Scottish Government
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New approach to relocation policy

Public bodies will only be relocated in future where there are wider benefits for the taxpayer and no compulsory redundancies required, it was announced yesterday.

The Scottish Government's relocation policy is closely aligned to recommendations of a review of the public sector's assets which will put in place strengthened estate management procedures.

The Government relocation policy criteria include:

* consideration of relocation will be triggered by organisations when there is substantial restructuring or two years in advance of a property break
* relocation will only take place if it brings benefits for the Government - such as value for money or disposal of unsuitable assets - and there would be no compulsory redundancies
* the relocation of any organisation will be decided by Ministers only after a transparent appraisal of options and a proper analysis of business need
* the Small Units Initiative will continue, as it has brought high quality jobs to remote and rural areas, where even a small number of posts brings demonstrable benefits to the community

Cabinet Secretary for Finance and Sustainable Growth John Swinney said:

"A simpler, more effective public sector in Scotland will improve Scotland's competitiveness and contribute to sustainable economic growth. I am announcing today measures to ensure better management of public sector's assets and a relocation policy which is rooted in the best use of existing assets.

"Relocation policy to date has not achieved the benefits intended - wide job dispersal or assisting the areas most in economic need. A great deal of money, time and effort has been spent on moving organisations, incurring significant cost to business continuity and to staff.

"The Government's approach will mean that relocation is still an option, but it will only happen after a rigorous and transparent process that shows there are efficiencies for Scotland. I can guarantee there will be no relocation if it would lead to compulsory redundancies. We will instead give priority to value for money by re-using suitable parts of Government estate and to identifying cost-effective solutions. The location of public sector bodies will be inextricably linked to the efficient use of available assets."

The Asset Management Review, carried out by the Scottish Government last year, looked at weaknesses and opportunities in the management of the Scottish Government estate, including agencies, non-departmental public bodies and other associated bodies.

It shows that the Scottish Government currently occupies 709 buildings occupying an area of 2,416 hectares. The total capital value of Government assets is £157.6 million and rent is the largest single element of running costs. The Review found two thirds of organisations surveyed do not have an asset management plan or strategy in place and there is no single IT system that holds data about the whole estate.

The Review recommends all parts of Scottish Government should have an asset management plan by the end of April 2008. In addition, a single comprehensive database of property information will be maintained and a central team will oversee the whole estate to identify the best opportunities for the use of property assets.

Mr Swinney continued: "I commissioned the Asset Management Review to look at the diverse ways in which facilities are managed by different organisations. That two thirds of the organisations surveyed do not have an asset management plan is just not good enough, and I have accepted all of the recommendations of the Review.

"Efficiency and good practice in asset management is vital, so a central team will identify and oversee the best opportunities for the use of assets across the government estate. All organisations will work with the central team to deliver the best outcomes and we will also identify and release savings by disposing of surplus and unsuitable assets."

The Asset Management Review covered the buildings and adjacent land owned, leased or managed in the name of Scottish Ministers or Scottish Government organisations, including those assets of agencies, non-departmental public bodies and other associated bodies. The assets of NHS Boards, Scottish Water and the predominantly 'bare' land estates in the rural sector were not covered under this Review.

Related Information

http://www.scotland.gov.uk/Publications/2008/01/AMR

http://www.scotland.gov.uk/About/govt-locations/location-policy/asset-management

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