Minister: Rental Expenditure Reduced $2.2 Million
The Estates Section has reduced the outgoing rent in this fiscal year from $13.2 million to $11.02 million, saving approximately $2.2 million, Public Works Minister Trevor Moniz said on Friday [Dec 6] in the House of Assembly.
He also noted that the Dame Lois Brown Building missed $200,000 in BELCO discounts from 2011 to 2013, and said they have streamlined the process to pay bills on time to get the discount.
The Minister said the savings in rents has primarily been achieved through re-negotiated leases to current levels of rental value, and moving Government Departments in house has also assisted with reductions.
“As an example, the move of the Department of Labour and Training into the old Magistrates Court Building has resulted in a savings of $409,000 per annum alone,” said the Minister.
Minister Moniz said the Estates Section is also responsible for the electricity costs for a number of Government buildings.
He noted that the electricity cost for the Dame Lois Browne Evans Police/Court Building, Global House and the Government Administration Building together totals over $230,000 per month.
He said the BELCO bills for the three main buildings offer a discount of approximately $16,000 per month if the bills are paid by their discount date.
The Minister said the Dame Lois Brown Building had missed $200,000.00 in discounts from the beginning of 2011 up until the beginning of this year.
“I’ve challenged the team to streamline the payment process and make meeting the discount deadline a high priority,” said Minister Moniz. “This streamlined process now sees the Department making the discount date…”
The Minister added that a pilot project is currently being developed for the Dame Lois Browne Evans building that will involve an audit of the electricity use with monitoring equipment over a period of a few months.
“Our intent is to then identify the main electricity demands and introduce both technology and use changes to reduce the costs,” said the Minister
“It is anticipated that significant savings will be made and that the project can then be expanded to other Government buildings, including the public schools.”
Minister Moniz’s full statement follows below:
Mr. Speaker, I rise this morning to update this Honourable House in relation to the efforts being made within my Ministry to reduce expenditure on rental accommodations.
Honourable Members will be aware that it is the responsibility of the Estates Section within the Department of Public Lands and Buildings to manage not only the Government owned property portfolio – but the renting of private sector properties used by Government Departments.
Notwithstanding, whilst the Government owns a large portfolio of properties, it is not enough to house all of these departments and their specific needs. These needs are very diverse and Island wide – ranging from marina berths for the Police in St. George’s, office space in the City of Hamilton…to the Hazardous Waste Site in Dockyard.
For the fiscal year 2013/14 a total of $13.2 million was budgeted to rent properties from which Government departments can fulfill their mandates.
It has been the goal of the Estates Section to reduce these rental costs through a combination of bringing departments into Government owned buildings where possible….carry out rent reviews or lease renewals… to negotiating rent reductions to reflect the current market values for those Departments that must rent from the private sector.
The savings in rents has primarily been achieved through re-negotiated leases to current levels of rental value. However, moving Government Departments in house has also assisted with reductions.
As an example, the move of the Department of Labour and Training into the old Magistrates Court Building has resulted in a savings of $409,000 per annum alone.
In addition Mr. Speaker, the Estates Section reviews the various departments actual use of real estate to ensure the space occupied is being used efficiently…is fit for purpose… and that space exceeding operational needs is given up.
By a combination of these actions the Estates Section has reduced the outgoing rent in this fiscal year from $13.2 million (as found on page C-29 of the Approved Estimates of Revenue and Expenditure for the Year 2013/14) to $11.02 million…a total savings of approximately $2.2million or 16%.
Mr. Speaker, the Estates Section is also responsible for the electricity costs for a number of Government buildings.
For your information, the electricity cost for the Dame Lois Browne Evans Police/Court Building, Global House and the Government Administration Building together totals over $230,000 per month.
Cognizant that these buildings are fairly large and house a number of Government Departments, the Estates Section has been working very closely with the Electrical Section within the Department of Works & Engineering, as well as the Department of Energy to find ways to reduce energy consumption.
A pilot project is currently being developed for the Dame Lois Browne Evans building that will involve an audit of the electricity use with monitoring equipment over a period of a few months.
Since this is a relatively new building, it will make a good test bed to measure the cost effectiveness of any innovative energy reducing technology or processes implemented and will act as an exemplar for our other buildings
Our intent is to then identify the main electricity demands and introduce both technology and use changes to reduce the costs. It is anticipated that significant savings will be made and that the project can then be expanded to other Government buildings….including the public schools.
Mr. Speaker, in addition to reducing energy consumption, the Ministry has become more efficient in paying its utility bills in a more timely fashion.
The BELCo bills for the three main buildings of Dame Lois Brown Evans, Global House and the Government Administration Building offer a discount of approximately $16,000 per month ….if the bills are paid by their discount date.
For your information, the Dame Lois Brown Building had missed $200,000.00 in discounts from the beginning of 2011 up until the beginning of this year.
Whilst in the past we did not always meet the discount date owing to delays in the accounting process among other factors, I’ve challenged the team to streamline the payment process and make meeting the discount deadline a high priority.
This streamlined process now sees the Department making the discount date and saving on average $16,000 per month as stated previously.
I will endeavor to keep this Honourable House informed as we progress with this initiative.
Thank you Mr. Speaker!
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Another example of good governance by the OBA. Gone are the days of the wasteful,incompetent former administration!
Must be an oba supporter
Your probably right but still comforting to know that this government is being run better and money is not being wasted as per the previous incompetents.
How could the pee l pee miss the payment dates. I forgot, they were doing whatever with the money because it wasn’t theirs. Sheesh
Just incase you missed the dates, the OBA has been in government for the past year in which payments have also been late.
Do you have an excuse for that?
PLP made late payments for two years and the OBA for one.
Neither should be excused but it does suggest the OBA are twice as good ( or half as bad)!!
It is the Ministers job to oversee the workings of his/her department but whose job is it to perform the details such as keeping current with lease renewals & negotiating the best possible rent on behalf of the taxpayer? The department Director?
Rents have been falling for the past few years thanks to the PLP & the exodus of people & companies. Why were these leases not renegotiated before?
The PLP Cabinet was too busy planning their lunches at Harbourfront between jaunts overseas.
“As an example, the move of the Department of Labour and Training into the old Magistrates Court Building has resulted in a savings of $409,000 per annum alone,” said the Minister. = a PLP project the OBA completed; hardly an original idea.
You can have as many ideas as you want, if you don’t follow through with them it don’t mean squat.
Beside the point and not it.
They had 10 + years to do what took 1 year along with many more important financial overruns and sorting things out.
Shalom.
” OBA completed”…… Ha Ha Ha
Exactly ..
Let us just assume you are correct. In that case the OBA delivered it. The PLP failed to deliver it. PLP FAILED. Are you waking up to that reality yet?
Just a thought but why not look into solar panels for roofs in the city on government buildings…..
I cannot believe we did not pay Belco on time,so as to get the discount offered.All the civil servants who were responsible for such gross incompetence,should be fired.The govt needs to go after people who have not been paying,payroll tax,social insurance and land tax.There were many who/are not contributing.Name and shame them,if it helps make them pay.The govt needs money now.
Here’s the real test. It took me a while but I found it…..let’s see if the OBA has the gonads to take on this crew who’ve been profiting for years off the rents from Government departments:
The Perry Building $308k per annum
Continental Building $405k per annum
Magnolia Place $532k per annum
Sofia House $260k per annum
Victoria Hall $165k per annum
Milner House $309k per annum
Perry BUilding (again) $457k per annum
Just a sampling of what’s at stake and just who has been living large off the backs of the taxpayers for eons.
The PLP certainly didntt have the “gonads” for it.
Perhaps the re-negotiated leases that are mentioned involve these buildings.
I’m rapidly coming to the conclusion that the fastest way to whittle down the Civil Service to a sensible size is for tax payers to go on strike – Direct Action by those who in fact fot the bill.
I guess all of the labour & the materials to construct those buildings was FREE. I guess also that the owners of those buildings don’t have any taxes, insurance & maintenance to pay for. I guess also that those owners don’t deserve a decent return on their investment.
Of course if Government was not so large the space in those buildings would not be needed in the first place.
Is there any particular reason that you did not add to your list, the building that is owned by a certain high up plp member that the police service rent office space in that happens to be across from the very building that was built by the plp government with very high cost over runs for that purpose?????
Who exactly are you blaming for that? It has to be the fault of the former Government, the PLP. They are the ones who signed the leases year after year. At least the OBA are looking at all the leases and negotiating them lower. You should thank them. I know you wont…
More could be done, for instance the “Brown-Brangman” yes…that Brown building on Reid Street who’s anchor tenant is…..The Bermuda Government
What “crew”, are you implying this is an organized group of people acting like a Cartel?
PLP govt next time means Bermuda killed off.
That is what I a scared to death about. My advice is to have a “Plan B” in place and to be very cautious regarding Bermuda over the next 10 years…
The faces you see in Govt. is just that…a face up front for all to see(and take blame)the Shadow Govt. is calling the shots and always will.
have fun finding them.