Skip to main content
Normal View

Consultancy Contracts

Dáil Éireann Debate, Tuesday - 5 February 2013

Tuesday, 5 February 2013

Questions (283)

Micheál Martin

Question:

283. Deputy Micheál Martin asked the Minister for Finance if he will state the identity of all persons external to the Civil Service whom he has retained since March 2011 to assist on technical and strategic matters relating to negotiations on the restructuring of promissory note repayments; the duration and terms of such assistance; and if he will make a statement on the matter. [5802/13]

View answer

Written answers

As the Deputy is aware discussions in relation to the Promissory Notes have been on-going for some time. This has been part of a wider range of considerations on national debt sustainability and the cost of recapitalising and supporting the Irish banking industry. A number of resources external to the civil service have been retained since March 2011 to assist in technical and strategic matters relating to the restructuring of the Promissory Notes. These included McKinsey & Company, Arthur Cox, PWC and staff seconded from the NTMA and the banking sector.

McKinsey & Company was engaged by the banking unit in the NTMA in May 2011 up to the end of 2011 initially as external adviser on strategic options including funding of IBRC. This engagement was extended into 2012 to cover other work, including restructuring proposals for the IBRC Promissory Notes and the assessment of other proposals in relation to the restructuring of the banking sector. This engagement ended in April 2012. A fixed fee, including expenses, of €2.75m was agreed for the engagement of McKinsey & Company in 2011 and a further fee of €0.87m was paid in relation to the work in 2012. An element of the fixed fee for 2011 related to the IBRC funding and the Promissory Note structures.

Arthur Cox was engaged by the banking unit in the NTMA from March 2011 for the supply of on-going legal advice on restructuring of the Irish banking system, related litigation and further emerging issues. This contract was novated to the Department of Finance, taking effect from January 2012. This work is on-going and a final fee has of yet not been agreed.

PWC provided accounting advice in 2012 in relation to the restructuring of the Promissory Notes.

As detailed last week in my response to Parliamentary Questions 65,66 & 68 on Wednesday 30 January, the staff in my department have been supplemented by employees of the NTMA, for so long as is required by the Department to fulfil its functions in respect of the banking sector; and by from the banking industry by way of secondee arrangement. These resources are sufficient to support the negotiations at this point.

The Deputy will appreciate that it is not appropriate to disclose individual details of those involved in this work.

Top
Share