Results 21,041-21,060 of 31,374 for speaker:Eamon Ryan
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: Okay.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: I thank Ms Connolly for her attendance. I am sure she understands why we are asking these questions. It is in the public interest. I studied and then worked in the business school in University College Dublin, UCD. I was in the marketing rather than the accounting wing. I am going to ask some questions to get my head around some of the accounting aspects. We know the bidder is investing...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: There is the whole demand side, as Ms Connolly has described. The estimate is that revenue from that demand will be in the region of €2.5 billion over the lifetime of the project. My understanding is the return on investment is slightly separate from that. It is not reflecting totally what the demand is. There is a projected actual return on the basis of the capital invested. Is...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: How is a figure being estimated? Is it based on an estimate of a combined return on capital plus the revenues that will come in?
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: It could be higher or lower then, depending on the revenue returns and the costs from Eir and so on. The exact return in the end depends then on how the investor negotiates its business.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: Clawback.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: There must also be provisions included to stipulate that the retained earnings would be reinvested in the business. That is in order that there is not only an investment of capital of €175 million over the lifetime of the project. Further capital investments should be made from the retained earnings.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: I will not make assumptions because I do not have the financial model in front of me. If the figure, hypothetically, is 12%, on the initial capital, the company would achieve a profit of €525 million over the 25 years, if my very simple business school accounting is correct. If retained earnings are ploughed back in and investment continues as a growing capital asset value, the...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: Those investing €175 million are not doing so for charitable purposes.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: During the modelling process, did KPMG, PwC or the Department calculate the projected value of the tangible asset at various stages in the process?
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: It is a sellable, tangible asset. At various stages of the process one would assume that value will increase, as the customer base changes, for example. The worth of the asset at various stages must have been calculated, given the modelling. I assume the value has been included in the modelling.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: It seems that two options are considered in the reassessment report, namely, the gap model or the concession model. We can rule out the 80% variations, because politically we are not going to leave 20% of rural Ireland behind. However, the basic choice is between the gap model, where the ownership is retained with the private equity, and the concession model, where the ownership returns to...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: On page 17 of the report of 1 May, the assessment of non-financial appraisal results of the shortlisted options are put succinctly. The incentive to invest, where the ownership remains in the private ownership model, notably scores five on the assessment, and ownership being retained by the State also scores five in terms of protecting the public interest. I am not sure it is in the public...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: What portion?
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: I have a technical question. We were told by the Minister and his officials that the cost of wholesale broadband access had been assessed at €30 per month. Is that cost index linked in the financial modelling?
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: The officials from ComReg said this morning that such indexation was somewhat unusual, given that the average costs of technology were coming down. In fact, only one other product ComReg regulates is index-linked. Did KPMG refer to ComReg before agreeing to index-link that figure in the modelling?
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: On page 17 of the report, there is an assessment of the key differences between the gap funded model and the concession model, including the advantages and disadvantages of each. It is noted that the target timeline would have to be extended if there was a switch to a concession model. For example, the State might go back to the same operator and say everything will stay the same, as...
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: It does not say that in the analysis set out in the report.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: I assume Ms Connolly cannot share the legal analysis with the committee.
- Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)
Eamon Ryan: Does the Department have a similar legal analysis?