Results 5,961-5,980 of 10,460 for speaker:Gerry Horkan

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: How about in terms of the BCPs or in terms of going out?

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: It is a focus on the primary rather than the secondary at the moment.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: That is fine. On the website, there is a lot of information. We got a briefing document this morning of 84 pages of a summary, though it is hard to say that an 84-page document is a summary. However, of a 3,500-page document, I suppose it is. I did not get a chance and I am sure the Chairman also did not get a chance to go through the full document.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: She was probably part of the process to trim it from 3,500 to 84 pages. At its very simplest, perhaps NBI representatives could tell us some of the figures. I have heard figures talked about at €2.1 billion, €2.5 billion and €2.9 billion, or €2.7 billion because it is not VAT or something. What is the State's exposure in total? What is the worst-case scenario...

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: There are the rental costs over 25 years and the actual build costs of putting out contractors, replacing poles and doing all the things NBI is doing itself. The State is picking up the tab for most of that, is that correct?

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: That is another point. The State is somewhere between €2.2 billion, €2.7 billion or €2.9 billion and obviously all the consumers will be paying their way. I accept that people will get their share of the proceeds along the way, that is, the people from whom NBI is renting the poles, but that is in the €900 million. What is the money put in by the investors...

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: That is in the €900 million.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: That was winning the tender-----

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: And to recover start-up and set-up costs and so on. I understand that.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: I do not wish to get too bogged down in this but I am not sure whether anyone else has developed this point. Is it fair to say the State is basically paying for the building of the network and, ultimately, the investors' money is going into making sure there is working capital and a resource there to keep the system ticking over once it has been built? The State is paying for the building...

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: It is €120 million. I wish to distinguish between traditional equity compared with debt that is coming in. Is Mr. Hendrick allowed to give us the breakdown of that €120 million in terms of shareholders' equity funds that can be lost compared with repayable debt that comes at a price and in the context of which the shareholders will not share the benefits of the profits in the...

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: I am not trying to trip up anyone. I am just trying to understand it for my own sake.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: To develop the point before I lose my train of thought, there is no bank debt there.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: Is all that €223 million, of which €120 million has been stumped up so far, if one likes, a loan note, is it?

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: That is pure equity.

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: What is the practical reason for having €2 million in pure equity and the rest in debt equity that is not secured and can be lost anyway? What is the difference?

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: There was reference to there being 12%, however, in terms of-----

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: The €2 million does not get any return but the rest-----

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: The loan note shareholders get their 12%. Do they also share in the profits after that or is it the investors of the €2 million who get the surplus profits?

Joint Oireachtas Committee on Transport, Tourism and Sport: National Broadband Plan Update: National Broadband Ireland (27 Jan 2022)

Gerry Horkan: Okay. All the shareholders have a share of the €2 million and a share of the pro rata-----