Government Spend €7.1m On Consultancy Services

It has been revealed that government ministers have spent at least €7.1m on outside consultancy services since taking office last year.

One of these payments includes Minister for the Environment Paul Hogan spending €130,536 on a reports from PriceWaterhouseCoopers(PWC), which recommended the establishment of a new and separate water authority. The Government has instead contracted Bord Gáis to run the water authority.

A further €48,600 was paid to PWC by the Department of Social Protection.

Minister for Health James Reilly’s spend of €1.303 million, the second largest, included €300,080 to Goodbody Stockbrokers on the capitalisation, authorisation and sale of health insurer VHI which the Government subsequently decided not to sell.

Dr Reilly said it was his policy to engage external consultants only where it was “appropriate and cost-effective”.

The largest expenditure was by Minister for Foreign Affairs Eamon Gilmore whose department paid just under €1.35 million for 65 reports, predominantly for the evaluation and assessment of projects in the developing world funded by Irish Aid, the Government’s overseas aid section.

Minister for Social Protection Joan Burton spent €1.293 million on outside consultants including IT services worth more than €650,000. The department is heavily dependant on technology and the Minister said consultancy services were “essential” to support the delivery of services.

Accenture won a contract from the Department of Public Expenditure and Reform to assist with the establishment of a human resources “shared service centre” for the Civil Service. The consultants received €353,960 for phase one.

One of the most popular consultancy firms was Deloitte & Touche which provided services valued at almost €500,000 to four Government departments.

The figures emerged in response to a series of parliamentary questions.

(H)