Brian Cowen (Laois-Offaly, Fianna Fail)

When the Government's decentralisation programme was first announced, it was stated that the overall objective would be to ensure that property acquired at regional level would be matched as closely as possible, both in time and in cost terms, by the disposal of property currently held in the Dublin region, whether held on lease or otherwise. In November 2004, the decentralisation implementation group prepared a report on the procurement methodology and financial assessment of the property aspects of the programme, including a financial model, based on a property finance study carried out by the Office of Public Works. While the prevailing property market conditions in each area will have a bearing on cost, this model indicates that the break-even position in property will be reached in about 20 years.

In terms of actual outlay to date, the total amount committed in principle by the OPW on site acquisition costs, excluding VAT, is approximately €35.7 million. Expenditure to date this year is €9.9 million.

As regards non-property costs, the decentralisation programme is being implemented on a voluntary basis. There will be no redundancies and, as on previous occasions, the payment of removal or relocation expenses will not arise.

A study was commissioned by the decentralisation implementation group which provides a model for identifying non-property costs and savings that arise both during the relocation phase and in the context of a post-decentralised Civil Service. Decentralising organisations have been asked to use this model to make periodic reports identifying non-property costs incurred and savings made both since the programme was announced and in its implementation in the future.

Good progress continues to be made on this ambitious programme and I look forward to seeing the fruits of this as the programme is rolled out over the next few years.

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