Denis Naughten (Roscommon-Galway, Independent) | Oireachtas source

Thank you, a Chathaoirligh. I am joined by some of my senior officials who are working on the national broadband plan. Orla Ryan and Ciarán Ó hÓbáin are to my left and to my right are Fergal Mulligan and Pat Neary.

I thank committee members for giving me the opportunity to address them in a discussion of the decision of Eir to withdraw from the procurement process for the national broadband plan. This week I have contributed openly to two debates in the House on the matter as well. Informed debate and oversight on such a project is essential. I am pleased to speak to the committee again today to provide some assurance and certainty at a time when uncertainty has been introduced into the process.

On 30 January, Eir withdrew from the procurement process. Eir's decision to withdraw is regrettable but it was entirely a decision for Eir to make. Eir has reaffirmed its commitment to continue delivery of its 300,000 rural deployment of high-speed broadband connections by the end of this year. The commitment agreement signed with me in April 2017 binds Eir to that commitment.

Some media and other commentary in respect of the Eir 300,000 deployment is misinformed. State aid rules would not allow me to invest taxpayers' money in areas where commercial companies have high-speed broadband infrastructure or are building this infrastructure. From a state aid rules perspective, the Eir 300,000 network must be treated in a manner similar to other high-speed broadband infrastructure in place at the outset of the procurement process.

I wish to make it clear that this commitment agreement was not a decision by Government as it was a private decision for Eir to decide where to invest. However, the procurement process and state aid rules allow for a commitment agreement to bind a commercial company to its private plans.

While state aid guidelines envisage clear milestones being set out in commercial plans, the commitment agreement considerably exceeds those guidelines as it includes not only milestones for delivery but robust monitoring and enforcement provisions as well. In fact, the Commission has been impressed by the extent of this agreement and believes it is a template for other countries to follow.

I hope it is clear from my statement to the House last night that it is not the case that the commitment agreement in some way determined where Eir's high-speed broadband infrastructure was to be built. It was always a matter for commercial companies. The commitment agreement provides strong assurance that planned infrastructure would be built. The commitment agreement set out clearly the quarterly milestones to be achieved.

Another narrative that has emerged is that the procurement process is overly-onerous and complex. Of course this is an onerous and complex process as we will be spending hundreds of millions of taxpayers' money to deliver a future-proofed high-speed broadband network.

I have endeavoured to ensure maximum openness and transparency for Members of Dáil Éireann, our national Parliament and the public in respect of the national broadband plan procurement process while respecting the need to protect the integrity of the process itself.

As committee members are aware, I have held three special information sessions for Deputies and Senators in respect of the NBP on three occasions in the past ten months, including an information session to provide an update following the withdrawal of Eir from the procurement process. This week I have supplied each Deputy and Senator with a copy of the letter I received from Richard Moat informing me of this decision. I also supplied a copy of my response. Yesterday evening, ahead of a statement to the House I circulated an updated comprehensive briefing document.

While I cannot and should not be involved in the day-to-day detail of the procurement process, I have been briefed at major milestones by the NBP procurement team. Additionally, at every important stage or point of decision the NBP procurement team could not proceed without my approval or Government approval.

In July 2015, the Government approved the publication of the draft intervention strategy. In December 2015, the Government approved the revised intervention strategy following public consultation and analysis of industry investment proposals. At that time, the Government also approved commencement of the procurement process. In July 2016, the Government approved adoption of a commercial stimulus ownership model. In April 2017, the Government noted my intention to sign a commitment agreement with Eir on the 300,000 deployment and to finalise the map for the intervention area for the remainder of the procurement process. Finally, last December, the Government approved my intention to bring forward heads of a Bill to provide certainty with regard to conditions of access to existing infrastructure for the national broadband plan and noted my update on the procurement process.

These decision points included detailed rationale, risk analysis and background updates. Government decisions were made on an informed basis. In this way, strong State oversight of the project was maintained. The remaining bidder, enet-SSE, has already identified its final issues for discussion with the procurement team. The list was submitted some weeks ago while competition remained in the process. I am confident the solutions identified will provide a future-proofed network that will deliver new technologies and speeds as they arise with the best possible value for the taxpayer.

The NBP procurement team are still in dialogue with enet-SSE. They are confident that the process can continue to move through the final stages and deliver a solution for rural Ireland in a prompt and effective manner. There is no sense in stopping the clock now. We are all agreed on the policy and the initiative. I welcome the opportunity to work together in the final push to deliver for our communities and rural Ireland.