Costs of OXERA consultants and reports

1240/5(2046)

QUESTIONS TO BE ASKED OF THE PRESIDENT OF THE POLICY AND RESOURCES COMMITTEE ON TUESDAY, 3rd FEBRUARY 2004 BY DEPUTY P.N. TROY OF ST. BRELADE

Question 1

Would the President inform members –

( a ) of the cost of the annual retainer agreed with OXERA Consultants for all years since the retainer was

introduced, and whether additional sums over and above the retainer have been paid in any of those years?

( b ) when OXERA were first engaged by the States as consultants and what the total sum paid to them since

that date is?

Answer

1.  (a) The annual retainer was agreed in the year 2000, following a full competitive tendering process, at a rate of £307,152 per annum, or £25,564 per month, and it has not changed since that time. This retainer does not include expenses such as travel and accommodation, which have cost between £4,000 and £16,000 per annum.

T h e r e tainer is paid to OXERA in return for a wide range of economic advisory services, which include

research, attendance at meetings, computer modelling, and the preparation of advisory notes and reports. In addition, OXERA are available on a daily basis to provide advice in economic affairs.

A d d itional sums were paid to OXERA in 2001 and 2002 for the preparation of four reports. Two of

these reports were prepared in 2001 at a combined cost of £72,946, and a further two in 2002 at a combined cost of £99,000.

( b ) O X  ERA were first engaged by the States as consultants in September 2000 and the total sum paid to

the company since that date is £1,233,673. This sum can be broken down as follows –

  re t a iner fees (September 2000 - December 2003): £1,023,840   a d d itional work (4 reports in 2001 & 2002):  £171,946

expenses: £37,887.

Question 2

Would the President explain why, in giving answers on 20th January 2004, the Committee considered that the work undertaken by OXERA did not qualify under the heading third party consultants' and therefore was excluded from the original answer concerning the providers of third party reports or consultancy documents?

Answer

Yes. I would remind Deputy Troy that the question which he posed on 20th January 2004, concerned the number of  third  party  reports  or  consultancy  documents  commissioned  in  2003  by  States  Committees  and  their Departments,  costing  in  excess  of £2,000'. As  noted  in  the  answer  to  question  1(a)  above,  no  reports  or consultancy documents costing in excess of £2,000 were commissioned from OXERA in 2003. OXERA were paid a retainer during this period, as indeed they have been since September 2000, but this fee was paid on a monthly basis in return for a wide range of consultancy services.

NOTE

On a separate matter, I am now able to provide the following further information in response to Deputy Troy 's question of 20th January 2004, regarding third party report and consultancy documents –

The information that Deputy Troy requested has now been received from States departments. This information shows that a total of 104 third party reports or consultancy documents costing in excess of £2,000 were commissioned in 2003 by States Committees and their departments, at a total cost to the public sector of £1,550,364.40.

The total for each Committee's expenditure in this respect is as follows –

Economic Development - £136,610.28

Education, Sport and Culture – £147,187.35

Employment and Social Security – £35,000

Environment and Public Services – £674,397.78

Finance and Economics – £91,895

Harbours and Airport – £254,828

Health and Social Services – £34,573

Home Affairs - £10,457

Housing – £13,000

Legislation – Nil

Overseas Aid – Nil

Policy and Resources – £47,446

Postal – £104,970

Privileges and Procedures - Nil

As I have indicated, this gives a total spend of £1,550,364.40 for the 14 States committees and their departments.