Bernard Durkan (Kildare North, Fine Gael)
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Question 134: To ask the Minister for Finance the progress to date in the decentralisation programme; the extent to which original targets have been met or are likely to be met; the costs involved; and if he will make a statement on the matter. [7910/06]

Brian Cowen (Laois-Offaly, Fianna Fail)
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I am satisfied that good progress continues to be made on this ambitious programme. I am particularly pleased with the continuing popularity of the programme among public servants. There are about 10,600 applications on the central applications facility to date and new applications are being received each week.

I refer the Deputy to the decentralisation implementation group's July 2005 report which identified progress in relation to property, implementation planning, numbers of applicants and human resources and industrial relations issues. In line with the group's approach to phasing, the report provided indicative construction start and completion dates for the procurement of office accommodation in the new locations. The full contents of this report can be accessed at www.decentralisation.gov.ie. The final construction dates can only be confirmed when the tender process has been completed in respect of each location and are contingent on the level and quality of market interest in respect of sites, successful negotiation of contracts, receipt of acceptable planning permissions, timely completion of briefs, etc. I understand that the OPW is updating the position on the property aspects of the programme in light of experience to date.

Discussions have progressed with the Civil Service general service unions on a number of human resource and industrial relations issues. Actual movement of staff within and between Departments and offices is now under way, with approximately 1,150 staff assigned to posts which will decentralise. Discussions are continuing with the professional and technical staff representative in respect of arrangements for staff in those grades.

The decentralisation implementation group took the view that it would not seek to dictate every step in the process to the management of the State agencies. Although the group proposed a group of State agencies for early mover status, it did not include specific timeframes in recognition of this approach and also of the fact that it is the responsibility of the board and senior management of each agency to implement Government policy. The group stated in its report that each agency included in the programme should have a successful relocation as a high level strategic objective and should prepare the next and deeper iteration of its implementation plan. In the meantime, the OPW is continuing to seek property solutions in respect of any agency that requires it.

When details of the Government's decentralisation programme were first announced in budget 2004, 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 in time and in cost terms by the disposal of property held in the Dublin region, whether held on lease or otherwise. In November 2004 the implementation group submitted 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 for property will be reached in about 20 years.

The latest information available from the OPW suggests that the total amount committed in principle to date by the OPW on site acquisition costs, excluding VAT, is approximately €36.3 million. With regard to other non-property aspects of the programme, a report was prepared by Deloitte and Touche at the request of the implementation group. This report provided a model for identifying non-property costs and savings that might arise both during the relocation phase and in the context of a post-decentralised Civil Service. Decentralising organisations have now been asked to use this model to make periodic reports identifying costs incurred and savings made since the programme was announced and going forward. I do not anticipate, however, that these costs will be significant.