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

We do not pay the compensation. The investor is entirely exposed to the risks, so if a wireless operator delivers the service and encroaches on what the investor hoped to get, it is entirely at that risk.

That is when additional equity would have to be put into the company. If the investor cannot deliver the €2.4 billion for which it is responsible, it has to put additional equity in to deal with that.

On the sale after 2008, the reasons are set out for when a Minister can refuse. They are limited and they are in cases where the person is effectively unsuitable. They are available in the published information but a clawback is also provided. If a sale occurs after the ten-year period, there is a clawback. In the earlier period it is much more stringent.

The Deputy asked about the circumstances in which the State would acquire the network. If the company fails at various checkpoints, either by failing the viability test or by failing the roll-out test, the State can become the owner and it would effectively revert to the State in the event of ownership.

The Deputy made the point that the Secretary General of the Department of Public Expenditure and Reform pointed out that at different points along the trail the State will make significant investments and the company will be working off its initial equity investment. If the State has paid out €1.2 billion, that means 57% of homes will have passed and been connected so we will be well through the contract and the investor will be operating in every county. At that point, a substantial part of the infrastructure will be in place so we have set up the contract in such a way that the State is protected. We only pay in arrears as the network is rolled out. It is certainly not our ambition that this would revert to the State but we will have ownership of a significant asset at that stage. It will be fibre delivered to whatever percentage of homes are specified at those different checkpoints so there is a significant asset.

Of course the company can be sold on at certain points under stringent conditions that are set out but when the Deputy talks about flipping the company and large profits being made and so on, there is a clawback if such occurs and this is a regulated company whose prices are set by the contract. The company cannot come along and decide on whatever price it likes as a monopoly does. It must only sell at a regulated price and it must be open to everyone. Any retailer that wants to sell off its retail platform must be allowed to enter. There is significant control on how this company operates.