I propose to take Questions Nos. 239 and 240 together.
NBI Infrastructure Limited t/a National Broadband Ireland (NBI) is subject to Irish Corporation Tax and will not be a section 110 company.
The NBP Contract provides that the Minister may appoint a Director to the board of the company. A minimum of one other Director will be appointed by the Shareholders of NBI following an open and competitive selection process conducted by an external executive search firm. The number depends on the overall number of Directors. The remaining Directors will be appointed by the Shareholders of NBI.
The Department will have full sight of the financial accounts of NBI. The NBP Contract provides for detailed regular reporting from NBI to the Department across all aspects of performance including the provision of financial statements.
The equity of NBI will be invested in NBI via a holding company as would be typical for projects such as this. The holding company will be wholly owned by Granahan McCourt Dublin (Ireland) Limited, subject to the Minister’s special share in NBI.
The Holding Company will be subject to Irish Corporation Tax and will not be a section 110 company. The holding company and Granahan McCourt Dublin (Ireland) Limited will have agreements in place with the ultimate investors, Granahan McCourt Dublin (Ireland) Limited, Tetrad Corporation and McCourt Global LLC., in respect of both corporate governance and equity funding for the Project.
Holdco is an investment vehicle and the Minister will not appoint a Director to this Board.
The following revised reply was received on 21 May 2019
NBI Infrastructure Limited t/a National Broadband Ireland (NBI) is subject to Irish Corporation Tax and will not be a section 110 company.
The NBP Contract provides that the Minister may appoint a Director to the board of the company. A minimum of one other Director will be appointed by the Shareholders of NBI following an open and competitive selection process conducted by an external executive search firm. The number depends on the overall number of Directors. The remaining Directors will be appointed by the Shareholders of NBI.
The Department will have full sight of the financial accounts of NBI. The NBP Contract provides for detailed regular reporting from NBI to the Department across all aspects of performance including the provision of financial statements.
The equity of NBI will be invested in NBI via a holding company as would be typical for projects such as this. The holding company will be wholly owned by Granahan McCourt Dublin (Ireland) Limited, subject to the Minister’s special share in NBI.
The Holding Company will be subject to Irish Corporation Tax and will not be a section 110 company. The holding company and Granahan McCourt Dublin (Ireland) Limited will have agreements in place with the ultimate investors, Granahan McCourt Dublin (Ireland) Limited and Tetrad Corporation, in respect of corporate governance and equity funding for the Project.
Holdco is an investment vehicle and the Minister will not appoint a Director to this Board.