Results 8,701-8,720 of 27,945 for speaker:Michael McGrath
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Sure, but we have the Minister's projections for revenue out to 2023, which are only a month old. They arrived in the stability programme update last month. In effect, there is an extra €700 million that must be found over that period for the broadband plan. What the Minister is saying here is that it will be from future revenues and that he has already forecast what those revenues...
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: On top of that €700 million out to 2023, there is a further €900 million over the lifetime of the national development plan. Will that also come from future revenues?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Okay but, in essence, it is €1.6 billion that the Minister must identify out to 2027 as to where that money will come from. What he has said so far is that this money will come from future revenues, not expenditure cuts, tax increases, displacement of other projects or increased borrowing, so it will affect his net position - his deficit or surplus position. There is no other source.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: In addition, as I understand it, with regard to the national children's hospital, approximately €400 million must be found there above and beyond what is currently provided for in the national development plan. That brings the figure of €1.6 million to €2 billion in combined terms. Is that correct?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: The Minister mentioned a number of times that the State's commitment around risk is capped. Is there any scenario where the State's exposure could exceed €3 billion?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: The broadband plan.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Okay, so there is no construction inflation clause or no scenario provision whereby the cost could exceed €3 billion. It is absolutely watertight.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: But it will be watertight.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: It is the Government's intention that it will not sign a contract if there is any wriggle room whereby the bill could exceed €3 billion?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: The Minister said that the overall development cost is about €5 billion, the State will have to put in up to €3 billion and the consortium's initial contribution is €220 million between working capital and equity. Is it envisaged that the balance will principally come from service charges?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: From revenue streams.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: My understanding is it will come from revenue streams, rather than the consortium.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Okay.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Is there a draft contract?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: What will be the role of the Department of Public Expenditure and Reform in the negotiation of the contract?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Will the Department be heavily involved or have oversight? How would the Minister describe its role as opposed to that of the Department of Communications, Climate Action and Environment, in the negotiation of the nitty-gritty of the contract?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: I will ask one final question for now. According to the letter from the Minister's Secretary General, dated 16 April, the potential break points will kick in in years four, six and ten. The Secretary General has asked pertinent questions about what would happen in the event that the break clauses were invoked by the Government. One question relates to the issue of ownership. In a scenario...
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: Would compensation be payable to the preferred bidder were the State to intervene in that scenario and terminate the contract? As this is a question the Secretary General asked, I assume it was answered.
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: What is the answer?
- Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)
Michael McGrath: I thank the Minister.