Written answers

Tuesday, 18 October 2005

Department of Enterprise, Trade and Employment

Consultancy Contracts

9:00 pm

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 498: To ask the Minister for Enterprise, Trade and Employment if the agencies under his remit have engaged Deloitte & Touche as advisers; the fees paid to them for each year since 1997; the nature of the assignments undertaken by this company; if an open competition for the services provided by them was held, including for contract renewals; if the reporting arrangement for them was directly to the main board of each agency; and if he will make a statement on the matter. [29026/05]

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 500: To ask the Minister for Enterprise, Trade and Employment if he has satisfied himself, in the case of the agencies under his remit that have engaged Deloitte & Touche since 1997, that the boards of these agencies have exercised the necessary and proper level of due diligence in appointing the company and in reviewing its ongoing performance; and if he will make a statement on the matter. [29028/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I propose to take Questions Nos. 498 and 500 together.

The agencies under the aegis of my Department are statutorily independent in the exercise of their day to day functions. Engagement of consultants is a matter for the agencies and their boards and neither I nor my Department has a function in the matter.

Photo of Jan O'SullivanJan O'Sullivan (Limerick East, Labour)
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Question 499: To ask the Minister for Enterprise, Trade and Employment the nature of the assignments given to Deloitte & Touche by Shannon Development regarding the sale of the former Burlington plant at Gillogue; if he has received regular reports from his officials on this issue; if he has satisfied himself that Shannon Development is properly observing the corporate governance guidelines in its review of the performance of this company; and if he will make a statement on the matter. [29027/05]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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I have been informed that, in common with many other public bodies, Shannon Development employs external specialists to fulfil its internal audit function. Shannon Development uses the services of Deloitte (Limerick) to provide this function. The internal audit programme is agreed with the audit committee of Shannon Development and is approved by the full board. On occasion, Deloitte is also engaged to undertake specific assignments by the board that would not fall within the agreed internal audit programme.

In the case of the sale of the former Burlington plant at Gillogue, County Clare, the board engaged Deloitte to review the process whereby the factory and adjacent lands at Gillogue were offered for sale. Following legal advice and concerns about a possible legal challenge the commission was cancelled and an alternative review process instituted. No report has issued on foot of this process. The day-to-day operation of Shannon Development is a matter for the board and management of the company. However, my Department has requested and received a number of updates from the company regarding the sale of the Gillogue property. In accordance with the relevant reporting obligations on State bodies the chairman of Shannon Development has confirmed to me that the Shannon Development has adopted and is complying with the Government's code of practice for corporate governance.

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