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

In respect of each alternative, the key element in respect of which it represented a departure from the existing plan A was evaluated in detail. For example, in examining the use of wireless technology as opposed to fibre technology, the cost and reach of such a system was evaluated. When it was found that the cost would be greater and the reach less, no further cost-benefit analysis was undertaken because these findings implied that the benefit would be less and the cost greater and that therefore the cost-benefit ratio would be inferior. We did not ask PwC to do that exercise because it was moot. In the same way, when we looked at the ESB as a possible alternative, we had to look at what would happen to the existing tender if we returned to a body which had dropped out of the tender process and offered it the contract. That would be unfair to the firm that had proceeded through the tender phase and incurred costs in getting to that stage when others had fallen away. That would be seen to be an unfair legal process. We could terminate the contract and then consider the ESB, but the advice we got from the European Union and our own Attorney General was clear, that doing so would result in having to conduct a fresh procurement process. The ESB could only be considered a player if it won any fresh procurement process that was set up. We judged it unwise to lose three years and to undertake a fresh procurement process when we knew it was likely that the ESB would not be more cost competitive because we had some knowledge of its cost model. In each case we analysed the alternatives to the level that enabled us to make an informed decision. That did not require calculating a new cost-benefit ratio for each alternative. On the benefit side we looked at the number of people who would be connected and the potential benefits they would acquire from being on the system. On the cost side we looked at the costs and whether any alternative would reach the same number of people as plan A. It was not necessary to do a fresh evaluation in every case.

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