Sale of buildings could fund decentralisation

The Government is examining means of paying for the decentralisation programme by raising multi-million-euro profits from the…

The Government is examining means of paying for the decentralisation programme by raising multi-million-euro profits from the sale or lease of the Office of Public Works (OPW) headquarters and other landmark buildings in central Dublin.

The Minister of State with responsibility for the OPW, Mr Tom Parlon, ruled out selling the Custom House, but said the building was an exception.

Speaking last night to The Irish Times, he said there were no major issues that would prevent the disposal of other listed buildings in the OPW portfolio, which are used by Departments scheduled to move from Dublin.

Besides its own headquarters at St Stephen's Green, which is worth some €50 million, the OPW has no public valuations on these buildings.

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But buildings such as the Department of Defence headquarters at Infirmary Road, which was renovated recently, would command very high prices. The Department is moving to Co Kildare.

The OPW spends some €80 million on rents in Dublin every year. While the prospect of penalities might prevent it from cancelling some lease contracts, it wants to move Departments and agencies that are staying in Dublin into buildings vacated by those that leave the city.

While recognising the historic significance of the Custom House, which will be vacated by the Department of the Environment, Mr Parlon strongly suggested that the Government would sell or find commercial use for other public buildings.

These include the Garda building in the Pheonix Park and the Department of Social Welfare at Busaras, which is moving to towns in Monaghan, Sligo, Louth and Leitrim.

Referring to the Garda headquarters, Mr Parlon said: "I would see certainly a commercial factor there."

Asked whether the listed status of buildings as such as Busaras might deter the Government from selling them, he said: "I think in terms of listed buildings, the restrictions and the listed properties will apply to a private owner the same as to the State."

Mr Parlon suggested that the headquarters of the Department of Agriculture in Kildare Street, which is moving to Killarney, could be used as part of the Oireachtas complex at Leinster House.

He said the OPW had set up an implementation group immediately after the Government decided to relocate 10,300 civil servants to 53 centres in every county outside Dublin.

"Depending on the terms with regard to lease arrangements we'll look at all the options and take the very best option," he said.

He said said the Minister for Finance, Mr McCreevy, wanted the decentralisation scheme to be self-financing. "That's depending substantially on getting a plus out of our Dublin property."

He also said the Government would examine the use of "equity swaps" to exchange the use of State buildings in Dublin for private buildings outside the capital.

"If some developer wants to provide a 400-place office for Agriculture in Portlaoise, he might take Hawkins House or some other Dublin property off our hands as part of the deal."

Many of the headquarters of Government Departments and State agencies to be moved from Dublin are regarded as significant buildings in their own right.

But Mr Parlon said there was no particular reason for any other Department or agency to occupy a building such as the OPW headquarters at St Stephen's Green.

"There's no superior reason that OPW should be on the Green, and that's why I think we're accepting very fully that we're moving to Trim.

"It clearly is a commercial property on the Green and worth a lot of money," he said.

Arthur Beesley

Arthur Beesley

Arthur Beesley is Current Affairs Editor of The Irish Times