National Broadband Plan Expenditure

Dáil Éireann Debate, Tuesday - 14 May 2019

Tuesday, 14 May 2019

Ceisteanna (128, 131, 136, 138)

Barry Cowen

Ceist:

128. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the way in which he will accommodate the cost of the national broadband plan, which was not fully accounted for in the National Development Plan 2018-2027; the amount needed over the life of the National Development Plan 2018-2027 to pay for the national broadband plan above that already allocated; if other projects within the Department of Communications, Climate Action and Environment or other Departments will be impacted by the cost that will be incurred in implementing the national broadband plan; and if he will make a statement on the matter. [20627/19]

Timmy Dooley

Ceist:

131. Deputy Timmy Dooley asked the Minister for Public Expenditure and Reform if projects will be put on hold or cancelled as a result of the additional funds required to fund the national broadband plan; the projects impacted by Department; and if he will make a statement on the matter. [20678/19]

Barry Cowen

Ceist:

136. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform the impact the national broadband plan and the €1.5 billion required in addition to the funding already allocated in the National Development Plan 2018-2027 will have on capital expenditure over the life of the national development plan; the projects that will be impacted; and if he will make a statement on the matter. [20791/19]

Barry Cowen

Ceist:

138. Deputy Barry Cowen asked the Minister for Public Expenditure and Reform if further Exchequer funding will be committed to the National Development Plan 2018-2027 in order to pay for the national broadband plan while protecting other projects scheduled to be delivered under the national development plan; the impact this will have on the fiscal position of the State and national debt; and if he will make a statement on the matter. [20796/19]

Freagraí scríofa

Minister for Public Expenditure and Reform

I propose to take Questions Nos. 128, 131, 136 and 138 together.

The Government has approved the appointment of the Preferred Bidder for the National Broadband Plan, to deliver high speed broadband to all premises in Ireland, irrespective of location, through a combination of commercial investment and State intervention.

The Department of Communications, Climate Action and Environment has advised me that a maximum of €774 million will be required over the period 2019 to 2022, and €2.331 billion in total over the period of the National Development Plan (2019 to 2027) to fund the project. €800 million has already been allocated for this purpose in the National Development Plan and therefore the additional funding now required by the Department of Communications, Climate Action and Environment is €477 million over the period 2019-2022, and a total of €1.579 billion over the full period of the National Development Plan (2019 to 2027).

As I have already indicated, I intend to provide the additional capital required to fund the additional cost of proceeding with the project from future revenues - this will be done in the context of updating the overall multi-annual capital ceilings set out in Project Ireland 2040. This means that the decision to approve the appointment of the Preferred Bidder will have no repercussions for other planned projects within the National Development Plan. No other projects will be delayed or rescheduled, and no other changes will be made to the capital allocations for other projects as set out in the National Development Plan as a consequence of the Government’s decision to proceed with the National Broadband Plan.

In relation to the impact of this on the fiscal position of the State and national debt, the increased expenditure related to the National Broadband Plan will worsen the annual General Government position by around 0.1 percentage points. Over a decade, this would add approximately 1 percentage point to the debt ratio.