THE GOVERNMENT'S announcement of its intention to suspend further expenditure on the acquisition of accommodation for its decentralisation programme was long overdue. Only a fool would buy sites or sign expensive office contracts in a falling property market.
Having originally embarked on a chaotic and uncosted decentralisation programme that envisaged 10,000 civil and public servants moving out of Dublin to 53 locations, there was a reluctance to shout stop. In the end, the worsening state of its finances has come to the Government's rescue.
Last year, having sold €500 million worth of State property, the net cost to the Exchequer for the decentralisation programme and the acquisition of new sites and offices was estimated at €400 million. About 2,000 civil servants had been transferred to 29 towns, some of them from other rural locations. The plan to relocate State agencies had almost ground to a halt.
The decentralisation plan has been a costly, politically-inspired mistake that paid no heed to the Government's own spatial strategy. Nobody would argue against the benefits of a significant relocation of certain administrative Civil Service functions to provincial towns. Those making the voluntary transfer would benefit from a better quality of life, while the extra spending would boost the local economy. But the exercise should not damage the efficiency of a department or the public services being provided. This is especially important where senior management and executive decision-making are involved. An OECD report has warned the Government against dislocation and fragmentation arising from badly planned decentralisation
The Decentralisation Implementation Group (DIG) has reported good progress in its efforts to transfer clerical staff and administrative functions out of Dublin. But difficulties remain in relation to State bodies. Resistance by technical and professional staff continues. There is also the question of what productive work can be found for senior civil servants who insist on remaining in Dublin. In its report, the DIG noted that the availability of advance and permanent accommodation in provincial areas had been a key driver of the decentralisation programme. Now that the acquisition of properties has been put on hold, there will be time and a valuable opportunity for the Government to assess the ramifications of this contentious programme in light of the concerns expressed by the OECD and by a range of other bodies.