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THE LONG-AWAITED details of the contract for the controversial National Broadband Plan have been published by the Department of Communications, albeit with a number of heavy redactions on “commercially sensitive” material.
The government signed off on the €3 billion plan late last year, after a controversial bidding process led to a number of delays – and the resignation of a government minister.
The details published as part of the contract between the government and National Broadband Ireland – chaired by David McCourt – run to over 1,000 pages. Of the 50 schedules in the contract, 13 were fully redacted and 16 were partially redacted. Just 21 were published in full.
The plan aims to initially set up 300 broadband connection points in community settings such as GAA clubs, community centres and public libraries.
These hubs will provide free high-speed broadband to people living in rural areas until broadband is delivered to their homes under the multi-billion euro plan.
Other subcontractors listed as part of the project include Eir, Enet, Kelly Comms, KN Network Services and Denis O’Brien owned Actavo Ltd.
Under the section of the contract dubbed “policy objectives”, it sets out a number of requirements that must be filled.
This includes that the infrastructure is “capable of providing high quality, reliable and affordable high speed broadband for 100% of premises in the intervention area”.
It must also be “consistent with the provision of value for money in line with industry best practice”.
There is also a requirement on the contractor to “stimulate demand” for the broadband infrastructure it builds. It should create “initiatives or incentivise early takeup” from the country’s broadband providers.
This could take the form of waiving or reducing the connection fee which should then be passed on to customers. Another incentive could include allowing homes and businesses to register their interest to be connected as soon as possible.
A map included in one section shows an area (in amber below) with at least 540,000 premises requiring a high speed connection.
The plan also lists 110 “rollout areas” dividing the country into sections where broadband should be delivered.
However, numerous parts of the contract are heavily redacted.
The contract stipulates a number of milestones that must be reached for what are dubbed “strategic community points” but these are redacted.
On the next page, there’s a requirement for the number of premises reached each quarter. This is also redacted.
Details on subsidy payments to contractors are withheld due to “commercial sensitivity”. Furthermore, how “performance levels” and “operational performance” are set out in the contract is withheld.
Sections on the “consequences of termination” and “termination events” have not been published.
The last Fine Gael government was heavily criticised for the contract, with the opposition calling on the broadband network to be publicly owned as the State is investing such a significant amount in the project.
Prior to entering government, now-Communications Minister Eamon Ryan expressed a preference for an option of “retaining the network in public ownership”. The Greens said in their election manifesto that it would “implement the plan” while “exercising all available options to minimise the cost and maximise the use of the new service”.
While Micheál Martin had referred to the plan as “farcical” in May 2019, Fianna Fáil’s manifesto prior to the election said it would “uphold our contractual obligations and ensure it is delivered as quickly as possible”.
The first homes are due to be connected under the National Broadband Plan towards the end of the this year, or the start of 2021.
Would be much better if the government would tackle overspending across all departments and not have to borrow money on the first place.
Never going to happen
The government is overspending by about €8bn per year. Unfortunately, thatts not going to be solved overnight.
At least they are able to source the finance cheaply and replace the costly IMF loans
Modern economics is based on borrowing money. Simples.
I agree.
If the government can saddle us, our children, and their children with 42% of the debt of the Eurozone you’d imagine they’d be able to come up with a scheme whereby incompetence could be weeded out of the public sector within a week without the heavens falling in on all our heads eh??
@robinhilliard
They could start with the €650,000,000+ a year we give in “aid” to Africa.
Its €600m
To put it another way, 1.1% of government expenditure or 0.4% of the value of the economy.
Here both Barrels ….
this government when getting the Fiscal Treaty passed insured us that Bank Re-capitalisation was on the cards – it wasn’t and now has been abandoned , furthermore there was no sign of the Trichet letter before the Fiscal treaty – this deception in my book .
Also – We have lost voting power at Board level in the E.C.B. sine – this goes against every notion that one country one voice democracy of Europe ..
I think these vents will make it very easy for any New Government to hold a second referendum on the Fiscal Treaty …..
To make a decision is one thing thing – but to make a decision based on deception can never be legal !
I just don’t see how the government will manage to make up 8 billion and realisticly if we want to get out of this debt anytime soon we’d need a surplus which certainly isn’t going to happen.
@businesscat
So?
Elections coming soon and all of a sudden the economy is back on track and we’ll all be getting richer. Now lets all vote fine gael back in again. Pure propaganda scutter.
If the Government can borrow money at historically low interest rates, given where we were 5 years ago, I reckon they are doing something right. And if Michael Noonan, who has soldiered on in spite of bereavement and illness, has had a role in restoring the Irish reputation then he gets kudos from me.
Why didn’t they just borrow and fix the water instead of the Consultant’s wet dream that is Irish Water …. half a billion gone into that doozy and then a weld on the tax take to repay the “grant” …
even Popeye wouldn’t fall for that one from Mr.Wimpy….
Farmerbogger,
so the bond sale at 0.87% was only propaganda? Was not real? The bond buyers didn’t exist?
Explain more.
So…. who owns us now?
Hedge funds, vulture capitalists……
This is the MInister who said this Government wouldn’t do “Auction Politics ”
He also said that the Prom deal was illegal
He also has abandoned the bank re-capitalisation ..
I don’t like this man because of these reasons .. I think he is not fit to hold office ….
The alternative would be a lot worse! We don’t want to risk our strong economic growth.
Paul our strong economic growth is adding to our tax bill with the E.U. -
All slagging aside Paul ….
Here’s a question ….
What tax did Ireland pay to the E.U. on let’s say BIGMULTICORP’s, (pick a name), stated turnover on our G.D.P. versus what the country itself collected from the same company ?
I am specifically thinking of one corporation who turned over 7 billion and paid tax to the State of 2.3 million ..
How much tax did Enda sign for to the E.U. based on the 7 Billion figure – if any ?
I think this is the real elephant in the room question !
Yes but you don’t pay tax on turnover, but rather profit. A 7billion tunover company may not be making a profit and as such does not pay tax. I do not condone tax avoidance, but it is legal and the onus is on governments to change the rules if they wish go eradicate it.
Let’s face it though Dermot, yes these companies don’t pay an awful lot of tax but they create a hell of a lot of direct and indirect employment, be it in related industries or just the deli worker who makes the lunch. All those people employed pay tax on their incomes which is where the benefit really counts.
I am not arguing that Declan – but how has the deli done since the workers have been hammered in their take home …
Paul – I am not doubting you …but do Ireland pay tax based on GDP to the E.U. or what was the basis for Enda lashing out another fortune to Europe based on “strong economic growth” …David Cameron stood firm and got a discount – did he not – he got time at any rate – our Leader just folded and signed the cheque !
If a country is weak internationally then that is totally down to weak leadership – nothing more nothing less !
While mol an oige has worked a treat for Dail Eireann for years Austerity has made Ireland grow up a little and Enda and co. are beginning to look very weak and very condescending and very out of touch with modern Ireland !
I don’t know what deli or cafe you go to at lunch but all the ones in sandyford are mobbed with people at lunchtime
I don’t live in Dublin Declan …..
We were told that the pass machines (showing my age) would run out of cash – proven lie !
We were told that 6% was a good deal with the I.M.F. – Lie – the greeks were given a complete write off on their debt interest /…
P.W.C. gave the banks a clean bill of health –
Merril lynch told Cowen that the bailout would max at 17 billion – I believe this makes them liable for the balance – where’s Enda with the Court Case – or the rangers for that matter ?
Ireland’s fiscal policy and the soundings out of the Department have been “misleading” since we joined the Euro as far as I can see !
You are referring to our contribution to the EU budget. Every member contributes. It is based on an ability to pay ie gdp. As we got richer we paid more. We still get as much out of the EU as we put in. In the past, when we were poorer we got back a lot more.
GNP as a measure might suit us more for calculating our contribution as this would exclude foreign companies in Ireland. But as Declan said they contribute a lot to our economy.
David Cameron didn’t get a reduction, even though he said he did. He simply had it rescheduled. The EU won that one.
But then foreign companies are putting a charge on us by running 7 billion through our economy and including it in their profit – that’s just plain wrong with only Ireland loosing !
2.3 million is less than what 1/3500th of the billion ! or to put it in tax speak what 0.0003% are the E.U charging more or less than this on the 7 billion turnover ?
gdp is not ability to pay ….. it is turnover – that’s a load of boll^x !
Michael Noonan? The same man that said not to buy shares in AIB. The bank that the people of this country bailed out and owns and is looking for a return on sometime. A great man behind the selling of anything!
This is a good sign for Ireland and hope this fortune will not turn into overseas aid.
It’s a good time to be borrowing as much as possible at very low rates before massive quantitative easing in europe sets fire to inflation over the next 3 years and oil is back up above $150.
Plus ca change c’est la meme chose.
Funny how nearly nobody was complaining when the market was booming; now everyone is an economic expert proposing we go live in a commune and adopt a barter system. It was the same in the 70s.
Q.E. does 2 things, it makes the rich richer and then after this it creates inflation. So that food and everything gets dearer or in other words prices shoot up?
Or prop up Irish Water.
Why prop up the dead – In Ireland we bury the dead – after a wake !
Noonan probably given advice on AIB to deliberately keep share price down. Some German bank can snap it up for nothing. If you trust this government it’s well worth the flutter.
So after 7 years the government will buy them back at what price…
Is this not the same as a poor woman who goes to an illegal money lender for a quick fix and then has to pay him back with crazy interest???
This bond selling is immoral.. The public don’t actually realise what these bonds mean… Our kids aren’t responsible for this mess so why is noonan selling our kids to clean it up
NTMA need to be congratulated on doing an excellent job.
NTMA should borrow €500 billion at the same rate and lend the money to Irish Banks to reboot the Irish economy
It should then repaid all Government Loans in full and get an excellent credit rating internationally !
The savings for the taxpayers would be considerable.
If banks make money out of nothing, why can’t Ireland??
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