Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I thank Deputy Connolly for raising this question. The Office of Public Works, OPW, has a significant and diverse office accommodation portfolio distributed throughout the country, comprising 890,488 sq. m at the end of 2021 and including a range of differing types of office provision, from heritage buildings to brand new grade A office accommodation.

The issue, which Deputy Connolly has raised with me before, of whether to buy, build or lease properties is a complex one and is subject to various factors, including the availability of capital funding, the availability of suitable buildings or sites, the prevailing market conditions at the time, the urgency and scale attached to the accommodation request, and the duration of the requirement. Due to the range of accommodation requirements across Government, there are a variety of solutions depending on the circumstances, and it is important to keep a dynamic portfolio available to the Government. The OPW’s preference is that functions of infrastructural importance or those viewed as a long-term commitment should, where possible, be accommodated in State-owned properties. This would include headquarters for central Government Departments, State security services etc.

The overall conclusion that can be drawn from the recently published spending review paper is that when the State is acquiring significant property for office accommodation, the new build or purchase options should be considered on a case-by-case basis in accordance with the parameters of the public spending code, particularly if there is a long-term requirement, subject always to the prevailing market conditions and available funding.

To meet its strategic objectives of modernising the estate and making it more efficient, the Office of Public Works constantly looks to appraise the potential of the existing owned accommodation portfolio for future redevelopment of sites, refurbishment opportunities and potential asset recycling prospects. This is done in parallel and in conjunction with ongoing appraisal, monitoring and managing of opportunities which arise from within the leasehold estate. The extensive research undertaken for the review provides the Office of Public Works with an important evidence base on which to ground decisions on the overall development of the portfolio into the future.

Under the National Development Plan 2021-2030, the OPW has been successful in securing funding for a broad range of projects, which include a number of office developments that will further enhance the balance of leased and owned accommodation. One of the major capital projects that is being funded within the project through Ireland’s national recovery and resilience plan is a deep retrofit of Tom Johnson House in Dublin 4, which will reduce the buildings primary energy use by 75%.

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This will become the new headquarters of the Department of the Environment, Climate and Communications. The OPW will continue to appraise development and redevelopment opportunities on existing State-owned sites with a view to seeking additional funding for investments that will meet the operational needs of client Departments and agencies in modern energy-efficient buildings.

In addition to this, the OPW has an ongoing programme of fabric upgrades and energy efficiency retrofit projects in central government buildings to enhance the overall condition and performance of our buildings. This will ensure the enhanced performance of existing buildings and avoid the need to replace these buildings through the commercial office market.

The blended working policy framework for Civil Service organisations was published in March 2022, and Departments and agencies are currently in the process of finalising their departmental blended working policies. Inevitably, the decisions currently being formulated across each Department and agency on patterns of attendance in the office will have a direct impact on how the physical office space will be utilised into the future. The chairman of the OPW has recently written to all Secretaries General across government asking them to consider the use of their existing accommodation in the context of long-term blended working. Departments are being asked to account for the full optimisation of existing accommodation in the context of their blended working policies.

The spending review paper published by the OPW provides an evidence base for long-term decision-making on the future direction of the office accommodation portfolio. Every requirement will continue to be assessed on a case-by-case basis in the context of the urgency and scale attached to the accommodation request, the overarching OPW estate strategy, the duration of the requirement, and the availability of capital funding.

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