Opposition claims that funding for the expansion of broadband services had been diverted to a new "greener homes" scheme for renewable heating systems, were dismissed by Minister for Natural Resources Eamon Ryan.
Mr Ryan also denied that the original home heating scheme had "run into the sand" for lack of funding and said a supplementary estimate of between €15 million and €17 million would be introduced for the second phase of the scheme for renewable heating systems.
Fine Gael spokesman Simon Coveney claimed the supplementary estimate was €16.2 million, of which €10 million had been diverted from the budget for information and communications technology programmes.
Mr Ryan said there was a re-allocation within the department. He told the Dáil that funding for the scheme was coming from the multi-annual programme in the telecommunications areas, particularly from the metropolitan area networks (MANs) and other development. "The funds were not fixed on any year, which allows us flexibility in terms of payment. That allowed us transfer funds."
Labour spokeswoman Liz McManus claimed the first scheme to provide grants for renewable energy technology in homes, which Mr Ryan in opposition had described as a drop in the ocean had "run into the sand because the money has run out".
She said the Minister now proposed a much lower grant scheme for what is a relatively costly business for many people, namely changing to renewable energy products from traditional sources.
Mr Ryan said the solar energy grant was being maintained at the same level and many of the heating grant levels are unchanghed. Reductions are being made in other areas because market technology has reached a certain maturity. He said he would introduce a supplementary estimate for the scheme and when pressed repeatedly by Ms McManus, acknowledged that it would be between €15 million and €17 million.
Mr Ryan said there were now 698,000 broadband subscribers in the State, 16.48 per cent of the population, compared to less than 1 per cent in 2002.