The costs of the Government's plan to move 10,500 civil servants out of Dublin have escalated sharply, according to Department of Finance documents released on Budget day.
The Office of Public Works will spend €900 million on new offices for civil servants over the next four years even though just 3,500 officials will move by the end of 2008, rather than the 10,500 originally due to go by the end of 2007.
The figure, which is far higher than any previous estimate, is included in the detail of the budgetary documentation released by the Minister for Finance, Mr Cowen, on Wednesday evening.
In late October, the Minister of State for Finance, Mr Tom Parlon, told members of the Oireachtas Finance and Public Service Committee that €815 million would be spent on 55 offices for all 10,500 officials.
Signalling a reduction in its decentralisation ambitions on November 24th, the Government, however, announced that just 3,500 Government Department officials would be moved up to the end of 2008.
However, the 2005 Budget's Multi-Annual Investment Framework reveals that the Office of Public Works will spend €855 million by the end of 2008 on office accommodation, and €45 million more in 2009.
In 2005, €70 million will be spent on new offices as work on 16 of the 20 offices required for decentralisation's first phase begins. Work on the remaining four offices will start in subsequent years.
In the following year, the Government will spend €205 million on the offices, along with a further €75 million from private investors and the National Development Finance Agency.
In 2007, the Office of Public Works will spend €205 million, along with €70 million from the NDFA and private investors, while the State will plough in a further €155 million in 2008, along with a further €75 million from private investors and the NDFA.
In a clear recognition that the number of civil servants transferred will not jump rapidly in 2009, the Department of Finance has budgeted for just €45 million worth of spending on offices for that year.
During his October appearance before the Oireachtas committee, Mr Parlon said eight of the 20 buildings needed to house the 3,500 officials would be finished in 2006, eight in 2007 and four in 2008.
The Government's decision late last month to scale back the decentralisation plan came after recommendations from the Decentralisation Implementation Group, chaired by Mr Phil Flynn.
Warning that costs are running out of control, Fine Gael TD Mr Phil Hogan last night demanded a full investigation by the Oireachtas Finance and Public Service Committee.
The information contained in the Budget documentation was "startling" and must be investigated before Mr Parlon "enters into any irrevocable contracts", Mr Hogan, Fine Gael spokesman on Enterprise, Trade and Employment, said.
The Flynn Group said the costs of decentralisation would rise sharply between 2006 and 2010 because of the cost of sites, construction and penalty fees on broken leases.
