Enda Kenny (Mayo, Fine Gael)
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Question 236: To ask the Minister for Finance the amount spent on the Government's decentralisation programme to date in 2005; the expected final cost of this programme; and if he will make a statement on the matter. [37762/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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When the Government's decentralisation programme was first announced, it was stated that the overall objective would be to ensure that property being acquired at a regional level is 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 implementation group prepared a report, which was subsequently published, 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 relation to 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 €8.1 million and overall expenditure since the start of the programme is in the region of €8.3 million. 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.

As part of the OPW's ongoing programme of transforming State assets, the amount recouped to date through land and building disposal is €128 million. In addition, the Deputy will be aware of the recent disposal of the former veterinary college in Ballsbridge, though the receipts in respect of this disposal may not be lodged in the Exchequer by the end of this financial year.

In relation to the non-property costs of the programme, the decentralisation programme is being implemented on a voluntary basis, so 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.