HSE pays €7m rent despite vacancies

THE HSE has spent almost €7 million since the start of 2009 renting 43 private properties in Cork city — despite having empty spaces in publicly-owned buildings in Munster.

Figures revealed by health service management confirm the properties are being rented to house mental health services, primary care centres, homelessness units and registration buildings, among other specialities.

Details provided during the HSE South’s latest regional health forum show the facilities cost €2.975m in 2009 and €3.161m last year.

The estimated full-year cost for 2011 is €2.93m.

While 19 of the properties have less than 12 months of their lease left to run, including three which are due to expire by the end of December, the largest leases stretch for another 23, 21, 16 and 14 years.

This means the high rates agreed at the height of the boom — which the HSE has refused to provide on an individual basis — will continue into the recession.

In a written response to Fine Gael city councillor, John Buttimer, the HSE’s area manager for Cork, Ger Reaney, refused to confirm the landlord names for the 43 properties, or individual rent prices involved.

He did say they include 23 private landlords, 10 trading companies, four local authority or government bodies, two community associations, two religious bodies, one trade union and one credit union group.

Of the 43 properties being leased, only one — the library site at St Mary’s Road, which is owned by Cork City Council — is unoccupied. This, he said, is due to refurbishment.

In summer 2010, the HSE’s unused property portfolio included 57 health centres, closed-down hospitals and other sites.

In 2009, the most recent full-year national rent costs for the HSE available last night, health service management signed off on €32m in rent to private individuals and groups.

At the time the HSE’s director of estates, Brian Gilroy, said the majority of this cost was due to the signing of lengthy leases by the former health boards — some as long as 25 years — which he is not authorised to break.

A HSE spokesperson said they “continues to monitor leases which are due to expire”, and that “a reduction on lease expenditure has been identified as an area for savings in 2011 and 2012”.

The spokesperson added that it is official HSE policy that expiring leases for office accommodation should not be renewed.

In the event of locations still being needed after this move, “vacant existing space suitably located and which is owned by the HSE” will instead be used.

“If it is necessary to renew leases, and currently this is only being considered in the context of patient service delivery, a reduction in rent will be sought.

“Such approvals... will not be forthcoming unless the proposal includes a rent reduction.”