The Government will increase Budget funding for broadband telecoms networks to €44 million from the €25 million contained in the Estimates, it is understood. However, the allocation will be less than the €55 million committed to high-speed telecoms in last year's budget.
It is thought a separate allocation of €3 million will be made today to the CAIT initiative, which funds computer training programmes and equipment for community groups.
The funding for broadband is aimed at boosting industrial investment in the regions, which is a cornerstone of Government policy. Large-scale employers demand high-quality telecoms and electricity networks. IDA Ireland has also stated on a number of occasions that foreign investors cannot be attracted to the Republic without sufficient infrastructure.
Despite the liberalisation of the telecoms industry, however, the private sector has been unwilling to fund broadband development outside major urban centres.
Thus the Government has sought in recent years to expand the roll-out in the regions. The investment is also designed to support the development of electronic commerce. Projects such as the Atlantic Corridor are designed to connect more than 120 towns and villages to high-speed networks.
In his Budget speech this afternoon, the Minister for Finance, Mr McCreevy, is likely to say that the money for broadband will be allocated to projects backed by public authorities in partnership with the private sector.
It is understood the €55 million allocation this year resulted in complementary private sector investment of about €105 million.
A budget allocation of €26.5 million in 1999 is understood to have prompted more than £41 million in private investment.
It is understood today's allocation will be provided under the National Development Plan for 2000-2006, which envisaged expenditure of €200 million on broadband infrastruture and services in the Border, Midlands and Western region and in the south and east of the State.
The funding dispersed in Mr McCreevy's allocation today will be used as part of the same process. It will be sourced from the Exchequer and the European Regional Development funds.
Some 60 projects will receive money from the CAIT allocation. The initiative is designed to train members of groups for women, disabled people, the elderly, the unemployed, youths and travellers.
