Written answers

Tuesday, 16 July 2013

Department of Finance

Consultancy Contracts Expenditure

Photo of Billy KelleherBilly Kelleher (Cork North Central, Fianna Fail)
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252. To ask the Minister for Finance if he will detail in tabular form, the names of all external public relations, communications consultants and organisations used by organisations or agencies under the remit of his Department since 9 March 2011; the details of the services supplied by each; the expenditure on each; and if he will make a statement on the matter. [34696/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland has advised my Department that it does not currently engage nor has it procured any such services over the last five years. In 2011, a one off specific service was provided by an external PR adviser at a cost of €169.40. However they have also advised my Department that as part of the National Payments Plan, marketing agencies have been and will be engaged to assist in developing communications plans relating to specific, defined public policy initiatives (e.g. the on-going public information campaign around Single Euro Payments Area (SEPA) implementation, and the running of a ‘rounding pilot’ to reduce the need for 1c/2c coins). These agencies have been and will be selected through competitive tender processes, and the costs of these will be split between the Central Bank, the Department of Finance and industry. The Financial Services Ombudsman Bureau have advised my Department that they do not employ the services of a public relations firm or communication consultants and that all such work is dealt with internally by Financial Services Ombudsman Bureau staff.

The National Treasury Management Agency (NTMA) has supplied my Department with the information set out below. NTMA does not maintain an internal press office. Instead, its internal communications resources are supported by an external service provider (appointed following a public procurement process) – currently Gordon MRM - in order to offer a full press office and communications service (including out-of-hours contacts for the media) across all the NTMA’s business areas: Debt Management, National Asset Management Agency (NAMA), National Pensions Reserve Fund, National Development Finance Agency, State Claims Agency, NewERA and during 2011 the Banking Unit. These arrangements were initially put in place during 2010 in light of a significant increase in the volume of domestic and international media queries being received by the NTMA and associated bodies. In September 2012 the NTMA retendered for the provision of these services. Following the tender evaluation process the NTMA awarded a new contract to Gordon MRM in December 2012. The initial contract, in place to end 2012 was based on an hourly rate for services provided. During the term of this contract a 20% reduction in the hourly rate was agreed with effect from June 2011 until the end of the contract. The new contract, which commenced in January 2013, is based on a fixed fee and it is anticipated that this will result in a significant reduction in the overall fees paid by the NTMA. NAMA draws on the NTMA’s shared services in a number of areas including its outsourced press office facility. NAMA reimburses the NTMA in respect of the costs of these services attributable to NAMA. The overall costs incurred for the provision of the services above (ex VAT) were as follows:

Year
2011€205,388 (of which €112,353 was charged to NAMA)
2012€223,723 (of which €142,653 was charged to NAMA)
2013€72,817 (to end June) (of which €36,329 was charged to NAMA)

In the light of the sovereign debt crisis the NTMA also engaged Powerscourt – a London based communications consultancy - for international communications initiatives in the funding and debt management area. Total costs (ex VAT) incurred for the provision of the services provided by Powerscourt from January 2011 were as follows:

Year
201174,395 euros
201210,257 euros
201312,103 euros (to end June)

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