Tom Parlon (Laois-Offaly, Progressive Democrats)

I thank Senator Finucane for raising this issue and hope my response will not be bland. While waiting outside the Chamber for Senators to arrive, I touched it up a little to ensure it did not appear bland. I am pleased to inform the House of the progress being made in the decentralisation programme about which the news is positive, particularly with regard to the 50 Revenue posts to Newcastle West.

In budget 2004 the Minister for Finance announced a decentralisation programme for 10,300 public servants to more than 50 locations nationwide. The programme which, as the Government has emphasised throughout, is voluntary, has received a tremendous response. To date, more than 10,000 civil servants have applied to decentralise and new applications continue to come forward. More than 2,400 staff have been assigned to decentralising posts and some 700 of these are already in place in 15 locations. The remainder are being trained in advance of decentralisation to new locations and at the end of 2007 it is anticipated that approximately 2,000 staff will have transferred to 33 decentralisation locations. The property programme is well advanced and the schedule of accommodation allows for the planned movement of up to 6,800 staff in the next three years in line with the timeframes set out in the June 2005 report of the decentralisation implementation group, DIG.

Included in the Government decision was a requirement for Revenue to decentralise 50 staff to Newcastle West, together with two similar sized moves in the mid-west to Listowel and Kilrush. Following consultation with the management advisory committee and Revenue's partnership committee, the board of the Revenue Commissioners decided that all debt management functions in Dublin would be decentralised, with the exception of a small number of staff who would be retained on insolvency work to the greater mid-west region, including Newcastle West.

In considering a property solution the Office of Public Works examined a range of options. After detailed evaluations a number of proposals were short-listed and the Limerick County Council site at Bishop Street, Newcastle West, was chosen as being the most suitable for Revenue's requirements. I understand that having examined available options a decision was taken by my office, the Office of Public Works, to procure the new accommodation in Newcastle West on the basis of a design-build solution. My office has identified a preferred tenderer and a planning application for the new offices was lodged with Limerick County Council in October 2006. The council requested further information in December 2006 covering such matters as site boundaries, front elevation and sewers. It also requested a comprehensive historical study and other information relating to certain buildings on the site at the time of purchase.

In the interests of moving forward the project my office assisted the preferred tenderer in providing the additional information which, contrary to the Senator's statement, has been submitted to the council. A decision on the planning application is due by the end of March 2007, although this will be open for appeal to An Bord Pleanála in the normal course.

On receipt of a satisfactory planning permission, my office and the preferred tenderer will endeavour to move quickly to a position where the building work will commence at the earliest possible date. The tender documentation provides for a construction period of 14 months from the date of placing a contract. On completion of construction, the building will be handed over for occupation by staff of the Revenue Commissioners.

Pending the availability of accommodation in Newcastle West, it was decided that the operation to be relocated to the town would be established on a temporary basis in Limerick. The decision to proceed with a temporary solution in Limerick was taken on the basis that this would be the optimum approach to ensuring the Newcastle West team and replacement staff in the debt management division in Limerick could be provided with appropriate training, while minimising disruption to the ongoing business of the division. The decision also had regard to the fact that the majority of staff who had elected to transfer to Newcastle West were currently serving in Limerick and, therefore, could be brought together in that location without significant disturbance. This approach was approved by the decentralisation implementation group and my Department.

I am assured by the Revenue Commissioners that as soon as the new accommodation becomes available in Newcastle West, Revenue will be in a position to commence operations in the office with immediate effect. Forty-seven officers, equating to slightly more than 43 full-time equivalents, of the 50 officers due to decentralise to Newcastle West are working in this temporary accommodation. Intensive training is being given to staff with a view to having a well trained, fully operational team moving to the Newcastle West location. Revenue does not anticipate any difficulty in fully staffing the office.

The current temporary accommodation is leased to the Commissioners of Public Works under a short-term agreement. If a further temporary accommodation were to be considered, the OPW would first have to identify what suitable building might be available. This would involve a formal approach in accordance with public tender requirements. In the event of suitable accommodation being found, the OPW would have to take on another short-term lease, thereby duplicating costs. The fitting out of the accommodation would also require considerable time and involve significant cost duplication, particularly as regards information technology requirements. This entire process would take many months at best.

Given the indicative timeframe of early 2008 for provision of permanent accommodation and for logistical and business risk reasons, Revenue considers it completely impractical to move staff at this stage to temporary accommodation in Newcastle West. In particular, Revenue would be concerned that such an approach would carry with it unnecessary risks of a negative impact on core elements of its work programme encompassed by the proposed Newcastle West operations. This work involves maximising timely tax compliance and ensuring timely and accurate processing of pay, tax and PRSI details for more than 2.2 million employees whose details are being returned by employers.

Revenue's decentralisation plans for all its locations have been the subject of formal discussion and agreement with the decentralisation central policy unit of the Department of Finance, the Office of Public Works and the decentralisation implementation group, most recently in January 2007 when the Revenue Chairman met the DIG. Preparations have been made in accordance with these plans.

Revenue has been successful in decentralising functions which are critical not only for the organisation but also for the Exchequer. It has succeeded by carefully balancing business risk with decentralisation progress. In this context, the Revenue Commissioners and my office remain firmly focused on having the permanent accommodation completed and the staff moved to Newcastle West in the earliest possible timeframe.