Oireachtas Joint and Select Committees

Tuesday, 28 May 2019

Committee on Budgetary Oversight

National Broadband Plan: Minister for Public Expenditure and Reform

Photo of Paschal DonohoePaschal Donohoe (Dublin Central, Fine Gael) | Oireachtas source

To respond to the Deputy's first question, the ministerial handbook and its implementation is a matter for the Minister of the day and the Taoiseach. As Deputy Burton knows, the circumstances were that the then Minister, Deputy Naughten, resigned and ceased to hold office after a number of issues regarding this process developed around a year ago. In answering the Deputy's question as to whether this was influenced in any way, the key thing is the investigation commissioned by the Department of the Taoiseach by Mr. Peter Smyth into what happened. That report concluded that no inappropriate influence took place. I remind the Deputy that the process up to that point had been going on for approximately six years, led by the Department of Communications, Climate Action and Environment, with huge safeguards around it. I know that the Secretary General of that Department was before his own committee when this issue developed to give assurances regarding the integrity of the process, which I accept. I also accept the Smyth report into the issues to which the Deputy referred and I believed it was appropriate that Deputy Naughten resigned at that point in order to allow this process to go forward.

To respond to the understandable questions she has put to me about the protections available to the State in respect of change of ownership, throughout this entire ownership period the Minister can terminate the agreement. There are a couple of different levels in this regard. The first is that the contract makes clear that there is an absolute prohibition on a change of ownership in respect of the contract to what would be described as an unsuitable third party. That power is available to the Minister. The Minister's consent is then required at different points in this process regarding the sale or shares of ownership regarding the consortium. This is laid out in the contract. As for citizens being held captive by this, with respect, that is overstating it. If this works, which I believe it will, we are talking about citizens who will have access to broadband which they do not have at present and providing a service to citizens that the private sector will not provide. One area on which I do agree with the Deputy is what has happened with Eircom, whereby we have seen the organisation change ownership on many different occasions. Again, when that decision was made, I could see merit in it. Having now been in this role for a number of years, I think the Government of which Deputy Burton and I were members was wise not to make sales of any assets at that point.

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