Government accommodation strategy to produce annual savings of $110 million

  • Jonathan Coleman
State Services

State Services Minister Jonathan Coleman says reducing the government’s footprint and achieving significant savings in office accommodation spend are key aims of the national accommodation strategy released today.

“In the past government agencies have negotiated leases in isolation, this strategy means that a central approach will be taken,” says Dr Coleman.

“We expect to reduce the government’s occupied footprint nationally by around 25 per cent in the next three to four years, producing annual savings of around $110 million.

“This strategy provides the over-arching framework to enable agencies to deliver a more co-ordinated approach across New Zealand, reducing the footprint of government and achieving considerable savings.

“This consolidated approach has already been adopted in Wellington where a five-agency deal is currently being negotiated. It is expected to result in a 30 per cent reduction in net office footprint – the equivalent of seven rugby fields - and savings of $338 million over 20 years.

“A similar approach will be taken in Christchurch where a tender process for office accommodation in the CBD was launched earlier this year.

“Savings made through the co-location of similar agencies and shared use of some facilities will also have the added benefit of making it easier for people to access government services.”

The Government National Property Strategy and Principles released today sets strategic objectives and provides agencies with a benchmark to measure property plans and decisions.

The Property Management Centre of Expertise (PMCoE) was established in 2011 to manage public sector office accommodation in a more efficient way.

PMCoE is developing a range of practice tools including standard government leases, building performance specifications, a website where property managers can share best practice and identify expertise, and a brokerage service that enables surplus space in the Crown estate to be available to all agencies.

The Crown Office Estate report for 2011 – 2012 was also released today showing progress made to date, most notably a reduction across the Estate of 51,000sqm.