Michael D Higgins (Galway West, Labour)
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Question 9: To ask the Minister for Finance his views on the 2009 annual report of the Comptroller and Auditor General; if he is satisfied that he has received value for money on financial advisory services, totalling some €33 million; the steps he will take to enhance the tendering process for such services in view of the Comptroller and Auditor General's report; and if he will make a statement on the matter. [34053/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The C&AG report states that the cumulative expenditure on consulting services for banking stabilisation services provided to the NTMA, Financial Regulator, Central Bank, the NPRFC and my Department was €33.76m. Of this, my Department has spent a total of €9.78m in the period to end July 2010, €9.66m to Arthur Cox in respect of legal advice and €0.12m to PWC in respect of accounting advice.

With regard to the hiring of Arthur Cox, this was consistent with public procurement guidelines contained in Circular 40/02. Arthur Cox was chosen because of its acknowledged expertise in the field of commercial law and because its size allows it to dedicate sufficient resources to the project to ensure that advice is provided in a timely manner. A good working relationship had also been established through Arthur Cox involvement with the Advisory Forum on Financial Legislation. The Office of the Attorney General approved the selection in so far as their legal expertise is concerned on 24 September 2008. In addition to the 8% Government discount which has been applied to all invoices, the Department negotiated a further discount with Arthur Cox.

I am satisfied that my Department received value for money in the services provided by Arthur Cox and PWC. I would like to bring to the Deputy's attention that the Comptroller and Auditor General commented that the administrative costs incurred by State agencies in relation to banking stabilisation measures have been substantial in absolute terms but are small relative to the scale of the costs, financial commitments and risks associated with the banking stabilisation measures and access to timely and professional advice is a vital input to decision making in this context.

With regard to enhancing the tendering services, the public tendering rules provide for exceptional arrangements in limited circumstances such as arose in procuring certain services when addressing the banking and financial crisis. My Department will, of course, continue to observe both national and EU procurement rules.