Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Broadband Service Provision

Dáil Éireann Debate, Thursday - 16 May 2019

Thursday, 16 May 2019

Ceisteanna (151, 152)

Declan Breathnach

Ceist:

151. Deputy Declan Breathnach asked the Minister for Communications, Climate Action and Environment his plans to take a company (details supplied) back into State control; if such an offer would be cost effective in the long run in view of the fact that it would then be a State-owned company with the task of the broadband roll-out; and if he will make a statement on the matter. [21269/19]

Amharc ar fhreagra

Declan Breathnach

Ceist:

152. Deputy Declan Breathnach asked the Minister for Communications, Climate Action and Environment his plans to use the ESB in the roll-out of broadband to properties that are waiting for connection under the State intervention scheme; if his attention has been drawn to the fact that the ESB already has direct access to all properties and its infrastructure could be used in the provision of broadband; and if he will make a statement on the matter. [21273/19]

Amharc ar fhreagra

Freagraí scríofa

I propose to take Questions Nos. 151 and 152 together.

The possibility of allocating the National Broadband State intervention to the ESB was considered as part of the alternative options analysis conducted by my Department. The Attorney General has advised that there are significant legal risks in relation to both procurement law and state aid law, if the State was to mandate and fund directly outside a procurement process any economic undertaking, including a commercial semi-state body such as the ESB, to carry out the National Broadband Plan.

Furthermore, engagement between officials of my Department and DG Competition, which is the Directorate General of the European Commission with responsibility for State Aid matters, has clearly established that it is the view of DG Competition that it would not be possible to provide a State subsidy to a commercial semi-state body, such as the ESB, to roll out the National Broadband Plan without undertaking a new public procurement process.

However, the ESB pole network may still used by National Broadband Ireland where possible and more effective than using the eir pole and duct network.

Regarding the purchase of eir, eir is a privately traded company whose value is not known. In March 2018, it was reported that a 64% stake in the company was sold for €3.5 billion. Any purchase of the company would require negotiation with current owners and in the event the company was purchased by the State a new procurement process for the NBP State intervention would still be required under State Aid rules.

In both the scenarios outlined above, any new procurement process would be required to be open to other commercial entities and would likely add at least two further years to the National Broadband Plan process. In addition, given that both eir and SIRO (the joint venture between the ESB and Vodafone) were bidders in the current process and withdrew before submitting a final tender, it is unclear if either entity would tender for the State intervention contract under any new process.

Barr
Roinn