Use of consultants: A drop in the Government's consultancy bill for 2007 of €37.3 million, or 56 per cent less than 2006, was mostly due to a new definition of consultancy services rather than a drop in spending, according to a spokeswoman for the Department of Finance. The two departments affected by the change were the Department of Agriculture and Food, and the Revenue Commissioners.
"It arises from the amended draft guidelines on engaging consultants which provide that software development costs and the costs of external providers are no longer to be classified as consultancy costs," the spokeswoman said.
Such costs are now included under the office machinery and related services subhead. The consultancy services estimate for the Department of Agriculture and Food is €120,000, down from €7.13 million in 2006. However, the office machinery current expenditure subhead is up, to €16.5 million, from €9.56 million.
With Revenue, the consultancy figure dropped to €550,000, from €26 million in 2006. However, the office machinery current expenditure subhead has jumped to €51 million, from €20.4 million in 2006.
A spokesman for the Revenue said expenditure on IT consultancy was mainly on the engagement of computer experts to develop and provide support for critical projects such as the integrated taxation services and the Revenue's online service.
Last week, a Dáil Public Accounts Committee was told that one firm had received €17.36 million of the money spent by Revenue on its IT projects. The Department of Agriculture was also involved in IT work due to the changeover to the EU's single payment scheme for farmers.
