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Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: ...to 2030. Obviously, they were not going to run out imminently so it was not necessary to do that in 2017, but it was done in March 2017. In July 2017 the Irish Infrastructure Fund bought 78% of Enet. That is one of the areas I wish to explore. First, who was the decision maker who decided to extend the contracts?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

...it but it would be of benefit to the committee and people who are watching the proceedings. As the Deputy correctly said, the first two management services entity, MSE, contracts were awarded to Enet. The first was for 28 MANs and the second was for 60 MANs in 66 different towns, so there was phase 1 and phase 2-----

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

...for the Department and for the users of the service. That was the only consideration for us in financial terms, market terms, service delivery and so forth. What happened in the acquisition of Enet happened utterly independently of the Department.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: They were extended in March. In July the Irish Infrastructure Fund bought 78% of Enet.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: In fact, the important thing to bear in mind is that, as I understand it, IIF bought the Enet business in its entirety. Enet does a number of things but the only part we were interested in was its role in the management of the metropolitan area networks.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: We did not give the contract extension to anybody other than Enet.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: The Deputy is making the point that subsequent to the extension Enet was sold to a different entity.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: On regulatory oversight, the name "MSE liaison committee" appeared in the Peter Smith report. Is it the de factoregulatory oversight group or what role does it play? Does Enet have any role to play with that body?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: A liaison committee is in place and meets on a quarterly basis. As I understand it, it involves the Department, Enet-----

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: Enet is involved.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: It could not be if Enet was regulating itself.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: The purpose of the committee meetings is to determine whether Enet is compliant with the requirements of the project key performance indicators and so on. The committee also involves a chief executive officer from the local authorities.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: That is fine. I thank Mr. Griffin. There is a crossover in this project with the same entities such as Granahan McCourt Capital, which owned Enet up to 2017. That is the same entity leading the national broadband plan consortium. It is useful to see how the previous project rolled out in respect of the risks with non-take-up, construction etc.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

.... Mark Griffin: I do not wish to interrupt, but I will mention one other indicator I did not share earlier. On the operation of the MANs, we have seen an additional investment of €31 million by Enet, as the management service entity, in upgrading the MANs infrastructure. That value resides with the State because it owns the MANs. The MANs network has also been extended by about...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: The tendering process for the national broadband plan is under way. It started out being Enet which is now a partner and Granahan McCourt is the main entity. Subcontractors are also included as part of the consortium. Every time that changes, does it have to go through pre-qualification test?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: Enet is now a partner as opposed to a main consortium. Was a second pre-qualification test required given that Enet was leading it before?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: My understanding is that Enet was never leading. Granahan McCourt was always the lead part of the consortium. Where there are changes in consortium membership, there is an obligation as part of the procurement arrangements that a pre-qualification questionnaire must be redone. We have to look back at the technical, commercial and financial capacity of the party.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: Enet is wholesale. Is it appropriate that Enet should have a retail subsidiary called AirSpeed?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Mr. Mark Griffin: Enet, I presume, can have as many subsidiaries as it wants. It is a commercial company. The important thing is that if it is selling services it is selling services on an equal-----

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Department of Communications, Climate Action and Environment
Chapter 8 - Measures relating to Cyber Security
Chapter 9 - Energy Efficiency National Fund (6 Dec 2018)

Catherine Murphy: Yes. Did Enet apply pressure in 2017? The contract was extended in March 2017, it was bought by the Irish Infrastructure Fund in July 2017 and due diligence was being done. Obviously Granaghan McCourt would have been aware that due diligence was being done because the information would be needed to do that. Was pressure put on the Department? The first contract did not expire until 2019...