Howlin approved sale of State-owned telecoms assets

Labour Leader chose to long-finger ownership decision on National Broadband Plan

Denis Naughten has received confirmation in a Dáil reply that Labour Leader Brendan Howlin approved the disposal of Coillte telecoms assets at a time, in 2015, when they could have been key to the delivery of the National Broadband Plan.

“Brendan Howlin is critical of the decision which sees part of the National Broadband infrastructure in private control. Yet when he was Minister for Public Expenditure he approved the sale of 300 masts and equipment locations around the country owned by the State through Coillte, a fact which makes his current position difficult to understand,” said Denis Naughten.

“The portfolio, which was sold to a French investment fund, included 104 masts located within forests that were developed and owned by Coillte. The rest of the network included sites that were leased by Coillte to other companies which developed masts while Coillte acted as landlord.

“The network which was sold, following authorisation by then Minister Howlin, comprised about 16 per cent of commercial telecoms towers in the country and as such was a significant decision that required careful consideration. In light of his criticism of the National Broadband Plan in recent days I believe he should clarify his position in relation to the sale of these assets.

“Furthermore, Brendan Howlin and his Labour Party colleague, then Communications Minister Alex White, decided not to make a decision on the ownership model for the National Broadband Plan when he had the opportunity to do so, before the procurement process started in December 2015.

“Brendan Howlin has failed to acknowledge that he and his Government colleagues were presented with five ownership options for the broadband infrastructure, and I understand that the KPMG report favoured the current ownership model for broadband roll out.

“The Government, including the six Labour Party Ministers, were informed that the key difference between the two (ownership) options was that under the Full Concession model the Government would take ownership of the assets funded at the end of the contract term whereas under the Gap Funding model the Winning Bidder(s) would retain ownership of these assets after the expiry of the contract.

“If Brendan Howlin was so concerned about the ownership model for the National Broadband Plan, why did he not make the decision on the ownership model before the procurement process started rather than kick that decision down the road until after the 2016 election?

“The decision I took in July 2016 on the ownership model for the National Broadband Plan was not taken lightly but was taken in the best interests of delivering high speed broadband to every home across Ireland, both urban and rural, in the shortest time possible. Can Brendan Howlin make the same justification for his decisions on the ownership of telecommunications assets under his watch?” asked Denis Naughten.

ENDS.

Contact 086 1708800

Copy of Dáil reply

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For Written Answer on : 16/05/2019

Question Number(s): 145,135,146 Question Reference(s): 21257/19, 21256/19, 21258/19

Department: Agriculture, Food and the Marine

Asked by: Denis Naughten T.D.

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QUESTION

– Denis Naughten T.D.

For WRITTEN answer on Thursday, 16 May, 2019.

* To ask the Minister for Agriculture; Food and the Marine if the disposal of Coillte telecommunications infrastructure in 2015 to a company (details supplied) was approved; the discussions held with the Department of Communications, Climate Action and Environment in advance of the approval; if he or the former Minister raised concerns with him and Coillte on the potential implications of disposal of this asset on the future ownership model for the National Broadband Plan; and if he will make a statement on the matter.

– Denis Naughten T.D.

For WRITTEN answer on Thursday, 16 May, 2019.

– Denis Naughten T.D.

For WRITTEN answer on Thursday, 16 May, 2019.

REPLY

The sale of Coillte’s telecoms business in 2015 was fully approved by the Minister for Agriculture, Food and the Marine with the consent of the Minister for Public Expenditure and Reform in accordance with paragraph 14.1 of the Code of Practice for the Governance of State Bodies (2009). The sale was in line with a Government Decision taken in June 2013 that Coillte undergo a fundamental restructuring overseen by NewERA and the relevant stakeholder Departments.

The objective of the restructuring was to create a streamlined and refocused state company, concentrating on its core activities in the bio-energy and forestry sector. The telecoms business, which Coillte had built as part of its non-core activities, was therefore offered for sale. This sale was completed in 2015 after consent had been received from the two shareholding Ministers.

There were ongoing discussions with the Department of Public Expenditure and Reform during the consideration of the proposed disposal, with observations also sought, and received from the then Department of Communications, Energy and Natural Resources (now the Department of Communications, Climate Action and Environment) as part of the consideration process.