This autumn should see the start of the recruitment process to fill what,
in the property and civil service circles at least, will be a high-profile
role as head of the "central property function," which is being established
by the Shareholder Executive division of the Office of Government Commerce.
This "function" – which is being referred to in some quarters as "the
Property Executive" – will consist of 10 to 12 people and was one of the
Operation Efficiency Programme (OEP) recommendations endorsed by the April budget.
Its role will extend that of the Office of Government Commerce (OGC) to
provide strategic leadership and support across the whole of the public
sector, taking in local authorities and National Health trusts, among
others. Its task is expected to include helping with the rationalisation of
estates, the identification of surplus and under-utilised property, efficient property management and help with complex projects and
procurement.
There's a lot at stake: the OEP estimated that rationalising the property
occupied by the public sector has the potential to yield capital receipts
of £20bn and annual savings of £5bn.
Government property will be a significant contributor. With 490,000 civil
servants to accommodate it is little surprise that the government's
property estate is considerable. At the end of last year it ran to 11.4m
square metres (122.7m square feet) of which 2.5m square
metres is in London.
Value for money
The current focus on improving value for money to the taxpayer has
transformed the task of running this estate - 7,935 buildings in all. From
having been more of a janitorial exercise of fixing roofs and unblocking
drains it has become more akin to running the type of major property
investment portfolio owned by larger pension funds, only bigger.
The OGC's launch of the High Performing Property initiative in November 2006 helped formalise a more commercial, strategic approach to government property.
There has been a parallel crystallisation of skills among the civil
servants whose task it is to run this portfolio, so that a "government
property asset community" has developed. This "community" now has a head too: Vice Admiral Tim Laurence, famous as the second husband of Princess Anne but with a distinguished seagoing career to his name as well. Laurence's new title is head of the government's property asset management profession.
Laurence has not stepped into this role straight from the dockside. Since 2007 he has been the chief executive of Defence Estates where he is responsible for strategy and policy, developing the estate, prioritising investment and monitoring performance. He will continue in this position as well as "championing the government property asset management community".
The creation of the new post
The creation of the new post is being heralded by the OGC as a significant milestone in raising the status of both the community of property management practitioners and property asset management in general. Laurence's role will provide the leadership for the skills and capability improvement agenda of government property asset management, and will complement the management of government assets, according to the OGC.
Laurence himself said the efficient management of the government estate requires those involved to have the right skills, capability, professional profile and status and added that the current economic climate and focus on sustainability make it doubly important to have a professional body of property asset managers that can ensure that the government makes the best of its diverse and complex property portfolio.
The OGC says Laurence's appointment is separate to the creation of a
central property function, but a spokesman added: "the OEP does point to the need to raise the level of property expertise and as head of
profession, Vice Admiral Tim Laurence will play a major role in achieving
this."
From Bubb's Blog
From Whitehall Watch
