Further reduction in expenditure on external consultants

Finance Minister Sammy Wilson has welcomed a further reduction of 39% on comparable spend in the use of external consultants and says this is a positive step in the right direction.
~ Monday, 6 February 2012

In February 2008 the Assembly’s Public Accounts Committee reported on the use of consultancy when it published a set of recommendations regarding the use of, and monitoring arrangements for, consultants. This fourth annual compliance report forms part of the Department of Finance and Personnel’s (DFP) response to that report.

During 2010-11, the period covered by this report Northern Ireland departments spent £15.95million, covering 772 external consultancy projects. This represents a 39% decrease on comparable spend in the previous year when expenditure by the Department of Justice and Public Prosecution Service is excluded to allow a direct comparison. The average cost of an external consultancy project fell by 19% from £26,000 in 2009-10 to £21,000 in 2010-11.

Sammy Wilson said: “The reduction of 39% on comparable spend on the use of consultants from the previous year clearly demonstrates that there has been a commitment by all departments in continuing to drive down consultancy costs and evidence suggests better planning before engaging the expertise of such services.

“There is no argument that consultancy support has proved critical to the successful delivery of many projects, but it is important that public bodies properly procure, manage and continue to review all consultancy assignments.

“We must not become complacent and my officials, working alongside other departmental colleagues, will continue to critically examine all possible options to reduce this spend even further.

“The evidence in this latest report shows that there is still work to be done and has highlighted that a number of weaknesses still exist within departments including the provision of robust and detailed business cases, approvals for single tender action under the procurement processes and post project evaluations – these are issues that will continue to be addressed.”

Concluding the Minister said: “Overall the outcome for 2010-11 demonstrates a further reduction in the expenditure and whilst this is a positive step, the Executive agreed, in the course of the budget process, that further reductions on spend on the use of consultants must continue to be achieved across the budget period.”

Notes to editors:

1. Full details of this report can be accessed via the consulation zone on the DFP website.
2. The period covered by this report 2010-11 was the first year following the devolution of policing and justice powers to the Northern Ireland Assembly and it therefore includes external consultancy expenditure by the Department of Justice (DOJ) and the Public Prosecution Service (PPS) for Northern Ireland which was not included in previous reports.
3. Media enquiries only to DFP Communications Office on 028 9016 3389. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.