireland will be reduced to 0·3% of the land mass by the time that investment is completed.”
“No, we do not. The Member and others touched on the point about it being a privatised and independently regulated market. We do not have the power to compel and cannot force companies to get involved in a joint venture. We will encourage them, and, to be fair, most telecommunications companies have been willing and receptive to that. I do not have the time to get into the Member's point in great detail now, but he made an interesting and relevant point. <BR /> <BR />I agree that, while recognising the significant advances that we have made to date, there is and will continue to be a need for the further evolution of and improvement in broadband and mobile infrastructure in rural and urban areas of Northern Ireland.”
“I am pushed for time. Can you be very brief?”
“<BR /> <BR />I also have to stress that telecommunications matters are reserved by Westminster and that my Department has limited powers to intervene in what is a fully privatised and independently regulated market. While public funds can and will be used to encourage private sector investment, it is ultimately a business decision for providers how and if they wish to participate in any joint venture. In addition, public funds have to be used in a way that ensures value for money while protecting competition and adhering to the rules on state aid. In that context, neither I nor the Department can direct or compel a network operator as to where it should invest or what technology it should use. However, I agree that, while recognising —”
“<BR /> <BR />Over recent years, my Department has supported projects that have extended fixed wireless and satellite broadband networks across many parts of Northern Ireland, with the capacity to offer high-speed broadband services. In January this year, my Department launched a scheme that allows consumers with a service of less than two megabits per second to access a subsidy towards the cost of having a satellite service installed, subject to satisfying certain eligibility criteria. For the future, under the broadband improvement contract, BT can reinvest certain clawback funds when take-up exceeds specific thresholds. The final amount will not be known until the autumn, when plans can be developed to further improve the coverage of faster broadband connectivity across Northern Ireland.”
“<BR /> <BR />While the substantial investment that has already taken place resulted in a very welcome level of improvement and illustrates that much has been done to enhance provision, I recognise that the overall picture may not reflect the reality for some of our most geographically remote and demographically challenging locations. We recognise this, and my Department's ongoing initiatives are very much aimed at further enhancing our broadband infrastructure. In that context, I urge Members to recognise that alternative networks offer a viable option for the delivery of broadband services in the most difficult to reach and less densely populated areas.”
“I am not saying that I am settling for being in the top 16%, but that is not bad when you compare it with the countries that are in the OECD. This is not global; it is not every country in the world. This is the most advanced and most developed economies in the world: the likes of Japan, the United States, France, Germany and other parts of Europe. We may not be perfect, but when we compare ourselves with others we are doing quite well. <BR /> <BR />In this context, it is important to note that Ofcom also indicated that the roll-out of my Department's superfast programme with access to a speed of 24 megabits per second will cause this picture — the picture of 86% of households getting access — to improve and change rapidly and, I believe, for the better.”
“Sometimes I think we fail to compare ourselves. It is fair enough for us to look at ourselves and say that there are parts of Northern Ireland that are not as good as others, but we should compare it with other nations around the world, including the countries we are competing against for investment, which the motion talks about. The OECD does analysis of the well-being of regions, and one of the indicators that it uses is access to services. The indicator that it uses to mark that is household broadband access. Northern Ireland's access to services rating in the OECD regional well-being index shows that we are in the top 16% of OECD regions for household broadband access. I would like to see it higher than 16% — it has been higher than that in the past — but that is not bad in comparison.”
“While we wait to hear the full details, it is possible that the universal service obligation will include the use of various technologies in the most challenging areas. The motion notes that 42% of rural premises cannot currently achieve speeds of 10 megabits per second or better, as recorded by Ofcom in its 'Connected Nations 2015' report. While it is important to note that 86% of premises overall in Northern Ireland can access those speeds, I recognise it is important that as much as possible is done to improve access for rural premises going forward. <BR /> <BR />Mr Storey acknowledged the investment that has been made — I think Mr Dunne made the same point — recognised that improvements have been made and acknowledged that broadband access is, by and large, much better than it was a number of years ago. Yes, there is work to do.”
“I appreciate the comments made by the Member. I think 30 acknowledges some degree of ambition over and above what the DCMS has. Whilst I would like to see it higher than that, aspire to it and want to make progress towards it over a longer time, I think getting a minimum of 30 for people, particularly those receiving less than two megabits a second at the minute, would be a substantial improvement in the broadband service they receive. <BR /> <BR />A universal service obligation, with its target date of 2020, will be provided on the basis of a reasonable request from consumers, with services delivered using the most cost-effective technology available. Consumers may be expected to contribute to the costs where they go beyond a reasonable threshold.”
“My Department has already expressed the view to the Department for Culture, Media and Sport in London, which is leading on the regulatory change, that the minimum should be at least 30 megabits per second. Perhaps that is not the several hundred that Mr Aiken was talking about, but I hope it at least shows there is a degree of ambition in my Department and the Executive over and above what DCMS in London wants, which is only 10 megabits. I accept that it is not several hundred, which, as Mr Lyons said, is a speed more likely to be in places like London, but it is at least a sign of some ambition on the part of this Department and the Executive that we want to see that USO raised from 10 to at least 30.”
“In addition to the broadband improvement scheme, my Department is managing the superfast roll-out programme, which, by 31 December 2017, will provide access to superfast broadband with speeds of at least 24 megabits per second to a further 39,000 premises, business and residential, across Northern Ireland. It is anticipated that, by the time those projects have completed, 87% of premises will have access to services of at least 24 megabits per second, compared with 77% when the projects began. <BR /> <BR />The motion refers to the United Kingdom's intention to introduce a broadband universal service obligation. Through that, it is expected that by 2020 everyone should have the legal right to request a broadband service of at least 10 megabits per second, subject to certain conditions.”
“I accept that it is not perfect, it is not right in every case and more work needs to be done, but that is what we are obviously trying to do.”
“The point I was making in previous comments — this ought to be acknowledged, and I think it has been generally acknowledged in the House — was that there has been a significant investment in Northern Ireland that has taken us ahead of other parts of the United Kingdom in its scale. That investment has tried to improve the service. It is not perfect — I am not standing here saying it is perfect — but the broadband improvement scheme is one good example of where investment has been made to try to enhance and improve broadband services, including his constituency, where of the 164 exchanges that have been improved some are in Downpatrick, Newcastle and Ardglass, which is a village I am very familiar with. There have been improvements, and investments have been made.”
“That is something that my Department does on an ongoing basis with various telecoms providers. I accept entirely the point that the Member makes; it is one that I could make myself on behalf of constituents who come to me on a frequent enough basis.”
“The broadband improvement scheme is a good example of where we are making the investments that the motion calls on us to make to make improvements to broadband services in his constituency and others. Up to March of this year, the investment being made in the broadband improvement scheme has seen improvements to 164 exchanges across Northern Ireland. Some of those are in places like Claudy, Feeny, Kilrea and Limavady, all of which were mentioned by the Member. There is a lengthy list of others that, I am sure, touches on some of the areas that other Members talked about. It may not be perfect, but I do not think that anybody can genuinely stand in the Chamber and say that there has not been investment or there have not been improvements. In addition —”
“Ofcom has also reported that the average broadband download speed in Northern Ireland has continued to increase to 28·3 Mb per second, compared with a UK average of 29 Mb per second. Specifically, my Department's broadband improvement project, which was mentioned by Mr Boylan, has already ensured that, for the first time, some 48,000 premises, largely in rural areas, have received access to at least 2 Mb per second and that just over 29,000 premises can now access 30 Mb per second or better. <BR /> <BR />I listened to the contribution of Mr Mullan towards the end of the debate, and I think that he said that there had been no improvement at all to broadband services in his East Londonderry constituency.”
“In recognition of that, over the last eight years, my Department has led the way in the United Kingdom by channeling some £64 million of public funding into initiatives aimed at stimulating improvements in the reach, speed and quality of broadband services across Northern Ireland. It is important, therefore, to take the opportunity to place on record the progress that has been made in this key area. The latest infrastructure report from Ofcom has pointed to Northern Ireland having the highest coverage of fibre-based networks in the whole of the United Kingdom, at 95% across fixed and mobile technologies. That can provide a broadband service of 2 Mb per second or better.”
“I join others who have congratulated the outgoing Clerk/Chief Executive on his retirement. I think that everybody will join in wishing him a very enjoyable retirement and thanking him for the service that he has given to the Assembly and other parts of the public sector in Northern Ireland. <BR /> <BR />I thank Members from the Benches opposite for bringing the debate to the Assembly today. I fully recognise, as many Members have said during the debate, the importance of access to functional, modern and sustainable telecommunications networks and services in support of economic prosperity and business growth.”
“Yes, I intend to visit the north-west, just as I intend to visit all parts of Northern Ireland. I am keen to work with anybody and everybody — the council, the Chamber of Commerce in Derry and others — to ensure that whatever help and support I can provide through my Department and its agencies to attract investment and increase jobs in the area will be provided. The Executive as a whole recognised the need to have a regionally balanced economy in the draft Programme for Government framework, and we need to follow through on that with a clear action plan for how we will deliver it.”
“The Member touches on high levels of unemployment. That is of course a fact in some parts of Northern Ireland, particularly peripheral parts. Invest Northern Ireland, whatever the perception may be of its track record in trying to bring investment to areas such as the Member's constituency, actually does have a good record of trying to bring investment and jobs to that constituency and others in the west of the Province. I cited some of those examples to Mr McPhillips earlier. I know that the Member is very fond of Strabane, and I met the huge investor Allstate, which has a presence there. When you have international companies of that size and stature seeing the merit in setting up in Strabane, that is a beacon for others to see the opportunities presented by Strabane and the skilled workforce that is there.”
“The local economy in the Strangford area has a higher proportion of tourism businesses that, I am sure, will have received more investment than many of the other council areas that the Member mentioned. We are biased of course, but I believe that we have the most beautiful constituency in the whole of Northern Ireland. As a result, it has received many more visitors, which has seen our tourism product develop and grow over the last number of years. There are some figures that you can look at to show that it is not as good, but there are others that you can look at to show that other elements of the economy have received appropriate levels of support. I am happy to provide the Member with that detail.”
“Of course, both as Minister and as a representative for that constituency, I want to see increased and improved investment in Strangford, just as I want to see it in every constituency across Northern Ireland. I will be doing my level best to improve and increase investment in every constituency, particularly Strangford. The Member touched on Invest Northern Ireland figures and compared the former Ards Borough Council area unfavourably with Newtownabbey, for example. There are other indicators, and I am happy to furnish the Member with the precise detail. <BR /> <BR />Take tourism investment, for example. The Member will know that the local economy of subregions has different constructions.”
“I am not aware of the specific research, but, now that the Member has raised it with me, I will study it closely. The Member's comments are a very good example of the point that I was making to Mr McPhillips earlier. There is a perception that all investment goes to the greater Belfast area. The Member's point is one that I am familiar with. There is a perception in our constituency that we do not get the same level of investment. I think that, in some respects, that is because of our proximity to Belfast. Yet, the Member will be aware, as I am, of the many great firms and businesses in our constituency, particularly in the agrifood sector, that are thriving and have grown considerably over the last number of years, creating employment in our area and helping to grow an incredibly important sector of our overall economy.”
“That will not, I am sure, come across my desk, but it may come across the desk of other Ministers, and I would not want to say anything to prejudice the process that they would have to go through. As I said, it is a project that the previous Executive and the Irish Government were committed to in principle.”
“Developing our economic infrastructure in whatever way, whether it be roads, telecoms or energy infrastructure, is incredibly important to improving our overall economy. In any measure, improving our economic infrastructure is key to increasing competitiveness and productivity and to ensuring growth. Part of that is increasing and improving our connectivity. It is a small project in the connectivity that it would deliver, but I understand from listening to people, particularly from Warrenpoint and the surrounding area, that it is something that they see as having huge potential to grow the tourism economy and attract visitors into their area. <BR /> <BR />I have not had time to assess it. I do not know exactly whether there is a bid in for funding.”
“Not specifically. I am fairly new to the post, as the Member will appreciate, and will want to take some time to consider a range of projects that will in some way or other come across my ministerial desk. <BR /> <BR />I know that this is a long-standing project and ambition of people in not just the Newry, Mourne and south Down area but across the border in County Louth. I have some experience of it in a previous role as Finance Minister, particularly around funding. Unfortunately, funding was not able to materialise for of a range of reasons a number of years ago. As the Member knows, it is a project to which the Executive, and the Irish Government as well, remain committed in principle.”
“With the investment by Belfast harbour in a new terminal capable of hosting vessels of all sizes, and our developing and improving tourism product not just in Belfast but all around Northern Ireland, we would hope to see the number of cruise ships increase and, similarly, the number of visitors and amount of spend.”