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Broadband plan report says private sector risk is "practically non-existent"

All infrastructure developed through the National Broadband Plan should remain in public ownershi...
Stephen McNeice
Stephen McNeice

13.24 27 Aug 2019


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Broadband plan report says pri...

Broadband plan report says private sector risk is "practically non-existent"

Stephen McNeice
Stephen McNeice

13.24 27 Aug 2019


Share this article


All infrastructure developed through the National Broadband Plan should remain in public ownership, an Oireachtas committee has recommended.

The Oireachtas Communications Committee has published its report on the process so far - offering 25 conclusions and 10 recommendations.

They've released their report today following a series of votes on the proposed recommendations last week.

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In their report, the committee finds the original terms of the tender process were too narrow and a decision to 'outsource almost all aspects of the project' was flawed.

The members say a review should have been carried out following the withdrawal of two bidders - Eir and SIRO - from the process.

According to the report, the private sector risk in the project is "practically non-existent".

It notes: "The Committee notes that, notwithstanding timeline complications, the broadband network infrastructure should be under the ownership of the state as it is strategically important to the state.

"There is no justification for the resulting network to be owned by the minority investor instead of the majority investor, which is the state."

The report recommends the €3 billion project be put on hold for three months to allow for an independent review, and that the Government re-engage with the ESB over the plan.

However, it does stress that high-speed broadband is a vital piece of infrastructure for rural Ireland that should be delivered "as quickly as possible" and "at best value to the taxpayer".

Speaking ahead of the report's publication, Sinn Féin finance spokesperson Pearse Doherty highlighted the Government's use of private consultancy firms for the plan.

He said: “This Government has spent over €25 million of taxpayers’ money for the private sector to recommend a flawed privatisation model that will see €3 billion transferred from the public purse to private shareholders; and for infrastructure the State won’t even own."

The Government officially gave the go-ahead for the National Broadband Plan in May, despite concerns from the Department of Public Expenditure over the cost of the project.

The consortium led by Granahan McCourt - the sole remaining bidder in the tender process - was named as the preferred bidder.

Main image: A cable drum with tubes for broadband cables stand on a construction site. Picture by: Carsten Rehder/DPA/PA Images

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