I am pleased to be before the Committee of Public Accounts to present the 2012 appropriation account for the Office of Public Works and answer any questions that may arise. I will take the opportunity to refer to some important aspects of the work that was funded through the 2012 appropriation account and provide the committee with an update on the current position in some areas. The 2012 appropriation account was structured in line with the new format for the Revised Estimates under three main programmes, as referred to by the Comptroller and Auditor General, namely, flood risk management, the National Procurement Service and estate portfolio management.
The Office of Public Works, the lead agency for the management of flood risk, expended €52 million on the flood management programme in 2012 and a total of €367 million from 1996 to 2013. Works in 2012 included schemes completed at Fingal, Mornington and Johnstown and ongoing works at Mallow, Clonmel, Bray, Fermoy and Waterford city. A sum of €4.8 million was also provided to local authorities under the minor floods and coastal protection programme in 2012. The OPW continues to work with local authorities to ensure there is sufficient capacity to undertake flood mitigation measures in their administrative areas as promptly as possible. In the aftermath of the recent flooding, the Office of Public Works sought applications for funding from local authorities to remedy damage caused and reinstate coastal flood defence assets. The Government has reaffirmed the priority for funding in this area by committing €45 million per annum over the five year period from 2012 to 2016. This funding will be prioritised to allow for the reduction of flood risk to the greatest possible number of households arid businesses.
The National Procurement Service was established within the Office of Public Works in 2009 and tasked with centralising public sector procurement arrangements for common goods and services. During 2012, efficiency savings in excess of €39 million were achieved as a result of contracts initiated by the National Procurement Service and included savings of €10 million on energy costs and €8 million on fuel charge cards.
As members will be aware, a Government decision of April 2013 agreed the outline plan for the development of an expanded central procurement function. From January of this year, the Office of Government Procurement will continue the work currently done by the National Procurement Service and previously done by the Government Supplies Agency. This will be done under its own Vote as part of the public expenditure and reform group.
The largest programme in terms of funding is the estate portfolio management programme. This programme encompasses the management, maintenance and development of the State's property portfolio, including the care, protection and presentation of national monuments and historical properties. The programme, as an integral part of this function, comprises a wide variety of services, including, as the Comptroller and Auditor General noted, professional services such as architecture, engineering, valuation, quantity surveying and project management.
The main areas of expenditure under the estate management programme in 2012 included the following. The payment of rents on behalf of all Government Departments to the value of €107 million. The committee will be interested to note that the Office of Public Works has achieved savings in annual rent each year since 2009 and reduced the outturn to €97 million in 2013. This reduction in both the annual rental bill and the State's property footprint has been achieved through a targeted lease rationalisation programme and a robust approach to rent reviews. Some €36 million was spent on the property maintenance subhead which includes the facilities management function of the office and the management and maintenance of certain prestige buildings.
From 2013 onwards, the Office of Public Works assumed additional responsibility for the funding of all non-elective building maintenance on departmental property, with an additional allocation of €19 million being provided from other departmental Votes. Essential maintenance will now be provided on a shared service basis to Departments from one central maintenance fund managed by the Office of Public Works. The reformed service will produce savings both directly through the OPW prioritisation of planned and preventative maintenance and indirectly through the centralisation of the professional expertise and administration of maintenance for all Departments. The management, conservation and presentation of 780 national monuments and 26 national historical properties with a combined provision of 70 visitor centres accounted for an output of €36.2 million in 2012.
I am glad to say that visitor numbers are steadily increasing with more than 4 million recorded visitors at our heritage sites in 2013 compared to 3.4 million in 2011. It is estimated that the total number of visitors to heritage sites is in the order of 10 million but the recorded numbers are 4 million.
Although the capital provision for new works has reduced significantly in recent years the outturn was €39 million on the capital works programme in 2012. This included refurbishment works at Swinford and Dundrum Garda stations, major projects at the Phoenix Park, Castletown House and Dublin Castle in readiness for Ireland's hosting of the EU Presidency for the first six months of 2013. The Office of Public Works paid €51.6 million in 2012 in unitary payments on behalf of the Government in relation to the Convention Centre Dublin.
With regard to more recent developments under the Government's reform programme, currently I chair a steering group on property asset management. I have mentioned this earlier. This group is working to review existing property management arrangements across the public sector and to develop standard frameworks to drive efficiency and value from the State's property portfolio. In addition, a cross-disability committee within OPW is developing a set of standards for office accommodation and space norms in accordance with international best practice.
One other area of activity to which I wish to draw member's attention is the public service energy conservation initiative for which the Department of Public Expenditure and Reform has provided funding from the carbon levy fund of €9 million over the coming years. This is the continuation of a programme we have been doing on our own portfolio. This new programme will roll-out energy saving measures already introduced to more than 200 buildings to a further 500 large buildings from various public sector organisations. We hope to repeat annual energy savings for public sector clients of up to 18% over the next three years.
The gross outturn for the Office of Public Works Vote was €366 million. The property and project management services which the OPW continue to provide are not directly funded from the Vote but absorb considerable administrative resources. We are a shared service and in this role we act as agent on behalf of other Departments and agencies, managing contracts and services which exceeded €79 million in 2012.
I thank the committee for its attention. Perhaps I can introduce my colleagues as I omitted to do so at the outset. I am accompanied by Mr. Tony Smyth, chief engineer, Mr. Michael Long, accountant with OPW, Mr. John McMahon, commissioner with responsibility for maintenance and heritage services, and Mr. John Sydenham, commissioner with responsibility for property management.
I am happy to take questions on the account.
