Written Answers. - National Treasury Management Agency.
Pat Rabbitte
Ceist:
33
Mr. Rabbitte
asked the
Minister for Finance
the administrative costs of national debt management during the five years prior to the establishment of the National Treasury Management Agency; the cost in the period since its establishment; the number employed in each of these years; their average remuneration; the way in which the performance of the NTMA is measured, and by whom; the precise benchmark for borrowing costs that is employed; and the savings achieved by the NTMA in each year since its establishment.
The administrative costs of national debt management excluding the expenses of issue of individual loans since the establishment of the National Treasury Management Agency on 3 December 1990 were: 1991, £3,684,000; 1992, £4,944,000; 1993, £5,537,000.
The number of persons employed in the National Treasury Management Agency during the three years since its establishment and their average remuneration in this period were as follows:
|
1991
|
1992
|
1993
|
|
Number of Employees
|
52
|
56
|
56
|
|
Average Remuneration
|
£33,384
|
£36,596
|
£39,446
|
It is not possible to derive reliably comparable figures in respect of numbers of staff or average remuneration and the administrative costs of national debt management operations during the five years prior to the establishment of the agency for three reasons. First, some of the officers concerned undertook a number of other responsibilities within the Department of Finance. Second, back-up services, such as legal, personnel, and internal audit functions which are included in the figures for the period since the establishment of the agency were previously provided centrally, mainly by the Department of Finance, and it is not possible to isolate the costs involved. Third, the numbers and levels of staff in the newly constituted NTMA have reflected the heightened importance attached by the Government to dept management.
It is estimated that, for the five years prior to the establishment of the agency, the average number of persons on a fulltime equivalent basis engaged directly on national debt management operations (that is excluding the back-up services referred to above) and their average levels of remuneration were as follows:
|
1986
|
1987
|
1988
|
1989
|
1990
|
|
Average Number employed
|
41
|
41
|
41
|
41
|
41
|
|
Average Remuneration*
|
£14,074
|
£15,339
|
£15,924
|
£16,684
|
£18,096
|
*The remuneration figures are based on the standard rates paid to the relevant grades rather than the actual payments made to the individuals concerned.
In the period since the establishment of the National Treasury Management Agency the budget debt service estimates and the debt service outturns were:
|
1991
|
1992
|
1993
|
|
£m
|
£m
|
£m
|
|
Budget Estimate
|
2,409
|
2,411
|
2,490
|
|
Outturn
|
2,353
|
2,355
|
2,390
|
|
Outturn adjusted for cash balances carried into following year
|
2,349
|
2,319
|
2,211
|
The budget estimate in each year included a target for debt service savings to be achieved by the National Treasury Management Agency. These targets were: 1991, £40 million; 1992, £50 million; 1993, £100. The debt service estimate for 1994 is £2,229 million and includes a savings target of £100 million.
The performance of the agency is measured by JP Morgan, the US Investment Bank, against an independent benchmark portfolio. This performance measurement is based on the "Net Present Value", NPV, of all future liabilities undertaken by the agency and in effect measures the impact of the agency's actions not only in the year under review but also their projected impact over the life of the debt.
I do not consider it appropriate to publish details of the benchmark portfolio as this is market sensitive information. The NPV savings achieved by the National Treasury Management Agency against the benchmark have been as follows: 1991, £69 million; 1992, £78 million. The 1993 figure will be published in the agency's 1993 annual report which will shortly be laid before the Houses of the Oireachtas in accordance with section 12 (2) of the National Treasury Management Agency Act, 1990.
