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Dáil Éireann debate -
Wednesday, 20 Mar 2002

Vol. 550 No. 4

Written Answers. - Consultancy Services.

Seán Ryan

Question:

295 Mr. S. Ryan asked the Minister for Finance if his attention has been drawn to special arrangements between the Office of the Revenue Commissioners and a company (details supplied) for the award of contracts for consultancy services; the contracts awarded in each of the years from 1996 to 2001; the value of such contracts; and the purpose of such contracts. [8478/02]

Arrangements for the award of contracts by Civil Service bodies, including Revenue, are governed by my Department's guidelines in this area, Guidelines for Engagement of Consultants in the Civil Service, March 1999. These and previous guidelines were fully adhered to by Revenue in the award of contracts to Andersen-Accenture. Information on each of the contracts for consultancy service awarded to this company between 1996 and 2002 is set out in the following table. I draw the Deputy's attention to the fact that each such contract was awarded following an open competitive tender in the EU Journal; openly tendered at different times; dealt with by different officials within Revenue; subject to external approval by my Department, the Government Contracts Committee and the Department of the Taoiseach.

The contract for the Revenue restructuring project was awarded in 2001 and its value, including VAT, was €785,000 for 2001. The purpose of the contract is to achieve the optimum alignment of Revenue's structure with its mission, strategies and programmes. Details of the proposed changes, which resulted from an internal review of Revenue's organisational structure, are set out in Revenue's Statement of Strategy 2001-2003. The report of the steering group on the review of the office of the revenue commissioners, established by the Minister for Finance, endorsed the structural changes proposed by Revenue. Staff from my Department were involved as advisers in the selection process. The award of the contract itself was approved by the Government contracts committee.

The contract for the Revenue on-line service was awarded in 2000 and its value, including VAT, for each year was €2.28 million in 2000 and €4.90 million in 2001. This project was implemented under the auspices of the Information Society Commission. It enables the Revenue Commissioners to provide improved customer service while also providing customers with the facility to file tax returns, declarations and other electronic information via the Internet. The consultancy aspects of this project were approved by the Department of the Taoiseach as part of the overall sanction for the ROS programme. The award of the contract was approved by the Government contracts committee.

The contract for the integrated taxation project, ITP, was awarded in 1996 and its value, including VAT, for each year was as follows:

Year

Value (€ millions)

1996

2.41

1997

3.91

1998

4.03

1999

3.62

2000

3.59

2001

5.96

The purpose of the contract is to supply technical and development expertise in the building and implementation of integrated taxation solutions. This expertise serves to complement that of Revenue's internal business and IT teams. These integrated solutions now form the basis for the administration and collection of the bulk of Exchequer receipts. The consultancy aspects of this project were approved by the Department of Finance as part of the overall sanction for the ITP programme in December 1995.

Seán Ryan

Question:

296 Mr. S. Ryan asked the Minister for Finance the steps he has taken to ensure that contracts placed by the Office of the Revenue Commissioners for consultancy services were necessary; and the steps he has taken to investi gate if the work concerned could have been performed by civil servants. [8479/02]

My Department's Guidelines for Engagement of Consultants in the Civil Service, March 1999 – and in particular section 2 of that document relating to, "Deciding Whether Or Not To Engage Consultants", are specifically designed so as to provide guidance to Civil Service bodies on when to take on consultants.

Consistent with these guidelines, Revenue advise that their use of consultancy services is dependent on the following factors: availability of internal skilled resources to carry out a project; specialised knowledge or expertise, which is not available in Revenue and may be required for a temporary period; requirements of skills transfer to Revenue staff; volume of work dictated by Revenue's progressive legislative programme, Information Society Commission's action plan requirements and enhancements to the office's structures and processes; timeframes in which solutions are required; and achievement of Revenue's key corporate priorities.

In addition, I should point out that my Department has been directly involved in approval of major work programmes involving consultancy support in Revenue including the Revenue on-line service, Revenue restructuring, the integrated taxation programme, the management information framework, the manpower advisory service and others.

Against the background of Revenue's adherence to the guidelines in its use of consultancy services, and my own Department's involvement in supporting major Revenue programmes involving consultancy support, I am satisfied that Revenue's approach to the placing of contracts is reasonable and appropriate.

Seán Ryan

Question:

297 Mr. S. Ryan asked the Minister for Finance the amount expended by his Department on consultancy services for IT related matters and other matters in each of the years from 1996 to 2001; the companies engaged; the value of the contracts; and the nature of the work involved. [8480/02]

The following tables set out the firms engaged to carry out consultancy services for my Department in the years 1996 to 2001. They also provide the amounts expended – inclusive of VAT unless otherwise stated – together with a brief description of each consultancy.

The annual tables do not include some projects which cover over one year and-or which are still ongoing, and for which a breakdown of cost on an annual basis is not available. Neither do the tables include expenditure by the NDP-CSF evaluation, information and IT units who are not part of the Department of Finance proper. These units function on behalf of the European Commission as well as the Department and are financed jointly by both organisations. Information on such projects is provided separately.

Name of Consultant

Cost

Brief Description of Project

1996

IPA

€15,872 (£12,500)

Work on discussion papers on balanced scorecard and team working.

IPA

€16,761 (£13,200)

Work on discussion papers on programme review and reward systems.

Hays-MSL Management Consultants

€3,456 (£2,722)

Organisation development work.

Windmill Lane

€19,919 (£15,687)

Delivering Better Government video.

Drury Communications Limited

€88,896 (£70,011)

SMI Communications Strategy.

ESRI

€133,322 (£105,000)

Report on the economic implications for Ireland of EMU.

Peter Bacon/Deloitte & Touche

€23,992 (£18,895)

Pension Fund Investment Study in association with Irish Association of Investment Studies.

PriceWaterhouse

€2,687 (£2,117)

SMI consultancy.

1997

ESRI

€23,998 (£18,900)

Comparison of Public Service and Private Sector Pension arrangements.

Irish Pensions Trust Limited

€128,751 and VAT(£101,400 and VAT)

Actuarial Review of Public Service Pension Schemes and Actuarial Review of Impact of Changes to Pension Scheme Terms.

Advanced Management and Organisation Development Limited

€9,168 (£7,220)

Provision of mentoring services to CMOD on Organisation Development Models and Strategies to meet client needs.

IPA

€114,276 (£90,000)

Administrative Research (CPMR).

Hayes MSL

€212,204 (£167,124)

Proposed Performance Management System for the Civil Service.

University of Glasgow

€28,296 (£22,285)

Records Management Training.

KPMG

€49,932 (£39,324)

Abolition of Duty Free study.

1998

Farrell Grant Sparks/Goodbody Economic Consultants in association with Chesterton Consulting.

€25,395 and VAT(£20,000 and VAT)

Study on Public Private Partnerships.

Mercer Limited

€34,918 and VAT(£27,500 and VAT)

Review of Alternative Structure – Project to design a hybrid pension scheme.

Irish Pensions Trust Limited

€27,299 and VAT (21,500 and VAT)

Actuarial Review of Public Service Pension Schemes and Actuarial Review of Impact of Changes to Pension Scheme Terms – follow up work on initial project.

KPMG

€36,888 (£29,052)

Procurement of air transport and related services for Departments.

IPA, Trinity College and Goodbody Economic Consultants

€57,138 and VAT(£45,000 and VAT)

To investigate the gender imbalance in the Civil Service at HEO level and above.

Lansdowne Market Research Limited

€25,343 (£19,959)

Research on public awareness of the euro.

Advanced Management and Organisation Development Limited

€18,335 (£14,440)

Provision of mentoring services to CMOD on Organisation Development Models and Strategies to meet client needs.

Watson Wyatt

€2,793 and VAT(£2,200 and VAT)

Report in relation to Irish Aviation Authority Pensions.

Hay Management Consultants

€88,177 (£69,445)

Evaluation and Market Pricing of Chief Executive Positions in the Commercial State Organisations.

Compaq Computer Ireland Limited

€284,827 (£224,319)

Payable Order Reconciliation System for the bank clearing process for the Paymaster General's Office.

Carr Communications

€83,529 (£65,784)

Provision of public relations services in relation to the Euro changeover.

1999

Ernst & Young

€10,158 and VAT(£8,000 and VAT)

Assisting in recruiting a PPP Project Specialist.

McCann Fitzgerald Solicitors

€58,734 (£46,257)

Advice regarding Liability of the Minister for Finance in respect of Pension Entitlements of former Civil Servants.

Howard Johnson/HCM Consultants

€133,688 (£105,288)

Payment for actuarial services in respect of the discharge of certain Exchequer pension liabilities – Telecom Éireann, An Post, IAA, Coillte.

Mercer Limited

€25,395 and VAT(£20,000 and VAT)

Additional Voluntary Contributions/ Purchase of Notional Service.

Irish Pensions Trust Limited(Mercer Limited)

€73,645 and VAT (£58,000 and VAT)

Further actuarial review of Impact of Changes to Pension scheme terms.

Lansdowne Market Research Limited

€14,043 (£11,060)

Research on public awareness of the euro.

Fitzpatrick Associates (in conjunction with Ernst & Young)

€72,261 (£56,910)

Review of Public Sector Pay Determination.

Carr Communications

€44,724 (£35,223)

Provision of public relations services in relation to the Euro changeover.

Deloitte & Touche

€4,044 (£3,185)

Advice on blueprint for cash Changeover Plan and assistance in development of changeover oversight plan.

Compaq Computer Ireland Ltd.

€532,450 (£419,339)

Payable Order Reconciliation System for the bank clearing process for the Paymaster General's Office (project continued from 1998).

Deloitte & Touche/Expense Reduction Analysts Limited

€121,595 (£95,764)

Annual audits on the operation of travel policy by Government Departments and Offices and Club Travel Limited. (Expense Reduction Analysts Limited were hired through Deloitte & Touche.)

Name of Consultant

Cost

Brief Description of Project

2000

DKM Economic Consultants

€30,672 (£24,156)

Advice to the Minister in relation to the charging of a fee for UMTS licences.

Mercer Limited

€19,046 and VAT(£15,000 and VAT)

Actuarial Review of SW pensions in connection with the National Pensions Reserve Fund.

Mercer Limited

€2,539 and VAT(£2,000 and VAT)

Additional actuarial work on draw down arrangements for National Pension Reserve Fund.

Howard Johnson/HCM Consultants

€50,458 (£39,739)

Payment for actuarial services in respect of the discharge of certain Exchequer pension liabilities – Telecom Éireann, An Post, IAA, Coillte.

David Duffy Prospectus Strategy Solution

€21,888 (£17,238)

Advice on Corporate Governance aspects of Review of Office of the Revenue Commissioners.

Deloitte & Touche/Expense Reduction Analysts Limited

€97,154 (£76,515)

Annual audits on the operation of travel policy by Departments and Offices and Club Travel Limited. (Expense Reduction Analysts Limited were hired through Deloitte & Touche.)

Carr Communications

€54,703 (£43,082)

Provision of public relations services in relation to the euro changeover.

Deloitte & Touche

€184,632 (£145,410)

Consultancy in connection with the competitive process to award a new licence to operate the National Lottery.

Irish Marketing Surveys

€41,443 (£32,639)

Research on public awareness about the euro.

Information Consultants Pty Limited

€1,778 (£1,400)

Production of Train the Trainer Manual for FOI.

Hay Management Consultants

€2,868 (£2,259)

Evaluation of Chief Executive positions in Commercial State Organisations.

Mr. Lauri McDonnell

€3,809 (£3,000)

Process Auditor to proposed merger and flotation of ACC and TSB Bank.

Arthur Cox Solicitors

€138,965 (£109,444)

Provision of legal advice with regard to the proposed merger and flotation of ACC and TSB Bank.

IBI Corporate Finance, Davy Stockbrokers and Donaldson Lufkin and Jenrette

€478,573 (£376,907)

Provision of corporate and financial advice with regard to the proposed merger and flotation of ACC and TSB Bank.

McCann Fitzgerald Solicitors

€47,081 (£37,079)

Provision of legal advice in relation to An Post ESOP implementation.

Ms N. Hynes

€4,622 (£3,640)

Provision of Accountancy advice in relation to the Management Information Framework Project.

Mr. David Kingston

€1,508, (£1,188)

Paper and Presentation re the potential structure of the National Pensions reserve Fund.

2001

Howard Johnson/HCM Consultants

€16,881 (£13,295)

Payment for actuarial services in respect of the discharge of certain Exchequer pension liabilities – Telecom Éireann An Post, IAA, Coillte.

Advanced Organisation and Management Development

€5,028 (£3,960)

Membership of the working group on the accountability of Secretaries General and Accounting Officers.

Robson Rhodes

€9,535 (£7,509)

Work undertaken for the Working Group on the Accountability of Secretaries General and Accounting Officers.

MMP Business Programme

€11,740 (£9,246)

Review of the Management Information Framework Project Structure.

Arthur Andersen

€53,329 (£42,000)

Provision of corporate and financial advice with regard to the sale of TSB Bank to Irish Life and Permanent.

Mr. E. Molloy

€19,312 (£15,210)

Consultancy to the Working Group on the accountability of Accounting Officers and Secretaries General.

Deloitte & Touche

€145,323 (£114,451)

Review of the Department's management information requirements.

Deloitte & Touche

€54,450 (£42,883)

Consultancy in connection with the competitive process to award a new licence to operate the National Lottery.

PriceWaterhouseCoopers

€114,276 and VAT(£90,000 and VAT)

Review of the existing PPP structures.

Capita Consulting

€68,972 (£54,320)

Consultancy to review the Appropriation Accounts and a pilot project on accruals.

Deloitte & Touche/Expense Reduction Analysts Limited

€91,421 (£72,000)

Annual audits on the operation of travel policy by Government Departments and Offices and Club Travel Limited. (Expense Reduction Analysts Limited were hired through Deloitte & Touche.)

Deloitte & Touche

€12,697 (£10,000)

Provision of advice to Department in relation to the negotiation of the National Lottery Licence with An Post National Lottery Company.

Carr Communications

€117,234 (£92,329)

Provision of public relations services in relation to the Euro changeover.

Irish Marketing Surveys

€40,615 (£31,987)

Research on public awareness about the euro

Fitzpatrick Associates

€4,609 (£3,630)

Presentation on Private Sector Pay Structures and Benchmarking.

Deloitte & Touche

€145,683 (£114,735)

Assistance in development of the Euro changeover oversight plan.

Cap Gemini Ernst & Young

€25,925 (£20,418)

Quality assurance review of the draft IT Strategy.

Hay Management Consultants

€5,688 (£4,480)

Evaluation of Chief Executive position in a Commercial State organisation (Shannon/Foynes).

Name of Consultant

Cost

Brief Description of Project

Hay Management Consultants

€4,571 (£3,600)

Evaluation of Chief Executive position in Commercial state organisations (Rail Procurement Agency/Eirgrid/Ordnance Survey Ireland.

McCann Fitzgerald Solicitors

€11,512 (£9,066)

Provision of legal advice in relation to An Post ESOP implementation.

Joe Carr of Chapman Flood Mazars Ltd.

€28,000 (£22,052)

Provision of Financial Management advice to the Steering group on Systems review of the Department of Agriculture, Food and Rural Development.

Mr Brian Lenihan

€1,955 (£1,540)

Study on the provision of a Nursing degree in the third level Education Sector.

Sean Bourke Solicitors

€83,920 (£66,092)

Payments in respect of a judicial review

Goodbody Economic Consultants

€107,928 (£85,000)

Research into the career progression of persons with disability at all general service grades within the Irish Civil Service.

DKM Economic Consultants

€35,045 (£27,600)

Advice to the Minister in relation to the charging of a fee for UMTS licences.

Masons Solicitors

€72,200 (£56,862)

Engaged to advise and assist in the competitive process to award the National Lottery licence

Some projects covering over one year for which an annual breakdown is not available

Name of Consultant

Cost

Brief Description of Project

Mr. Lauri McDonnell

€6,984 (£5,500)[1999-2001]

Process Auditor to sale of ICC Bank plc.

ABN AMRO Corporate Finance and McCann Fitzgerald Solicitors

€895,165 (£705,000)[1999-2001]

Provision of corporate and legal advice with regard to the Sale of ICC Bank plc.

Arthur Cox Solicitors

€96,661 (£76,127)[2000-2001]

Provision of legal advice with regard to the sale of TSB Bank to Irish Life and Permanent.

Deloitte & Touche

€35,045 contract value (£27,600)[2001/ongoing]

Assist in the detailed specification of, and the selection of, new financial software to support the MIF

A&L Goodbody Solicitors

€345,561 (value of contract to date) (£272,151)[2001/ongoing]

Provision of legal advice in relation to the sale of ACC Bank to Rabobank Nederland

A&L Goodbody Solicitors

€1,640,000 (value of contract to date)(£1,291,605)[2001/ongoing]

Provision of legal advice in relation to the drafting of legislation on the establishment of the new financial services regulatory authority

NDP/CSF Evaluation, Information and IT Units (Paid out of the Technical Assistance Programmes of the Community Support Framework for the Structural Funds)

Name of Consultant

Cost

Brief Description of Project

IPA

€1,152 (£907)

Consultancy regarding ongoing evaluation in the CSF.

Fitzpatrick Associates

€3,687 (£2,904)

Consultancy re: prior Appraisal of NDP 2000-2006.

PricewaterhouseCoopers Belfast

€76,184 (£60,000)

Ongoing Evaluation of the Special Programme for Peace and Reconciliation.

ESRI

€274,898 (£216,500)

Ex-ante Evaluation of the Investment Priorities for Post-1999 Structural and Cohesion Funds.

IPA

€2,305 (£1,815)

Project advice on production of CSF Indicators paper.

IPA

€28,597 (£22,522)

Drafting and production of Structural Funds Procedures Manual.

Fleishman-Hillard Saunders

€41,272 (£32,504)

Consultancy on NDP Communications Strategy

Drury Communications Research

€51,334 (£40,429)

Public awareness research on NDP/CSF 2000-2006

ECOTEC Research and Consulting Limited

€15,918 (£12,536)

Ex-ante evaluation of Ireland/Wales Interreg IIIA

ECOTEC Research and Consulting Limited

€12,001 (£9,452)

Evaluation of Interreg IIIB Atlantic Area

ESRI/Deloitte & Touche

€32,559 (£25,642)

Phase One of a study of the Labour Market Impact of Human Resources (Education and Training) Interventions in the Community Support Framework for Ireland, 1994-1999.

ESRI

€59,612, (£46,948)

Phase Two of above study

Indecon Consultants

€32,225 (£25,380)

Public transport evaluation

Fitzpatrick Associates

€34,801 (£27,408)

Roads evaluation

Fitzpatrick Associates

€37,434 (£29,482)

Human resources evaluation

CMG UK Limited

€747,394 (£588,621)

Analysis, Design and Development of a computerised system for the Structural and Cohesion Funds management.

PricewaterhouseCoopers

€96,792 (£76,230)

Report on Planning Phase 1 for CSF/ European Regional Development Fund/Cohesion Fund Community Initiatives Computer System.

Name of Consultant

Cost

Brief Description of Project

Capita Consulting

€33,505 (£26,387)

Human resources follow-up surveys

Curtin Communications

€104,196 (£82,061)

Provision of publicity services relating to NDP/CSF

Windmill Lane

€75,567 (£59,514)

Design/development of NDP website

Arthur Andersen

€160,552 (£126,445)

Review of the financial management and control systems relating to the European Regional Development Fund, the EU Cohesion Fund and the EFTA Cohesion Fund.

Fitzpatrick and Associates

€125,964 (£99,205)

Review of Project Appraisal and Selection Procedures in the Community Support Framework for Ireland, 1994-1999.

Economics Dept NUI

€2,032 (£1,600)

Labour Market Impact of HR. Interventions.

Economics Dept NUI

€2,032 (£1,600)

Labour Market Impact of HR. Management.

Coopers and Lybrand

£5,000 Sterling

Economic Appraisal of an Ireland/Northern Ireland Interreg Economic Development project application entitled “The Cross Border Furniture Development Programme”.

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