Tom Parlon (Laois-Offaly, Progressive Democrats)

Contracts for sale have been received in a further 11 locations including Carlow, Donegal, Dungarvan, Killarney, Knock, Portarlington, Portlaoise, Thurles, Tipperary, Carrick-on-Shannon and Thomastown. Other locations at which site acquisition is at an advanced stage are Cavan and Trim.

The total purchase cost for the 18 non-OPW owned sites, together with the building in Tullamore, is estimated to reach €35.7 million. Of this amount approximately €13 million is in respect of sites acquired from local authorities and State agencies. The overall site acquisition cost of the entire decentralisation programme is expected to be in the region of €75 million to €100 million, excluding VAT.

The average cost per acre to date is about €430,000. The cost per acre ranges from €65,000 in a rural location to €3.8 million for a prime development site in a town centre location. The prices paid to date for sites are considered by the OPW to be in line with market prices. The OPW's decisions to acquire sites are based, inter alia, on professional valuation advice, which reflects the prevailing market conditions in the locations concerned. Factors which influence market conditions for sites in a particular location include zoning, accessibility, proximity to amenities, and the general supply of, and demand for developments sites. By end 2006, it is expected that permanent buildings will be available for occupation in four locations. These buildings, together with temporary space, which is being sourced in a number of locations for advance decentralisation groups, will provide accommodation for upwards of 1,000 civil servants by the end of 2006.

The OPW is continuing negotiations to secure sites and property solutions for the balance of locations involved in the programme and significant progress in this regard will be achieved over the coming months. In summary, I want to reiterate that the site acquisition programme is proceeding at a pace which will facilitate delivery of the decentralised office accommodation within the indicative timescales set out in the decentralisation implementation group's June 2005 report.

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