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Consultancy Contracts

Dáil Éireann Debate, Wednesday - 26 May 2010

Wednesday, 26 May 2010

Questions (4, 5, 6)

Enda Kenny

Question:

4 Deputy Enda Kenny asked the Taoiseach if he will report on the recent work of the group established in his Department to oversee the awarding of public relations contracts by Ministers; and if he will make a statement on the matter. [16301/10]

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Eamon Gilmore

Question:

5 Deputy Eamon Gilmore asked the Taoiseach if he will report on the operation of procedures put in place in his Department to monitor the awarding of public relations contracts by Ministers; and if he will make a statement on the matter. [18904/10]

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Caoimhghín Ó Caoláin

Question:

6 Deputy Caoimhghín Ó Caoláin asked the Taoiseach if the group established to oversee the awarding of public relations contracts by Ministers is still operating; and if he will make a statement on the matter. [20230/10]

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Oral answers (11 contributions)

I propose to take Questions Nos. 4 to 6, inclusive, together.

The Quigley report, which was published in 2005, highlighted the need for special care in cases in which a proposed consultancy comprises an element of direct service to a Minister or Minister of State, particularly in area of public relations or communications, or where a Minister or Minister of State suggests the name of a person or enterprise as being suitable. Following publication of the Quigley report, additional guidelines to be followed in such cases were approved by the Government and are published on my Department's website. The guidelines were brought to the attention of all Secretaries General, who were asked to implement them and, in future, to bring them to the attention of all newly appointed Ministers and Ministers of State, where relevant, in their Departments or offices.

The guidelines give the Secretary General to the Government and the Government secretariat a role in examining certain procurements. However, there is no special committee in my Department to oversee the awarding of public relations contracts by Ministers. Any workload arising from the application of these additional guidelines is handled within existing resources in the Government secretariat.

The Minister for the Environment, Heritage and Local Government spent €3 million on public relations contracts in 2009, one of which was the radio advertisements about the designation of seven special areas of conservation on the Dublin coastline. Those radio advertisements cost €23,000 or €25,000. I accept that Departments must advertise their activities to the public. Does the Taoiseach have any information in his brief about this? Is this type of contract approved by the public relations contracts committee? Must the Minister sitting beside the Taoiseach, Deputy Ó Cuív, or anybody else who wants to promote a campaign on behalf of his or her Department, seek approval from the committee first or is the decision made in-house in the Department, based on the budget available, to run advertisements to tell the public how wonderful it is and what it is doing? For example, was the Minister for the Environment, Heritage and Local Government obliged to seek approval from the public relations contracts committee before placing these advertisements on radio, on television and in the newspapers?

There is no committee in place. Guidelines were established which set out a procedure that must be followed when a particular set of circumstances arise, that is, a proposed consultancy or any proposed contract for services comprising a significant element of direct service to a Minister, particularly in the PR or communications area, or a suggestion by a Minister of the name of a person or enterprise that might be suitable. In such circumstances the Secretary General of the Department concerned must notify the Secretary General to the Government. Having inquired about any aspects he or she considers relevant, the Secretary General to the Government will then make a recommendation to me as to whether any special conditions should be observed in the procurement process. It is in those specific instances that the procedure is triggered.

Does the Taoiseach have information on the number of public relations contracts that are currently in operation in Departments? Is that something that comes to his attention regularly? Is there freedom, with certain restrictions, for Departments or Ministers to employ new public relations people on a whim or put out information about new campaigns? In other words, is there a figure for the amount being paid out to public relations agencies by Departments? If so, what was the cost of this in 2009?

No. The question is about the procedures that are in place with regard to public relations contracts as they pertain to me, arising from the Quigley report, which was drawn up at a time when an issue arose in a particular Department. It sets out general guidelines, and that is the basis on which I am replying today. I do not have any of that information.

One of the recommendations of the Quigley report was that consideration should be given to requiring the approval of the Taoiseach for any initiative being pursued by a Minister with regard to a consultancy contract for PR or communications advice, including the provision of advice to the Minister. Was this recommendation ever implemented? If so, on what occasions is the approval of the Taoiseach required?

In the period of time since he has been Taoiseach, how many times has he been asked for approval for the appointment of public relations or communications contracts for Ministers?

Eight cases that came within the terms of the guidelines have been processed so far. In September 2008 I agreed to the appointment by the Department of Communications, Energy and Natural Resources of a consultant to conduct a facilitation exercise with regard to a consultation paper on next-generation broadband. In 2007 one case was noted by my predecessor following consideration by the Secretary General to the Government; it consisted of an invitation to tender for consultancy work at the Department of the Environment, Heritage and Local Government to scope out a project which would lead to the establishment of an independent electoral commission. I understand the candidate concerned was not subsequently successful in the tender competition. Two cases related to the appointment of an arts adviser at the Department of Arts, Sport and Tourism; my predecessor approved one of these in 2005 following appropriate prior consideration by the Secretary General to the Government, and upon the resignation of the original post holder, my predecessor approved the appointment of a successor to the post in 2006.

The four other cases referred to the Secretary General to the Government were, on consideration by him, found not to fall within the scope of the guidelines and did not require consideration or approval. These related to the appointment of IT, PR and communications consultants.

I refer to the group established by the Taoiseach's Department to deal with the awarding of public relations contracts by Ministers. Would the Taoiseach consider extending its remit to include semi-state bodies under the aegis of the Ministers? Is the Taoiseach aware of the recent report about the Dublin Docklands Development Authority which stated that contracts of more than €80,000 were awarded to a business that not a registered company and did not have an identifiable business name? This, as the report clearly showed, does not comply with the requirements in terms of proper performance. I ask because this pertains both to the Dublin Docklands Development Authority and to FÁS, whereby different contracts were awarded that were anything but up to the required standards and serious questions must be asked in respect of them all. While the Taoiseach has a team in situ in respect of Departments directly, will he consider extending its remit to include semi-State bodies under the aegis of the respective Ministers and their Departments to ensure that where public moneys are involved, the highest standards apply right across the board? In conclusion, is the Taoiseach aware of the report to which I referred regarding the Dublin Docklands Development Authority prepared by Ray King? Of itself, has that report not prompted consideration of the course of action I now suggest?

As I stated in my primary reply, there is no special committee or group in my Department to oversee the awarding of public relations contracts by Ministers. Any workload arising from the application of the additional guidelines as outlined in the Quigley report is handled within existing resources within the Government's secretariat. Neither do I have involvement in respect of semi-State or commercial State bodies or otherwise. Guidelines have been set out as to how they should operate and from memory, I believe the line Department with which they are associated is the relevant Department, in the event of a breach being brought to its attention or whatever, to ensure the guidelines are being complied with.

It appears that they are not being adhered to. I refer to contracts being awarded in respect of public relations work by semi-State bodies. While I do not suggest this is the case now, certainly in the past, in the instances I have highlighted and as a recent report has underscored, this has been happening. All the wishful thinking in the world will not change this. In the light of the report by Mr. King into the Dublin Docklands Development Authority's awarding of contracts in this regard, I understand that the bulk of the awards by the authority were above board. However, I understand that in one instance out of 37, awards were made to a particular business that is neither a registered company nor has a business name to which one can point, registered or otherwise, of the order of €75,000 in one instance and €7,250 in another, that simply do not meet the required criteria. In that light and given the history of questionable awarding of contracts in this area and others by both the DDDA and FÁS, does the Taoiseach not believe there now is a requirement to formally bring the awarding of public relations contracts by all semi-State bodies under the direct aegis of the respective line Ministers and Departments?

I made the point that as the Deputy is aware, the Minister for the Environment, Heritage and Local Government has appointed a chairperson who has a particular expertise in corporate governance to that authority. Reports have been considered by the Minister and will be published in due course. I have every confidence that the new chairperson and board in the Dublin Docklands Development Authority now are putting in place the necessary governance requirements to make it consistent with appropriate corporate governance procedures. The reports and any subsequent issues that may arise will be a matter for debate and consideration as to what lessons are to be learned in the event of there being a lack of, or a deficit in, proper governance procedures in that authority. The Minister has introduced a new chairperson who will report on these governance issues and set out recommendations for the future that I believe will meet the best possible standards in the future. As for what has happened in the past, I cannot comment but I am sure these issues can be dealt with by the chairperson and chief executive as they report to the various committees of the Houses in due course.

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