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Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: Value for money, including the cost benefit analysis.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: That is what I have in front of me.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: PwC's fee was €2.4 million.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: Strictly in respect of the cost-benefit analysis, PwC concluded that the cost of the private operator would be €974 million. We now know not only that the nature of that consortium has changed, and the funding, but we are now relying on a letter that apparently has been handed to the Department which states that an investor has been found who is good for €180 million and that...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: I will move on. Regarding PwC's final cost-benefit analysis submission to the Department, it stated: "costs to the state have also increased as the subsidy is now more front loaded". That is surely the case. The first sight we had of any of this was about two or three weeks ago. It is certainly the case that the taxpayer's contribution is front-loaded. The taxpayer is coughing up a lot...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: On the cost-benefit analysis and the fact that an entire new network is being built, I expressed concerns on the day of the announcement about the fact that Eir was going to hive off 300,000 households and premises. That figure turned out to be 340,000 to 350,000, out of the 840,000 in the intervention area. I expressed concerns at that time that this would banjax the entire project because...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (13 Jun 2019)

Brian Stanley: Overall, if the project works out as it is currently designed, we are looking at a subsidy of €2.95 billion and, as we were told recently, an overall cost of approximately €5 billion. The witnesses have said PwC used various methods to examine the various areas that would benefit, such as education and health. There are many assumptions because people are looking forward and...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: I welcome the representatives of Analysys Mason and thank them for attending. Obviously, cost played a crucial role in the procurement process. Analysys Mason is the technical adviser to the Department. What are the key factors in terms of the cost that must be borne by the taxpayer escalating from €800 million to €2.95 billion? That is one of the major questions around this...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: We have been told in the past week or so that the overall cost will be in the region of €5 billion.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: The total cost will be the €2.97 billion and another €2 billion approximately.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: My understanding from answers provided to the committee over the past couple of years - I am open to correction - by Ministers and senior departmental officials is that Eir, SIRO and Enet or, as it is now, Granahan McCourt, were in the game and then the first two bidders withdrew. Obviously, had Eir stayed in the race and won the bid, it would have rolled it out side by side with or in place...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: That indicates that the original cost of €800 million was predicated on Eir being the successful bidder and, as such, the contractor for the work. If another bidder - let us call it Matt Yardley limited - won the contract, it would have to lease the poles and ducting from Eir which owns them and run the cable along that network.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: Sorry, it was the original subsidy.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: Subsidy.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: I have just two other questions because I do not want to delay the meeting. In the past couple of weeks, I have been told the cost is now in the region of €5 billion. Dr. Yardley confirmed what I have been told I was wrong about for the past two years and three months, namely, that the hiving off in respect of the 300,000 easiest-to-reach households has materially affected the...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: So the ESB network could be used.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: And in this country.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: I want to clarify one small point. Had the SIRO bid been successful, am I correct in stating that the ESB would have used its network to roll this out? That was its intention.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: The doughnut.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (Resumed) (12 Jun 2019)

Brian Stanley: The doughnut.

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