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

On the contingencies, when we have looked at alternatives, in each of those cases we have looked at the critical issues. For example, if one were to say this should be offered to the ESB, the critical issue is whether a contract could be terminated and offered to the ESB or not. The most important issue that needed to be checked at that point was whether that could be done under state aid rules and the response we received was categorical that we could not terminate this contract, hand it to the ESB without a fresh procurement process where others would have the right to enter the fray and compete. Leaving aside the fact that the ESB entered this particular contest and dropped out because it did not see it as a economic route for it to pursue, if we sought to do it again, it would have to be an open competition in which it could only be awarded to one of those entering the fray and that would take another two and a half to three years to set up. We would have no confidence that it could deliver at a lower cost and we had a fair level of knowledge of its cost base when it dropped out but we would also have had to delay the project for three years while we retendered it.

Where we looked at other technologies we did bring in the technology evaluation. What was done with these alternatives was that we looked at what the critical difference that this might bring to the party and we looked in depth at those elements to assure ourselves that there was not another option out there that ought to be pursued. I refer to the wireless option, which was one of the options that was examined.

We did the robust analysis of how wireless would operate. Members can see it in the documentation. Both ComReg and Analysys Mason showed that that technology ultimately could not achieve the 100% without a substantial investment in new masts in locations that would ultimately prove more expensive in the long term but would not deliver this level of service. Fibre gives a dedicated service to one's premises. By contrast, a wireless solution provides a service that is shared with other users and can be diluted as other users come on board. The Deputy raised a concern that the alternatives were not properly looked at. We looked at the issue.

The Deputy asked if having one bidder created a problem. We recognise that having one bidder created a problem. At that point, there had been two comparable bids. Eir made a bid which was comparable to the Granahan McCourt bid before it pulled out. We had access to the cost base of the two that submitted their applications. Granahan McCourt was not significantly more expensive than the other bid. They were comparable and I will not go into details of-----