Consultants used in National Irish Bank inquiry being paid over £1,000 a day

Some private sector personnel engaged in the Government inquiry into National Irish Bank are being paid more than £1,000 a day.

The Irish Times has learned that a Civil Service pay schedule for consultancy services allowing for daily payments of up to £1,000 was found to be unrealistic when outside assistance was being recruited for the official inquiry into NIB. Sources say new higher rates had to be agreed, though their size is not known.

Such is the cost of enlisting support from outside the Civil Service for the NIB inquiries that the Department of Finance has expressed concern about "being locked into an open-ended arrangement which imposes significant up-front costs to the Exchequer", according to documents seen by The Irish Times.

However, the Attorney General's office has advised that it is likely NIB can be made to pay the costs of the inquiries. The office has expressed "encouraging views" on the "prospects for eventual full recovery of these costs", according to a letter from the Department of Finance. Earlier this month the Tanaiste, Ms Harney, told the Dail the NIB inquiries have cost £615,000 to date.

Two inspectors, Mr Tom Grace and retired Supreme Court judge Mr Justice John Blayney, are investigating allegations of overcharging by NIB and the sale of unauthorised offshore bonds by NIB Financial Services Ltd.

The inquiries are being hampered by an appeal to the Supreme Court taken by NIB staff members who are concerned about their right to silence. A reserved judgment is expected next month.

Mr Grace is a senior partner with PricewaterhouseCoopers. Staff from the firm are providing back-up services to the investigation because of pressure on experienced personnel at the Department of Enterprise, Trade and Employment, which is engaged in inquiries into seven companies.

These include two Dunnes Stores companies, Celtic Helicopters and four companies linked to the Ansbacher deposits. The Department is also inquiring into allegations of improper sales practices at Irish Life.

Copies of documentation linked to the cost of the inspectors' inquiries were released following a re quest under the Freedom of Information Act. However, listings of the amount of work carried out by PricewaterhouseCoopers staff and invoices from the company were refused on the grounds they contained commercial information.

The Department of Finance, in a letter to the Department of Enterprise, Trade and Employment in June, expressed concern about being "locked into an open-ended arrangement" in relation to the PricewaterhouseCoopers back-up.