Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Wednesday, 25 Oct 1995

Vol. 457 No. 5

Adjournment Debate. - Consultancy Fees.

I am obliged to you and your office for giving me the opportunity to raise this matter on the Adjournment. It arises as a result of the reply I received to parliamentary questions I tabled yesterday seeking details of the bills for consultants which this Minister has engaged, since coming to office ten months ago. It is a matter of public concern that in excess of £1 million in consultancy fees has been paid out by the Minister for Agriculture, Food and Forestry and three State bodies under his control. In his reply to a recent parliamentary question which elicited this information, the Minister had no problem in giving me full details of the names of the various consultants and consultancy firms who had been given work by these firms and by his Department, but when I asked for a breakdown of the overall figure for the individual consultancies the Minister was uncharacteristically coy, despite the fact that to the best of my knowledge all the State bodies concerned have issued that information to him. Obviously the Minister sought that information on foot of my initial parliamentary question. Why is a Member, on behalf of the public, denied access to legitimate information when the Minister was prepared to give me the overall information in reply to a previous question?

In his reply to this matter in the Irish Independent on 16 October, when I raised the scandalous waste of tax-payers' money, the Minister explained that the bulk of the fees of £325,000 in his Department went on consultants who had been brought in to advise on the introduction of a new computer system to speed up the payment of £750 million in headage and other cash payments to farmers which had been negotiated by his predecessor, Deputy Walsh. The computerisation programme in Portlaoise was well under way long before the Minister arrived. He continues to give the impression that nothing had happened in the Department of Agriculture, Food and Forestry until he arrived in December, 1994.

That information is seriously incorrect. I call on the Minister of State, on behalf of the Minister, to withdraw the explanation which was given by the Minister claiming that the bulk of his consultancy fees is in respect of the introduction of a new computer system. The Minister's woefully incomplete answer has flatly contradicted his previous public explanation for the £325,000 spent in his Department. He has refused to account for the £680,966 spent by the bodies under his control. This refusal is in spite of the fact that the bodies in question have provided the Minister with the detailed information necessary for him to answer the questions asked.

When challenged on this scandalous expenditure last week, he asserted that the bulk of it related to computerisation. The Minister's partial and selective answer showed this to be untrue. In fact, less than one-fifth, or £62,186, was spent on computerisation. It has now also emerged from the inquiries I have made that £34,220 has been marked for public relations advice to the Minister. In addition to a full-time staff of four in the Department's information section, this Minister is spending £3,000 per month on hired spin doctors — a matter in which I am sure the public is interested. The public has a right to know what spin on what stories he considers too sensitive for his civil servants to handle.

The time is long past when talk was cheap. The Minister is withholding information which the public has a right to know. I thank you, a Cheann Comhairle, for allowing me to raise this matter on the Adjournment to give the Minister of State the opportunity to give us that information which the public has a right to know and which I am sure he will give me in his reply.

Fianna Fáil demands an immediate and full disclosure of all the facts surrounding Minister Yates's £1 million spending spree on public relations advisers. If we are to have Government that is as clear as a pane of glass, it must be glass we can see through, not Venetian glass. I am sure the Minister of State, Deputy Deenihan, will confirm that he is prepared to withdraw the inaccurate information regarding his own Department's expenditure and give the information which not only I but the taxpayers are entitled to have in respect of the scandalous amount of money being spent on consultancies while hundreds of staff are permanently employed in these bodies for the purpose of serving the public.

The Deputy uses the word "scandalous". His treatment of this subject is scandalous because most of the money that has been committed is on record as being committed by the previous Administration. It is ridiculous to suggest that this Minister is spending £1 million of his own accord. That is totally unfair and I would expect more from Deputy Cowen, who should get his facts right. Whatever facts the Deputy requires, he will get them tonight.

May I have them now?

The Deputy did not look for them.

I did look for them. That is why we have raised this matter on the Adjournment.

A Cheann Comhairle, this bully boy will not allow me speak.

The Minister of State should not accuse me of giving false information when I cannot get information.

There is a time limit to the debate.

The Deputy will get whatever information he wants. Deputy Cowen accuses the Minister of spending money on communications consultants. He seems to think it is wrong for money to be spent on getting information clearly and speedily on the agricultural, food and forestry industries. He also seems to be unaware that the Minister's predecessor, Deputy Joe Walsh, sought the approval of the then Minister for Finance to retain communications consultants for a fee of £36,000 a year, although it must be said that the Minister for Finance sanctioned only a fee of £20,000. These consultants were employed by Deputy Walsh during 1992, 1993 and 1994. Deputy Cowen seems to forget that the appointment of consultants was common under the Government of which he was a member. Most of this expenditure, which is public knowledge, was incurred during the previous Administration.

In reply to Parliamentary Question No. 39 on 11 October 1995, I indicated that the total expenditure on consultancy services by my Department since Minister Yates's appointment was £325,399. A large percentage of this figure relates to pre-committed expenditure on consultancy services dating from the time of the former Minister, Deputy Joe Walsh. The same reply indicated that expenditure by the non-commercial State bodies was £680,966.

The employment of consultants by bodies such as Teagasc, An Bord Bia and An Bord Glas is a matter for the boards and management of those bodies to decide, without specific reference to my Department. We must respect the freedom of these bodies to manage their own day to day affairs, particularly bearing in mind that their accounts are audited by the Comptroller and Auditor General.

So the Minister of State will not give me the information?

For this reason, I must emphasise that the Minister was not aware — and properly so — of the consultanty programme being implemented by these State bodies. However, the position in relation to An Bord Bia, which accounts for three quarters of the consultanty expenditure by the State bodies, needs some elaboration in fairness to that body. I have a close association with this group by virtue of the fact that I have travelled with them to a number of foreign destinations. I have absolute respect for An Bord Bia and I commend it highly. It is outrageous of Deputy Cowen to cast aspersions on this effective State agency.

May I have the information, please?

It represents another attack on State agencies. Deputy Cowen is showing absolute disgust for these people.

I am only looking for the information. The Minister of State will not give it to me.

Let us hear the Minister of State. Deputy Cowen, please desist.

I am being lectured, a Cheann Comhairle.

An Bord Bia was established less than a year ago. The board was given a much wider brief than its predecessors. It was assigned a key role in the development of the Irish food industry and the creation of jobs and wealth that would flow from that.

Two broad categories of consultancy service were provided to An Bord Bia in 1995. The most significant category refers to what may be termed "once-off" costs relating to the establishment of the organisation and the formulation of its strategic plan for the period 1995-99. This category accounts for approximately 75 per cent of the expenditure. By their very nature, costs incurred under this heading will not recur in 1996.

The second category, which is of much lesser significance in terms of overall expenditure, relates to ongoing activity in the areas of market research, product testing under the quality assurance programme, communications and product promotion. Such activity is central to the implementation of An Bord Bia's strategy by providing industry with quality information and promotional intelligence.

In relation to my Department's expenditure of £325,399 to date, seven of the consultancies involved were entered into prior to the change of Government and these accounted for approximately £146,000 of this amount. As I indicated in reply to Parliamentary Question No. 190 on Tuesday, 24 October, the estimated total cost of consultancies to which the Department is committed is over £1.1 million; over £700,000 of that amount was contracted prior to 15 December 1994 by the previous Minister. What kind of dirt is Deputy Cowen trying to throw? He has no right to do that.

On a point of order——

I will not hear a point of order.

The Deputy has taken out of context——

Is the Minister referring to consultancies? Does it refer to computerisation?

The Deputy will get his answers. Why does he not get his facts right?

Let us hear the Minister out.

The Minister is getting agitated.

Where is the information I sought?

Taken out of context, the amount spent on consultants may seem large. However, this figure should be seen in the context of the overall expenditure of my Department which was over £1.75 billion in 1994. The Department's expenditure on consultants, therefore, accounted for .02 per cent of total departmental expenditure. The expenditure by the non-commercial State bodies accounted for a further .04 per cent of that £1.75 billion. It cannot be seriously suggested that these figures are excessive or out of line with general administrative or commercial practice.

I have not got the information I requested.

My Department has responsibility for a sector which accounts for approximately 15 per cent of GDP — that is £5 billion. We have a responsibility to ensure that our stewardship of this sector is undertaken as professionally as possible. In undertaking this task it may be necessary or advisable to seek advice and expertise from outside the Civil Service from time to time.

The use of external consultants is desirable in certain circumstances such as where specialised knowledge is not available in the Department and the service is required for a temporary period. Consultants might also be engaged where there is a need for an external view of some issue.

Having regard to all the points I have made I am sure the Deputy will agree that the contracts for consultancy services entered into by the Department under the present Minister's stewardship were in the public interest and do not involve unreasonable or excessive expenditure. I am sure he will also agree that those contracts entered into during the previous Minister's stewardship — representing the greater part of the amount committed — were similarly well justified.

The amount of personal consultancy fees that will be paid by this Minister will be very much in line with the fees paid by the previous Minister.

I have not got the information I sought.

The Deputy got enough information.

The Dáil adjourned at 9.30 p.m. until 10.30 a.m. on Thursday, 26 October 1995.

Barr
Roinn