Government is to reduce its rental expenses by 20% in five years, according to a “country package” of restructuring measures agreed on with the Netherlands as condition for COVID-19 crisis liquidity support. The General Audit Chamber in a report requested by Finance Minister Ardwell Irion (see related story) suggests relocations and lease terminations are likely, whereby the expenses of moving and remodelling existing accommodations ought to be reviewed.
The minister stated that, for example, buildings have been purchased or rented in the past without appraisal reports, which he called a requirement. There thus apparently remains much room for improvement, but the chamber doubts the feasibility of the target set and said an impact study should have preceded such, also regarding possible long-term empty office space and its economic effect.
The good news is that a short survey of some of government’s private landlords shows 64% would be willing to possibly renegotiate existing leases. Although not statistically indicative it provides some insight to pursue dialogue in that direction.
Irion mentioned during last Wednesday’s press briefing that since the audit started at least two entities had looked at their rent and real estate policies to make sure these are properly being implemented. Ironically, reducing rental cost had been one of the main arguments for the “new” Administration Building on Pond Island, which took so long to be completed and put into use that it was already too small from the beginning.
The current leased facility of Parliament is also a major monthly burden. The upcoming demolition of the old government building at Clem Labega Square opens an opportunity to possibly construct a new legislature there perhaps with involvement of the General Pension Fund APS and other local financial institutions, as a project that will earn itself back in saved rental payments.
After all, shouldn’t the people of any self-respecting country really have their own House of Representatives?
