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26/01/2012

State Agencies Paying High Rents Must Be Tackled

Fine Gael Waterford Deputy, Paudie Coffey, has called on the Government to focus on the high levels of rent being paid by State Agencies.

Deputy Coffey made the call as a result of information garnered through a series of Parliamentary Questions, which revealed that in the last four years Government State agencies spent a staggering €125,664,199.06 on rent.

"I have written to the Minister for Public Expenditure and Reform in relation to these findings and have requested that he instructs departments, where possible, to re-negotiate rental agreements. Alternatively agencies should be instructed to find cheaper office accommodation that will better suit their needs.

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"There is evidence that many State agencies are operating out of far superior offices, in terms of specification, size and standard, than what is actually needed. One example of this is the Family Mediation Service which operates out of exceptionally high-spec offices above Anglo-Irish Bank in Waterford City. The office is only open two and half days a week and has just two staff, but it costs €42,584 per annum. Under Minster Alan Shatter’s the agency is now required to share offices with the Legal Aid Board which will save the taxpayer money in time. This approach should be adopted across all State agencies that share similar purposes."

Fianna Fáil signed a lease with Anglo Irish Insurance, which was a subsidiary of Anglo Irish Bank, for 25 years, agreeing to pay €2.3 million per year, which means the Central Bank is renting offices from Anglo for a total of €57.5 million. The offices in question are not worth €57.5 million, however the taxpayer has been lumbered with this, among other rental debts.

"Solutions to this problem are not straightforward but the potential exists for serious savings in this area. As a society we need to get more for less so that we can start paying our way in the world again. I have no doubt that the actual figures in relation to this issue exceed the figures I have received."

(CD/GK)

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