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Dáil Éireann debate -
Thursday, 2 Mar 2000

Vol. 515 No. 5

Other Questions. - Consultancy Contracts.

I must draw to the attention of the House, before proceeding to ordinary questions, that the House, without opposition, has adopted rules governing the timing of these questions. The Minister's initial reply cannot exceed two minutes, the supplementary question and the answer to the supplementary question cannot exceed one minute each and each question is subject to an overall time limit of six minutes. The Chair has no discretion but to operate the rules adopted by the House and agreed to by the Members. I hope Members are clear about that because there appears to be a misunderstanding that the Chair makes these rules.

Michael Bell

Question:

5 Mr. Bell asked the Minister for Arts, Heritage Gaeltacht and the Islands the amount paid by way of fees, expenses or other remuneration to the consortium (details supplied) which was selected to act as advisers on the establishment of a digital terrestrial broadcasting transmission entity; and if she will make a statement on the matter. [6298/00]

Fees have not been paid by my Department as yet to the consortium of advisers, headed by AIB Corporate Finance, who were engaged to advise and assist in the establishment of the new digital terrestrial television entity.

The Minister, in a press statement announcing the establishment of the consortium, said she hoped negotiations would be concluded with a suitable partner or partners within six to eight months. Have any negotiations taken place with a suitable partner or partners in relation to Digico? If so, what stage are these at and when does she envisage that fees will be paid to the members of the consortium?

The contract with AIB Corporate Finance has not been finalised. As a consequence, AIB Corporate Finance has not submitted a claim for an instalment of the fee. The delay in finalising the contract between the Department and AIB Corporate Finance has resulted mainly from the amount of time it has taken for AIB Corporate Finance and the other members of the consortium to reach agreement on their own contracts.

For the purposes of the consultancy, AIB Corporate Finance is responsible for the provision of all aspects of the advice and assistance required and other members of the consortium act as subcontractors to AIB Corporate Finance. A considerable amount of time and effort has been devoted to finalising the contract and it is expected that a contract will be signed within the next week or two and that AIB Corporate Finance will then apply for payment of a significant portion of the total fee.

My question was not answered. Have there been negotiations with a partner or partners in relation to the digital transmission entity? The Minister can give a straight answer to that.

The objective is to set up a structure to go ahead with Digico. Some people believe Digico is already in existence—

Nobody thinks it is in existence. The answer is ‘yes' or ‘no'.

Are there any negotiations with a partner or partners?

The question refers to the setting up of Digico. The purpose of having a project management group is to see how best to go about that. That work has not been completed. Until it is, the next phase cannot take place.

The Minister referred in the previous question to the difficulties with regard to the valuation of the assets of RTE in terms of its potential share in the company to be set up, that is, Digico. In that context, has the Minister received any advice from AIB Corporate Finance and its subcontractors as to the valuation of RTE's assets, based not only on the existing sites and tower networks but upon the future potential business that could be done not merely by television transmission but also in terms of interactive business by way of return paths and so forth?

Has the Minister received any document, advice, information, note or memo from AIB Corporate Finance as to its assessment of the value as distinct from RTE's?

My Department, with the Departments of Finance, Enterprise, Trade and Employment and Public Enterprise as well as RTE, has set up this group to see how best to proceed. As Deputy Kenny said, the project management group has been set up to see what potential such business has for the future. As I have already said, difficulties with regard to RTE's involvement in the digital infrastructure have arisen. It is due to those difficulties that I must decide how best to proceed on the basis of the information I have been given and the work which has already been done by the management group. When I have that fully assessed and when I have finished my deliberations and discussions with groups such as RTE, which I am meeting tomorrow, I will put forward my views to Cabinet.

Given that there has been a dramatic change in the proposed shape of Digico, will the Minister state clearly if there have been discussions, consultations or talks of any description between prospective private partners and herself, the consortium or the programme management group? It is a straight and direct yes or no answer, and if the answer is "yes", will she say with whom those discussions have taken place?

As I have said, the setting up of Digico is being examined to see how best to proceed. When I have the structures in place, I will obviously go to Cabinet if there are any changes, and I will then let my views and those of the Government be known publicly.

My question is historical. Either these discussions, talks or negotiations have taken place or they have not. Will the Minister please tell the House what has happened?

I am telling the Deputy what has happened. All the interested bodies with regard to the management group are present to see how best we can proceed and how Digico will be set up.

We must now proceed to Question No. 6.

Difficulties have arisen and once those difficulties have been resolved by Government—

We must proceed to Question No. 6.

May I ask a question?

No, the Chair has no option. We have exceeded the six minute time limit.

When can we expect Committee Stage of the Broadcasting Bill to be taken?

I have called Question No. 6. We must have order in the House and comply with the order of the Dáil which lays down these time limits.

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