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Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: There is 50% profit on fixed-line businesses.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Yes.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: The intention is to cut that to 6%

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: What about the 20% reduction in operating costs?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I ask Mr. Mourik to help members and those who await the service to try to understand the reason taxpayers must pay for the use of a pole or a duct, considering that whatever contractor wins this will string the fibre along the poles or put it through the ducts. The contractor will pay for the privilege anyway. Many citizens of the State, taxpayers, will find it difficult to understand why...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: People have an issue with the notion of €20 per pole.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: People will find it hard to understand that there is a potential cost to Eircom for stringing a piece of fibre along its poles considering that its own copper wire is already there and the pole must be maintained in good order to facilitate that piece of copper in the first instance. This is an incremental piece but it is hard, from the perspective of many taxpayers, to understand how it...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I have a final supplementary question on that issue. Some time ago, ComReg stated that it was paying rebates to some of the auction winners for the 3.6 GHz spectrum. Is that still the case?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I ask Mr. Godfrey to clarify why it is not available. Is it because an incumbent had not moved off the spectrum? Were there issues-----

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Yes, I know.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I thank Ms Connolly for her opening statement and presentation. Has KPMG any ongoing relationship with Granahan McCourt or any of its companies?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Does anybody from within Ms Connolly's team have any role in that?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: There is no potential for cross-contamination in any shape or form.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I thank Ms Connolly. In her opening statement, she said that KPMG had provided advice on the design of the procurement process. In hindsight, is KPMG happy with the advice it provided?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Does KPMG accept that the advice it provided to follow a particular route did not meet the key principle set out in that objective?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: It is the Government and the EU that are at fault, then, for a procurement process that KPMG takes credit for designing and that left one bidder in the race before it was concluded.

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: I refer Ms Connolly to the advice KPMG provided in the ownership report of 3 July 2015. On page 24, there is a description of ownership options and the key principle set out in that chart states that "intervention is structured so that the subsidy provided is the minimum amount necessary to allow for infrastructure development by the private sector whilst ensuring that the returns earned by...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: In her presentation, Ms Connolly referred to the withdrawal of Siro and there having been two submissions at a particular stage from Granahan McCourt and Eir. She stated that in their detailed solution submission, both of the bidders that remained in the procurement projected significantly higher levels of subsidy than the Department's budget model. Can Ms Connolly talk to us about the...

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Did KPMG advise on that? Did it help to prepare it?

Joint Oireachtas Committee on Communications, Climate Action and Environment: National Broadband Plan: Discussion (5 Jun 2019)

Timmy Dooley: Does KPMG accept responsibility for that budget model being considerably out of kilter with what was ultimately submitted?

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