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)
Link to this: Individually | In context | Oireachtas source

The key level of risk here is not the desire on the part of anyone to earn a profit; it is the fact that we are talking about expanding an expensive asset to 1.1 million people who do not currently have access to it and to whom the private sector is unlikely to supply it. The fundamental factor in all this is whether we want to move away from 100% coverage. This has a very big effect on how much this will cost. To my mind, having worked on this now for quite a while, I believe that is the decision we need to evaluate. I believe a commitment to 100% coverage is understandable in the context of what will happen with public services in the future, but that is where the risk emerges from. Deputy Boyd Barrett may feel it is better for the State to carry all that risk.

There is benefit in that risk being capped. That is why, having weighed all the pros and cons, this is the safest way forward for us.

The Deputy asked the difference between this and the national children's hospital. The fundamental difference is we will be making a decision on this with all the cost, complexity and options now available. We have a tendered cost. The contract will be signed with the tendered cost known and the contingency structure in place. That is different from what happened with the national children's hospital where, as a result of the two-stage planning process, a decision was made to go ahead and, as the Deputy is well aware, the cost is now different from what was anticipated.

On the role of the person on the board, I will be making sure that, and working with the Minister, Deputy Bruton, to ensure that, the person on the board will have very clear duties to perform and that he or she will be very clear about what he or she will need to do on the board.