Institute calls for regulated market

THE Economic and Social Research Institute (ESRI) has called for all public transport assets in Dublin to be integrated under one holding company.

They have also called for a better regulated broadband market; more resources for early childhood education; better evaluation of new transport projects and a re-prioritising of the country’s secondary road network to feature as highlights of the next National Development Plan (NDP), which begins next year.

In the area of telecommunications — and, in particular, broadband infrastructure — the ESRI is saying that the Government needs to get the right regulatory model in place rather than just pump money into a better service offering.

Such a move — according to Edgar Morgenroth, senior research official at the ESRI — would only be warranted if there is demand.

“Much is made of Northern Ireland having 100% broadband coverage, but what is ignored is the fact that take-up of the service is really quite low there, which raises the question of money being wasted,” he said.

“The State has an important role as regulator of the telecommunications sector, as a whole, especially where there are monopoly elements to the provision of infrastructure.

“A well-regulated market should deliver broadband to the majority of the population, limiting the need for public intervention to remote areas where public investment is only warranted if a reasonable demand for broadband exists,” Mr Morgenroth added.

In other areas, the ESRI has recommended that all investment in energy infrastructure should be delivered on a commercial basis without any requirement for finance by the taxpayer.

The research body is also recommending more to be spent on health services than was the case in the first National Development Plan.

“Our analysis suggests that demographic changes alone imply that between 2007 and 2013 between 1,800 and 3,000 additional acute hospital beds will be required and there will also be a need for investment in ancillary and non-acute facilities,” according to Mr Morgenroth.