Dáil Éireann debate -
Wednesday, 25 Oct 1995

Vol. 457 No. 5

Written Answers. - Consultant Appointments.

Noel Dempsey

Question:

39 Mr. Dempsey asked the Minister for Finance the consultants who were appointed by his Department since 16 December 1994; if they were appointed following a tendering procedure; if the consultant appointed in each case was the lowest tenderer; and if not, who the lowest tenderer was. [15715/95]

Minister for Finance (Mr. Quinn)

The following is a list of consultants appointed by my Department since 16 December 1994:

Consultant	Tendering procedure used	Lowest Tenderer
Price Waterhouse/INDECON	Yes	No
Bill O'Herlihy Communications	No	Not applicable
Ray Gray, Craig Gardner/Price Waterhouse	No¹	n/a
Computer Facilities Management	Yes	Yes
Baker Consultancy	No²	n/a
Goodbody Stockbrokers and Merrill Lynch International	Yes	see footnote 3
KPMG Management Consultants in association with a Belfast based consultant named Colin Stutt	No 4	n/a

1. Mr. Gray was appointed on the basis of a per diem rate quote which was considered fair and reasonable having regard to the known comparable rates charged by competitor firms. The number of days worked by the consultant was closely monitored and a ceiling was put on total expenditure. The consultant, in fact, agreed to reduce his final charge in order to stay within the limit fixed.

2. This firm was used to provide urgent assistance with a technical problem on a live computer system; it was not practical to hold a tender competition.

3. This consultancy contract was in relation to the sale of the State's 15 per cent stake in Irish Life plc. Proposals were sought from a wide range of qualified parties, both domestically and internationally but, in the event, it was decided to offer a fee structure which was not covered by any of the proposals. The advisory/marketing team which carried out the Irish Life sale was appointed by me solely on the basis of suitability, following a process of written submissions and interviews. In order to maximise the proceeds of the sale to the Exchequer the fee arrangement was incentive based. This arrangement provided for a fee structure ranging from NIL to 1 per cent of proceeds, the maximum fee being payable only in the event of the stock being sold at market price (i.e. zero discount). No fees would have been payable if the shares were sold at a discount greater than 4 per cent to market price (or if the shares had not been fully placed). The shares were sold at market price i.e. zero discount.

4. The requirements for selection of the chosen consultants centred on the expertise already acquired in the specific field and the ability to perform the task within the time allotted.

Where it is indicated above that the consultants appointed were not in fact the lowest tenderers, I am unable to state who the lowest tenderer was. My reason for not divulging this information is that it is commercially confidential and could be market-sensitive.