Review urged of HSE buildings rental scheme

PATIENT support groups have called for an overhaul of the HSE’s rental scheme of buildings and land with new figures revealing over €31 million was spent on leases in 2008.

HSE chiefs needed to buy out long-term leases and look at investing funds from renting directly into health care, said the Irish Patients Association (IPA) last night.

Figures obtained by the Irish Examiner reveal the HSE spent €31.1m leasing land and buildings in 2008. It leased over 2,000 properties in the year.

This was an increase of over 10% on the €27.6m spent on renting properties the previous year.

Stephen McMahon, chair of the IPA, suggested that properties for the health care system could be bought at a discounted rate for the State through negotiations with NAMA.

“With the way that current markets are going, they could avail of purchase options through NAMA. Buy them now while they’re good value. As the numbers of staff are declining, it should be asked are they (HSE) reviewing their need for properties.”

The figures reveal the HSE regions where the largest amounts were spent leasing properties for the period.

These include €10.2m in the Dublin Mid-Leinster region and €7.4m in the West region.

The HSE said it would not release cost details of specific leases due to “commercial sensitivity”.

However, a list of the buildings and lands show the types of premises leased for the year.

A breakdown of the leases shows rent paid for hospitals, care centres, nursing homes, community halls, warehouses and portacabins among premises. Other properties rented, however, are listed as parts of shopping centres, hostels, spas, leisure centres, sections of a carpet factory, a ceramic store, a cheese plant, a credit union, apartments, units in industrial estates and business parks, a coffee house and radio masts.

Mr McMahon said the HSE should commission a study to evaluate options of buying rather than leasing premises which could benefit the state. He added: “The prices that were set before were astronomical, it might be better value to purchase now.”

Opposition TDs agreed the HSE could obtain a better deal by purchasing low cost properties coming under the control of NAMA.

Labour’s health spokes-woman Jan O’Sullivan said rent costs should instead be poured directly into primary care services as well much-needed maternity services in Limerick and Dublin.

“I’d like to see some fresh thinking in government offices instead of throwing taxpayers money into the black hole of developers’ pockets.”

Fine Gael’s James Reilly called for the suspension of long-term leases which he claimed the HSE were trapped in for several years.

“These funds could be going directly on beds, helping people with intellectual disabilities, as well as children with psychiatric difficulties.”