Joe Higgins (Dublin West, Socialist Party)
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Question 92: To ask the Minister for Finance the amount spent by the State-funded EBS and Bank of Ireland in preparing the submissions of their respective chief executives for the Central Bank of Ireland's fitness and probity review of directors, including both the cost of engaging the services of the US-based consultants Promontory and the cost of these banks' own employees; and if he, the Central Bank of Ireland or the Regulator approved the use of these consultants. [8812/12]

Michael Noonan (Limerick City, Fine Gael)
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I can confirm that I did not approve the use of these consultants in the case of either EBS or Bank of Ireland. The Central Bank has also confirmed to me that it did not approve the use of these consultants. The procurement of external service providers is a matter for the management and board of each respective institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. As the Deputy will be aware, notwithstanding the fact that the State is a significant shareholder in both institutions, the banks are run on a commercial arm's length basis as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF.

The individual institutions have provided certain additional details. In line with AIB's normal practice, the bank has not publicly disclosed the fees paid as the bank deems it to be commercially sensitive to do so in respect of arrangements entered into with individual firms. Use of Promontory or other services were not formally notified to the Central Bank of Ireland or the Department of Finance as it is not normal practice nor is there a requirement to do so. Promontory was engaged by the chairman of EBS to perform an independent assessment of the Chief Executive's fitness and probity. The Promontory report was submitted to the Central Bank of Ireland on 3 February. The bank has confirmed that the full cost of the Promontory engagement was borne by the bank. Bank of Ireland uses a range of professional firms, and in some instances individuals, to assist it in its activities across a wide range of governance, regulatory, commercial and other matters. These would vary on an ongoing basis, depending on specific business needs right across the group. The bank does not divulge details of arrangements in place with any such companies or individuals.