Pearse Doherty (Donegal, Sinn Fein)
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91. To ask the Minister for Public Expenditure and Reform his views on the findings made by a programme (details supplied) detailing the waste of public money in the Office of Public Works; the action that has been taken since within his Department; and if he will make a statement on the matter. [20535/21]

Patrick O'Donovan (Limerick County, Fine Gael)
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The Commissioners of Public Works, or I as Minister, would not accept that the recent programme referenced by the Deputy is an accurate portrayal of the very valuable work done by the OPW. The programme referred to an internal OPW Review of property transactions that was conducted between 2014 and 2017 and which raised a number of issues - though these mainly related to historical property transactions. In the context of the scale and complexity of the OPW’s property portfolio, there will always be issues that arise from time to time. The review provided an opportunity for the OPW to strengthen its governance, since then, and further improve how it conducts its business.

The Office of Public Works (OPW) has an extensive and diverse portfolio - comprising approximately 2,500 properties valued at €3.3bn. Properties range from Leinster House, to Skellig Michael, major office buildings to very significant flood relief schemes.

The portfolio includes

- office accommodation for all Government Departments

- the property estate for An Garda Síochána

- numerous properties for many State Agencies.

It includes specialised spaces such as

- public offices

- laboratories

- cultural institutions

- warehouses

- heritage properties

- visitor centres and sites

While the programme referenced the Thornton Hall site, this property is neither owned nor managed by the Commissioners.

The challenge for the OPW is to meet a wide, and ever-changing, range of Public Service property needs. This necessitates the maintenance and constant updating of a sufficiently agile and flexible portfolio of accommodation so that the OPW can respond effectively and efficiently to the emerging priorities of Government. To achieve this, the OPW has an extensive network of technical and professional property personnel. The nature of the work of the OPW requires the input of professional, technical and administrative staff working in multi-disciplinary teams across a wide range of Estate Management Functions, including managing the design and delivery of major capital projects. The roles cover professional managers, architects, engineers, mechanical and electrical specialists, surveyors, planners, financial advisors, property economists, project managers, supplemented by other various specialists as required. Estate Management includes many of these roles among a cohort of staff who are widely experienced in managing a diverse portfolio of properties.

It is important to note that, while the OPW operates within the commercial property market, there are differences in how the State and the private sector approach the management of property portfolios. Availability of funding or other practical, legal, governance or political factors will dictate what actions the OPW can take. A unique feature of the OPW property portfolio, compared to commercially held portfolios, is that it includes an extensive range of historic properties, parks and national monuments that form part of the public realm.

The OPW must always consider the long-term strategic needs of the State when taking decisions on property – either part of a heritage estate to be enjoyed by generations, or a strategic acquisition as part of a long-term masterplan and so on.

I have discussed the contents of the programme with my officials in the OPW.Contrary to what was portrayed in the programme, I know that value for money for the taxpayer is very much at the forefront of what the OPW does.

The OPW is a public body bound by structure and processes for decision making, and accountability. The OPW is not a property investment company nor a property development company. Our mandate is to provide and maintain appropriate accommodation solutions for our clients.

The OPW places a significant emphasis on corporate governance and on ensuring that an appropriate control environment is in place.

The Governance structures include

- the Board of Commissioners, (comprised of the Chairman and the two other Commissioners of Public Works)

- a Management Board

- the Senior Management Team

- and Committees and Working groups.

Management responsibilities are clearly defined in the OPW’s Governance Framework. Processes are in place to identify business risks and to evaluate financial and non-financial implications.

All property related decisions taken by the OPW are completed in compliance with internal corporate governance structures. These structures reflect the Public Spending Code to ensure value for money principles are applied. Any suggestion in the programme that the public financial procedures as established by Government, promotes a culture where money does not matteris untrue and wholly rejected.

Over the past 4 years the OPW has embarked on a very significant journey to further strengthen its processes and resource allocation. Through the strategic recruitment of property professionals, the deployment of new IT systems and the establishment of independent groups to oversee key decisions, the OPW is very well placed to aggressively manage what is possibly the largest and most complex property portfolio in the country. As Minister, it is my intention to ensure that the advances taken to date are further built on over the coming years – all to the ultimate benefit of the taxpayer and citizen.