£70m for broadband not enough, says SNP

THE Scottish Government has warned that a near-£70 million cash allocation to help bring next-generation broadband to remote and rural areas is not nearly enough.

UK culture secretary Jeremy Hunt yesterday announced a 362m package to help deliver superfast broadband to 90 per cent of homes by 2015, with 68.8m earmarked for Scotland.

The money is aimed at helping the one-third of households that are not expected to have fast internet access made available by the private sector. But Alex Neil, the Scottish secretary for infrastructure and capital investment, said he was disappointed with the allocation. He argued that it would cost 300m to deliver high-speed broadband to the Highlands and Islands alone, and described the money allocated to Scotland from Westminster as "unrealistic".

He said the UK government still had funds in its 530m broadband fund, set aside from the TV licence fee, and intended to seek a better deal.

Mr Neil said: "Whilst today's funding will contribute in some measure to fulfilment of our broadband ambition, we will play our own part through direct investment of Scottish Government funding, as well as exploring alternative financing models."

But he added: "However, this announcement from the UK government has fallen short of the expectations of the Scottish economy to the overall costs of broadband roll-out in the remote and rural parts of Scotland.

"The Scottish Government believes that people across Scotland should have the same access to the benefits of high-speed connection and fair access to the digital revolution. That investment will be good for jobs and economic growth and why we will be introducing a Next Generation Digital Fund amongst other measures."

While the parts of England to benefit from the cash have been detailed, areas in Scotland will have to wait until the Scottish Government's spending review.

Scottish Secretary Michael Moore called on Scottish ministers to match the UK funding to ensure 90 per cent of homes and businesses could have access to the internet.

A spokeswoman for Highlands and Islands Enterprise said it is keen to receive a share of the funds to reflect the difficulties of providing superfast broadband in its area.

"We have estimated that the potential cost to roll out superfast broadband across the Highlands and Islands could be as much as 300m and we expect funding for this to come from a mix of public and private sector partners," the spokesman said.

"Our ultimate aim is for all communities to benefit and that we achieve better broadband services for everyone, including those in our most rural and economically fragile areas."

Nanette Milne, Conservative MSP for the North-east, said she also wants her area to be a priority for investment.