Oireachtas Joint and Select Committees

Wednesday, 11 February 2015

Committee on Finance, Public Expenditure and Reform: Select Sub-Committee on Public Expenditure and Reform

Estimates for Public Services 2015
Vote 13 - Office of Public Works (Revised)

2:00 pm

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael) | Oireachtas source

I will try to be as quick as I can in answering all the questions.

Deputy McDonald is correct on the issue of flood insurance. My predecessor established a memorandum of understanding between Insurance Ireland and the Office of Public Works. The understanding was that the Office of Public Works would make available all details of flood mitigation works carried out by it. In turn, Insurance Ireland would make that information available to its member organisations. The information could then be considered by them in assessing risk. As everyone knows, the OPW does not have a role in regulating the insurance industry. However, the OPW is the lead body in respect of flood mitigation and it can make all the information available. That is what we are doing. Insurance Ireland representatives have come back to my officials in recent days with the first progress report on what it has done with the information it has been given. As soon as that is analysed I would be glad to come back to the committee with it. I may be broadening my remit somewhat as Minister of State with responsibility for the OPW, because we do not have a policy role, but I am a Minister of State at the Department of Finance as well. Anyway, I believe that as a country we need to have a serious discussion about flood insurance. I have looked at examples in other countries.

There does not seem to be a magic wand solution. They are doing something in the UK. We need to watch and see if that works. We could learn from that. They have started a few initiatives in France which have not worked and which have been unwound. We are unlikely to get into a detailed flooding discussion because we had one at the previous meeting, but if the State is gearing up to invest even more significant amounts of taxpayers' money in flood mitigation over the next decade, we need to have a scenario in which people can obtain flood insurance for both commercial properties and residential homes.

A dual approach is needed. The first approach, in which I have a direct role, is that the OPW gives the information to Insurance Ireland to pass on to its member organisations, which should let us see an increase in insurance coverage and good faith in return. However, if that does not work, I have an open mind on what we should do. While I do not wish to give the committee more work, I would be eager to engage on this on a cross-party basis. I will revert to the committee with the first progress report from the industry's point of view on flood insurance in the coming weeks. I would appreciate its help on that.

I do not have a role in the Moore Street issue. My role covers property taken into State care. There is then a duty on my office to maintain it. These buildings have not been taken into State care and, therefore, it is a policy matter for the Department of Arts, Heritage and the Gaeltacht.

We have had significant success on rents over recent years. A total of 1.2 million sq. ft. of office space has been surrendered, which equates to 276 leases. Department rents have fallen from €131 million in 2008 to an expected outturn this year of €87.4 million through a programme of lease renegotiations and surrenders. The OPW continues to progress the property asset management delivery plan to ensure further opportunities. We have plans to further reduce leases this year. We have a surrender target of 16 leases, 15 of which are in Dublin. This will amount to 349,717 sq. ft. This work is not finished, though we have achieved a great deal. There are also plans to move to OPW-owned properties. There will be lease surrenders, for example, by Department of Social Protection local offices. The headline target is further lease surrenders, the overwhelming majority of which will be in Dublin.

I have inherited a legal reality where the convention centre is concerned. The contracts are signed and it is a legal agreement. The decision was not mine or the Deputy's but it was taken in the context of the ancillary benefit to the State of having this facility available and attracting conferences. It is my office's role to administer that legal reality and that is what we are doing. As the Deputy acknowledged, the cost is decreasing. With regard to the Comptroller and Auditor General's comments and whether lessons have been learned, it is a matter for the National Development Finance Agency, but I will revert to the Deputy on that as well because serious issues have been raised.

With regard to the issue of Government public services, the increased requirement in 2015 is for additional printing costs of approximately €65,000 relating to the publication in Iris Oifigiúilby the Department of Justice and Equality of the details of approximately 66,000 non-nationals to whom citizenship was granted in 2010 and 2013. I am a great believer in e-government, but that is why the subhead has increased.

With regard to unallocated space, this relates to vacant buildings, including Garda stations, which I discussed with Deputy Fleming this morning. There has been a decrease in the number of vacant buildings. A number of Garda stations were closed through both disposals and arrangements with the community. That is what the figure refers to.

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