Minister Lenihan responds to PQ on the cost of deferred projects

To ask the Minister for Finance his estimate of the current and capital expenditure that has been incurred to date in respect of the 50 decentralisation projects that have not been advanced.

- Paul Connaughton. (Nominated by: Richard Bruton).

For ORAL answer on Thursday, 6th November, 2008.

REPLY

Minister for Finance (Mr Lenihan):  A total of €18.8m has been spent on acquiring sites in respect of those projects which are being deferred pending a review in 2011. The locations in question are Birr, Cavan, Dungarvan, Edenderry, Thomastown, Thurles and Waterford. In addition, a site has been purchased at Knock, at a cost of €390,000.   

Approximately €4m has been spent to date by the OPW on the costs of renting and fitting out of mainly Civil Service properties in advance party locations where permanent accommodation has been deferred pending a review in 2011. A further €1.194m has been expended by FAS in respect of the advance office at Birr, €856,000 was expended by the Health and Safety Authority in respect of its Kilkenny advance office and approximately €305,000 has been expended by Pobal in respect of its premises at Clifden. Staff in such locations will remain in place.

In addition, I am informed by my colleague the Tánaiste and Minister for Enterprise Trade and Employment that in parallel with the decentralisation process, Enterprise Ireland (EI) strengthened its regional focus in recent years and now has a major presence in the Shannon Region in addition to its nine other regional offices.  Certain functions previously carried out by Shannon Development under delegated authority from Enterprise Ireland reverted to Enterprise Ireland on 1st January 2007 and, as part of this process, a number of posts from Shannon Development transferred to Enterprise Ireland.  The agency strengthened its regional presence by establishing its new Regional Development Headquarters in Shannon and also houses its County Enterprise Coordination Unit there.  Six posts were assigned to the new office in Shannon from Dublin, to manage this new Regional HQ. Currently there are 66 staff working in the EI Shannon office.

The annual rent on the Regional Development Headquarters in Shannon is €336,600. The tendered contract sum for the fit out was €1.43m, including VAT.  

The Deputy may wish to know that total income from property disposed of in Dublin between January 2004 and December 2007 was €355.9m.  In addition, property valued at €75 million was transferred to the Affordable Homes Partnership.  The OPW has also agreed joint venture redevelopment schemes with a minimum value of circa €125m up to the end of 2007.

Further details of non-property costs expended by location have been sought from relevant Departments. I will write to the Deputy separately in this regard shortly.