Private consultancy fees cost Government up to £1,000 a day

Daily payments to private sector consultants employed by the civil service range from £1,000 to partners in large firms to a minimum of £100 to academics, according to documentation seen by The Irish Times.

The pay structure is listed in a schedule of "maximum consultancy rates per person per day" drafted by the Department of Finance for use within the civil service.

However, when the Department of Enterprise, Trade and Employment sought to enlist the services of PricewaterhouseCoopers (PWC) earlier this year, it was found that the rates were not realistic. New higher rates had to be agreed.

According to the schedule, consultants from a large consultancy firm are paid £250 to £400 per day, while senior or management consultants are paid £400 to £700. Senior partners are paid between £700 and £1,000 per day. By contrast, the same rates scale shows that academics are paid £100 to £200 per day. All are based on an eight hour working day and are inclusive of VAT and all expenses.

The cost of engaging expertise from PWC has prompted concerns on the part of the Department of Finance. The company was engaged in connection with the inquiry being carried out on behalf of the Department of Enterprise, Trade and Employment into allegations of overcharging by National Irish Bank (NIB) and the unauthorised sale by NIB of offshore bonds.

That inquiry is being conducted by two inspectors, Mr Tom Grace, a senior partner with PWC, and retired Supreme Court judge, Mr John Blayney. Because of the demands on personnel at the Department of Enterprise, Trade and Employment, which is currently involved in investigations into seven companies, PWC staff are providing Mr Grace and Mr Justice Blayney with back up services.

Documentation released to The Irish Times on foot of a Freedom of Information request reveals the extent of the Department of Finance's concerns.

In a letter to the Department of Enterprise, Trade and Employment in June, the Department of Finance expressed concern about being "locked into an open-ended arrangement" in relation to the PWC backup. "We would expect, therefore, that your department will make every effort to minimise all discretionary costs /expenses - particularly in the matter of providing support services for the inspectors.

"While your department's existing commitments to other investigations and inquiries underway make it impossible for you to commit additional staff resources to the NIB investigation for the present, I take it that you will keep this under review as and when other involvements are scaled down or terminated."

The documentation also shows that the Attorney General's office has advised that it is likely NIB can be made pay the costs of the inquiries into its activities. The inquiries have cost £615,000 to date, the Tanaiste, Ms Harney, told the Dail earlier this month.

NIB said in November that its own investigations had at that time cost the bank £5.3 million. This included professional costs and compensation payments to customers.

PWC has also been issued with a list of approved expenses which the inspectors can grant to witnesses. While no expenses are authorised for NIB employees, account holders and former employees are authorised for travel allowances, loss of earnings and other payments. The travel allowance includes travel from abroad, economy class.

The documentation received from the department includes correspondence with stenography companies engaged to record interviews with witnesses for the various inquiries. Reassurance has been sought from the companies that everything heard by the stenographers will remain confidential.

One invoice, dated April 1998, is for an interview with Mr Ciaran Haughey. Mr Haughey, son of the former Taoiseach, Mr Charles Haughey, is a major shareholder in Celtic Helicopters. A confidential report from the authorised officer investigating Celtic Helicopters is likely to be completed early in the new year.