Broadband plan and bidding process
Deputy Micheál Martin criticised repeated broadband promises and the slow national rollout, while the Taoiseach defended Government progress and commitment to full coverage. The exchange then shifted to concerns about a Minister’s meeting with a broadband bidder; the Taoiseach said the invitation was passed on verbally and did not think the process was problematic.
I am very conscious that, for many years, the people in rural Ireland and in towns and regions across the country have been promised access to high-speed broadband on numerous occasions but there has been an absolute failure of delivery. I can go back to the 2011 general election when, at that stage, Fine Gael was promising broadband to 90% of homes and businesses by 2015. It is now 2018. At the general election of 2016, again, it was said 100% would have it by 2020, and we know what has happened. People out there are very impatient and frustrated at the lack of real progress in terms of getting this issue and the national broadband plan implemented.
We then fast-forward to last week and the resignation of the former Minister, Deputy Denis Naughten. When I had raised the issue on the Wednesday in the House, I was heavily criticised by the Taoiseach, yet, the following day, he came in to echo what I had said, namely, the ultimate decision maker should not be meeting the last remaining bidder in a tendering process, leaving himself open to the perception of favouritism, being lobbied and canvassed, and so on. The Taoiseach changed tack fairly dramatically the following day because of further revelations about further meetings, one in particular organised by the Minister of State, Deputy Pat Breen, with the former Minister, Deputy Naughten, and David McCourt.
It is interesting when we look at the background to this.
A very good article by John Kennedy was published on the Silicon Republic website on 6 September 2017 and quoted a Government memorandum of the time on concerns about the potential for costs to increase as a result of the remaining bidders having to access poles and ducts on Eir's infrastructure. The fear was that it could go from an incremental cost of 10% to 15% extra to anything up to 60%. That is directly set out in a memorandum from the Department of Communications, Climate Action and Environment to the Government. The point of this is what the remaining bidder is anxious to do and what the key issue is in that regard, namely, the level of subsidy the Government is prepared to offer to the bidder and which will be a key component of the cost. It is vital, therefore, that this kind of canvassing and lobbying should not take place. As such, has the Taoiseach met the Minister of State, Deputy Pat Breen, and asked him to provide the background to why he organised the meeting, what transpired at it and what was discussed. In addition, I want to know the terms of reference of the assessment the Government has undertaken with Mr. Peter Smyth and if they will be published. Can the Taoiseach indicate to the House when we can expect the proposed legislation on the national broadband plan?
Comment on this
I thank Deputy Micheál Martin. As Taoiseach, I note that the Government is absolutely committed to bringing forward the national broadband plan. When this Government of Fine Gael and Independents working together came to office a little more than two years ago, just over 50% of homes, farms and businesses in Ireland had access to high-speed broadband. By the end of this year, we will be at 80%. In just two and a half years, we have made enormous progress to bring high-speed broadband to homes, farms and businesses across the country.
Comment on this
The Government will not get close to 80%.
Comment on this
We are determined to bring that to 100% as soon as possible. We want to ensure that the 540,000 homes, farms and businesses across rural Ireland which lack access to high-speed broadband should have it as soon as possible to allow them to access public services which are available online to a greater extent and become part of the digital economy. We want businesses in rural Ireland to sell their products and services on the Internet just as those in urban Ireland do. When it is completed, this project will be seen to have been as significant as rural electrification was decades ago. The level of investment required will be very high, but it is an investment which is merited and worthy and, as such, the Government is determined to bring it forward.
Mr. Peter Smyth is the independent process auditor and he has been in place for quite some time. It is part of his role to ensure the process is all above board. He will carry out a review to ensure and assure the Government that everything has been above board. We will have the terms of reference for that review in the next couple of days and we anticipate that he will be able to report within three to four weeks. With the approval of the Dáil today, Deputy Richard Bruton, will be assigned to the Department as Minister on a full-time basis. I have asked him to spend the next couple of weeks focusing on this issue and ensuring we do everything we can so that the broadband plan continues to operate. It is a complex process. There is an evaluation committee and a national procurement board. We are at the point at which a contract and tender can be agreed. It will have to go through the evaluation board and the procurement board before the decision comes to Government. That builds in very significant safeguards.
I have spoken to the Minister of State, Deputy Breen. He informs me that Mr. McCourt asked him to pass on an invitation to Deputy Naughten to have dinner with him in his house. They live quite near each other. The Minister of State passed on the invitation, the then Minister accepted it and the dinner took place. He also informs me that the national broadband plan was not discussed on that particular occasion.
Comment on this
The expansion of broadband has been carried out by commercial interests, which is fair enough, and has nothing to do with Government or State intervention at this stage. When the Taoiseach says the Minister of State, Deputy Breen, passed on the invitation, did he do it silently? Did he just pass it on?
Comment on this
Did he show the Minister the house?
Comment on this
It is not a credible explanation, to be frank.
We are talking about the last remaining bidder for an enormously costly contract. The Minister of State, Deputy Pat Breen, was asked to set up a meeting with the key Minister, the key decision-maker. This cannot be flippantly brushed aside as the Minister of State having passed on an invitation and - hey presto - the Minister having accepted it and the Minister of State having facilitated the meeting. It is a little more serious and should be taken more seriously than that.
I related to the Taoiseach the article of 2017. I will read what the memo stated: "The level of subsidy bidders might seek for the reduced intervention area [that is, after Eir has got the 300,000] could increase by between 10pc and 15pc if an incremental cost is applied to infrastructure access, and by more than 60pc if the existing regulated price for pole and duct access is applied". The remaining bidder, therefore, has a real skin in this game in getting this over the line in the ultimate negotiations with the Government.
Comment on this
That is why it was so inappropriate and so wrong for a Minister to meet a bidder in that context.
The Taoiseach might answer the question as to whether the fact that the consortium changed dramatically at the eleventh hour in its composition could leave the bidding process open to legal action and challenge.
Comment on this
The commercial investment that has occurred has been very much spurred on by Government policy and the national broadband plan: commercial operators getting into areas quickly, providing broadband quickly, knowing that if they did not, it would not form part of the Government's plan. Therefore, much of the commercial investment that has happened would not have happened as quickly had it not been for the policies pursued by the Government.
The invitation was not passed on silently; it was passed on verbally. The dinner occurred in 2017, at which time other bidders were in place. Ultimately, it was up to the then Minister, Deputy Denis Naughten, to decide whether accepting the invitation was appropriate. The Minister of State, Deputy Pat Breen, has no role whatsoever in the national broadband plan and, while we may all agree that passing on the invitation was unwise, I do not think it is a resigning matter.