I am pleased to have been given this opportunity to appear before the committee to discuss these issues. Before turning to the matters themselves and since it is my first appearance before the committee, I wish to provide some brief background information on the organisation of the projects to add to the comments of the Comptroller and Auditor General.
The PRA, Property Registration Authority, was established on 4 November 2006. It is a statutory body, the members of which are appointed by the Minister for Justice, Equality and Law Reform. They are representatives of the main users and consumers of our property registration services. The PRA replaced the Registrar of Deeds and Titles as the registering authority with regard to property registration in Ireland. As the Comptroller and Auditor General noted, the main functions are to manage and control the Land Registry, which was established in 1892, and the Registry of Deeds, which has been in existence since 1707. There is a further mandate to promote and extend the registration of titled land.
The key contributions of the PRA to the Irish economy are to provide a register of title and to guarantee security for those dealing with property. The system of registration offered by the PRA provides a comprehensive record which is clear, easily accessible, minimises risk of fraud and responds to customer needs. By international comparison, Ireland has a very extensive and well developed system of land registration. It is changing on an ongoing basis but it is estimated that 93% of the total land mass of the State and almost 88% of the legal titles in Ireland are now registered in the Land Registry. Furthermore, an extensive programme is under way to advance the registration of the remaining titles.
From 1 January this year, compulsory registration applies in 24 of the 26 counties. The PRA provides the authoritative, centralised database of property ownership and related interests in Ireland. In recent years, we have seen a significant increase in the size of our database, with almost 1.9 million individual legal titles now constituting the Land Register. As the committee may be aware, the bulk of the PRA's customers are solicitors, financial institutions, professional law searching firms, public and local authorities, land surveyors, engineers, architects and estate agents.
The appropriation accounts have been referred to for Vote 23 in the amount of €46.2 million. Some 71% of this, or €32.883 million, represented staff costs, a substantial fixed cost. Of the remaining costs, some €4.65 million was paid in respect of our capital and current ICT costs, of which expenditure on digital mapping was the primary element. Our net expenditure for 2009 was €40.2 million, which represents a 13% reduction in costs compared to 2008. The draft Estimates for 2010 reflect a net Vote for the Property Registration Authority of €37.4 million, which, in turn, represents a 7% reduction on the 2009 outturn, so there are reducing costs.
As members may be aware, the Property Registration Authority charges a fee for many of its services. That fee is determined by ministerial order. In 2008, fee income was of the order of €65.6 million while in 2009, due to a reduced level of property transactions, fee income was €40 million. There has been no increase in fees charged since 2000.
The investment in technology has been considerable. The whole thrust of the organisation over recent years has been to link the business goals of the organisation with the optimum technological solutions. Those are the strategies we have followed and I am pleased to say they have been successful. The Comptroller and Auditor General referred to our digital mapping productivity.
The technology that has been implemented over a nine year period since 2000 has resulted in a year on year increase in productivity of 120%. Of those cases where no query is raised — whether the transfer of a full piece of land where no mapping is required or no query is raised — we are in a position to process 76% of those within 15 days of lodgment. Where a mapping process is required and where no query is raised, in the digitised counties where the digitisation has been completed, 70% of those transfers are now completed within 30 days of lodgement. They are the productivity gains from all the IT advancements up to the digital mapping.
The other improvements which have come from all of that have been very much customer focused. More than 98% of our customers now access our services via the Internet. Currently, almost 15,000 professional users access our on-line services on an ongoing basis. During 2009, almost 2.5 million business transactions were conducted through the www.landirect.ie portal. Almost 100% of some applications are now made on-line. In excess of 4,000 on-line fee paying transactions per day are conducted and an even larger number of free services are provided for customers through the Internet. Some 100% of registrations are made on the electronic register.
I refer to the digital mapping project which the Comptroller and Auditor General outlined. We had some key objectives in this regard. The first was to secure the register map data. At the commencement of this project, the boundaries of the 2.5 million or so land parcels registered in the Land Registry were retained and displayed on approximately 32,000 paper map sheets, mostly A0 in size, maintained by the organisation. Customers wishing to inspect these maps had to visit the Property Registration Authority offices in person. Much of this map record was in a fragile, vulnerable state and was proving very expensive and very difficult to maintain and refresh. Digitising the map was, therefore, seen as the best way to preserve and enhance this invaluable asset, thus fulfilling a major role in the Property Registration Authority's business continuity plan. If anything happened all those paper documents, we would not have been in a position to provide the service.
The second objective was to provide faster and better service delivery. Key performance indicators that the Property Registration Authority is measured against include the time taken to process a case and the accessibility and availability of the register for inspections. Both of these areas have improved significantly with the implementation of the digital map.
The third objective was to make improved use of staff resources. The manual map update was very time consuming and inflexible and it was only possible to use a limited number of tools to increase the efficiency. The digital mapping system is fully incorporated into the existing integrated title registration systems, so it is a seamless system. That is one of its strengths. It is not stand-alone and is fully integrated into the existing system. That streamlines work processes, reduces costs and increases the operational effectiveness of the organisation.
I refer to the expected efficiency gains. The original business case for digital mapping presented to the Department of Finance set out the resource savings and the wider benefits expected to accrue from the implementation. The first was a reduction in the required number of staff engaged in the copy map process. It was estimated that there would be a 40% increase in productivity in mapping output. It was estimated that there would be annual savings of €2.8 million arising in respect of the ongoing reconstruction of paper maps which would be unnecessary in the digital environment. There would be a reduced floor space requirement for the storage of paper maps.
One of the other benefits was that there would be an increased range of services for our customers via http://www.landirect.ie/ leading to increase in on-line transactions. That http://www.landirect.ie/ is the portal through which the Property Registration Authority provides its on-line services.
Subsequent to the preparation and acceptance of the business case, the Department of Finance granted sanction for this digital mapping project in May 2004. Following a detailed procurement process, the Property Registration Authority launched its five year digital mapping project in July 2005. As the Comptroller and Auditor General stated, the initial projected cost was €28.1 million. It is expected that on completion of the project, the overall cost will be of the order of €25.69 million.
The project was undertaken in two phases. Phase I was to successfully make available key geographical locator points for the entire country in order that every piece of land in Ireland could be accessed through what we call a seedpoint which would then connect to the legal title. This phase was completed on time and within budget. Customers of www.landirect.ie could from July 2006 avail of on-line map searches for the entire country from their own offices. They no longer had to come to the Property Registration Authority offices and try to locate the paper maps. The great benefit of this was that there was availability for multi-access. It was not a matter of coming to look for a paper map which was not available because somebody else was using it.
There is ongoing implementation of phase II. Further to the successful implementation of phase I, phase II continues to be implemented on an incremental basis. It is the larger part of the project and relates to the digitisation of each registered land parcel in the State on a county by county basis. By the end of 2009, some 22 counties were fully digitised, with upwards of 2.2 million of the country's 2.5 million land parcels being completed at that point.
The impact on productivity has been considerable. There were two elements to the productivity gains to be achieved. These were the improved productivity to be achieved from the automation of the process of producing maps of individual titles — we call them copy filed plans — requested by customers and increased productivity in regard to the efficiency with which changes to the map can be carried out on foot of transfers of sites and other subdivisions, for example. While the efficiencies achieved to date are evident, it will only be possible to assess the full productivity gains as part of the post-project implementation review of digital mapping, which will be undertaken at the beginning of 2011.
To date, we can see that the levels of staff required in respect of the production of filed plans will be reduced by 80% on the full completion of the process. In preparing the business case for the project, it was estimated that there would be a 40% efficiency improvement in mapping casework. The actual productivity gains achieved in the earlier counties where digitisation has been completed illustrate gains way beyond those in the business case.
As the report of the Comptroller and Auditor General notes, productivity gains ranging from 56% to 83% in different functional areas have been achieved to date, depending on the length of time since the implementation in that county and bedding down time. The different functional areas in the Property Registration Authority process different types of cases — for example, long possession cases, transfer of part, leases, etc.
The completion of the digital mapping project in mid-2010 will represent a major milestone in the modernisation programme in the Property Registration Authority and will build on all that has been done to date. At that point, all of the Land Registry public documents and maps will be fully digitised and available on-line. The Property Registration Authority is well placed to meet the challenges and avail of the opportunities of e-registration and e-conveyancing which is Government backed.