Decentralising cost €700m, says Gilmore

PUBLIC SERVANTS are bussed every day from Dublin Castle to Trim, Co Meath, to work at the decentralised Office of Public Works (OPW) before returning to the capital, the Dáil has heard.

Fine Gael leader Enda Kenny said it added two hours daily to travel for staff and he highlighted the costs as he questioned the effectiveness of decentralisation.

Labour leader Eamon Gilmore estimated the decentralisation programme had cost between €700 and €750 million but Taoiseach Brian Cowen defended the policy and said 3,100 people had relocated so far, with 4,000 moving “in the current phase”. Decentralisation had taken place to 40 locations but, because of the financial situation, “a review is to take place regarding the remaining staff who were not in the process of being moved in this phase”.

Mr Kenny said €37.5 million was spent on the Trim OPW site and a big number of staff were still working in the Stephen’s Green office because “a large cohort of staff, including four of the six principal architects, do not want to relocate”. However, €1.5 million would be saved by some Department of Justice staff moving into the Stephen’s Green office. A further 180 staff were due to move “to Kanturk and Claremorris, although a final decision on the matter has been deferred until next year”.

When everyone was talking about “environmental savings”, he asked the Taoiseach if it was “satisfactory” a bus “leaves Dublin Castle every morning to go up and down to Trim”. Mr Cowen said, before decentralisation, “a substantial amount of commuting was done by people who travelled long distances” but this was now offset by decentralised offices, he said. “People who have to come to Dublin or live here can now return to and work from home. That greatly offsets any examples the Deputy may be able to provide about people . . . travelling in the other direction.”

The Taoiseach also said “I understand” the property costs linked to the OPW had been “more than offset” by savings and the reallocation of OPW property. He pointed out the Western Development Commission showed a “positive and significant” economic impact of relocation of jobs.

He also revealed 31 of the 164 civil servants in his department had applied to relocate, while 31 former staff had decentralised.

When Mr Gilmore sought the total cost of decentralisation, Mr Cowen said property costs to the end of December were €338 million, with about €17.7 million spent on renting and fitting out properties “in advance party locations”. Property costs were “offset by the reallocation of property to other schemes”, valued at about €550 million.

“In addition, property valued at €75 million was transferred to the affordable homes partnership. The OPW has also agreed joint venture development schemes with a value of approximately €125 million, subject to volatility in the property market.” Non-property costs up to September 2009 were about €15 million, while staff costs “on the property aspects of the programme was €12.6 million”.

Mr Gilmore said “If I am correct, a ballpark figure for total cost to date is somewhere between €700 million and €750 million, but perhaps I missed something.”