In Italy, according to report (2014) drafted by Carlo Cottarelli, former spending review Extraordinary Commissioner, the Public Administrations use approximately 79.29 million square meters, of which 81% are state-owned and the remaining 19% owned by private or public entities. For the latter, the total expense for leases is estimated at 1,215 million Euros.
The art.2, paragraph 222, Law No.191/2009 has advocated to rationalization spaces used for institutional purpose, attributing to Agenzia del Demanio the task of developing a rationalization space plan, both for State owned and buildings owned by third parties. The law requires State Administrations to communicate their space need and the spaces that are no longer needed.
Furthermore, Agenzia del Demanio must match the needs objectives of reduction of public expendi-ture: ensuring the existence of properties to be assigned in use among those owned by the State or among those transferred to real estate investment fund (art. 4 Decree No.351/2001), verifing the adequacy of the rent and choose the economically most advantageous tender, and also, considering the decentralisation of offices.
By paragraph 222-quarter, the Legislature forced all administrations to submit their national rationalization plan. It includes: the respect of the parameter per employee (20/25 square meter), efficiency on territorial presence by sharing public building available and abandonment of lease properties. The public aim is to ensure a reduction of 50% for cost of lease and not less than 30% for space used.
According to the report by Cottarelli “Razionalizzazione utilizzo immobili. Prime conclusioni del gruppo di lavoro sulla razionalizzazione dell’uso degli immobili e della riduzione delle locazioni passive” shows that (excluding the Ministry of Defense) only 60% of public administrations occupy real estate owned by the State while the remaining 40% pays a rent. This trade off costs € 1,215 million.
Former Commissioner proposes to revise the geographical distribution of public administration, taking, where possible, the state-owned properties. Following the plan of Cottarelli property used by the state should be reduced by 20 percent, while the costs would be cut down by 30 percent, merging different branches of public administration.
The report excludes the Ministry of Defence which occupies two-thirds of the property owned. It follows that the remaining public administrations meet their need for space in 60% of cases with property for government use and the remaining 40% with privately owned. In addition, from data sourced from PA-Ratio shows that ca. 56.5 mln sqm of gross area and 773.6 mln sqm are assigned to Government for institutional purpose.
According to Agenzia del Demanio data, cost of lease is equal to 915 mln of which the 33% may be subject to reduction of 50% by the rationalization plan (Decree Law No. 191/2001). Agenzia del Demanio expects to save from 2015 to 2019 ca. 10 mln from renegotiation or neglect of FIP-FIP1, 103 mln from review rents and Ministero della Difesa rents.
The central Government’s goal is to reduce costs of lease through the containment of space used.
In order to achieve this objective, the law requires every single Local Public Administrations to assess their need space (by quantitative standard: 20/25 square meter) and to propose their strategies based on a set of options:
- closing down a branch and relocating;
- relocating in a public property available;
- relocating institutional functions in a building or complex “Federal Building”;
- looking for advantageous rent;
- reducing of used space.
The knowledge of public real estate assets is an indispensable factor to realize the efficient assets management and its profitability development, in order to maximize the collective interest and to reduce the public debt.
The analysis and knowledge of assets are based on a qualitative and quantitative information made up for financial needs and for a proper heritage recognition. In addition, it must be considered that an inadequate knowledge level implies the risk of a non-recognition of the potentialities of the existing assets \citep{articlep}. The information required, in order to make decisions, are often inadequate.
Deloitte report "Municipal real estate. Comparing public real estate management in European cities" shows that in 2011 about 30% of major European cities are able to provide data on the amount and value of their public real estate, and while, most organizations had a basic property inventory, it is often incomplete, inaccessible and also difficult to implement.
This assumption is valid for Italian context too. The census has involved only Central Public Administrations such as: Avvocatura dello Stato, Mef, Agenzia Fiscale, Ministero degli Interno, MIUR, MIPAAF, Ministero della Giustizia, Ministero delle Infrastrutture e dei Trasporti, MISE, Ministero dell’Ambiente, Ministero del Lavoro e delle Politiche Sociali, Ministero della Salute, MIBACT, Presidenza del Consiglio dei Ministri and Ministero della Difesa. But, this public administration list is incomplete with the number of public administrations, which means that data is partial.
Currently, according to Agenzia del Demanio data, cost of lease is equal to 915 mln for use of about 9.800 buildings, of which 27% relatives to FIP-FIP1 fund, 40% used by Ministero della Difesa and remaining 33% of properties are subject to rationalization plans.
The information provided is:
- use: cost of lease, loan or FIP-FIP1 fund;
- dimension: gross floor area;
- annual rent;
- type of rationalization strategies: closing down a branch and relocating, relocating in a public property available, relocating institutional functions in a building or complex “Federal Building”, looking for advantageous rent, reducing of used space;
- saving.
At present, planned projects are 185: rationalization project are 95, Federal Buildings are 37 and merger projects are 53.
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