Inefficient use of Western Cape's properties
A study by the Western Cape provincial government shows that the province's office properties make inefficient use of space and have higher costs per employee compared with the private sector, highlighting the potential for major cost savings.
The province's head of public works, Gary Fisher, said the Western Cape could theoretically save R120m a year by improving the space use of its office buildings, to reflect national private sector averages. While provincial governments are required to maintain immovable asset registers, there is no requirement to evaluate efficiency.
The national Department of Public Works, long associated with inefficiency and maladministration, is in the process of putting together an immovable assets register, which will provide more clarity on the value of government-owned property.
Fisher, who was speaking last week at the IPD property investment conference, said the study was based on similar initiatives in the UK and was the first of its kind in SA. It would "establish a baseline for future performance", he said.
The study showed that the Western Cape government's property portfolio was worth R80bn. This included its offices, education and health facilities, as well as general infrastructure.
"The province's 1,631 education facilities were valued at R53bn, with its 221 health facilities were worth R19.8bn. While the study showed that the province's total cost per square metre was better than the private sector, it also show that the provincial government is horribly inefficient when it comes to space utilisation and efficiency", Fisher said.
Space usage
The provincial department's space usage was 28m² per full-time employee, compared with 14m² in the private sector, making total costs per employee substantially higher than in the private sector.
"We are conscious of the fact that it's taxpayer funding," Fisher said, adding he was "hugely encouraged" by the potential revealed by the study.
He said the Western Cape had launched a modernisation" programme, which aims to implement new standards for the province's office properties. It would also see its office buildings move towards a more open-plan environment that included reduced space allocation for senior management.
The implementation of cost-reduction measures was also under way, including a focus on increasing energy efficiency.
The department had secured a grant from the US Trade and Development Agency, which could see solar panels being installed on the roofs of all provincial government buildings to reduce energy consumption. The department would seek to house all staff in properties owned by the department, as opposed to the mix of owned and leased properties.
Source: Business Day via I-Net Bridge
Source: I-Net Bridge
For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field.
Go to: http://www.inet.co.za
