Michael McGrath (Cork South Central, Fianna Fail)
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135. To ask the Minister for Finance the amount paid to date in professional fees to named professional firms in relation to the liquidation of the Irish Bank Resolution Corporation, including the amount paid to KPMG, in tabular form; the agreed rate charges by KPMG; how many KPMG staff are working on the liquidation; if the rates provide good value for money to the tax payer; when the liquidation will conclude; and if he will make a statement on the matter. [2824/16]

Michael Noonan (Limerick City, Fine Gael)
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Slide 61 of the Special Liquidators Progress Update Report dated 12 March 2015 (which is available on the Department of Finance website at ) details the costs of the liquidation for the period 7 February 2013 to 31 December 2014.

Total fees of €76m were paid to KPMG (KPMG Special Liquidator team: €71.4m and KPMG migration team: €4.6m) to 31 December 2014 of which approximately €4.5 million was recovered from NAMA. In addition a rebate of €5 million was agreed with KPMG following discussions at the request of the Minister.

KPMG rates are based on NAMA rate cards for the relevant services. This rate card was put in place following a competitive tender conducted by NAMA.

The NAMA rate card applicable for insolvency services is as follows:

Rate per hour (excluding VAT)

- Partner €295

- Director €260

- Associate Director €220

- Manager €190

- Senior Accountant €165

- Semi senior accountant €165

- Junior accountant €95

The number of staff working on the assignment has fluctuated over the course of assignment given various activity volumes as the loan sales progressed. The headcount requirement peaked at 330 staff from KPMG while there are currently c.100 full time equivalents from KPMG working on the special liquidation.

The Special Liquidators intend to provide an update on the winding up of Irish Bank Resolution Corporation Limited (in Special Liquidation) by way of their third progress update report in the first quarter of 2016. An update in respect of the fees paid to KPMG will be included in this report.

I am advised by the Special Liquidators that they have sought to minimise legal fees to the greatest extent possible. Irish Bank Resolution Corporation Limited (in Special Liquidation) conducted a competitive tender process in order to establish a panel of legal firms. Reduced and/or capped fees were included in the tenders. The Special Liquidators can confirm that the rates per the NAMA rate cards are reduced hourly rates or fixed costs for specific pieces of work. The Special Liquidators can also confirm that they have successfully negotiated fee rebates from many of the legal firms. The Special Liquidators cannot disclose information on the particular rates being charged as this is confidential to each of the legal firms.

While it is too early at this stage to advise on the likely timeframe for conclusion of the liquidation of IBRC, I can confirm that the liquidation of IBRC can only be concluded once all assets are realised, all creditor claims have been resolved (including those subject to litigation) and all surplus funds have been distributed to creditors. This process is ongoing.