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)
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In my description of the decision-making process for this project, I am in no way seeking to diminish or dilute my role in it. That is why I am before the committee. I am happy to answer all questions about it, both as Minister for Finance and Minister for Public Expenditure and Reform. While it is true that under the public spending code line Departments are responsible for the implementation of their projects, the two portfolios I hold mean I am fundamentally involved in these matters and will answer all questions relating to them.

To give the context of how I will answer Deputy Cowen's questions, I formed the view that three particular decisions made by this and previous Governments have set the path to where we are today and the proposition we are now debating. The first was the decision made 20 years ago to privatise Telecom Éireann, the second was the decision to pursue 100% coverage and the third, which was made by those involved in the bidding process, is the preference for fibre optic technology. Those three points are fundamental to understanding the decision the Government will make when we go to sign the contract.

The Deputy put three questions to me. Who did I meet in forming my view on this? I met nobody beyond officials in my Department and the Department of Communications, Climate Action and Environment. My diary is published every few weeks. It contains everything in respect of this and all the meetings I have. All the engagement I had with this matter was confined to my two Departments and the Department of Communications, Climate Action and Environment. That engagement was intensive, extensive and over a long period.

On the second question, my view was formed by a document that was published as part of the information I released in the aftermath of the decision being made. It is the options analysis. It went through every other option that the Government or any of the Deputies might put forward to find alternative ways of delivering the national broadband plan. I formed the view that each of the options available would have incurred either significant delay in the process or additional risk, crucially, would not have delivered the 100% coverage and would have raised further issues regarding cost certainty in the future. All of those considerations led me back to the conclusion I made which is, I believe, on balance the option that is available to us and the one I recommended to the Government. I went through every other option at great length over the past six to nine months.

Regarding the risk that exists and how that will be managed, I am confident that the nature of the agreement that is open to the Government to sign finds a way of managing that risk. I say that for two reasons. The fact that the potential contribution of the State is capped and is up to a certain figure is profoundly relevant to the decision the Government might make. In any situation in which risk could occur in respect of either roll-out, implementation, take-up or impingement on the coverage area, the fact that our exposure is capped is fundamental to why I believe, on balance, this should be done.

With regard to how this will be paid for, I acknowledged in my opening statement that there are options available to us for how it will be done. It is worth pointing out that the highest cost of this is liable to the State at the point at which our surplus is due to be growing. There will, therefore, be options open to the Government of the day, including me now, regarding how to recommend paying for it. I will provide my views in that regard in both the summer economic statement and on budget day.

I will conclude by emphasising the point of risk. In all the Deputy's calculations about how to do this, and the views he may form on how to do it, covering 540,000 homes and 83% of the country with new infrastructure is inherently risky. I invite those who disagree with the recommendation we have made to examine the options I have rejected and outline why they think they are better. I will engage with the Deputy in this committee over the course of this process and answer his questions about it.