Measures put in place for better use of public sector office space

Source : Business Times - 28 Aug 2008

Surcharges will be imposed on agencies in breach

GOVERNMENT agencies that do not make optimal use of their office space will face penalties such as surcharges and rents, Parliament was told yesterday.

Senior Minister of State for Finance & Transport Lim Hwee Hua said the aim is to encourage better management of office space in the public sector.

The ministry of finance (MOF) has reviewed and reduced office space norms. Surcharges will be imposed on agencies in breach of the norms, while rent will be imputed to highlight the opportunity cost.

MOF plans to ‘extend this framework for office space to other types of uses such as staff apartments, chalets, and institutional buildings’, Mrs Lim said.

In addition, vacant properties that are not required by public agencies will be put out to the market for lease if possible.

‘We have, in fact, done this in the past two years to meet the growing demand for office space,’ Mrs Lim said. ‘However, the quantum and pace will need to take into account the market situation.’

To instil greater discipline in the reservation and holding of government properties for development, the law ministry will introduce a framework for public sector agencies.

Under this framework, a charge will be imposed on agencies for reserving state properties for planning and feasibility studies.

‘This will encourage agencies to make land reservations only when necessary and for the optimal period of time,’ Mrs Lim said.

‘MOF and MinLaw will continue to review and enhance our systems and policies to raise the effectiveness and accountability of public sector agencies in the management of land and buildings.’