Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 173: To ask the Minister for Finance the steps he has taken to ensure any of the external advisers he has engaged to advise him on the bank guarantee scheme and related matters are not also involved in advising financial institutions covered by the scheme or consortia seeking to invest in such institutions in view of the highly confidential nature of the instructions that he will have given and the need for the State's interest to be specifically protected; if the engagement of such advisers was on the strict condition that they could not act for any directly concerned commercial interests; and if he will make a statement on the matter. [46033/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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In an economy the size of Ireland's it is not unusual that one of the larger financial or legal advisers has to deal with potential conflicts of interest arising from their representation of more than one client in the same sector. I have been assured by my external advisors on the banks guarantee scheme, that where potential conflicts arise they are dealt with through the application of well established "Chinese Wall" structures which are overseen by their compliance departments. These "Chinese Walls" operate as information barriers which ensure that any advice given to the Government is confidential and is provided by a team which is segregated from and independent of their work for other clients.

Phil Hogan (Carlow-Kilkenny, Fine Gael)
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Question 174: To ask the Minister for Finance if the engagement of advisers by him to advise on the bank guarantee scheme was made in accordance with his Department's public procurement rules; the nature of the public procurement exercise undertaken; the date it was awarded; and if he will make a statement on the matter. [46034/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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I am fully satisfied that the appointment of advisors to advise me on the bank guarantee scheme was in accordance with public procurement procedures. Those procedures provide for negotiation with a single contractor without a competitive process where the timeframe for a competitive process cannot be met due to the extreme urgency of the circumstances. The Deputy will recall that speed of action was essential to the Government's response to the credit crisis and to the introduction of the bank guarantee. Considering the extent of the potential liability of the State it was essential that the best advice was available to the Government as a matter of urgency. Clearly, the engagement of advisors on the bank guarantee scheme comes within the exceptional circumstances anticipated in the public procurement procedures.