I am pleased to introduce the 2006 Revised Estimate for the Office of Public Works. The gross allocation for the OPW Vote will see a 19% increase on last year's allocation, amounting to an unprecedented allocation of €581 million for the office. This level of funding reflects once more the Government's firm support for the OPW and the implementation of the decentralisation programme. I welcome this commitment.
Perhaps I can deal first with decentralisation. This is a major undertaking for the country involving the relocation of 10,000 civil and public servants in 60 Departments and offices to as many as 53 different locations in 23 counties. It is without doubt one of the biggest infrastructural projects ever undertaken by the State.
From the OPW's viewpoint, there are two main physical aspects to the programme, namely, the identification and procurement of suitable sites and buildings, and the provision and fitting out of buildings. There is also the equally important task to be undertaken at the same time of managing the OPW's own decentralisation to Trim, Claremorris and Kanturk.
There are four principal means of providing permanent accommodation for the programme. The first, which will be used in the majority of cases, is where the accommodation facilities will be provided by the construction of new office buildings. The second procurement method involves a public private partnership approach, as recommended by the decentralisation implementation group. This will be utilised for the provision of office space at Carlow, Portlaoise, Drogheda and Mullingar. The third solution will involve leasing and fit-out of existing buildings, and the fourth method is the purchase and fit-out of existing buildings.
Cost estimation must take account of the different methods being used. Emerging costs based on actual locations are within the range of estimates provided previously by myself and the OPW. Building costs are estimated against 2004 prices for the provision of standard office facilities on greenfield sites.
The programme of site and building identification and acquisition is progressing satisfactorily. To date, property acquisition negotiations have been completed or significantly advanced in 23 locations and 2006 will see the programme move into top gear, with a regular flow of site acquisitions in the coming months. This represents significant progress given the complicated process involved. By the end of this year, it is expected that permanent buildings will be available for occupation in four locations. These buildings, together with temporary space which is being sourced in a number of locations for advance decentralisation groups, will provide accommodation for 1,000 civil servants by the end of 2006.
It is estimated that approximately 210,000 sq. m. of office space will be required to accommodate the total numbers included in the programme. The cost of providing accommodation in provincial compared with central Dublin locations should yield considerable cost savings to the State over time in terms of site costs, capital build costs and maintenance costs.
The overall site and building acquisition cost for the entire decentralisation programme is expected to be in the region of €75 million to €100 million. An allocation of €75 million has been provided in the purchase of sites and buildings subhead D this year. The allocation within the new works subhead E for building construction and fit-out costs is €30 million in 2006. It is not expected that there will be any payments this year for the PPP sourced buildings. The allocation of €105 million, and a carried forward saving of €9.8 million from 2005, gives an OPW 2006 decentralisation budget of €114.8 million. As this is a multiannual programme, with work progress in the short term dependent on various factors, expenditure in any given year may vary from the allocation, while remaining within the overall Estimate.
In this Department, the tenders for the provision of accommodation for Trim have been received and are currently being evaluated. It is one of my principal objectives as Minister of State at the Department of Finance with responsibility for the Office of Public Works to transform underutilised State property and turn it into realisable assets. The examination of the State property portfolio by the Commissioners of Public Works with a view to identifying vacant, underutilised, underdeveloped or surplus property is continuing. The rationalisation and consolidation of office accommodation in Dublin will run in tandem with the decentralisation rollout. The sale of surplus property has contributed some €315 million to the Exchequer since the outset of the programme.
As part of this process, sites at Infirmary Road, Inchicore, Harcourt Terrace and Broc House, Donnybrook, have been identified as surplus to Government requirements and have or will be transferred for use under the Sustaining Progress affordable housing initiative.
In addition to the decentralisation programme, there is a capital allocation of €147 million on Vote 10 for major new building works. This year will see the completion of state-of-the-art laboratories for the Department of Agriculture and Food and the State Laboratory at Backweston, and the relocation of the Marine Institute to Galway. Ongoing improvement and refurbishment works will continue on behalf of cultural institutions. The provision in the Revised Estimates will allow for the continuation of the Garda building programme and the regeneration of existing office accommodation for public servants not due to decentralise.
The Office of Public Works will continue to implement the most up-to-date measures required under the recent Health and Safety at Work Act for all Government office accommodation. The Government and OPW are committed to the principle that all building environments should be accessible to everyone. An allocation of €5 million has been ring-fenced specifically for the universal access programme in the new works subhead. However, this does not represent the full extent of OPW expenditure on disabled access, as all our major new construction projects, including those in the decentralisation programme, are accessible to all. All new buildings and major renovations will also incorporate the latest environmentally friendly and sustainable features, in terms of both design and ongoing maintenance costs.
The Office of Public Works currently manages over 1 million sq. m. of Government accommodation consisting of almost 2,000 buildings, of which some 41% are leased. Rented accommodation affords the office the necessary flexibility to respond to urgent requirements for Departments and is provided for under subhead F3, rents and rates. The allocation provided in the Revised Estimates for rents and rates represents a 10% increase in the annual provision. This will, for example, allow for the signing of leases for much-needed driver testing centres and social welfare offices throughout the country. This will allow for the consideration of options for this landmark property.
The management of national monuments and historic properties, including the provision of visitor services for the public, has been successfully merged into the day-to-day operations of the office over the past number of years. I am convinced that this has led to a more coherent approach to the protection and maintenance of our heritage of national monuments and historic properties.
National monuments and historic properties has responsibility for some 760 sites and 700 permanent staff. The heritage services will account for €41.4 million of the OPW Vote in 2006, a significant proportion of the overall Revised Estimate.
The allocation provided will allow the office to make considerable progress on the implementation of the flood relief programme. Works on the Kilkenny scheme are completed and the ongoing flood alleviation measures on the Tolka are proving to be very successful. In 2006, the emphasis will move to other major flood relief projects such as the Mallow and Clonmel schemes. Additional funds have been made available on the engineering group of subheads to facilitate the studies required for the implementation of the policy on flood risk management. Effective implementation of the proposed approach requires the development of adequate information databases, understanding and expertise in the areas of river engineering and hydrology that can only be secured with the most up-to-date gauging equipment.
The care of the State property portfolio and the sourcing of accommodation requirements for the decentralisation programme are being properly and prudently managed. I compliment the staff of the OPW for meeting the many challenges presented and am confident they will continue to provide an efficient and effective service across the wide variety of functions. I will be glad to respond to any questions members may wish to raise.
