Kevin Moran (Longford-Westmeath, Independent)

I thank the Cathaoirleach and members of the committee for the opportunity to present the Office of Public Works, OPW, Supplementary Estimates for 2025. The OPW seeks an additional allocation of just over €9 million in current expenditure and just over €29 million in capital expenditure, bringing the total gross estimate of this year to €752.3 million, an increase of €38.3 million.

Increases in appropriations-in-aid of €3.7 million resulted in the total net Estimate of just under €726 million, an increase of €34.6 million when compared with the Revised Estimates Volume of €691.4 million. The Supplementary Estimate is necessary to provide for a number of additional expenditure requirements, including an increase in operational costs related to the delivery of the OPW capital and maintenance works programme and increased IT licensing and security requirements. An additional capital allocation addresses priorities where the OPW is mandated to deliver, such as flood relief schemes, as well as providing for a strategic property acquisition.

The principal areas driving the capital supplementary requirements of just over €29 million include the increase in the construction of flood relief schemes to protect homes and businesses, such as in Crossmolina, where a derogation received from Inland Fisheries Ireland has permitted the OPW to continue construction during the month of October. Progress on other schemes at construction has also benefited from the long dry spells, and increases in funding are required across these projects to continue the current schedule. The addition of funding of €5 million will bring the total capital spend on flood relief management to over €100 million, the most we have spent in any one year. The strategic acquisition of an office building in Dublin will provide long-term expenditure savings on leasing costs. The acquisition has a payback of less than eight years and is an exemplar of how the OPW's optimisation of the estate can provide significant value for money opportunities, at €24.3 million in this case. The final area is upgrade works to State buildings to facilitate the required conferencing facilities for Ireland's EU Presidency in 2026, at €4.1 million.

The year 2025 has seen the commencement of the construction of an office building at the Limerick Opera site to provide modern, energy-efficient and appropriate Civil Service accommodation in Limerick City. In addition to this capital investment in respect of the Limerick Opera project, the OPW has also acquired the historic estate lands at Castletown House in Celbridge on behalf of the State. This strategic purchase completes the reunification of the remaining historic demesne lands in Castletown in the ownership of the State. I look forward to working with Kildare County Council and other stakeholders on a master plan for the further development of Castletown and Donaghcumper.

Given the scale of the commitments involved in these capital investments, it has not been possible to remain within the existing 2025 allocation without impacting on the delivery of other critical programmes and projects. Despite the additional cost in 2025, the OPW has actively managed its resources throughout the year and absorbed over 50% of this additional cost in 2025, within its existing allocation, resulting in a capital supplementary request of just over €29 million. The principal areas requiring this current supplementary requirement of €9 million include the recruitment of professional and technical staff necessary to strengthen the OPW's in-house delivery and capacity to ensure the timely, cost-efficient delivery of the OPW capital and maintenance works programme. Increasing demand in the delivery of projects for both the OPW and other Government Departments requires these additional staff, at a cost of €3.1 million. Recruitment of additional operational staff, in addition to the longer operational staff contracts to facilitate the increased visitor demand at heritage sites, is required at a cost of €1.5 million. This increase has been offset, however, by a forecast increase in heritage sales and admissions of €1.7 million over the 2025 allocation.

There are increased costs related to the delivery of the maintenance works programme. The OPW manages over 2,500 buildings, such as Garda stations, courthouses, central government offices and facilities for front-line public services. Along with continued construction inflation, there has been a continued increase in the number of maintenance callouts, in addition to the highly complex technical properties that have been added to the portfolio, such as Tom Johnson House and Leeson Lane, among others, which all require maintenance at a cost of €2.1 million.

There has been an increase in IT costs related to necessary software licences and IT security requirements of €700,000, and increased service charges on leases and utility costs of €800,000. There are also non-pay costs such as the maintenance of conference venues and the purchase of necessary IT equipment in preparation for the EU Presidency of €1.5 million.

Similar to our capital expenditure, the OPW has actively managed its current expenditure resources throughout the year, seeking to contain costs and identify efficiencies where possible, and savings have been made. However, the scale and nature of the current expenditure pressures, particularly those pressures outside the control of the OPW, means additional costs cannot be fully absorbed within existing allocations. The additional current expenditure assists in the delivery focus of the OPW and has enabled us to continue to deliver on key projects.

The Supplementary Estimate also reflects the increase in appropriations-in-aid receipts of €3.7 million, arising primarily from the higher-than-anticipated receipts under a number of headings. These include an increase in income from events and conferences, strong visitor receipts at heritage sites and the disposal of State assets. These additional receipts reflect the OPW's active management of its income stream and contributes to offsetting part of the additional gross expenditure requirement. This adjustment ensures the Supplementary Estimate more accurately reflects the project outturn in 2025 and supports the overall management of the OPW Vote and available resources. I look forward to engaging with the committee.