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Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: They can see why I am putting these questions. We do not want to walk out of here with one side of the story.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: It is probable that the other company was precisely correct in what it said, but we got an impression from the big pitch it made about its being regulated. That is because it is so big, though, and we understand it is a dominant player. Does the Department have a separate service-level agreement with Enet or does it just have a contract?

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: It governs the arrangements. How often must Enet submit its financial statements, including returns, dividends and investments, to the Department so that its viability as an operator can be checked? The Secretary General told us that there was almost a requirement that a certain percentage of Enet's turnover had to go into investment each year. I am sure the witnesses have read it, but I...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: There is a requirement of a certain level of investment.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Mr. McCarthy might provide clarification for us.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Mr. McCarthy might set out the reporting structure.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I have a further question on the broadband plan, but something was mentioned about MANs in rural areas. Well, Enet calls them "rural areas", but it is not out the country. It is in towns, by and large the provincial ones. For people who want broadband outside of the MANs and a provider is supplying broadband in a rural area close to a town on the MANs, it has been stated that there is an...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Please explain that again for people. We have heard about the "last mile". This is important for understanding the system.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I understand that-----

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Mr. McCarthy can send that document to us.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Those Members not here will then get the benefit of reading it next week.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I can guess what the "middle mile" is. We also know about the last bit and where Enet is with that, but it would be helpful if Mr. McCarthy would send us the explanation of the "middle mile". The last topic I want to raise with Mr. McCarthy is the national broadband plan. This might not take very long. The national broadband plan was a principal part of Mr. McCarthy's opening statement...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: That is correct. The ISIF has a substantial investment in the Irish Infrastructure Fund, IIF, as well, the company which now owns Enet. Is that correct?

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: That is fine. If this contract is secured by Enet, then the State has a stake. Is that correct?

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I note the wording used by Mr. McCarthy. He stated Enet is a "key subcontractor" but not the only contractor.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Enet, therefore, is not the only subcontractor. I just wanted to clear up that issue. The last aspect of this matter concerns the national broadband plan. It started in 2015 with 850,000 houses. Today, we heard Eir has already taken 300,000 houses out of that original figure because it can do it commercially. The company has also stated that it is now replacing some of its old network...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: I will pose that question to the Department.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: They were all very shy.

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: Contract negotiations are proceeding on the potential benefit for whichever company gets the contract and the State aid. As the process continues, some premises are being removed from the being covered in the plan. I do not like using the word "cherry picking" but as we go along companies are taking the most commercial or the best prospects from what was initially envisaged in the original...

Public Accounts Committee: Enet (14 Feb 2019)

Seán Fleming: It is at the stage where the costs are going to be higher, as well as the State aid, the smaller the numbers involved get. That is something the Department will have to configure and not Enet.

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