The province’s head of public works, Gary Fisher, said the Western Cape could theoretically save R120m each year by improving the space utilisation 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 putting together an immovable assets register, which will provide more clarity on the value of government-owned property.

Mr 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 South Africa. 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 worth R19.8bn. While the study showed that the province’s total cost per square metre was better than the private sector, "we are horribly inefficient when it comes to space utilisation and therefore efficiency", Mr Fisher said.

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," Mr Fisher said, adding that he was "hugely encouraged" by the potential revealed by the study.

He said the Western Cape had launched a "modernisation" programme, which aimed to implement new norms and 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. It would also seek to house all staff in its own properties, as opposed to the mix of owned and leased properties.

Source: BD