Chief Minister Allan Bell MHK has welcomed progress made by Government in cutting the amount of office space it rents and the number of buildings it owns.
In recent years Government has reduced annual spending on rentals by over ?700,000 and expects to more than double these savings by 2018.
Government has also disposed of over ?5.1 million of surplus property in the last two years against an initial target of ?4 million for the period.
Mr Bell said the initiative was good for the overall economy, freeing up space for private sector expansion, as well as producing capital income and revenue savings for Government.
An example of this is a former Government property in Athol Street which has been redeveloped as high quality office accommodation in the heart of Douglas. The building now includes the global headquarters of an international investment firm which has relocated to the Island.
In terms of rented accommodation Government has released substantial areas of floor space in Douglas and is continuing to explore ways of driving costs down further by more consolidation of operations within its owned property. Examples to date include the Fire and Rescue Service consolidating into to the DHA headquarters and the relocation of the Insurance and Pensions Authority from HSBC House to Finch Hill House.
The Chief Minister commented: ‘This is a truly cross-Government exercise with all Departments engaging to help make the most of the Island’s property resources. Disposals so far include former police stations, doctors’ surgeries, bus depots, electricity retail outlets, office premises and underutilised land and buildings.
‘It should be emphasised, however, that the disposals are part of a considered strategic programme. Sites and buildings that are identified as key to the delivery of Government services into the future will be retained.’
