Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 187: To ask the Minister for Finance the extent to which the original proposals in respect of decentralisation have been achieved to date; the costs involved; and if he will make a statement on the matter. [22296/08]

Kieran O'Donnell (Limerick East, Fine Gael)
Link to this: Individually | In context

Question 191: To ask the Minister for Finance the status on the decentralisation programme; the number of persons decentralised by Department and agency to date and from 1 January 2008 to date in 2008 in tabular form; the number of persons to be decentralised by Department and agency; the expected date of each decentralisation; and the cost involved with each decentralisation. [22311/08]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
Link to this: Individually | In context

I propose to take Questions Nos. 187 and 191 together.

A progress report by the Decentralisation Implementation Group (DIG) was submitted to me and published on 8th October last. The Group reported that implementation of the civil service element of the Decentralisation Programme is progressing satisfactorily.

Over eleven thousand civil and public servants have applied to relocate under the Programme. Of these, over 6,000 or 55% are currently based in Dublin. The Central Applications Facility (CAF) remains open and continues to receive applications.

To date, decentralising organisations have a presence in 34 towns. Approximately three thousand four hundred civil service staff have been assigned to decentralising posts and over 2,200 of these are currently in their new locations, while the remainder are being trained in advance of decentralisation to a new location, as soon as accommodation becomes available. Taking account of both posts moved and assignments approximately 50% of the civil service posts have already moved or have staff in place with a commitment to move.Property or sites have been acquired or are well advanced in a total of 38 locations.

In addition, the OPW have been very efficient in securing suitable advance or temporary accommodation in over 20 locations to facilitate the early phasing of the transfer of business units. The October DIG report, which can be accessed at http://www.decentralisation.gov.ie, provides the OPW timeframes for the expected completion of permanent accommodation at that time. The DIG are currently updating the position in relation to property with the OPW and early indications are that there are now likely to be some shifts in the completion dates for permanent accommodation caused by property selection and acquisition issues, brief and design issues, tendering periods, planning issues and contractual arrangements.

The DIG is currently examining the position in relation to progressing the relocation of the State Agencies and I expect a report on this matter later in the summer. I understand that the DIG will also provide an update on timeframes for the Programme generally at that time.

I can also confirm that the Government has recently asked the Implementation Group of Secretaries General to deal with the Governmental and cross-Departmental issues arising from Decentralisation of the Headquarters of Government Departments and the need to provide facilities for Ministers, Ministers of State and officials while in Dublin on business. A sub-group of the Implementation Group has been established to progress these issues.

The estimated gross cost of the property aspects of the original decentralisation programme was €900m at the outset of the programme (2004 prices). This was based on provision of accommodation for 10,300 staff outside of Dublin.

The overall number of staff for which accommodation is required has increased since the announcement of the programme due to additional bodies and locations being added to the programme, changes to business functions of certain organisations, additional space required for work-sharing staff, planned future expansion etc. and consolidation of certain existing regional offices into new buildings). Based on costs incurred to date, a recent update of the financial model by the OPW anticipates that the direct cost of providing accommodation is now approximately €960m in 2004 terms (NPV).

While the majority of posts have not yet moved from Dublin, the OPW has been able to dispose of property in Dublin being held for future needs because the announcement of the decentralisation programme clarified that most future expansion of Civil Service accommodation would not be in central Dublin. Total income from such property disposed of between January 2004 and December 2007 was €387.5m. In addition property valued at €75 million was transferred to the Affordable Homes Partnership. In addition OPW has agreed joint venture redevelopment schemes with a minimum value of circa €125m up to the end of 2007 and further ongoing large property disposals are planned having regard to progress with staff moves.

As expected, non-property costs have been increasing since the beginning of 2007 as more advance accommodation is in place, staff training has increased and actual moves have taken place. At end September, 2007, the other costs incurred in implementing the programme amounted to approximately €8.4m. Of this total, it is estimated that approximately €3.9m are once off costs associated with the moves e.g. office machinery, office premises expenses, consultancy, etc. In addition, property costs of €1.4m have been incurred which are not captured in the OPW expenditure, giving total additional expenditure of €9.7m.

Details of the organisations and the number of posts due to be decentralised by the various Departments and agencies are set out in appendix A, together with details of those who were decentralised at end May 2008.

Details of the specific costs incurred to date by decentralising organisations are a matter for the individual Minister and I have asked the various Departments to provide this information directly to the Deputy.