Dáil debates

Wednesday, 13 July 2016

Ceisteanna - Questions

Cabinet Committee Meetings

2:05 pm

Photo of Enda KennyEnda Kenny (Mayo, Fine Gael) | Oireachtas source

The Deputy has raised a number of questions. The Minister of State, Deputy Canney, had meetings with the different groups about the response to flooding and what should be done, both in regard to the more long-term situations arising from the Shannon and other locations where serious money has been invested, and in regard to smaller areas where there has been flash flooding, such as in areas around south Galway where individual houses were flooded. I am sure he would be happy to give Deputy Adams a detailed account of the progress made in that regard.

The Government decided on 5 July on the ownership model for broadband. The next stage of the procurement process is the commencement of the detailed technical and financial negotiations with qualified bidders. This competitive dialogue phase is scheduled to commence in July and is anticipated to take at least ten to 12 weeks. I dealt with Deputy Howlin on this matter last week. This is not a situation like that of Eircom, where there was a nationally owned public system, but rather an extension of private facilities. Two models were considered. First, the commercial stimulus or, as I said, gap funding, where the private sector finances, designs, builds, owns and operates the network, with contractual obligations to the Department in respect of users and people. Second, the full concession, which means the private sector finances, designs, builds and operates the network, with contractual obligations to the Department and the asset being handed back to the State after 25 years. Therefore, while the Government recognises the long-term value of the State's owning any networks built, the advice received was that under a full concession model, the entire cost of the project, which is very significant, would be placed on the Government's balance sheet, with serious implications as a consequence for the available capital funding over the next five to six years.

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