29 January 2012
Minister of State Brian Hayes TD, today announced details of savings made by the Office of Public Works (OPW) on expenditure on State property and outlined plans for further savings to be made in 2012.
The Minister said “I am very encouraged to learn that the amount expended by the Office of Public Works (OPW) on rental of State properties in 2011 fell by €11M compared to expenditure in 2010 and the OPW rental expenditure in the past three years is as follows:
OPW Rental Expenditure €M
2009 130
2010 128
2011 117
“Annual rental expenditure peaked in 2009 at €130M and by 2011 the figure had reduced to €117, a saving of €13M. This saving represents a 10% reduction on 2009 expenditure”.
In 2010 and 2011, in a programme of lease surrenders and rental reviews, which involved no rental increases, the OPW has delivered the following” the Minister said.
Item No of Leases Comment
Lease Surrenders 58 Floor Area 427,000 Sq Ft
Downward Rent Negotiated 42 Annual Rental Reduction €2.9M
The Minister continued: “I am confident that this trend will continue, given this country’s changed economic circumstance. It is important to stress that the savings made are not once-off figures; they are annual savings that, allied to additional savings that OPW expect to negotiate this year, significantly reduce the annual State rental expenditure.
“By the end of 2012, I expect the annual rental expenditure to have decreased even further, to a figure of the order of €112M, driven by a combination of lease surrenders on break option or expiry and rent reductions, a 14% decrease on the 2009 peak. OPW's rent reduction strategy will continue to be pursued aggressively in 2012.
The Minister concluded: “This Government has made no secret of the fact that we are aggressively targeting significant savings in the area of the State’s property portfolio. The average rent being paid by OPW is consistently lower than the average market rate. I am determined to maintain this standard and generate even greater efficiencies throughout our property portfolio. A smaller public sector will mean a reduction in the total number of buildings and office space needed. How we utilise that resource is crucial. Shared services and redeployment must deliver as part of our new reformed public service. The opportunity to obtain even greater savings in the States' property portfolio is a key policy priority for 2012”.
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For more information please contact Neil Ryan, Public Relations Officer, (046) 9426128, (087) 9475552 or
neil.ryan@opw.ie.