Accommodation management
Overview
Accommodation management of both Government-owned and privately leased properties is a multi-million dollar activity in the Victorian public sector. The value of Government-owned facilities is estimated at more than $1.1 billion. In addition, annual rental costs are in excess of $125 million. This activity was chosen for review due to the significant funds involved as well as its potential for providing substantial savings to Government from improved efficiency and effectiveness in delivery. Findings of the examinations included the following: many of the Government-owned buildings had remained vacant or substantially under-utilised at an annual opportunity cost of around $15 million; significant areas within the Melbourne Central Business District and city fringe were used for storage at an annual cost of $4.2 million; leased facilities had remained vacant for extended periods; low priority had been given to maintaining Government-owned buildings resulting in a run-down condition of many buildings.