Richard Bruton (Dublin Bay North, Fine Gael) | Oireachtas source

The position is that the contract will provide an enforceable equity commitment on behalf of the project which will cover the equity involved of €175 million. The company will also have to provide all of the working capital. As I indicated in my initial reply, the State will not be making any commitment to make a payment until and as the roll-out is delivered.

In terms of the longer-term prospects of this company, it is operating in a controlled market where it will pay a price that is fixed under the contract, which is at the same price that access to urban broadband will occur. At year 25, it is expected that its total turnover will be of the order of €150 million. That is the size and scale of this operation. The commitment of equity is absolutely secured in the contract and the State will have recourse in respect of that. If at any point the company fails to meet its commitments, as set down at six different milestones, the State can intervene and repossess the assets.

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