Over the last 12 to 18 months, with the reduction in the size of Government departments and statutory authorities; the changes in the machinery of Government and the rationalisation of various organisations; the demand by Government for office space has been reduced. As buildings have been redeveloped; leases terminated and departments and authorities relocated out of the Central Business District and in some cases into country areas, surplus office space has become available.

Additionally, new privately-owned buildings have come on stream and with the recession, a substantial amount of vacant space is being offered in the metropolitan areas of Sydney, Newcastle and Wollongong.

In many cases, building owners are offering more favourable initial tenancy arrangements in an attempt to attract tenants into a building.

It is the Government's wish to minimise the cost of office accommodation and to maximise the utilisation of buildings which it owns or are currently under lease to Government departments and authorities. It is, therefore desirable that the termination of existing leases and the occupation of any new building or alternative office space should be co-ordinated to maximise the benefits to Government.

As from today's date, no budget dependent agency is to enter into a lease for or occupation of new office space or to change its existing lease arrangements without co-ordinating the changesthrough the Property Services Group. In the short-run, the aim will be to maximise occupancy of existing Government owned buildings and preference is to be given to occupying Government-owned buildings so long as the rentals and conditions are competitive.

Every budget dependent agency contemplating any change in office accommodation should immediately notify Dr. Blair Hunt of the Property Services Group with an indication of the amount of space required and the time at which the move is to be made.

Outer budget agencies are requested to consult with the Property Services Group within a view to using Government-owned office space, where possible.

Where agencies seek to negotiate for rental of alternative accommodation requests are to be referred to the Property Services Group. Agencies will need to show cause as to why they should either relocate from their existing accommodation or not occupy alternative Government accommodation. Any approval for non-Government accommodation must be approved by the Director General of the Premier's Department.

I have directed the Property Services Group to report to me through the Director General of the Premier's Department on a regular basis on office relocation, rentals and availability of Government-owned office space.

This direction deals only with office accommodation. It does not deal with office fitout which will remain a matter for independent agencies to manage within their budget allocations.

Nick Greiner, M.P.

Issued by: Director General's Unit
Date: 19 March 1992