I propose to take Questions Nos. 145 and 146 together.
The National Treasury Management Agency (NTMA) does not maintain an internal press office. Instead, its internal communications resources are supported by an external service provider (appointed following a public procurement process) – currently Gordon MRM – in order to offer a full press office and communications service (including out-of-hours contacts for the media) across all the NTMA’s business areas: Debt Management, National Asset Management Agency (NAMA), National Pensions Reserve Fund, National Development Finance Agency, State Claims Agency, NewERA and, during 2010 and 2011, the Banking Unit.
These arrangements were initially put in place during 2010 in light of a significant increase in the volume of domestic and international media queries being received by the NTMA and associated bodies. In September 2012 the NTMA retendered for the provision of these services. A total of five companies submitted tenders. Following the tender evaluation process the NTMA awarded the contract to Gordon MRM in December 2012.
The initial contract, in place to end-2012, was based on an hourly rate for services provided. During the term of this contract a 20% reduction in the hourly rate was agreed with effect from June 2011 until the end of the contract. The new contract, which commenced in January 2013, is based on a fixed fee and it is anticipated that this will result in a significant reduction in the overall fees paid by the NTMA.
NAMA draws on the NTMA’s shared services in a number of areas including its outsourced press office facility. NAMA reimburses the NTMA in respect of the costs of these services attributable to NAMA.
The overall costs incurred for the provision of the services above (excluding VAT) were as follows:
2010 - €207,255*
2011 - €205,388 (of which €112,353 was charged to NAMA)
2012 - €223,723 (of which €142,653 was charged to NAMA)
2013 - €24,488 (to end-February) (of which €12,000 was charged to NAMA).
* In 2010 costs were not specifically attributed to NAMA. NAMA was charged a proportionate share of the NTMA’s third party service costs which included Gordon MRM.
In the light of the sovereign debt crisis the NTMA also engaged Powerscourt – a London based communications consultancy – for international communications initiatives in the funding and debt management area. Total costs (excluding VAT) incurred for the provision of the services provided by Powerscourt were as follows:
2010 - €160,334
2011 - €74,395
2012 - €10,257
2013 - €12,103 (to end-February).
