Tuesday, 25 January 2011

Ceisteanna (94)

Brian Hayes

Ceist:

201 Deputy Brian Hayes asked the Minister for Finance if he will provide a comprehensive report on a matter (details supplied); and if he will make a statement on the matter. [3703/11]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Minister for Finance)

The table sets out the list of payments made in respect of external advice given to my Department since taking office in 2008, including advice provided to my Department through the Financial Regulator, the Central Bank and all agencies under the NTMA umbrella.

Office of the Minister for Finance

Consultant/Firm offering advice

Payment Date

Gross Cost including VAT

Brief details of the advice provided

Hay Group Ireland, Lr. Mount Street, Dublin 2

2008

114,344

Job evaluation of senior posts in the Public Sector

Petrus Consulting

2008

4,114

Evaluation of value for money and policy review on construction procurement reform initiative

McCann Fitzgerald

2008

63,024

To draft conditions of engagement for construction related services and a price variation clause for construction contracts based on a proven cost basis; and draft legal changes resulting from consultation process and training.

A&L Goodbody

2008

182,008

To develop standard conditions of contract for civil engineering and building works projects and associated outline guidance; and draft legal changes resulting from consultation process and training .

IPA — Institute of Public Administration

2008

50,000

Review of the Capacity of the Dept of Finance

Ernst & Young

2008

193,901

Study on the economic and budgetary implications of a CCCTB

Arthur Cox

2008

1,628,024

Legal advice in relation to the Bank Guarantee Scheme, Recapitalisation issues, Nationalisation, the National Asset Management Agency (NAMA), the Eligible Liabilities Guarantee Scheme (ELG), general financial and banking matters.

Arthur Cox

2009

4,173,689

Legal advice in relation to the Bank Guarantee Scheme, Recapitalisation issues, Nationalisation, the National Asset Management Agency (NAMA), the Eligible Liabilities Guarantee Scheme (ELG), general financial and banking matters.

Mercer (Ireland) ltd

2009

3,308

Advice to CIROC in relation to Human Capital.

Watson (Wyatt) ltd

2009

7,290

Advice to CIROC in relation to the Executive Compensation market.

Hay Group Ireland Ltd

2009

4,860

Advice to CIROC in relation to Banking Remuneration.

Life Strategies Ltd

2009

32,805

Parallel Benchmarking pensions.

Hay Group Ireland Ltd

2009

215,937

Review Body on Higher Remuneration benchmarking

Pricewaterhouse Coopers

2010

118,580

Professional Fees in respect of accounting advice on promissory notes

Arthur Cox & Co

2010

4,804,884

Legal advice in respect of guarantees (CIFS & ELG), nationalisation of Anglo Irish Bank, recapitalisations and restructuring plans

Central Bank and Financial Regulator

The Central Bank and Financial Regulator incurred the following advisory costs:

Year and total cost

Detail

2008 total cost €4,295,115

Financial Capability Study consultancy for 2008/09

Loan book analysis and assessment review

Review of trading controls

Consumer tracking research

Report on calculating a consumer rebate

Review of the Life Assurance Disclosure Regulations

Consumer Research for Review of the Intermediary Market

2009 total cost €778,724

Review of Business Processes

Review of Directors Loans

Review of Banking System pre NAMA (at request of Department of Finance)

2010 total cost €2,031,423

Strategic Review of the Credit Union Sector in Ireland (requested by the Minister for Finance)

Organisational effectiveness of financial sector regulators/Supervisors

Due Diligence Report (at request of Department of Finance)

Review of NAMA Asset Valuation Methodology

The Central Bank and Financial Regulator are self-financing institutions. Accordingly the costs incurred are included for information only and do not represent a cost to the taxpayer. The Central Bank has advised my Department that they are not in a position to divulge individual consultant details/costs due to client confidentiality arrangements.

In addition to the above, the following costs were incurred in respect of reports commissioned by the Consumer Panel:

Year

Amount

2008

114,836

2009

4,860

2010

4,599

National Treasury Management Agency Group

Consultant/Firm offering advice

Gross Cost including VAT

Brief details of the advice provided

NTMA

Merrill Lynch

€7.33m

The NTMA was requested by the Minister for Finance to engage advisers to provide advice on structural issues in financial markets.

Total fees paid were €7.3m. Of this amount, €2.4 million was paid in 2008 for advice on structural issues in the financial markets and €4.9 million was paid in 2009 for advice given regarding investment of National Pensions Reserve Fund moneys by way of preference shares in financial institutions.

Rothschild

€4.54m

Rothschild was appointed to provide banking advisory services to the Minister for Finance, acting through the NTMA under two separate contracts: 15 September 2009 and 12 July 2010. There is a further final payment of €2 million (ex VAT) due to be paid on the July 2010 contract.

Goldman Sachs

€286,360

Advice in relation to Anglo Irish Bank. There is a further payment of €100,000 (ex VAT and expenses) due on this contract.

Peter Bacon

€82,012

Report on the options for resolving property loan impairments at Irish credit institutions

Peter Bacon

€21,870

Evaluation of a proposal to establish an Irish Residential Property Trust.

Arthur Cox

€1,020,190

Advice from Arthur Cox in relation to legal issues arising in the performance of banking system functions

NPRF Commission

PWC

€1.58m

Due Diligence on the NPRF’s investment in Bank of Ireland and AIB Preference Shares

Arthur Cox

€1.95m

Due Diligence on the NPRF’s investment in Bank of Ireland and AIB Preference Shares

Sir Andrew Large

€120,000

Due Diligence on the NPRF’s investment in Bank of Ireland and AIB Preference Shares

Arthur Cox

€390,000

Advice in relation to Bank of Ireland’s April 2010 capital raising and in relation to management of preference shareholding in AIB

NAMA

Arthur Cox

€911,250

Advice in relation to the drafting of the NAMA Act

*The objectives of the due diligence exercise which the National Pensions Reserve Fund Commission had carried out at the request of the Minister for Finance in respect of Bank of Ireland and Allied Irish Banks plc (AIB) were to form judgements with respect to the probability of each bank's core Tier 1 Capital being above the regulatory minimum at end 2011 and to identify any matters or issues which might be considered of a "red flag" nature.

Sir Andrew Large, former Deputy Governor of the Bank of England, was engaged as a "trusted advisor" on certain aspects of the due diligence process including the judgements to be made in the light of the final reports because of his specialist expertise in the banking area. Sir Andrew also had a significant input into setting the scope of the due diligence exercises and in working with the NTMA in monitoring PwC and Arthur Cox as the due diligence exercises progressed.

It should also be noted that the NPRF received arrangement fees of €60 million (€30 million from each bank) in respect of these transactions.