Report criticises public property strategy

Report criticises public property strategy

Comptroller and Auditor General Karen McConnell has published a report in which she calls for action to be taken to improve property management across the States.

In particular, she says she is concerned that proposals for a new main office building for the States, to replace Cyril
Le Marquand House, took too long to develop and had stalled because of funding issues.

And she said that the States had still not implemented a property strategy five years on from her report –Management of Major Property Transactions: Learning from the proposed acquisition of Lime Grove House – in which developing a strategy was a main recommendation.

The report now identifies a number of key priorities, including establishing that property strategy, setting up a corporate group to lead strategic asset management, setting a timetable for a programme of property reviews and putting in place a consistent approach to internal charging for property that incentivises users.

She said: ‘Over a decade ago the States recognised that they had not managed operational land and buildings effectively and responded by establishing Jersey Property Holdings. However, many of the objectives set for JPH have not been secured and as a result the benefits of strategic management of property have not been realised. I am concerned, for example, that the proposals for a new, fit for purpose, main office building for the States, although backed by a compelling business case, took too long to develop and have stalled due to lack of an agreement on funding.’

She added: ‘There is no single reason why the benefits expected from changing the way in which property was managed have not been achieved. However, establishing a corporate operation in an organisation that was not committed to corporate working presented substantial challenges to implementation. The move to a new corporate way of working, following the adoption of the Machinery of Government (Miscellaneous Amendments) (Jersey) Law 2018 and the implementation of the target operating model proposed by the chief executive, should provide an environment where it is easier to drive home the benefits of corporate management of property.

‘My findings and recommendations have been positively received by officers and I anticipate prompt and effective changes in this area as the States modernise.’

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