I thank the Chairman and members for agreeing to meet this evening to consider the Supplementary Estimate for the Office of Public Works.
Before dealing with the Supplementary Estimate, I would like to make some brief comments on the latest developments in the Office of Public Works. Members are doubtless aware that I have been anxious to develop the full range of business disciplines within the Office of Public Works to the highest possible standards. I have engendered a commercial ethos and encouraged the office to ensure that the full range of Office of Public Works services are delivered in a cohesive manner.
It is important to recognise that we all operate in a very competitive environment and the State itself is not immune to this. Recent changes in commercial practices are driven by the need to ensure standards continue to rise, while remaining competitive and getting best value for money. One way of ensuring and demonstrating this is through ISO accreditation which has been achieved in the Office of Public Works project management division, architectural division and the hydrometric services section. ISO accreditation provides an independent assurance that the services provided by the Office of Public Works conform to an agreed high standard. These achievements are the first of any Civil Service Department in Europe and great credit is due to the chairman and staff involved.
The Office of Public Works has undertaken a very successful Garda accommodation building programme. In the past two years, almost £20 million has been spent by the Office of Public Works in the provision of new Garda accommodation and in carrying out major extension and refurbishment work to existing Garda stations. The design and construction of these new works is of the highest quality, offering Garda personnel excellent working conditions and facilities. Many of the new stations benefit from the provision of CCTV which contributes greatly to security.
Some of the major schemes completed include new residential and education blocks at Templemore College; expenditure of £4 million on new forensic and storage facilities at the Talbot premises, Santry; and new stations either completed or in progress in counties Limerick, Dublin, Meath, Kilkenny, Offaly, Waterford, Cork, Wicklow, Kerry, Clare and Galway.
The social welfare local offices programme has been equally successful in providing modern up-to-date office facilities for the public and staff of the Department of Social, Community and Family Affairs in accordance with the principles of quality customer service. Works in excess of £7.5 million will be carried out this year with expenditure of £25 million estimated in 2002.
The success of the recent Farmleigh project which, incidentally, has attracted more than 25,000 visitors to date, amplifies the point that a cohesive and integrated approach from all the disciplines within the office has the ability to deliver great success. I am happy that through a process of consultation and discussion with all concerned, including special interest bodies such as An Taisce and The Georgian Society, an important building has been recreated, a legacy for generations to come.
The Office of Public Works also has a very successful cultural institutions capital programme. This includes projects carried out to improve the public facilities in buildings under the control of the National Museum such as Turlough Park House in County Mayo and Collins Barracks in Dublin, in addition to an extensive refurbishment programme at the National Library. Owning an historic building is a privilege which carries with it certain responsibilities, the most significant of which is to pass on these buildings intact to future generations. It could be said that we do not own buildings, they own us. We are transient visitors while they are permanent fixtures in the urban scene.
Another significant aspect of the work of the Office of Public Works is the flood relief programme. I am only too well aware of the devastating impact which recurring flooding has had on many parts of the country. I strongly support the implementation of a national priority programme of drainage schemes to alleviate localised flooding problems. Schemes already completed, at works stage or at advanced stages of preparation represent a total capital investment of £100 million. To date, seven flood relief schemes have been completed throughout the country at Mulkear river, County Tipperary, Nanny river, County Meath, Sixmilebridge, County Clare, Ardrahan, County Galway, Gort, County Galway, Maam Valley, County Galway and Mulkear river, Cappamore, Limerick. In addition, four flood relief schemes are currently at construction stage at the following locations: the Bandon at Dunmanway, the Suir at Carrick-on-Suir, the Nore at Kilkenny and at Hazelhatch, County Kildare. A further five relief schemes are at design or feasibility stage on the Suir at Clonmel, which will be launched at a public exhibition next week, the Barrow at Carlow, John's river in Waterford, the Fergus in Ennis and in south Galway. A new programme is being devised with additional schemes being considered for feasibility and design in Cork, Wicklow, Dublin and Wexford.
I will now deal in some detail with the Supplementary Estimate requirements on the Office of Public Works Vote. The gross excess over the original estimate for Vote 10 is £37.018 million. This will be partially offset by savings elsewhere on the Vote of £4.538 million, giving a requirement for a Supplementary Estimate of £32.480 million. I am seeking an additional £9 million for subhead D to provide for the purchase of the former Irish Press offices at 13-14 Burgh Quay at a cost of £27.15 million, plus VAT.
As I have stated previously, the constantly changing situation in relation to the provision of accommodation in an extremely volatile market has created a difficulty in estimating expenditure for property subheads. The original Estimates reflected the anticipated demand for services in these areas and were, of necessity, based on estimated requirements. We have a pressing requirement for office accommodation to house the proposed one-stop-shop for immigration and citizenship. The clients involved, the Department of Foreign Affairs, the naturalisation service of the Department of Justice, Equality and Law Reform and the Garda National Immigration Bureau have confirmed that the Burgh Quay building is ideal for their requirements because of its location and size.
The property occupies a corner site on Burgh Quay with return frontage to Corn Exchange Place and rear frontage to Poolbeg Street. It is probably the only office development in Dublin city centre with full office use on the ground floor. The accommodation is being refurbished and extended and will provide 4,533 square metres of third generation office accommodation with basement car park. The purchase price includes the refurbishment and adaptation of existing buildings to include air conditioning, two ten person passenger lifts, suspended acoustic tiled ceilings, raised access floors and fully fitted core and reception areas. Given the high rental levels demanded in the vicinity of Burgh Quay, outright purchase of the building is the most advantageous method of acquiring the property.
An additional £4 million is required for rented accommodation under subhead F3. Property and rental prices have clearly risen significantly recently in response to general economic buoyancy. Dublin has the lowest office vacancy rates in Europe at just under 2%. The Office of Public Works currently manages more than one million square metres of accommodation, of which some 23% is leased. Increases following rent reviews in Dublin are currently of the order of 100% to 120% over five years, which equates to 20% to 24% per annum. In some cases, the increase has been closer to 200%. Rented accommodation provides flexibility and the ability to respond immediately to urgent requirements for space, as in the case of the various tribunals of inquiry, expansion of Departments and so on. In 2001, extra costs were incurred for premises required by the Lindsay tribunal and new accommodation for the Department of Foreign Affairs.
I am also seeking an additional £15.894 million under subhead E. The Office of Public Works acts as an agent for almost all Departments and unexpected refurbishment costs have been incurred on new projects at Bishop's Square, Dublin for the Department of Foreign Affairs, at Capel Street for the Department of Justice, Equality and Law Reform and at Abbey Street, for the Civil Service Commission. Heavy demands from client Departments will result in additional and unforeseen expenditure of £8 million on urgent and essential minor new works not provided for in the original Estimate.
An additional £6.878 million is required for maintenance projects under subhead F1. The Office of Public Works made a significant contribution in the fight against the spread of foot and mouth disease. It was one of the first offices to react positively to minimise the threat of the disease. The office has a network of offices throughout the country and was ideally placed to be at the forefront of the State's fight to prevent its spread. One of the significant factors which acted as a preventative measure and raised public awareness of the measures necessary to prevent its spread was the provision of disinfectant mats at public buildjings. This was done swiftly and efficiently through the mobilisation of the resources of the building maintenance services. The huge scale of our efforts was evident in a public manner at the entrance to every State building and office. In addition, the office's local engineering staff were to the forefront in assisting with the removal and disposal of carcasses in the Cooley Peninsula. Their efforts contributed in no small way to the successful containment of the outbreak. I would like to take this opportunity to thank the staff concerned for their efforts.
One of the group of unsung heroes of this entire exercise is the building and maintenance staff. As can be seen from what I said, they played a very substantial and extensive role in the whole foot and mouth issue. People who were mobilised at very short notice and taken off other work gave their all in this effort, for which I thank them. That is why there was such a big expenditure in regard to the whole issue, including the removal and disposal of carcasses in the Cooley Peninsula. I do not think there was a public perception that the Office of Public Works played such a big role and I am pleased to acknowledge it here this evening.
Other items of additional and unforeseen expenditure were incurred as a result of President Clinton's visit, emergency works at Elizabeth Fort in Cork and refurbishment works at Farmleigh.
The flood event mapping project will give rise to an additional requirement of £511,000 under subhead H1. Following the very serious flooding that occurred in various parts of the country last year, I re-activated the interdepartmental committee to monitor the effects of bad weather that was set up in 1995. Arising from the committee's recommendations, I instructed the Office of Public Works to undertake a number of initiatives that will contribute to addressing the flooding problem countrywide. The principal initiative is a major flood event mapping project that will identify the location and extent of flood-prone areas.
I wish to conclude by thanking members for their attention and to commend the Supplementary Estimate to the committee. I will be very pleased to hear members' views and answer any questions which may arise.