I am pleased to introduce the 2008 Revised Estimate for the Office of Public Works. The gross allocation for the OPW Vote will see a 7% increase on last year's allocation amounting to a total of €680.825 million.
The unsurpassed level of funding for the office, much of which is provided under the national development plan, reflects the Government's firm support for the OPW. I welcome this commitment which will allow for key infrastructural developments to progress, including in particular the ongoing provision of accommodation for the decentralisation programme.
The inclusion of the office in a seven-year plan allows for far greater certainty in planning and scheduling for the period to 2013 and a higher level of assurance of the availability of funding to deliver programmes and projects. It is, however, essential that there is sufficient flexibility to allow for the prioritisation of projects within the overall NDP funding and timetable envelopes. The introduction of the national development plan runs parallel with the welcome reform of both the annual Estimates process and the procurement and monitoring methods for major contracts.
As an integral part of the reform of the Estimates process I am pleased to provide the committee with a statement of annual outputs to be achieved from within the allocation provided in 2008 under various programmes of expenditure. The allocations have been streamlined within the statement in order to link the non-NDP current allocations to the NDP capital provision under each of the sub-programmes. I will deal with each of the sub-programmes in the statement later.
The second part of the reforms is the move to fixed price contracts for major building construction projects and to framework contracts under the new conditions of engagement for the provision of professional and technical services throughout the OPW. The new types of contract are already being used and I expect all major new non-specialist building contracts to be fixed price within the year.
I am confident that the reforms will further benefit the management and delivery of contracts by eliminating the scope for price variation and extras on major contracts in the future. This, in turn, will lead to greater certainty with regard to the planning, scheduling, timing and delivery of projects, enhanced accountability with regard to the achievement of targets and goals, up-front clarity as to costs and, ultimately, better value for money for the taxpayer. In addition, substantial progress continues to be made in the appraisal, planning, management and review of major contracts.
There is a detailed system of monitoring in place in relation to major capital projects. The OPW and its clients are obliged to take steps to ensure that value for money is obtained and that controls are in place to ensure projects are completed on time and within budget. This involves various steps including pre-project appraisal from initial concept stage, cost benefit analysis, spot checking of progress, monthly reporting of expenditure, periodic reviews and detailed reports by the OPW and its clients on completion.
With regard to the 2008 Estimate allocation for Vote 10, although the gross allocation for 2007 for the OPW Vote amounts to €680 million, this does not reflect the full range of activities of the office. As well as expenditure on Vote 10, the OPW acts as an agent, and incurs expenditure, on behalf of a range of Departments and Government agencies. Funding for this expenditure is provided to the OPW by the sponsoring Department or agency and appears as a charge on the account of the client organisation. The cost of providing these services in 2007 was over €153 million, the main areas of expenditure being major capital works, maintenance works, purchase of school sites and buildings and leasing of accommodation.
Other major areas of activity not reflected on the Vote include the agency work provided by the Government Supplies Agency in placing some €63 million worth of draw-down contracts in the procurement of printing, stationery, uniforms, advertising, energy and transport vehicles for Departments and agencies in 2007. The architectural services certified the payment of sports grants for the Department of Arts Sport and Tourism in 2007. Furthermore, the OPW's project management services provide specialist procurement and technical advice to the Government and various Departments on major projects such as Campus Stadium Ireland, the new Lansdowne Road stadium, the National Conference Centre and the redevelopment of the Mountjoy Prison site. These do not appear as expenditure items on the Vote but provide a valuable contribution to the overall process.
I now turn to the sub-programmes as set out in the annual output statement. The first programme, decentralisan, is part of the economic infrastructure priority and has a gross budget of €171 million, including support and administrative costs. Decentralisation provides the OPW with one of its greatest challenges at this time. The office needs to continue to carry out its full range of activities — including delivery of the accommodation requirements for the decentralisation programme — while at the same time planning for its own move to Trim, Claremorris and Kanturk. At this point we have advance offices functioning in both Trim and Claremorris. The construction of the Trim headquarters building is well-advanced, and we plan to move there fully during the first half of 2009.
Some €50 million has been provided on the OPW Vote in 2008 for site acquisition for the decentralisation programme. It is anticipated that the remaining property acquisition deals for the programme will be finalised or significantly advanced in 2008. Sites where legal formalities are expected to be concluded in the coming months include Youghal, Enniscorthy, Kanturk, Clifden, Fermoy and Macroom.
Advance decentralised accommodation is now in place at Portlaoise, Tipperary, Furbo, Thurles, Clonakilty, Sligo, Portarlington, Clifden, Roscommon, Newcastle West, Tubbercurry, Thomastown, Killarney, Cavan, Limerick, Carlow, Athy, Claremorris, Roscrea, Wexford, Trim, Dundalk and Tipperary town. While staffing numbers vary from town to town, there is a significant presence in each of these locations. The construction and fit-out of the accommodation programme is proceeding in line with priorities set out by the decentralisation implementation group and is provided for under subhead E, with a budget of €110 million for 2008. New buildings opened in 2007 at the Department of Social and Family Affairs in Sligo which will accommodate 166 staff, and at the Irish Prison Service in Longford where up to 118 staff can be accommodated.
I am pleased to say that 2008 will see a major acceleration of this aspect of the programme. Contracts have been placed and construction is underway on seven new facilities in 2008 at Trim, Athlone, Newcastle West, Buncrana, Clonakilty, Killarney, and Wexford. Projects will also be advanced during the year at Newbridge, Roscommon Town, Youghal, The Curragh, Tipperary, Dungarvan, Claremorris, Enniscorthy, Portlaoise, Mullingar and Carlow.
Part of the economic infrastructure priority of the NDP is the Government sites and buildings sub-programme. The function of this sub-programme is to respond to the accommodation provision needs of Departments while continuing to achieve best use of State property assets through a balance of ownership, leasing and disposal and to maintain and upkeep the State property portfolio.
A number of individual projects and ongoing programmes will be managed in 2008 as part of the project development and management aspect of the programme, under subhead E. Major works will advance for the following clients in 2008: the Department of Agriculture, Fisheries and Food at Backweston, Longtown Farm and Drumshanbo, County Leitrim; the Department of Social and Family Affairs at Buncrana, Ballymun, Kings Inn, Castlebar and Tullamore; and the Department of Transport in Dundalk. This year will also see the acquisition of purpose built accommodation under subhead D for the Revenue Commissioners at Linn Dubh in Cork. Some €125.1 million has been provided in 2008 for property portfolio tasks under subhead F3 for rents, and for lease renewals, rent reviews, etc., which fall due for settlement within the year, or rates. Rented accommodation affords the OPW the necessary flexibility to respond to urgent requirements for Departments.
The sum of €41.4 million is provided under subhead F1 in 2008 for property maintenance tasks which will be carried out to schedule and to the satisfaction of the client. As an innovative measure, a pilot scheme of measured term contracts was introduced in the east region in 2007 for delivery of maintenance services linked to measurable relevant performance indicators. The progress of the scheme has been successful and will be further rolled out in 2008. Facilities management services are currently being delivered at Dublin Castle conference centre, Farmleigh, Áras an Uachtaráin and the Department of Education and Science, Marlborough Street, and 2008 will see the delivery of an additional service at Kilkenny Castle.
The third sub-programme in the output statement is flood risk management, for which the capital allocation falls under the community infrastructure priority in the NDP. It has a gross budget of €74.7 million on Vote 10, subheads G and H1 to H3, inclusive. The function of this programme is as follows: to advise the Government on flood risk management and flood risk management policy; develop detailed programmes and measures to implement the recommendations of the report of the flood policy review group; deliver on flood risk management work programmes and projects; and maintain an effective programme of maintenance of river courses drained under the provisions of the Arterial Drainage Acts.
A budget of €50 million was provided for the flood relief capital works programme in 2007. Major flood relief schemes will be advanced to construction stage at Carlow, Ennis, Waterford, Fermoy and Mallow and detailed design development is also under way for further stages at Clonmel, Mallow, Fermoy and Ennis. In addition, flood relief schemes will be brought to statutory public exhibition at Enniscorthy, Templemore, Mornington and Tullow. A current budget of €23.7 million is provided for the maintenance of plant and machinery and the arterial drainage maintenance programme to maintain a scheduled programme of maintenance of river courses drained under the Arterial Drainage Acts.
The Office of Public Works also has responsibility for the purchase of Garda sites and improvement works at Garda stations under the social infrastructure priority. This forms part of the justice programme and, in conjunction with the Garda Síochána, priority works will be completed in 2008 at Finglas, Ballymun, Mountjoy, Fitzgibbon Street, Claremorris, the Tallaght training facility, Leixlip, Irishtown and Galway. Facilities are due to be on site this year in Ballincollig, Kevin Street in Dublin, Ballymote, Buncrana and Castleisland. An allocation of €10 million has been provided under subhead D for the acquisition of sites for the Garda Síochána and priority sites have been identified for acquisition in 2008.
Also part of the social infrastructure priority are the culture sub-programme and the built heritage sub-programme. The combined allocation for these programmes in 2008 is €114 million and this will allow for the payment of certain grants, improvement works at cultural institutions and the management of heritage services. The culture sub-programme will result in grants totalling €8.5 million for Dublin Zoo, Mariner's Church in Dún Laoghaire, Glasnevin Cemetery and the Louvain Institute. It will also result in improvement works at the National Gallery and the Irish Museum of Modern Art, and at Collins Barracks on behalf of the National Museum of Ireland. The heritage sub-programme has a gross budget of €56.8 million. The function of this programme is to care for the conservation of heritage sites, deliver a premium visitor experience and promote the education of visitors on the significant historic aspects of national heritage sites.
Heritage services will continue to manage in excess of 700 sites, catering for up to 3 million visitors annually, and protect site fabric from deterioration and damage by a continuing programme of planned maintenance adopting best architectural and conservation principles. The OPW will manage and prioritise a works programme, partly in conjunction with the Department of the Environment, Heritage and Local Government, to include Killarney House, Castletown House, the site of the Battle of the Boyne, the Phoenix Park, St. Enda's in Rathfarnham, Durrow and Glasnevin Cemetery, and other heritage buildings within the State property portfolio such as Leinster House, the Four Courts complex and Áras on Uachtaráin.
The final sub-programme on the OPW Vote in 2008 is the universal access sub-programme, which is part of the social inclusion priority and will see ongoing and new works on State-owned buildings to provide a disability-friendly environment to the public. The committee will be assured that 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 on meeting the many challenges presented to them and I am confident they will continue to provide an efficient and effective service under the wide range of headings.