Government not availing of falling rents - FG

Government departments are spending as much on rent as they did three years ago despite falling rents, Fine Gael?s Brian Hayes…

Government departments are spending as much on rent as they did three years ago despite falling rents, Fine Gael?s Brian Hayes said today.

In response to a parliamentary question the Minister for Finance told Mr Hayes the Government had spent €400 million on rented property in the last three and a half years. Last year there was an increase of 25 per cent on rental expenditure over the two previous years.

Mr Hayes said it is ?astonishing? that as commercial and retail rents are falling there has been ?virtually no reduction? in the amounts spent.

And he said the increase in expenditure by some Government departments and agencies, especially between 2008 and 2009, ?cannot be justified?.

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In that time the rental expenditure at the Department of Justice increased by 33 per cent, Communications by 35 per cent, Agriculture by 20 per cent and the revenue commissioners by 17 per cent.

Mr Hayes said a ?significant haircut? on the public funds made available to rent property is needed and called for an audit of all rented office space throughout the country.