Rural broadband procurement
Deputy Howlin challenged the Government on Eir's lower broadband cost claim and whether the State would reconsider the procurement. The Minister said the original state-aid compliant process had been followed, Eir had withdrawn, and any new approach would require ending the existing procedure first.
I join Deputies in wishing our four departing colleagues every success in their new roles in the European Parliament. I wish our Seanad colleague, Senator Grace O'Sullivan, similar success in the important work she will now be undertaking.
Eir has claimed that it can deliver rural broadband for approximately €1 billion, one third of the Government's current cost outline. I understand from what the Taoiseach said yesterday that the Government has written to Eir to seek further information on this. The immediate reaction of the Taoiseach yesterday struck me as more about defending the current position than being fully open to exploring all options. In essence, his immediate reaction was to doubt that Eir could connect homes and businesses at an affordable cost. He also doubted that it could cover the 25-year maintenance costs. Both of these issues have been disputed by Eir. I have two direct and simple questions. Will the Minister confirm that the Government will genuinely explore alternatives to the current Government plan that will speedily, efficiently and at a lesser cost to the taxpayer provide rural broadband? Will he give the House a commitment to the House that no contract will be signed until that exploration has been fully completed?
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We need the Minister's microphone switched on.
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-----the terms and conditions under which state aid would be provided to bidders to provide a national broadband service that ensures 25% of the population is not left behind were published. Under that procedure, as the Deputy knows, Eir went through the pre-qualification stage and agreed to the approach and it submitted a bid of €2.7 billion. That was in accordance with state aid rules, public expenditure rules and the proper oversight and governance of how State money would be provided. Eir subsequently withdrew from the process. It has indicated in hearings this week that it believes this could be done at a much cheaper cost. However, it seems that Eir does not envisage that its approach would submit to the requirements of the state aid rules that were set out. As the Taoiseach indicated yesterday, we need to explore precisely what Eir is proposing. As the Deputy knows, we undertook a procurement process. That was done with every bidder treated in the same way. We reached a point at which a preferred bidder was appointed.
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There was just one bidder at the time.
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We are now entering into the period during which we will have to decide whether a contract will be signed. If we decide not to proceed with the procedure that has been put in place, we will have to start a completely new procurement procedure.
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Is the Government open to having a look?
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-----procurement procedure under state aid rules could involve conferring an individual company, particularly a company with a substantial incumbent position, with a subsidy-----
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Does the Minister have a fixed view?
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-----without going through a procurement process that was seen as fair and compliant with state aid rules. That is the position.
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That does not sound like an openness to explore.
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Of course we are open to hearing any information that comes to us that would alter our view on the contract approach we have taken.
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We would have to end one procedure before we could start another.