Joe O'Reilly (Fine Gael) | Oireachtas source

The final issue I wish to raise is relevant to people who are watching this or who will read about it in tomorrow's print media. RISPA made the point in its written submission that the projected cost of the national broadband plan has spiralled to €2.97 billion. We were led to understand by a number of other witnesses to the committee, by the Department, etc., that the State will get VAT on this back. That would amount to a reduction of up to €350 million. Do the witnesses accept that?

Within the €2.97 billion, approximately €527 million has been provided to avoid a scenario we have all been reading about recently relating to another large project, that is, to avoid the risk of escalating costs. The €527 million has been put in as a cushion such that the cost may go up or down but will not exceed the €2.97 billion. The likelihood is, with good management and the Department's rigorous protocols and controls, that the €527 million cost will be avoided. This takes the cost nearer to €2 billion. Furthermore, is it not the case that there is a clawback facility, assuming a high take-up? I think there will be a high take-up. When the ESB started to light up the homes of the hills of Donegal, among other places-----