Consolidation Of Government Office Buildings Used From 96 To 15

Consolidation Of Government Office Buildings Used From 96 To 15

Western Australia Minister for Finance Simon O’Brien

Savings Of $20 Million-$25 Million Per Year From Moving Government Offices Out Of CBD

Victor P Taffa

Finance Minister Simon O’Brien said today that Plans to consolidate and move State Government offices from the Perth Central Business District (CBD) could save up to $25 Million per year by 2015.

“Recent Negative Commentary has criticised the Government for moving into new premises, but we are not doing it for the sake of new offices we are doing it to save West Australian taxpayers money.” Mr. O’Brien said.

“The Government is currently spending approximately $220 Million on office accommodation, and agencies occupy about 360,000 sqm in the Perth CBD, East Perth and West Perth, spread across 148 separate lease agreements.”

“Consolidation of Government Offices will cut the number of buildings used from 96 to 15.” Mr. O’Brien said.

 

“While there is going to be up-front costs to fit out these buildings, in the long term it is going to save taxpayers money.”

“The replacement accommodation for Governor Stirling Tower has been obtained for $14.5 Million per year, as opposed to $22 Million per year had the Government continued the expensive Perth CBD lease procurement process commenced under the previous Labor Government.” Mr. O’Brien said.

“That is a saving of at least $7.9 Million per year.”

The new Government Office Accommodation reforms save money by:

  • Consolidating accommodation into fewer buildings and taking better advantage of the Government’s considerable buying power in negotiating leases;
  • Decentralising about 15 to 20 % of office accommodation 60,000 to 80,000 sqm from more expensive Perth CBD leases into Metropolitan Centres;
  • Reducing the space that is leased per person by standardising office fit-outs from the current 19 sqm to about 15 sqm per person, and sharing facilities, such as reception and meeting rooms, for all the agencies in major office buildings (saving about 20 %).

The State Government has commenced the consolidation into fewer buildings by leasing the entire office space available in the 19-storey tower under construction at 140 William Street, Perth.

“When fully occupied, 140 William Street will accommodate approximately 2,500 Government officers from about 10 agencies.  Under the previous approach to fit-out, the building would have accommodated less than 2,000 employees.” the Minister said.

Secondly, the Department of Treasury and Finance (DTF) is leading by example and relocating two of its divisions Government Procurement; and Building Management and Works to a new decentralised 13,200 sqm office building, the Optima Centre, in Herdsman Business Park in April.

“The Government has begun to implement these reforms and will not be backing away from the decision. We have acted in the best interests of the taxpayer and will continue to do so.” Mr. O’Brien said.