By Catherine Cook
MORE than 520 jobs could be created in rural areas of Donegal as a result of the roll out of the government's National Broadband Scheme (NBS), it has been claimed.
The potential of the NBS could help transform rural life in the county according to an economic impact report by well known economist Jim Power.
The NBS is being carried out by '3' who commissioned a report outlining that the provision of high quality and affordable Broadband could result in the creation of one new small to medium sized enterprise employing 10 people in each electoral district in Donegal.
"If this were to happen the economic and financial benefits to the county would be very significant. It would result in the creation of at least 520 jobs," said Mr Power.
He added: "This would result in a net wage injection of nearly ¤12.5 million into the local economy, which would have an income multiplier effect of almost ¤25 million. It would result in a contribution of over ¤3 million to the Exchequer, and ¤416,000 per annum to the local authority. In total it could result in an injection of up to ¤28.5 million to the local and national economy per annum. Over a five-year period, this would have a net present value of over ¤124.2 million."
Ireland's fastest growing mobile network '3' is currently rolling out this much needed service to rural areas in Donegal and will have just over 40 per cent of the affected areas covered by the end of the year.
The report also examines disposable income per person at a county level. It shows that Donegal is 16.6 per cent behind the national average, and 25.7 per cent behind Dublin.
"In fact, Donegal is the lowest county in the country and the National Broadband Scheme will be a boost to the county and its competitiveness," said Mr Power.
"The availability of Broadband in County Donegal is poor. High speed and affordable broadband has become an essential business tool and can no longer be regarded as a luxury service. Broadband is playing an increasingly important role in how economies and societies operate. It is a very important business tool as it connects businesses to each other, both within the host country of the business and externally. From a societal point of view Broadband facilitates better communication, particularly in rural areas."
The impact of the current recession on Donegal was also highlighted by Mr Power.
"After a prolonged period of strong economic growth the Irish economy is now in the midst of a deep economic recession.
"One of the significant features of the strong Irish economic performance over the past couple of decades has been the unbalanced nature of regional economic growth and development. Not all regions have shared the same levels of growth, prosperity and buoyancy.
"The economic and social profile of Donegal in particular and the North-west in general is a source of concern. The region has not benefited from the Celtic Tiger era to anything like the extent than many other regions of the country have."
