Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

Departments tend to be generalist in nature. It would not be possible to retain on an in-house basis all the necessary levels of expertise that might potentially be required, particularly in respect of once-off functions. When, for example, we dealt with the arrangements relating to the promissory notes, there was a great deal of expertise in-house and there was also much expertise in the Central Bank. Expertise is required elsewhere as well. A matter such as the liquidation of IBRC would not be something which would usually come across the desks of the relevant civil servants in the Department. Again, it was necessary to seek external expertise. In addition, legal advice is included under the various consultancy headings. We require such advice from time to time. There are very tricky issues that arise in respect of the banks, in particular, and we must also defend cases taken against us. Many cases are taken against the Department. Some of these are dropped before they reach the courts but others go all the way to the courts. There is a constant process.

If we moved to an alternative model and argued that all expertise should be retained in-house, then we would have on the payroll any number of people on whose services we would only be occasionally obliged to call during the course of a year. This would mean that the Department would be carrying a great deal of dead weight. The model is to have general practitioners who are good at a range of things operating in Departments on a day-to-day basis. If, however, it is necessary to call upon some very specialised expertise, then it is hired in. It is sometimes not possible to know in advance when such expertise might be required. That is why I cannot indicate, in explicit terms, the areas in respect of which it will be necessary to consult in 2014. We are, therefore, making a provision on the basis of historic data. If that provision is required, we will spend it. If it is not required, then there will be a saving at the end of the year.

In the context of the matter to which the Deputy refers, namely, why it is necessary to seek external economic expertise, it was decided that an external economic view - to complement the Department's own economic expertise - would be sought as in input to the process. The development of the medium-term economic strategy is a significant item of work and it is not something which the Department would do regularly. Accordingly, we are of the view that it is appropriate to seek the views and expertise of professional economists and stakeholders, both within and outside the service. In the development of the policy, the consultants co-ordinated closely with the Department of Finance in the preparation of their report. The draft findings of that report were shared with those Departments which contributed to the preparation of the medium-term economic strategy. That is the process which obtains. The external consultancy services, including those of an eminent economist, in this case were requisitioned in the aftermath of a tendering process.

There are qualified economists within the Department. At present, 67 individuals with economic qualifications are on the staff of the Department. Those qualifications range from certificate level right up through diplomas, primary and postgraduate degrees and even a doctorate in pure economics. However, very few of the people who possess such qualifications would describe themselves as professional economists. They are permanent civil servants who, as part of their further education, studied economics. I studied economics in university but I would never describe myself as a professional economist. I know the basics of economics because it was one of the subjects I took for my degree but that does not make me an economist. There are not that many professional economists within the Department. However, there are 67 people who have a competence in economics because they studied the subject to one level or another in the course of their further education.

There are always matters in respect of which one needs either additional input or the specialised expertise necessary to check what is happening. If one strips out the legal fees - much of which we recoup from the banks in any event - one will see that our allocation for consultancy services is quite modest and reasonable in the context of the model used across the public service.