PR costs for NTMA and Nama fall sharply

Finance Minister Michael Noonan has confirmed that the public relations costs for the National Treasury Management Agency and Nama have fallen sharply.

Mr Noonan confirmed that the amount paid to Dublin firm Gordon MRM for PR services to the NTMA and Nama totals €89,564 for the first six months of this year.

The company received €275,179 for the 12 months of 2012 and the spend for the first six months of 2013 confirms a 35% drop in the rate of spending.

Gordon MRM secured the NTMA PR contract in 2010 and last year beat off bids from four competitors to secure its renewal. The contract is expected to run for three years.

In a written Dáil response to TD Billy Kelleher, Mr Noonan said: “The initial contract, in place to end-2012 was based on an hourly rate for services provided. During the term of this contract a 20% reduction in the hourly rate was agreed with effect from Jun 2011 until the end of the contract.

“The new contract, which commenced in Jan 2013, is based on a fixed fee and it is anticipated that this will result in a significant reduction in the overall fees paid by the NTMA.”

Gordon MRM received fees of €250,778 in 2010; €248,519 in 2011; and €275,179 in 2012.

The firm provides PR services across all of the NTMA’s business areas. Mr Noonan confirmed that PR work for Nama accounted for the largest proportion of the contract. In 2011, the work attributable to Nama accounted for €135,947, or 54%, of fees, and €175,463, or 64%, of the NTMA PR work in 2012.