DECENTRALISATION:THE OFFICE of Public Works (OPW) spent €99 million in 2006 – near the peak of the property boom – on the purchase of sites for "decentralised" offices, many of which may never be built as the programme is now under review.
After the decentralisation programme was first announced in 2003, figures for site acquisition soared from €1 million in 2004 to €31 million in 2005 and €99 million in 2006, before falling back to €38 million in 2007, €39 million in 2008 and €10 million last year.
“The case for prioritising further investment in decentralisation accommodation must be considered in the context of constrained resource availability and the need to develop infrastructure which can support economic recovery,” according to the Department of Finance.
As its capital investment priorities paper concedes, “there should be little further expenditure on site acquisition over the medium term” (other than for new Garda stations) given the oversupply of office space and likely reductions in public service numbers.
“Proposals for office accommodation will be subject to the existing value-for-money test used by the OPW, which looks at leasing as an alternative to new builds”, it says.
In any case, further decentralisation is to be reviewed by Government in 2011. Accordingly, the capital allocation for purchasing sites will fall from €5 million in the current year to an anticipated €4 million a year between 2011 and 2016. It is clear though that many of the sites bought so far are now unlikely to be developed.
To date, decentralisation has resulted in the relocation of 3,100 staff to “various locations nationwide”.
With the exception of plans to provide accommodation for the Department of Agriculture in Portlaoise, “the current programme is nearly complete”, it says.
A total of €480 million is to be invested in flood relief between now and 2016.
“Recent events in the south and west have underscored the need for urgent action in this area. This investment will aim to guard against the negative social and economic impacts of flooding.”
Certain Department of Social Protection buildings “will also require works to ensure delivery of payments services to claimants”.