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Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Is it advising the Department on the funding aspects of the final contract?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Who decides when it is relevant? Is that the Department's call or the NDFA's?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: We have discussed before that this will involve a great deal of construction work with 200,000 poles to be erected if this is to happen. Can the witnesses explain the issue of the derogation from the Government's contracts committee on construction projects? There will be a lot of construction contracts here. We had it with the children's hospital also where we were told this was a once...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: We will need clarification on this. We had detailed discussions about the national capital plan, the children’s hospital and the derogation. The public will not see the subtle difference between this, which is taxpayers’ money, State contracts and infrastructure, and the point that just because an SPV company has been established solely for these contract purposes that we are...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: The public would expect the same level of Government procurement rules. Do SPVs fall outside public procurement rules?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: That is a significant issue. I would be concerned if this amount of taxpayer funding – megabucks - goes into a project but is off-balance sheet through an SPV established solely for this contract.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: I do not mind that. However, we will not get a figure on the subsidies.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Does the Department get the point about derogation from public procurement rules? It was a significant issue with the national children’s hospital. As Chairman, I am concerned that if every big contract-----

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: No, it was a derogation of having to go through the Government contracts framework for procurement because it is a once-off specific complex project.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: The alternative is to go through the Government’s standard procurement process.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: I do not have an alternative view. I am just putting the facts out there and letting them fall where they may.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: The public presumed a contract like this would be subject to Government procurement rules. I am putting it on the record that because it is a private company and because an SPV was established for this, it falls outside our remit. I just want people to know that. I am not saying it is good, bad or indifferent.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Will Mr. Griffin provide all of that information in his note?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Just to run through the figures again, out of 757,000 premises, 300,000 will be completed this year by Eir? Is the Department satisfied with that? On the figure of the extra 85,000 premises which were brought back in, were those new builds or premises which were missed?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Will the Department send us a note on that issue?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: In the context of all big contracts and payment on delivery, what happens if the company in question goes out of business and the State must compete the process? Does it lodge a performance or a completion bond with the State?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: One hopes that will never happen. However, I am just making sure there is a bond in place.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: Will the payment from the State go through the Department’s Vote every year?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: We will be discussing it then when the Department attends the committee about its Vote.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed)
(28 Mar 2019)

Seán Fleming: It will go through the Vote and then through the SPV. Then it will be out of the committee’s remit. There are milestones of delivery and expenditure incurred. The Department will have a mechanism for monitoring that. If the contract were signed today, how long will it be before the 543,000 families and businesses have broadband?

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