Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Jobs, Enterprise and Innovation the total cost to the State of the lease held by Forfás on a vacant property in Dublin 4 (details supplied) between 2012 and 2034 which is when the lease is due to expire; and if he will make a statement on the matter. [51773/12]

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The property in question, Carrisbrook House, was acquired by AnCO in 1969 on a 65 year full-repairing lease, commencing on 1 August 1969 and expiring on 31 July 2034. There is no provision for lease breaks and the rent is due for review every seven years. The Industrial Development Authority, IDA, acquired assignment of the lease in 1976.

Since the relocation of the IDA to Wilton Park House in 1985, the Carrisbrook House offices were leased to a number of tenants on a cost-neutral basis to the Exchequer until early 2008, when a major tenant exercised a lease break and vacated the premises. Since then, six floors in Carrisbrook House have been vacant. Forfás acquired responsibility for the lease in 1994 when the enterprise development agencies were restructured. The Israeli Embassy is currently the only occupant of the premises, on a sub-lease which expires in 2025, with lease break provisions in 2015 and 2020.

Forfás has been actively seeking to market the vacant space in Carrisbrook House since it was vacated in 2008. Due to the downturn in the property market and a surfeit of vacant office accommodation in Dublin, these efforts have proven unsuccessful to date. Secretaries General of my Department have written to the Office of Public Works and the Department of Public Expenditure and Reform, advising them of the availability of the office space. The IDA has also been asked to bring the availability of the accommodation to the attention of prospective clients.

The total cost of the vacant space in Carrisbrook House in 2012 is estimated at €1.3 million, inclusive of rent, rates and service charges. It is not possible to speculate on the total potential cost of the vacant space out to 2034, as this will be influenced by issues such as future trends in the property market, the future intentions of the existing occupant, the outcome of the seven-year rent reviews and lease break options, and the possibility that a new tenant or tenants may emerge. In the meantime, Forfás will continue to market the availability of the offices and will continue its efforts to reduce the costs accruing to the State on the property.

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context | Oireachtas source

A number of issues arise in this regard. First, we need to reduce waste. Are other sections of the public service in buildings where the lease can be broken or has almost expired and could they use the space in Carrisbrook House? Have all Departments been notified of the existence of this space? This is a considerable sum of money for a vacant property in a prime location.

What initiatives are being taken with regard to future leasing arrangements and are lessons to be learned about this kind of thing? For some time, I have been trying to compile a list of buildings across the public service that are subject to upward-only rent reviews. Some are extraordinarily expensive. I am trying to find out how many of them are vacant because I am sure viable uses could be found for some of them. For example, €800,000 is being paid for a social welfare office in Carrick-on-Shannon. That figure jumped out at me. Is there a cross-departmental initiative to see if a lease can be broken and the space in this building made use of, what lessons have been learnt and what lease arrangements will be made in the future, given the experience we have had?

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I do not think in time left I could deal with the lessons that have been learnt from the property problems we inherited. Numerous lessons have been learnt, as the Deputy knows.

The Office of Public Works, OPW, which manages all public office property, has been notified of this building on repeated occasions. The OPW has signalled that there is not a demand for the type of accommodation on offer and that it did not foresee a need for such accommodation in the foreseeable future. This reflects the decentralisation programme that took people out of Dublin and the downsizing of the public service that is reducing the pressure on property in the capital. There have been efforts to sell this building. It has been upgraded and work has been done to put it in a better position to market from this year.

I do not know how much property is vacant or whether or not we can get out of leases and vacate others that are coming up for review. Every effort is being made and we try to work closely with the Office of Public Works. Forfás has been repeatedly in touch with the OPW, even as recently as September of this year. It is a very close relationship.

Catherine Murphy (Kildare North, Independent)
Link to this: Individually | In context | Oireachtas source

I ask the Minister to ask other Departments if there are leases that are almost up so that this building could be used. It is a sizeable building. Could we not get out of a lease somewhere else? The Government promised a big cost-cutting agenda. We need to be imaginative about using this space if we cannot get out of the lease, which we do not seem to be able to do.

Richard Bruton (Dublin North Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I will follow up on the Deputy's suggestion.