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Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...views by any means. However, the Deputy should not look at this as something that has been fixed in stone. We have a report that sets out a suite of recommendations. We have a response from Enet which outlines what it has done. The indications are that 11 of the 13 recommendations have been implemented. We now have the letter from Enet which we have not seen. There may be other...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Catherine Murphy: The Analysys Mason report, BT in its response and some of the providers I mentioned were critical of how Enet have managed this in terms of pricing, transparency and a whole range of other things. That is what the report says. Enet has hardly been pristine in how it handled this.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

David Cullinane: ...and the status of them from the Department, I believe, and then BT's view. It agrees with very few, where they have been implemented. I refer to a couple of examples. Number two was that Enet should update its assumptions used in preparing the desktop survey. It states that it has no visibility of this activity. Number four states that Enet and the Department of Communications,...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Mark Griffin: Analysys Mason spoke to many companies that were providing the services and also took account of the complaints that were lodged with the Department by Enet. Those who are concerned with what they perceive as poorer terms on offer after an intervention that should have led to a better outcome should talk to Enet. If there are issues, they should also talk to the Department.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...what Analysys Mason has said. Comments were made about the prices of things in certain circumstances. The important thing for the operators that the Deputy is talking about is for them to talk to Enet. One of the criticisms that representatives from Enet made when they were before the committee on 14 February was that nobody was coming to talk to them. To the extent that any complaints...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Fergal Mulligan: Granahan McCourt is a company that has had investments in Ireland in many companies, one of which was Enet in the past. It no longer owns or controls Enet. That was sold off a couple of years ago. It has operations across the world and its senior management team is made up of Walter Scott, who is an American businessman, and David McCourt, who is an American...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...dropped but they were talking about a drop from the maximum price. When one looks at the detail of the report, it was only in exceptional circumstances, because of competition in the market, that Enet used that maximum price. To respond to the point that the Deputy is trying to make, we recognise that there are deficiencies. There are 13 recommendations with 11 implemented. The key bit...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...of the recommendations contained in the Analysys Mason report. Of the 13 recommendations, 11 have been implemented. BT has raised issues and we have committed to taking them up with BT and Enet. The Minister has referred a specific issue concerning transfer pricing between Enet and ETNL to ComReg to confirm that the inter-company transfer pricing arrangements are in compliance with the...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Mark Griffin: I do not want to appear to be making excuses but I am conscious of a couple of things. There is a company called Enet in Limerick which employs 100 people and I want to ensure that the engagement on both sides of the table reflects the factual position as well as possible. The Analysys Mason report made comparisons between the price of dark fibre for Enet and ComReg and...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Catherine Murphy: Okay, that is fine. The total that the State has spent on MANs so far is €176 million. That was a piece of information given to us by the chief executive officer of Enet. The revenue share represents about 5% of a return over the past 15 years. When we discussed this previously, one of the reasons for not going to tender was because investments were being made by Enet and there was...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...to service operators. The criticism is primarily, as I read it, that it needs to be better documented. It appears that perhaps there is an issue about the transfer pricing arrangements between Enet and ETNL. We need to bottom out on that. We will look at that but ComReg has been commissioned to undertake that work by the Minister and will produce a report. As I said, the Deputy should...

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

...on the various recommendations. Effectively, we do not have the BT comments. I will give a commitment that we will meet BT to go through this and if a trilateral meeting with BT, ourselves and Enet is required, we will do that quickly.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Mark Griffin: The BT letter is helpful in some respects, although we have not seen it. Enet and the Department have implemented 11 of the 13 recommendations.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Mark Griffin: I will deal with it in a couple of ways. We have regular reviews with Enet on a range of performance indicators.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Catherine Murphy: -----to find out about their interaction with Enet, for example, and it is very different from-----

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Catherine Murphy: I understand they were having difficulty talking to Enet but I will go back to them and to the Department.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Mr. Mark Griffin: We will take the matter up with Enet if the Deputy provides us with some information.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Catherine Murphy: After the MANs contracts were allocated in 2004 and 2009, was it a question of leaving it to Enet to operate the system or was ongoing analysis done?

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Kate O'Connell: ...of cable running down the middle of a road is serving 20 houses and the Department predicts that five of them will connect right now, but 15 of them connect, obviously that means far more money for Enet.

Public Accounts Committee: 2017 Annual Report of the Comptroller and Auditor General and Appropriation Accounts
Vote 29 - Communications, Climate Action and Environment
Broadband Service Provision: Discussion (Resumed) (28 Mar 2019)

Kate O'Connell: Mr. Griffin referred to a figure of €30 million on top of the €176 million for the value of the MANS and the Enet investment. Can we clarify that the asset is still ours?