Government to sign €3bn broadband contract soon
The Government will sign a €3bn contract for the supply of rural broadband later this year after categorically ruling out an offer of a cheaper option for high-speed connections.
The cabinet yesterday agreed to refuse an offer from Eir to connect up to a million people. Ministers said the Eir plan was not a feasible alternative and would not stop a decision to go with the preferred bidder, Granahan McCourt.
In a letter to Eir, the Department of Communications advised that the provision of a state subsidy to any company without competition was not legal. Furthermore, Eir’s proposal “did not meet the key objectives” of the Government’s national broadband plan.
These include that high-speed broadband is provided to 100% of premises in the country; that there is equal access for all premises to the network and that prices are affordable for users. Eir had made a bid of €2.75bn for the project but then withdrew. It later proposed that the project-with changes-could be completed for €1bn.
However, in a statement, the Government yesterday said: “The evidence presented by Eir … does not meet the objectives and contains material which has already been raised and dismissed during Eir’s participation in the procurement process.
“In a response sent to Eir today, it was outlined that the provision of a State subsidy to any company without competition is not legal under procurement and state aid rules, nor would it meet the key objectives of the National Broadband Plan.”
The Government has now chosen its preferred bidder, a group led by Irish American businessman David McCourt.
In its statement after the cabinet meeting, the Government also said it now intended to sign the contract with this consortium by the end of the year.
This contract will include a capped subsidy of €2.9bn over 25 years.
Elsewhere, the cabinet agreed on plans to drive ahead with a referendum on whether the diaspora can vote for a president.
A referendum commission will be set up and it is intended that, if passed, changes will be in place for the next scheduled presidential election in 2025.
The Government still intends to hold this referendum in October or November but legislation for this will still need to be passed when the Dáil returns in September.
Departments have estimated that over three million people based outside Ireland would have a right to vote for a president if the referendum is passed.
Ministers yesterday also agreed to set up an electoral commission.
It will get statutory powers to oversee security and advertising in elections, the regulation of parties, involvement in boundary decisions and will take over some of the functions of the Standards in Public Office Commission.
