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Wednesday, 21 Nov 2012

Written Answers Nos. 1-12

Croke Park Agreement Savings

Questions (10)

Billy Kelleher

Question:

10. Deputy Billy Kelleher asked the Minister for Public Expenditure and Reform if changes will be put in place to the process for auditing of savings under the Croke Park Agreement in advance of the next implementation body report; and if he will make a statement on the matter. [51636/12]

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Written answers

Paragraph 1.16 of the Public Service Agreement provides for an annual review of the savings generated from its implementation and states that "savings will be independently verified by the Implementation Body" for the Agreement.

The Body has carried out two annual reviews to date which have provided a very comprehensive assessment of the sustainable savings and reform that have been facilitated under the Agreement to date.

As part of the annual review process, the Body engaged external financial accountants to undertake an independent verification of the savings reported by public service management in the case of a small sample of projects. In the first review, MKO Partners evaluated 3 projects and a further 4 projects were assessed by Grant Thornton as part of the second annual review earlier this year. In all cases, the savings reported by public service management were found to be reasonable estimates of the savings that have arisen or will arise due to the successful implementation of the projects concerned.

The approach to be taken to the verification of savings in the context of the next annual review will be a matter for the Implementation Body to determine.

State Properties

Questions (11)

Robert Troy

Question:

11. Deputy Robert Troy asked the Minister for Public Expenditure and Reform the measure he plans to take to ensure more efficient use of State buildings in view of the reduction in the number of State employees working in State offices; and if he will make a statement on the matter. [51630/12]

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Written answers

The Commissioners of Public Works have been pursuing a twin track approach to achieving cost savings and efficiencies in the Civil Service office accommodation portfolio since 2008, with particular focus on central Dublin properties where the greatest savings and efficiencies are achievable. Reduction of the annual rental bill and reduction in the overall property footprint occupied by the Civil Service are being pursued in tandem, and significant results have been achieved to date on both objectives.

Since 2008, the OPW has surrendered a total of 194 leasehold premises and reduced the office property footprint by 745,400 sq.ft (68,250 sq.m.). The number of car spaces has also been significantly reduced with 1,668 car spaces surrendered between 2008 and quarter 3, 2012. No new property was acquired to accommodate staff from surrendered office space. Where alternative office space was required, staff have been consolidated into OPW owned office buildings as far as possible or in a number of cases, Departments have been re-located into long term leasehold premises where rent reductions have been negotiated with Landlords.

Savings achieved to date

Over €27m has been saved through OPWs lease surrender programme since 2008.

The total annual value in savings in rent negotiated so far this year was €5.3m.

The Government's Public Service Reform Plan sets out commitments relating to Property Asset Management to drive public service-wide efficiency and ensures that optimal value for money is achieved in the management of the State's property portfolio.

With regard to the broader public sector,

(a) the Office of Public Works chairs a Steering Group drawn from public service property interests to promote greater efficiencies and develop a property management plan with particular focus on office accommodation. The Government's rationalisation programme of State bodies and the reduction in public service numbers generally has resulted in a reduced requirement for office space. Addressing these changes will involve a comprehensive review of public service accommodation policies particularly in relation to space norms, open plan accommodation and efficiency drivers. A cross-disciplinary committee in the Office of Public Works is currently developing a set of standards for office accommodation and space norms in accordance with international best practice.

(b) The OPW is also defining a map-based Public Service property inventory and web portal for State property to facilitate data sharing. This web application will be used to integrate property data generated by a variety of public bodies to manage the State's property assets more effectively across the service.

(c) The OPW aims to intensify savings and efficiencies in the Civil Service office portfolio through new policies currently being finalising. Revised policies in the areas of space allocation and standardisation of workplace fit-outs and refurbishments are being formulated in light of best practice and experience in both public and private sector office providers. Both of these policies will, when fully implemented, lead to greater flexibility in the office portfolio and more efficient use of valuable office space.

Public Private Partnerships Data

Questions (12)

Seamus Kirk

Question:

12. Deputy Seamus Kirk asked the Minister for Public Expenditure and Reform the demand he sees for participation in public private partnerships; and if he will make a statement on the matter. [51638/12]

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Written answers

Ireland has a well established track record and a mature and well developed Public Private Partnership (PPP) arena in particular in the road sector and the education sector. There are also other major accommodation projects that were delivered as PPPs, such as the National Convention Centre and the Criminal Courts Complex.

I am aware that the new PPP pipeline of projects which I announced in July as part of the Government Infrastructure Stimulus Package has been welcomed by the market participants, in particular the construction sector. The two PPP procurement agencies, the National Development Finance Agency (NDFA) and the National Roads Authority have been working with industry to gauge interest in PPPs.

To ensure maximum participation and therefore greatest value for money on all projects, my Department and the NDFA are working to identify ways of increasing market confidence and therefore increase participation. An important element of such measures will be that sources of funding will be available for the projects. I am working with my colleague the Minister for Finance, Mr. Michael Noonan TD, to help ensure that this will be in place as projects are being rolled out and his Department is closely engaged with the NDFA in this regard.

Agreement on funding for the Schools Bundle 3 last week with the European Investment Bank (EIB) is seen as a further signal of the bank’s renewed confidence in the Irish State and our recovery programme. EIB president Werner Hoyer has said the landmark agreement of the EIBs support of Schools Bundle 3 marks the reopening of the PPP sector in Ireland. I expect that the N11/Newlands Cross roads PPP will close in early 2013, further reinforcing this confidence and our commitment to the PPP model.

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