Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 204 and 205 together.

Discretionary performance-related payments are intended to reward exceptional performance having regard to the individual's own performance and the overall performance of the SBCI. The payment of a performance related payment to the Chief Executive Officer of the SBCI, Mr Nick Ashmore, is a matter determined by the SBCI Remuneration Committee, a sub-committee of the SBCI Board. This decision is made in conjunction with the SBCI Board following an annual review and discussion with the Board as to his performance.

Paschal Donohoe (Dublin Central, Fine Gael)
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I propose to take Questions Nos. 206 and 207 together.

The NTMA Internal Audit function provides internal audit services to the SBCI. The NTMA Internal Audit function comprises a Head of Internal Audit supported by an external service provider (currently KPMG).Details of the procurement of the external service provider, the contract for which was awarded to KPMG, are available on e-tenders, at , which also includes details of the term of the contract. The e-tenders notice also sets out the overall value of the contract (covering NTMA, SBCI and HBFI for a possible maximum term of 6 years) estimated at €3,430,000.00, excluding VAT.

An Evaluation Group assessed and reviewed the tenders. The members of this group (by position) were the Chief Legal Officer (the Chairperson of the Evaluation Group), the Director of the State Claims Agency, the Director of Funding and Debt Management and the Head of Financial Planning and Operations. This Evaluation Group made the decision on the appointment of the provider of Internal Audit services.

Paschal Donohoe (Dublin Central, Fine Gael)
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The amount paid by the SBCI for consultancy services, including public relations consultancy, is published in their Annual Report. In 2019, €107,000 was spent on external consultancy for public relations and marketing. The SBCI uses the services of a PR firm, Gordon MRM, which was appointed on foot of a procurement process by the NTMA, and is charged a proportionate amount for these services.

Paschal Donohoe (Dublin Central, Fine Gael)
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The National Treasury Management Agency (NTMA) provides a range of support and services to the SBCI in areas including IT, HR, compliance, internal audit and communications. The SBCI is required to reimburse the NTMA for the costs incurred in the provision of these services.

The internal cost of public relations which is a pro rata recharge to the SBCI from the NTMA in 2019 was €103.9k. The NTMA does not comment on the individual salaries paid to employees.

Paschal Donohoe (Dublin Central, Fine Gael)
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Section 8 of the SBCI Act 2014 lays out the functions of the SBCI. These include the promotion and provision of finance to SMEs and the design of credit facilities for SMEs. Section 8(2) of the SBCI Act 2014 notes that the SBCI should “seek to obtain a positive financial return for the State”, in the achievement of its functions. As such, The SBCI operates under a sustainability mandate rather than a profit maximisation model.

The business model of the SBCI is to serve as a wholesale institution providing lower cost finance and risk sharing to on-lenders in the business market in Ireland. The SBCI is continuing to build on its significant progress to date by offering a wider range of supports to the SME sector. This includes the Future Growth Loan Scheme, the Covid-19 Working Capital Scheme, the €2bn Covid-19 Credit Guarantee Scheme, which it operates on behalf of the Department of Business, Enterprise and Innovation, and the provision of lower cost liquidity to its non-bank on-lending partners. The SBCI also retains the ability to respond to unforeseen challenges to the Irish economy and adapt its product offering to maximise the support available to Irish business. The current crisis has demonstrated the value in the ability of the SBCI to respond quickly to support our SME sector.