Oireachtas Joint and Select Committees

Tuesday, 14 May 2019

Joint Oireachtas Committee on Communications, Climate Action and Environment

National Broadband Plan: Discussion

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

I will go through them. The Deputy is suggesting the announcement was not positive. Considering that every Deputy in the House was asking me when it would happen, there was a huge appetite for it. It is a positive announcement. It is really important that we set about ensuring there is not a digital divide, as it is described, between people who live in rural areas and those in other parts.

The Deputy asked about the roll-out. We are being realistic, having done the very detailed due diligence exercise, and we are considering every element of how the fibre will be rolled out and how the poles and ducts will be made available.

This is a realistic estimate on which we believe we can deliver and to which the contractor has committed. Hefty penalty clauses are set out should it fail to deliver at the 30%, 60%, and 100% delivery points. Stringent penalties would have to be paid. This estimation is therefore not only very realistic, it is also backed up by a detailed contract.

With regard to the contract extension in respect of the MANs, I am not briefed to speak about that today but we have provided material to one of the other Oireachtas committees. That was independently evaluated, the decision was made independently, and the extension was awarded. I will provide the committee with that information.

I do not believe there are questions with regard to the report done by Peter Smyth because, as the Deputy knows, he found that the former Minister was not privy to any sensitive information which would have been of benefit to Granahan McCourt, that he did not take any decisions during the process which could have benefitted Granahan McCourt, that he was not in a position to influence changes to tender documents, and that he was not in a position to influence the evaluation of the submissions. On that basis, Mr. Smyth was satisfied that neither the former Minister nor Mr. McCourt sought to influence the conduct of the tender process. He went on to say that, because the then Minister, Deputy Naughten, stepped down at that point, he removed the perception that anything was amiss. I therefore do not believe that there is an issue in that respect.

In respect of the reliance on a related company, the detailed terms under which the pre-qualification occurred, and continues to occur, are set out in the documents which are available to the Deputy. In the assessment of the capacity and experience of the bidder, including minimum threshold requirements, Granahan McCourt relied on the resources of Tetrad Corporation and McCourt Global LLC. This meant that it was Tetrad and McCourt Global that were assessed from a turnover and financial capacity perspective. This was appropriate given the scale of the investment required from the bidder. The ability to rely on the resources of another entity and the requirements for doing so are set out in section 10.2 of the project information memorandum and in the pre-qualification questionnaire. There is effectively a parent guarantee from those on whom the bidder relied. That was deemed appropriate.

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