Results 14,641-14,660 of 32,643 for speaker:Paschal Donohoe

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I am pleased to attend the meeting of the Committee on Budgetary Oversight today in response to the committee’s request to provide clarification on the national broadband plan and advices received from my Department with regard to the development plan and funding for other infrastructure projects; and the future budgetary impact of the national broadband plan, its potential impact on...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: In my description of the decision-making process for this project, I am in no way seeking to diminish or dilute my role in it. That is why I am before the committee. I am happy to answer all questions about it, both as Minister for Finance and Minister for Public Expenditure and Reform. While it is true that under the public spending code line Departments are responsible for the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I can give a brief answer in two phases. The answer to that lies in the work that has already taken place in the Department of Communications, Climate Action and Environment to assess the financial and operational capacity of this consortium to deliver this project. Its assessment is it can and the Department has benchmarked this project and proposal against international standards. As the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I know and then when the contract is in place, there is a clawback facility from the State. The State has the ability to claw back 60% of excess return above a certain level and 100% before that and it also has the step-in rights in terms of the contract.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I point the Deputy to my comment that the total cost of this project, at its peak, will be around 0.1% of our general Government balance. The work that we will do in advance of this decision being made is to make the following calls. First, is this something that would affect the budgetary stance of the Government of the day, which is quite a few years away but it is still a decision I take...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: Yes, there is.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I shall deal with each of the points in turn. First, I published that advice myself because I decided that for a decision of this magnitude, it is appropriate that all of the information pertaining to it be made available. Deputy Cowen, and I think he may be acknowledging that,-----

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: -----wrote to me looking for the information. What I decided to do was to release it all once the decision was made. As for why I made the decision I did, I have touched on some of my key reasons in response to Deputy Cowen a moment ago, which is that I went through all of the alternatives regarding how this could be delivered and I decided, on balance, that this was the appropriate...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: Sure.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: My Department and Secretary General had access to the options paper and work which was ongoing. At three points in the process different options were looked at, namely in 2015, 2018 and 2019. My Department was involved at each of those three points to look at different options. On their costings, work was done, and I think it is something that the Minister for Communications, Climate...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I believe it may have been but I will double check. The Deputy asked about all the advice and economic competence available to me. I answered Deputy Cowen's questions about whose advice I sought quite carefully. It was advice within Departments. Fundamentally the reason I decided on balance that this was the course of action that the Government should proceed with goes back to the...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: He did indeed. When we get into the broader debate on this I will ask those who disagree with the Government's decision to offer an alternative that achieves the same level of coverage, which might be cheaper. We will also put this in the round along with all the other things going on in the economy. There has been 4% expenditure growth in recent years compared with 7% ten years ago with a...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: On the gap funding model and the front-loading from the tax payers, the key is that we are seeking to expand a broadband network, where we do not own the current network. The fundamental factor which made the gap funding model the appropriate one to take is that we are looking to extend an asset which is not currently owned by the State. If we were looking to create an asset to deliver 100%...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: There are a number of options available with regard to how this could be done but I again draw the Deputy's attention to the fact that during the period, the cost of this is due to accrue. Because we are running a surplus this year of 0.2% of national income that, even with the risk we have built in, is due to rise next year and the years beyond that to well in excess of 0.5%, there are...

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: That is correct.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: I have not yet made that decision because that is a decision I will make in the context of the summer economic statement and then budget day. The only caveat I could add to what I have told the Deputy is that for each of those years, it is up to that. The reason I say up to that is because within those figures is included a subsidy that may or may not be drawn down.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: That is definitely a likely outcome of it but I have yet to make those decisions. The decision point for me will be in the summer economic statement when I will outline the capital ceilings for the next few years and also the recommended budgetary stance for those years.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: That decision will have to be made in the same way. The decision must be made as to whether we want to run a higher surplus, a lower surplus or a higher deficit across that period.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: That is correct. The figure of €1.6 billion is correct and yes, it will affect the net position of the Government of the day.

Committee on Budgetary Oversight: National Broadband Plan: Minister for Public Expenditure and Reform (28 May 2019)

Paschal Donohoe: Yes, across the lifetime of the national development plan.