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Treasury Staff working on Asset Protection Scheme
14 September 2009
Text of request
- How many staff at the Treasury have worked on the details of the Asset Protection Scheme
- How many external staff are also working on the scheme
- Approximately how many man hours have been spent by Treasury and external staff on the APS
- How much has been paid in fees to advisors/investment bankers this year for the Asset Protection Scheme? Which advisors have been paid?
Text for disclosure
On 19 January 2009, as part of a comprehensive package designed to reinforce the stability of the financial system, to increase confidence and capacity to lend, and in turn to support the recovery of the economy the Government announced its intention to offer protection on those assets most affected by the economic conditions. The Asset Protection Scheme is designed to protect financial institutions against exposure to exceptional future credit losses on certain portfolios of assets. In conjunction with the steps already taken by the UK authorities and in co-ordination with their international partners, the Scheme is designed to restore confidence to financial markets, supporting financial stability and the availability of credit to creditworthy borrowers in the economy.
On the first request, the Treasury do not hold a record of the number of staff at the Treasury who have worked on the details of the Scheme. Given the nature and scale of the Scheme a number of different staff have been involved. This has been on the development of the Scheme, establishing the Asset Protection Agency and in working with the banks that have agreed in principle to participate in the Scheme. They have come from a core of around sixty staff working in the Treasury’s new Financial Stability Unit as well as other staff from across the department who have contributed on a full time, part-time or ad-hoc basis. The Financial Stability Unit consists of both permanent Treasury staff and secondees from other government departments and from private sector organisations. Given the timescale, there has also been turnover of staff.
On second request, the number of external staff working on the scheme, this information is not held. Advisors have been contracted on a range of terms, including on a fixed fee. In this case the number of staff involved is not part of the terms of the contract and is not reported to the Treasury.
Third request: The Treasury does not operate a time recording system to provide this information. Some external advisors are contracted on an hourly basis, others are on fixed fees and so figures for hours spent on the Scheme are not held.
Forth request: HM Treasury have recently published their annual accounts (PDF file). Page 199 of this gives a total figure of financial stability interventions, which the Asset Protection Scheme is part of, and gives figures for financial and legal advisers for the year 2008-2009. A total of £ 26.5 million pounds has been paid to advisors for financial and legal advice on the Asset Protection Scheme. The firms who have provided the advice are BlackRock, Citi; Credit Suisse, Ernst & Young KPMG; PWC and Slaughter and May. The Asset Protection Scheme has yet to be agreed or finalised so these figures will continue to be updated. Final figures will be published in due course. Under the terms of our agreements with financial institutions participating in the Asset Protection Scheme certain fees are recoverable and the sum does not therefore represent a net cost to the Treasury.
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