The Country Land and Business Association has called on the government to "come clean coming about its plans to deliver broadband to schools and hospitals across the UK.

At the Labour conference in Bournemouth the CLA will be publishing the first results of a trial of BT's two-way broadband satellite system.

Forum Response: Country Land and Business Association

Sir Edward Greenwell, president of the CLA, said: "First we are told by e-commerce minister Stephen Timms that the public sector will be connected to broadband through local telephone exchanges, so that rural communities will also be able to access affordable broadband.

"Next we are told by the DTI task force that connecting broadband via these local exchanges using public funds is prohibited under EU state aid rules."

"If the government continues this approach, its broadband programme will have to set up direct links to public sector bodies, bypassing local telephone exchanges and thus depriving rural communities and businesses of an opportunity to access affordable broadband.

"Worst still, this approach will result in a more complicated, time-consuming and expensively laid out network and may well see the government struggling to meet its own deadline of broadband to all schools and GP surgeries by 2005.

"If other EU countries like France, Sweden and Germany have successfully used public funds to support their own broadband infrastructures and increase public access to broadband, how can the government claim that Britain will be unable to do so?"

Forum Response: Institute of Directors

A spokesman for the IoD told ePolitix.com: "The IoD has always supported the government's target to create in the UK the most extensive and competitive broadband market in the G7.

"However, we hope that this commitment is not flagging. Broadband offers an invaluable tool for rural communities. The government must clarify its plans."