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AIB Consultancy Contracts

Dáil Éireann Debate, Tuesday - 4 December 2012

Tuesday, 4 December 2012

Questions (139)

Michael McGrath

Question:

139. Deputy Michael McGrath asked the Minister for Finance the amount of money paid by AIB to consultants (details supplied) for work carried out at the bank in 2009, 2010 and 2011; and if he will make a statement on the matter. [53852/12]

View answer

Written answers

The Deputy will be aware that the Bank’s policy in relation to professional fees is a matter for the management and board of the institution. I have no role in the day-to-day commercial and operational decisions of the banks, which include these matters. These decisions are taken by the board and management of the institution. Notwithstanding the fact that the State is a significant shareholder in the institution, I must ensure that the bank is run on a commercial, cost effective and independent basis to ensure the value of the bank as an asset to the State, as per the Memorandum on Economic and Financial Policies agreed with the EU Commission, the ECB and the IMF. I have been informed by the bank that for commercial confidentiality reasons, AIB does not publicly disclose the details of contracts with individual external service providers. However I note that as part of its ongoing strategy to return AIB to a sustainable business model, the bank is introducing measures to reduce its overall cost base by €0.4 billion per year by 2014. These measures include:

- A severance scheme aimed at reducing staff numbers by 2,500 by 2014;

- Reductions to staff pay, benefits and pension arrangements;

- The outsourcing of certain functions in the bank;

- A material reduction in the use of external service providers.

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