Joe O'Reilly (Fine Gael) | Oireachtas source

I welcome the witnesses and thank them for the briefing document they provided. In the document and their presentations, they put considerable focus on ownership of the network, which is reasonable. In their extensive submission they refer to schools and road projects and use them as a kind of benchmark. In their analysis, did they apply the same assumptions to the fibre broadband network as they might to a school or hospital? Breaking this down, what lifespan does fibre wire have? How does that compare to the lifespan of a school or hospital? In that regard, is it a valid comparison? Where is the value of the comparison? What is the value of fibre when it sits on rented Eir poles? These are very pertinent, real and practical questions to which the taxpayers would like answers. What value will the fibre have after 25 years, including 25 Irish winters? What would the depreciated value of this fibre and communications infrastructure be after 25 years? In other words, what end product will we have after 25 years? I am not referring to the KPMG analysis of its other values, but, rather, to the physical value of the infrastructure. To what extent will reinvestment in the network be necessary after 25 years, keeping in mind the lifespan of the infrastructure? What level of reinvestment will be necessary for the following ten years? That is a key question. To continue the analogy, although some maintenance work might be required in a small school or hospital after 25 years, much more significant replacement of fibre and telecommunications infrastructure could be required. The comparison does not fully stand up in that regard.

The Minister stated that he estimates the turnover of National Broadband Ireland will reach a peak of €150 million. That is one tenth of the current turnover of Eir. KPMG suggested that its peak turnover may be less than €150 million. Is this a valuable asset for the State to own after 25 years? It is a great popular and populist concept to get out there and people identify with this kind of thing and believe we may miss out on something of great benefit to the State in 25 years. I would like a little quantification of that in the context of the figures put forward by the Minister.