Peadar Tóibín (Meath West, Aontú)
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349. To ask the Minister for Public Expenditure and Reform the amount by which the Department of Health has overpaid rent for its premises on Baggot Street; the estimated projected cost of the miscalculation of square footage over the course of the next decade; if attempts have been made to recoup the overpayments; if those attempts have been successful; the costs associated with those attempts; and if he will make a statement on the matter. [12335/23]

Patrick O'Donovan (Limerick County, Fine Gael)
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The rent being paid by the Commissioners of Public Works (OPW) in respect of the offices at Block 1, Miesian Plaza is in accordance with the terms of the lease.

The terms agreed for the lease were negotiated on the basis of net internal area (NIA - SCSI Measuring Practice Guidance Notes) which is the norm in Dublin City rental negotiations. However a new measurement standard, International Property Measurement Standard (IPMS3), was introduced in February 2016 when the lease terms were already substantially agreed. The OPW has acknowledged that the annual rent should have been recalibrated as a result of the new measurement. However, this did not happen and the larger IPMS3 measurement was used as the basis for the calculation of rent. The impact of this was €279,827 plus VAT per annum. When the issue was identified the OPW engaged with the Landlord to mitigate the effect of this issue in a manner that would be acceptable to both parties.

As a result of lengthy, complex and intensive engagement, at a very senior level, between the OPW and the Landlord, the parties have agreed to extend the lease on Miesian Plaza by a period of 9 months at a nominal rent of €10 per annum, which is effectively rent free. A Deed of Variation has now been finalised to give effect to this agreement. The OPW incurred costs of €4,500 ex VAT in respect of financial analysis of the agreement reached.

The OPW considers the agreement reached to be the best possible outcome achievable for the taxpayer in all the circumstances.