Eoghan Murphy
Question:186. Deputy Eoghan Murphy asked the Minister for Finance if Permanent TSB used public procurement processes in engaging consultants; and the consulting spend in the past 24 months. [3653/14]
View answerTuesday, 28 January 2014
Questions (186)
Written answers
Permanent TSB ("PTSB") is not legally required to comply with public procurement rules but it has informed me that it follows industry best practice in relation to procurement in that all large consultancy assignments are subject to competitive tenders, detailed contract negotiations and appropriate governance, including Board approval.
As the Deputy may be aware PTSB has undertaken a wide variety of projects in the past two years including, inter alia, a rebuilding of its arrears management capability, the development of a Restructuring Plan, the separation from Irish Life and the recruitment of a new management team. I am informed by PTSB that this has led to an increased requirement for third party expertise including the use of consultants.
PTSB's 2012 Annual Report and Financial Statements, published on their website, set out in detail the level of Restructuring Costs incurred during 2012, including:
- €14 million of costs associated with proposed asset disposal initiatives, separation of the Irish Life Group and the final phase of the 2011 transformation project
- €53 million of costs associated with professional and contractor projects in relation to the restructuring of the group
In addition 2012 Operating Costs included €9 million of consulting costs.
I am advised by PTSB that it is currently in a close period and it is not appropriate to disclose information relevant to its financial performance in 2013 at present. PTSB has informed me that this information will be included in PTSB's Annual Report and Financial Statements which will be published in March 2014. PTSB has advised me that the level of spend on Restructuring Costs is significantly reduced in 2013 compared to 2012.
As the Deputy will be aware there is a Relationship Framework in place with PTSB. Under the Relationship Framework PTSB is recognised as a separate economic unit with independent powers of decision. The Board and management team retains responsibility and authority for determining the bank's strategy and commercial policies and conducting its day-to-day operations.