Fewer than half the households in Ennis, Ireland's Information Age Town, are using the Internet, according to the first major report on the impact of Eircom's £15 million (€19.05 million) project on the town. Three years after Ennis won the prize, the report, A Connected Community, published this week, says 45 per cent of households have at least one Internet user.

Speaking after the publication of the report, Information Age Town chief executive, Mr Michael Byrne, said he was quite happy with the usage figure. He said that in the remaining two years of the project, "one of the big tasks will be to really understand what is slowing those non-Internet users in adapting to the technology".

The report says the lowest rates of PC ownership are in those areas of Ennis where many of the town's elderly population live. Uptake is higher in the town's newer housing estates.

In schools, there is one PC for every nine children, while in the town's special needs sector, adaptive technology has helped one pupil to speak his first words.

The project has not produced the IT jobs bonanza initially anticipated. However, a recent marketing campaign involving a number of agencies hopes to attract knowledge-based business to Ennis.

There has also been a slow response from the public sector, but a service to allow public online access to planning applications and housing lists is to be introduced next month.

To date, two-thirds of the £15 million has been spent, while the Information Age Town group has raised £1 million through the sale of 4,600 PCs at £260 each to 83 per cent of Ennis households.

According to the report, Ennis has the highest rate of computer ownership by household in the State. In 1999, online activity in Ennis was four times that of comparable towns.

"Three years on, we are very proud and very happy that a lot of very significant things have been achieved," said Mr Byrne.

"What we have got in Ennis is a balance between making sure that there is a top-class infrastructure available and appropriate human supports in terms of training. I think we have achieved a very good balance in allowing the real ownership of the project to be with the people."

With £6 million to spend in the next two years, Mr Byrne said funding would go to the Ennis website, the 22 people now employed full-time on the project, and on additional services for "late adapters" to the technology.

Mr Byrne revealed that Ennis Task Force intended to continue the project once Eircom's involvement ceases in 2002.