Anger over DAA pitching fee

The Institute of Advertising Practitioners in Ireland (IAPI) has complained to the Dublin Airport Authority about a €400 administration…

The Institute of Advertising Practitioners in Ireland (IAPI) has complained to the Dublin Airport Authority about a €400 administration fee charged to agencies shortlisted to pitch for its advertising contract.

The five shortlisted agencies - Chemistry, Publicis QMP, McConnells, AFA O'Meara and Leo Burnett - were recently asked to pay €400 for pitching to DAA's management. This has angered the agencies, who usually do not pay a fee when pitching for contracts.

Sean McCrave, IAPI's chief executive, said his members were "firmly against" having to pay a fee. "We don't accept that agencies should have to pay to pitch. It's a matter of principle and we've expressed our views to the Dublin Airport Authority."

A spokesman for the DAA said the fee was charged by AirportSmart, an external group hired to manage the procurement process.

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He said agencies were informed at the original tendering stage that those shortlisted would have to pay a fee of up to €1,000.

"This money is not being paid to DAA, it is being kept by the procurement vehicle," he said.

AirportSmart is owned by Aéroports de Paris, BAA and Copenhagen Airport. It handles procurement for many leading airports.

A senior executive at one of the agencies shortlisted, who asked not to be named, expressed his anger at the move. "We spend thousands of euro putting our pitches together and there's no way we should have to pay a fee to pitch our ideas," he said.

Ciarán Hancock

Ciarán Hancock

Ciarán Hancock is Business Editor of The Irish Times