Survey Ireland and the Property Registration Authority

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Working Group undertaking the Critical Review of the Proposal to Merge the Valuation Office, Ordnance Survey Ireland and the Property Registration Authority

REPORT TO GOVERNMENT

June 2012

List of abbreviations

LINZ Land Information New Zealand

LPI Land and Property Information (New South Wales)

LPS Land and Property Services Agency (Northern Ireland)

LPSIS Land, Property & Spatial Information Services 1

LSG Land Services Group (South Australia)

LTSA Land Title & Survey Authority (British Columbia)

OSI Ordnance Survey Ireland

PRA Property Registration Authority

PSRA Property Services Regulatory Authority

SDI Spatial Data Infrastructure

SLIP Shared Land Information Platform [Western Australia]

VO Valuation Office

WTE Whole Time Equivalent (in relation to staff)

1 Land, Property & Spatial Information Services is the working title in this report for the possible organisation which would result from a merger of the Valuation Office, Ordnance Survey Ireland and the Property Registration Authority 2

Table of contents

Page

Foreword 6

Executive Summary of Report 7

Chapter 1 Introduction 13

Background...... 13

1.1 Public Service Reform Plan...... 13

1.2 Working Group ...... 13

1.3 McCarthy Report ...... 14

1.4 Brief Description of Three Agencies under Review ...... 14 1.4.1 Property Registration Authority...... 14 1.4.2 Valuation Office...... 15 1.4.3 Ordnance Survey Ireland...... 16

1.5 Technology Background...... 17 1.5.1 Property Registration Authority...... 17 1.5.2 Valuation Office...... 17 1.5.3 Ordnance Survey Ireland...... 18

1.6 Common Issues / Complementarities...... 19

1.7 Creating a Merged Land, Property and Spatial Information Services Organisation (LPSIS) is consistent with principle and is feasible...... 20

Chapter 2 Approach in Other Countries 21

2.1 Northern Ireland – Land and Property Services Agency ...... 21 2.1.1 Governance of LPS (NI) ...... 21 2.1.2 Ministerial Control...... 22 2.1.3 Accountability ...... 22 2.1.4 Lessons from Northern Ireland Experience ...... 23

2.2 Australia...... 24 2.2.1 Land Victoria ...... 24 2.2.2 Landgate, Western Australia ...... 25 2.2.3 Land & Property Information, New South Wales ...... 26 2.2.4 Land Services Group, South Australia...... 27

2.3 Land Information New Zealand (LINZ)...... 27

2.4 Canada – Land Title and Survey Authority, British Columbia ...... 27

2.5 Lessons from Experience in Other Common Law Jurisdictions 28

Chapter 3 Administrative Costs and Benefits of Proposed Merger 29

3.1 Broad Organisational Structures...... 29 3.1.1 Property Registration Authority...... 29 3.1.2 Valuation Office ...... 30 3.1.3 Ordnance Survey Ireland ...... 31

3.2 Income and Expenditure of the three organisations...... 32

3.3 Staff Numbers...... 33 3.3.1 Property Registration Authority...... 33 3.3.2 Valuation Office ...... 33 3.3.3 Ordnance Survey Ireland...... 34

3.4 Non-Pay Administrative Costs ...... 34 3.4.1 Property Registration Authority...... 34 3.4.2 Valuation Office ...... 35 3.4.3 Ordnance Survey Ireland...... 35

3.5 Major Deliverables set out in Strategic and Business Plans ...... 35 3.5.1 Property Registration Authority...... 35 3.5.2 Valuation Office ...... 38 3.5.3 Ordnance Survey Ireland...... 39

Chapter 4 Policy Risks and Benefits 42

4.1 Funding ...... 42

4.2 Leadership/Governance ...... 43

4.3 People/Staff...... 44

Chapter 5 Legislation and Statutory Roles 45

5.1 Property Registration Authority...... 45

5.2 Valuation Office...... 46

5.3 Ordnance Survey Ireland...... 47

5.4 Legislative Changes Required to Achieve A Merged Land and Property Organisation...... 49

Chapter 6 Inputs from Agencies 50 6.1 Valuation Office...... 50 6.2 Ordnance Survey...... 51

Chapter 7 Recommendations to Government 53

7.1 The Working Group recommends to Government that, in principle, it should decide to proceed with a merger of the Property Registration Authority, the Valuation Office and Ordnance Survey Ireland...... 53

7.2 The Working Group recommends to Government, that, if it decides to proceed with the merger, a Transition Team should be put in place as soon as possible to advance the merger process...... 54

7.3 The Working Group recommends to Government that, if it decides to proceed with the merger, consideration should be given to the appointment at an early date of a Chief Executive Officer Designate of the new merged organisation to act as key driver in respect of the merger...... 55

7.4 The Working Group recommends to Government that, if it decides to proceed with the merger, responsibility for the Property Registration Authority, Valuation Office and Ordnance Survey Ireland should be transferred to a single Minister...... 55

7.5 The Working Group recommends to Government that, if it decides to proceed with the merger, the legislative requirements for the merged organisation should be assessed as a matter of priority...... 56

APPENDIX 1 MEMBERSHIP OF THE WORKING GROUP ...... 58

APPENDIX 2 TERMS OF REFERENCE FOR THE WORKING GROUP ...... 59

APPENDIX 3 GUIDING PRINCIPLES INFORMING THE GOVERNMENT’S APPROACH TO AGENCY RATIONALISATIONS ...... 61

APPENDIX 4 NATIONAL REVALUATION PROGRAMME...... 62

APPENDIX 5 VALUATION TRIBUNAL...... 65

APPENDIX 6 ORDNANCE SURVEY IRELAND PENSIONS ISSUE...... 66

APPENDIX 7 GEODIRECTORY [OSI joint venture with An Post] ...... 67

APPENDIX 8 OSI Service Agreement ...... 68

APPENDIX 9 Details of Technology Employed by the Three Agencies...... 69

APPENDIX 10 Detailed Paper from the Valuation Office...... 79

APPENDIX 11 Detailed Paper from Ordnance Survey Ireland 93

APPENDIX 12 Detailed Paper from Property Registration Authority 114

Foreword

The Working Group was established to conduct the critical review of one of the Agency rationalisation proposals set out in the Government’s Public Service Reform plan, i.e. the proposal to merge the Valuation Office, Ordnance Survey Ireland and the Property Registration Authority.

As Chair of the Group, I would like to thank all the members of the Working Group for their contributions to the deliberations of the Group. All members demonstrated their commitment to ensuring that the review was conducted in the most searching way possible within the time available, and to arriving at recommendations to Government that the Group as a whole could stand over.

I would particularly like to thank Mr John Wilkinson, Chief Executive Officer of Land and Property Services Northern Ireland and his team for being particularly generous with their time and expertise. Mr Wilkinson was most forthcoming in sharing the lessons learned from a similar merger undertaken in Northern Ireland which has resulted in the establishment of the Land and Property Services organisation.

I would also like to express my thanks to the Secretariat to the Working Group, which comprised relevant officials from the Department of Justice and Equality and in particular to Mr Michael Holohan, Secretary to the Working Group.

We were very conscious throughout of the importance of the task we were given, the potential impact of the proposed merge on those working in the existing organisations and the concerns of those externally who recognise the possible efficiencies and synergies which might be derived from a new strong merged organisation which can make a valuable contribution to national recovery.

Dr Deirdre O’Keeffe, Department of Justice & Equality Chair of the Working Group

June 2012

Executive Summary of Report

i. The Government’s Public Service Reform Plan published on 17 November 2011 includes proposals for the rationalisation of State Agencies/Bodies. One of these proposals, included in a group of proposals to be critically reviewed by end June 2012, was to “Merge the Valuation Office and Ordnance Survey Ireland and the Property Registration Authority” .

ii. Accordingly, the Department of Justice and Equality, which was designated as the lead Department in relation to this proposal, convened a Working Group to undertake the critical review. In accordance with guidance from the Department of Public Expenditure and Reform, the Working Group comprised representatives from the three State Agencies concerned, from their parent Departments, and from the relevant Vote Section of the Department of Public Expenditure and Reform. 2

iii. The Working Group met in full session four times in the course of its work. In addition, there was substantial and ongoing communication between all the parties represented on the Working Group during the period in which the critical review was undertaken. The Group undertook an examination of all aspects of the three Agencies under consideration. In addition, the Secretariat to the Working Group undertook a survey of the organisational architecture of organisations with similar functions in other jurisdictions. A number of members of the Working Group met with officials from Northern Ireland’s Land and Property Services organisation, which had been established as a result of the merger of the counterparts to the three Agencies currently under consideration.

iv. Public Service Reform highlighted five major commitments to change. In completing its Report, the Working Group gave due consideration to those five principles. The Working Group took the view that any merged organisation should have at the core of its mission these five commitments:

1. Placing customer service at the core of everything we do; 2. Maximising new and innovative delivery channels; 3. Radically reducing our costs to drive better value for money; 4. Leading, organising and working in new ways; 5. Strong focus on implementation and delivery.

v. In principle, it was accepted by the members of the Working Group that a merger of the three Agencies was feasible and potentially could give rise to efficiencies and synergies in a number of areas. However, an

2 For details of the Membership and Terms of Reference of the Working Group, see Appendices 1 and 2 to this Report. 7

assessment of the nature and scale of these will require further assessment, including a risk assessment and cost benefit analysis. The view that a merger of the three Agencies is feasible is supported by the large number of common law jurisdictions, e.g. Northern Ireland, several Australian States, New Zealand, and British Columbia in Canada, which have already followed the approach of merging their property registration, valuation and national mapping agencies. Information on this international experience is set out in Chapter 2 of this Report.

vi. The Working Group was of the view that, if a merger of the three Agencies is proceeded with, there are a variety of typologies of possible mergers. At one end of the spectrum, there would be a “minimalist” merger, with one overall governance structure and shared back office services, but possibly three separate operating Divisions acting to fulfil their own statutory functions based on the three Agencies currently in existence. A merger of this type would be easier to achieve but would be unlikely to give rise to significant synergies or efficiencies. At the other end of the spectrum would be a fully integrated new Land, Property and Spatial Information Services Organisation with full integration of staff, information systems and databases. A more integrated organisation of this nature would be more difficult to achieve but would be much more likely to give rise to efficiencies and new, innovative services. vii. The proposed merger of the Valuation Office, Ordnance Survey Ireland and the Property Registration Authority provides an opportunity for more efficient and cost-effective delivery of land, spatial data and property administration services. Savings in the short to medium term may be possible from the consolidation of common back office functions such as HR, conventional ICT systems, Financial Management and a potential reduction in the cost of accommodation and software licensing. In the longer term, more efficiencies/synergies may be achievable in operational areas and through the exploitation, including where possible commercialisation, of combined data sets. viii. A major opportunity may arise from combining the data sets and information held by the three organisations. The PRA, VO and OSI together manage the most comprehensive set of property and spatial data in Ireland. Unlike many other organisations, they have full national coverage for the data they hold. Over the last decade, the State has made very substantial investment in the development and population of the databases managed by the three organisations. Examples from other jurisdictions suggest that the State could achieve a very powerful tool/resource for planning, delivery and enforcing new policy initiatives, especially in relation to the implementation and enforcement of fiscal policy, from combining such datasets. By combining the information resources maintained by the three organisations there is a real opportunity to create the core reference material for the development and maintenance of a National Land Administration system and the

primary fundamentals for the development and delivery of a National Spatial Data Infrastructure. The combined datasets could also provide a key focus for the development of other location-based services across Government and potential services to the private sector, as is the case in some other European countries, such as Norway and the Netherlands. However, achieving such an integrated information resource would require substantial investment in the medium term. ix. The three Agencies under review possess a vast legacy of historical records in which a major part of Irish social history is enshrined. This has resulted in an unrivalled archive of Land Registration, Valuation and Cartographic information, which provides a unique insight into the development of Irish society since the 19 th Century across the commercial, political, agricultural and industrial spheres. This invaluable resource could provide a significant genealogical research facility to both the private and educational sectors.

x. Merging the PRA, VO and OSI would result in a large new Land, Property and Spatial Information Services Organisation with approximately 950 staff. Based on the current situation, it would have annual expenditure of over €60m per annum, would generate some €33m from private sector sources per annum, and (as is currently the case) would require State funding of the order of €28m per annum. Staff costs amount to over 75% of the overall combined expenditure of the three organisations.

xi. Each of the three Agencies being considered for the merger has its own specific legislation. Summary information in relation to the existing legislative provisions is set out in Chapter 5 of this Report. In order to achieve a fully merged new organisation, significant legislative amendments would be required by way of new legislation to establish a merged Land, Property and Spatial Information Services Organisation. Ideally in order to achieve a merged organisation and to encourage the development a new “merged” culture, it is recommended that each of the three relevant statutes would need to be revoked and replaced by a dedicated new piece of legislation establishing on a formal basis the new Land, Property and Spatial Information Services Organisation. xii. There are a number of issues which would require to be addressed (either legislatively or on an administrative basis) to ensure a smooth transition to a merged organisation. These include:

1. Governance of the new Organisation 2. Future status of the Valuation Tribunal 3. How to reconcile differing staffing status of the three bodies (see reference below to possible mechanisms under Croke Park) 4. Commercial aspects of OSI 5. Possible need to address issues around GeoDirectory (OSI Joint Venture with An Post) 6. Legacy Pensions Liability.

xiii. Notwithstanding the need for legislative change in order to achieve a merger, it should be possible to progress the merger in the interim through a variety of transitional arrangements. The Working Group noted the indications in Public Service Reform that consideration should be given to the elimination of Boards in respect of State Agencies. The Working Group considered that the specific governance structure to be adopted in respect of the merged organisation can be considered further by the proposed Transition Team (see xx below), while noting that it may be the case that different governance arrangements might be required in respect of, for example, the possible commercial arm of the merged organisation. Notwithstanding this, it should be possible to appoint a Chief Executive Designate of the new Organisation to drive forward the merger pending the completion of the necessary legislative changes. xiv. In the work of the Working Group, OSi identified two options for the future development of the three Agencies under review. OSi’s preferred option is a collaborative model whereby OSi, PRA and VO would enter into a Spatial Data Infrastructure Agreement establishing a shared service and back office function to achieve cost saving opportunities and expertise. The second option is a full merger of PRA, VO and OSI.

xv. This collaborative approach, which would be based on a legally formalised co-operative agreement between the three Agencies, would have the following advantages: • Allows for achievement of cost savings and development of expertise in a short to medium timeframe; • Puts in place a strategic Spatial Data Infrastructure, available to all public service stakeholders; • Would streamline Government funding through a Pan-Government agreement on funding; • Eliminates the need for significant upfront expenditure to ensure the creation of a viable entity; • Ensures the development of an integrated commercial model which could reduce the overall cost to the State; • Less risk of integration failures.

It is recognised that there are also disadvantages in the collaborative model (see Appendix 12) but the benefits sought by Government under its five criteria for Public Service Reform can be achieved more quickly through a collaboration model rather than a full merger. xvi. While noting these issues, the Working Group concluded the preferred option was for a full merger of the three Agencies. A full merger of the three Agencies would have the following benefits over a formalised form of co-operation between three separate Agencies: • Reduces the number of State Agencies in line with Government policy; • Would provide for one single model of ownership of data;

• Offers the potential to achieve savings in back office costs in the medium term; • Would provide for savings in areas such as accommodation; • Would allow for more effective sharing of expertise; • A single entity would have more influence in national spatial data strategy development and implementation; • More likely to ensure a shared culture and ethos in one merged organisation than in three separate Agencies with divergent priorities and goals. xvii. The Working Group recognised and acknowledged, however, that there are risks and costs associated with a full merger of the three Agencies to form a new Land, Property and Spatial Information Services Organisation. These risks/costs include: • Possible need for significant upfront expenditure to ensure the integration of systems, etc to ensure a viable merged entity; • Possible loss of commercial focus currently encompassed within OSI; • Difficulties in achieving a shared culture and ethos in new merged organisation; • Possible significant IR/HR issues; • Cost savings may take longer to realise than is currently envisaged; • Potential for a loss of focus on core business of the three organisations with a diversion of attention to merger-related issues. xviii. A decision to merge three successful organisations gives rise to both challenges and opportunities. The Working Group identified, as a key deliverable of the merger process, the need to ensure that all three agencies, which are central to matters relating to land and property in Ireland, maintain a focus on the delivery of their key projects and activities during the transition to a new institutional framework. xix. The Working Group recommends that, as an initial step, there is a need to transfer responsibility for the three Agencies to one Minister. There was some debate in the Group as to which Minister would be most appropriate to have responsibility for the merged organisation.

Public Service Reform suggests that it should be the responsibility of the Minister for Justice and Equality, who has responsibility for the Property Registration Authority, which is the largest of the three organisations under consideration.

However, some Working Group members were of the view that the merged organisation might be more appropriate to the Minister for Public Expenditure and Reform (as the custodian of public service reform) or the Minister for the Environment, Community and Local Government (who has policy responsibility for the National Spatial Strategy, the Irish Spatial Data Infrastructure and the INSPIRE Directive).

The Valuation Office identified a concern in relation to the appropriateness of the valuation function being under the direct responsibility of the Minister for the Environment, Community and Local Government as perceived conflicts of interest could arise for the Minister involving the body setting the valuations and those bodies (i.e. local authorities) who are collecting revenue on the basis of those valuations.

Accordingly, the Working Group believes that it will be necessary to (a) determine the most appropriate Minister and (b) transfer responsibility for the three Agencies to that Minister.

xx. The Working Group recommends that a Transition Team, representative of the parent Departments of the three Agencies, and of management of the Agencies themselves, possibly with additional relevant expertise, should be put in place at an early date. The Transition Team will need to advance a considerable body of work and a reasonable timeframe will be needed for the Team to complete its work. Matters to be addressed by the Transition Team in the first instance should include:

i. Deciding on an appropriate Governance Framework for the new organisation; ii. Developing a Corporate Data Model for the new organisation; iii. Carrying out a formal Cost Benefit Analysis of the merger; iv. Assessing investment requirements for the new organisation, including the required investment to integrate the IT systems and databases of the three Agencies; v. Giving further consideration to the legislative changes required to effect the merger process. xxi. The Working Group further recommends that staff concerns in relation to the merger process should be addressed at an early stage and that an intensive communications process with staff interests, including unions, as the merger proceeds, should be put in place. xxii. The Working Group also recommends that, pending the establishment of the merged organisation on a statutory basis, consideration should be given to the appointment at an early date of a Chief Executive Officer Designate of the new organisation to act as a key driver in respect of the merger.

Chapter 1 Introduction

Background

1.1 Public Service Reform Plan The Public Service Reform Plan, published by Government on 17 November 2011, includes proposals for the rationalisation of State Agencies/Bodies including (a) the rationalisation of 48 bodies by the end of 2012; and (b) nominating another 46 bodies for critical review by end June 2012.

Details of the 46 bodies to be critically reviewed by end June 2012 were set out in Appendix IIb to the Public Service Reform Plan. One of these was a proposal to “Merge the Valuation Office and Ordnance Survey Ireland and the Property Registration Authority.” The Department of Justice and Equality was identified as the lead Department in relation to this proposal.

1.2 Working Group Accordingly the Department of Justice and Equality convened a Working Group to undertake a critical review of the proposal to merge the Valuation Office, Ordnance Survey Ireland and the Property Registration Authority. In accordance with guidance from the Department of Public Expenditure and Reform, the Working Group included representatives from the three Agencies concerned and from their three parent Departments 3. The Working Group took full account of the Guiding Principles which inform the Government’s approach to agency rationalisations 4.

The Working Group met on four occasions during 2012 as follows: • 20 April • 16 May • 8 June • 20 June

In addition, Working Group members engaged intensively with each other and with the Secretariat in the Department of Justice and Equality during the critical review process. This Report represents the outcome of that process.

The Working Group undertook an examination of each of the three Agencies under review in relation to their functions, governance arrangements, funding models, financial and staffing resources, etc. The information garnered in this process is set out in the Main Report.

3 The Membership and Terms of Reference of the Working Group are set out at Appendices 1 and 2 to this Report. 4 See Appendix 3 to this Report 13

Ireland is not the first country to consider merging its land registration, valuation and national mapping functions. Accordingly, the Secretariat, with the assistance of members of the Working Group, undertook a survey of the organisational architecture of organisations with similar functions to the three Agencies in other jurisdictions. The Working Group would like to acknowledge the particular assistance it received in this regard from the Land and Property Services organisation in Northern Ireland. Chapter 2 of this Report sets out the position in a number of common law jurisdictions which have merged their property registration, valuation and mapping functions.

1.3 McCarthy Report 5 The 2009 McCarthy Report identified the possibility of merging the Valuation Office, the Ordnance Survey of Ireland and the Property Registration Authority. In relation to a merger of the Ordnance Survey and the Property Registration Authority, the McCarthy Report noted “there are clearly complementarities between the two organisations, not least that the PRA is one of the OSI’s major customers. It is a model that has worked elsewhere.” The McCarthy Report went on to indicate “The Group also concluded that the Valuation Office’s operations would fit with the merged PRA/OSI with strong potential for efficiencies and synergies.”

The McCarthy Report suggested that annual savings across the three Agencies in due course in the case of a merger could exceed €5m 6. It noted that “A precedent for amalgamation exists in Northern Ireland, where the Ordnance Survey, the Land Registers, the Rate Collection Agency and the Land and Valuation Agency have recently been merged to form a new Land Property Agency.”

1.4 Brief Description of Three Agencies under Review

1.4.1 Property Registration Authority The Property Registration Authority (PRA) was established under the Registration of Title and Deeds Act 2006. The function of the PRA is to provide a secure, reliable and effective legal system for registering property ownership and so enable property and related financial transactions to take place in confidence. There are two separate systems for recording transactions in relation to property in Ireland:

• Registration of Title system (operated by the Land Registry since 1892) which provides a State-guaranteed title to property and • Registry of Deeds system operated by the Registry of Deeds since 1708 which caters for property not yet registered by the Land Registry. Both systems which are mutually exclusive are managed by the PRA.

The PRA is also responsible for the Ground Rents purchase scheme.

5 Report of the Special Group on Public Service Numbers and Expenditure Programmes (2009), more commonly known as the “McCarthy Report” or “An Bord Snip Nua”. 6 McCarthy Report suggested possible annual savings of €0.6m in respect of OSI, €2m in respect of the Valuation Office (comprising €0.5m of administrative efficiencies and €1.5m in other savings) and €3.7m in respect of the PRA [including projected staffing reductions of 70]. 14

Prior to establishing the PRA, the Department of Justice conducted a detailed review of the Land Registry with a view to its proposed reconstitution as a commercial State-sponsored body. A concern of the review undertaken by the Department was that the provision of title registration (through a commercial State company) should not be exposed to the commercial uncertainties of company law, such as receivership and liquidation arising from insolvency. The conclusion arrived at, in consultation with the Department of Finance, was that a commercial semi-State body was neither an appropriate legal or organisational model for registration of title.

The Property Registration Authority currently consists of eleven members appointed by the Minister for Justice and Equality. Its members are representative of the main users and consumers of property registration services.

All staff of the PRA are civil servants. As at 30 April 2012, the PRA has 553 whole-time equivalent posts. The PRA’s Head Office is in Dublin and it also has offices in Waterford and Roscommon.

1.4.2 Valuation Office The Valuation Office is the State property valuation agency. The core business of the Office is the establishment and maintenance of a uniform and equitable valuation base on which commercial rates are raised by local authorities. The Valuation Office is the office of the Commissioner for Valuation and Chief Boundary Surveyor and is governed by the Valuation Act 2001 which comprehensively revised and updated the law in relation to the valuation of properties for the purposes of the making of rates in relation to them.

The activities of the Office underpin the collection of some €1.35 billion in rates by local authorities, which is a very significant element in financing their activities.

The Office also provides a limited property valuation consultancy service to other Government Departments, local authorities, the Health Service Executive and the Revenue Commissioners.

All staff of the Valuation Office are civil servants. There are 140 staff in that Office comprising 77 professional valuers, 56 administrative staff and 7 technical mapping staff.

The 2001 Act also provides for the continued existence of the Valuation Tribunal . The Valuation Tribunal is a [nominally] independent Agency which deals with appeals against decisions of the Commissioner of Valuation. 78

7 Unusually for an independent body, the Valuation Tribunal is funded from the Valuation Office vote and all of its staff (5 to 8 staff) are paid from the Valuation Office vote. See also Appendix 5 to this Report. 15

The Office is conducting a National Revaluation Programme which began in November 2005. 9 There have been significant delays in completing this programme and the Office is actively exploring ways of accelerating progress on this project.

The Valuation Office is located in the Irish Life Centre, Dublin 1. Although the lease for that location is due for renewal in September 2012, there are indications that the Office of Public Works is negotiating a renewal of the lease with a view to retaining the premises. There are no regional or decentralised offices

1.4.3 Ordnance Survey Ireland Ordnance Survey Ireland is the national mapping agency for Ireland since 1824 and currently operates under the Ordnance Survey Act 2001 . OSi has a dual mandate covering both public service obligations and commercial activities and is responsible for the official, definitive surveying, topographic mapping and related spatial information products and service for the public and private sectors in Ireland.

Its primary product is mapping services. OSI produces a very comprehensive range of urban, rural, tourist and leisure products at a variety of scales in both digital and paper form. OSI, a leading source of authoritative geographic data contributes to modern Government, economic growth and delivering values to all stakeholders in Ireland. Other spatial products include aerial photography, digital terrain models and online web services.

OSI is also mandated to provide the necessary technical support to the Chief Boundary Surveyor in the performance of his/her duties in delimiting statutory boundaries and OSI is responsible for production and maintenance of the definitive boundary datasets of the State, including County, ED (Electoral Division), Small Areas and Townlands.

OSI’s customer base spans all sectors of society. It includes both public and private sectors and also licenses the use of its data for a wide range of computer based applications such as Computer Aided Design (CAD) and Geographic Information Systems (GIS). Using these systems and technological developments has also allowed disparate organisations to analyse their own data by using OSI mapping data in conjunction with their own information. These organisations include a wide range of utility businesses, private industry, the PRA, the Valuation Office, local authorities and several State Agencies.

Public bodies, (Nationals and local) and public utilities are the primary users of high quality spatial data sets and high resolution mapping. As a result, of

8 In Northern Ireland, the Valuation Tribunal is completely separate from the Land & Property Services Agency (which incorporates the Commissioner of Valuation). The Valuation Tribunal Northern Ireland is housed within the NI Courts and Tribunals Service. 9 For further information on the National Revaluation Programme, See Appendix 4 to this Report. 16

OSI’s total revenue of €24 million, almost €11m is derived from a variety of public service customers, including Government Departments, State Agencies and local authorities. OSI derives some €8m from private/commercial sector customers. Almost €5m of OSI revenue is funded in accordance with a Service Level Agreement (SLA) between OSI and the Minister for Communications, Energy and Natural Resources. The SLA covers the public interest element of OSi’s remit as provided for in primary legislation.

OSI has a Board of ten members who are appointed by the Minister for Communications, Energy and Natural Resources.

The staff of OSI are public servants. There are approximately 250 staff in OSI, a substantial number of whom are professional surveyors, technical mapping experts, sales and marketing professionals, GIS specialists and IT professionals.

The Head Office of OSI is at the Phoenix Park, Dublin 8. It also has regional offices in Sligo, Longford, Tuam, Kilkenny, Ennis (Air Survey Unit linked to Shannon Airport) and Cork. At present 83 staff are located in these offices.

1.5 Technology Background The key distinct and/or mission critical systems of each of the three Agencies are outlined below. More detailed information on the technology infrastructure of each of the three Agencies is set out at Appendix 9.

1.5.1 Property Registration Authority

The key operational system used by PRA staff to process casework is the Integrated Title Registration Information System (ITRIS) . This is a client- server bespoke system developed in Oracle forms, A Document Imaging Management System (DIMS) is used to index and store images of the Land Registry records including folios (the register) and related maps (title plans). The DIMS application is provided as a seamless service to ITRIS users through a close integration with ITRIS, www.landdirect.ie (their online service to customers) and the underlying database. Digital Mapping Systems (DMapS) are used to manage and report on the spatial element of the Title Register held within the ITRIS database. It comprises some 3 million parcels made up of 19 million boundaries, 350,000 area burdens (e.g. rights of way) and 60,000 line or point burdens (e.g. pipelines, wells). It is used to service the mapping requirements of the registration process and to support and provide map inspection services and certified document services to customers through the mapping components of www.landdirect.ie . The title boundaries are represented in the context of the OSI Irish Transverse Mercator map with relevant reference to OSI feature data where appropriate.

1.5.2 Valuation Office VOS Database is an application being developed specifically in VB6/SQL server to maintain the Valuation Office list. VO Worklist/Reval system comprises current applications specifically developed in VB6/SQL server to 17

maintain the Valuation Office list. These applications will be replaced by the VOS Database but need to be retained for archival purposes. GIS Development – the Valuation Office has customised GIS components (MapX) which are integrated into the main database application VOS and website services. A GIS Android Smart Phone app is also under development.

1.5.3 Ordnance Survey Ireland The following are key surveying and mapping technologies used and developed by OSi for production efficiencies and for providing customers with enhanced services and benefits:

GPS Network: a national network of public and private surveyors via OSI’s corporate website.

Digital Area Data Capture: OSI operate two aircraft on a lease basis to carry out low to medium altitude aerial surveys using specialist flight planning software (FPES).

Aerial Triangulation: process of performing a number of measurements in the captured aerial imagery, and combining a number of surveyed ground points to tie the imagery into Ireland’s national grid to enable national mapping to be created or updated.

Digital Image Processing: the aircraft trajectory is processed utilising both onboard IMU and GPS positional data together with the simultaneous ground station GPS data. The aircraft trajectory is applied to the raw image data creating geo-referenced image data to allow use of this imagery in Ireland’s national coordinate system.

Field Surveying Technology: OSI has a team of 35 field surveyors competent in the use of a variety of technologies to capture data in a highly efficient digital process.

Data Completion Technology: the data editing software application used is 1Spatial’s “Radius Vision” with various complementary applications/utilities to assist in the completion and management of vector/raster data.

Data Quality Management: OSI operates an embedded Data Quality Management System that caters for all Large Scale data quality issues, including a Data Quality Help Desk which is a customer focused help desk using Wonderdesk.

Map Publishing System: OSI operates an in-house publishing flowline running on StarApic’s “Mercator DB” cartographic publishing application using Oracle database.

Digital Image Management: operates using Erdas Apollo for internal operations and ESRI Image Server for customer supply.

National Address Database: OSI database is linked in realtime over a private network to An Post, co-owners of the Geo-Directory. Each evening, datasets are reconciled between both organisations and every month datasets are quality checked by running comparison scripts.

Ecommerce Supply System: OSI updates over 250 map sheets per week and over 500gb of data from production to supply systems each fortnight which involves database tuning and administration, backups of all mapping data taken and sent off-sites and a system refresh allowing supply operate successfully.

Web Services: online delivery of the national map database directly to customers’ desktop applications, or online web applications via ESRI ArcGIS technology and Oracle databases.

OSI Spatial Strategy

OSI’s current spatial information strategy, known as Prime2, of developing an industry standard geographic information framework for referencing of all national geographic information has been under development since 2007 and on target for implementation during 2013. The Prime2 provides an industry standard data model for the storing and integration of national geographic information. It provides a unique digital ID referencing for national geographic information and enables OSI to achieve and maintain even higher levels of data quality for its customers while enabling it to store and manage a wider range and intelligence of geographic information for the benefit of all.

1.6 Common Issues / Complementarities It was generally accepted by the Working Group that not only did existing complementarities between the three Agencies need to be considered, but the potential for developing new/enhanced complementarities or synergies in the context of a merged organisation needed to be taken into account.

It was noted that the three Agencies each hold key databases of information in relation to land and property with national coverage. A first step in achieving such integration would be the development of a Corporate Data Model for the new organisation. As set out in paragraph 1.7 below, this presents significant potential opportunities if these databases are integrated. Of course, with every opportunity there is a potential risk. Extracting the public value from integrating these databases will, as is discussed elsewhere in this Report, require a certain level of investment, both in IT infrastructure and in allocating staff and other resources, over the medium term.

1.7 Creating a Merged Land, Property and Spatial Information Services Organisation (LPSIS) is consistent with principle and is feasible

There is a considerable degree of complementarity between the three organisations. Merging the three organisations offers the opportunity to develop an integrated Land, Property and Spatial Information Services organisation that can potentially be stronger than the sum of the three existing organisations. The three organisations under consideration hold three key databases of geographic-related information in the State and integrating or bringing these databases together could give rise to significant added value. This could be an important support for evidence-based policymaking in a variety of policy areas, such as property tax implementation, water monitoring and management, land coverage analysis, natural and built heritage, land use planning, postcodes and management of State land and property assets. However, it should be noted that achieving such an integration of systems and datasets could require a significant level of investment in the short to medium term.

The establishment of a new Land, Property and Spatial Information Services Organisation would potentially result in a more coordinated and holistic approach at both national and EU level in relation to spatial/geographic issues. This could strengthen and/or support national initiatives in related policy areas, e.g. development of the Irish Spatial Data Infrastructure and implementation of the EU INSPIRE Directive.

Chapter 2 Approach in Other Countries

The Working Group undertook an examination of common law jurisdictions that have merged their national or State mapping, valuation and land registration functions. In the case of British Columbia in Canada only the land title (registration) and surveying (mapping) functions are merged. Information in relation to the various jurisdictions examined is set out below.

2.1 Northern Ireland – Land and Property Services Agency

In Northern Ireland, Land and Property Services 10 (LPS) is an executive Agency of the Department of Finance & Personnel. This Agency, established in 2007, is responsible for mapping, land registration, rating and valuation. Its functions include:

• Providing & maintaining a valuation list for all properties in Northern Ireland – Domestic and non-domestic; • Providing a general valuation advice service to the public sector in Northern Ireland; • The billing and collection of rates in Northern Ireland and the administration of various rate-related reliefs, benefits and allowances; • Maintaining the Title Register in, Land Registry, Statutory Charges Register and the Registry of Deeds and providing up-to-date, accurate Land Information Services; • Supplying mapping information for Northern Ireland; • Providing records and data about place and location.

2.1.1 Governance of LPS (NI) The Chief Executive of Land & Property Services is responsible to the Minister for Finance & Personnel for the Agency’s performance and operations in accordance with the LPS Framework Document and the Business Plan. This includes responsibility for the overall day-to-day leadership and management of LPS and making regular reports to the Minister and the Department on performance and progress.

The Chief Executive is assisted in the management of LPS by the Management Board, which has 9 members (inclusive of the CEO). The Management Board is made up of both Executive Directors and Independent Board Members 11 . The Director of Valuation Services and the Director of Land Registers also hold the statutory posts of Commissioner of Valuation and Registrar of Titles respectively. The Management Board is responsible for the strategic direction of LPS by reviewing its strategic options, setting its strategic direction, monitoring performance at corporate level and ensuring that adequate governance controls are in place.

10 For further information on Land & Property Services, see www.dfpni.gov.uk/lps . Note that England and Wales (and the Scottish Government) continue to have separate Agencies responsible for land/property registration, ordnance survey/mapping and valuation office functions.

11 Independent Board members are recruited for their business experience or other skills that they bring to the Agency. They are appointed on the recommendation of the Chief Executive. 21

At the beginning of the 2011/2012 financial year, LPS had 1,047 whole-time equivalent staff in post against an agreed baseline of 1,067. The Agency’s staff are civil servants and remain employees of the sponsor Department.

The creation of LPS took place within the context of public sector reform. In March 2006, the Secretary of State stated in the Review of Public Administration that “Where there are a number of bodies carrying out related functions we propose to merge these into one organisation, streamlining the delivery of those functions and saving overheads.” Accordingly it was decided to merge the Land Registers of Northern Ireland, Ordnance Survey of Northern Ireland, Rate Collection Agency and the Valuation and Lands Agency to create the Land and Property Services Agency (LPS).

2.1.2 Ministerial Control LPS is subject to the overall direction and control of the Minister. The Minister determines the policy framework within which the Agency operates and the scope of its activities. The Minister determines the resources to be made available to the Agency, approves its Corporate and Business Plan, sets key performance targets and is advised by Departmental officials on Agency performance. The Minister delegates the day-to-day operation of the Agency but expects to be consulted by the Chief Executive on the handling of operational matters which could give rise to significant public or Parliamentary concern.

2.1.3 Accountability The Chief Executive Office is the Agency Accounting Officer and is accountable for the proper, effective, efficient and economic use of resources provided to the Agency, for the regularity and propriety of its expenditure and for ensuring the requirements of Government Accounting Northern Ireland are met.

The Agency is required to prepare a Corporate & Business Plan aligned with that of the sponsor Department. The Corporate Plan is to cover strategic issues over a period of three years and will be reviewed at least annually. The Business Plan is to be prepared in consultation with Departmental officials and submitted to the Minister annually and sets out:

• the Agency’s mission, vision and strategies for carrying out the Agency’s remit; • the Agency’s key performance targets; • in general terms forecasts of trading performance and any major new marketing initiatives; • an assessment of the relevant external factors which influence the Agency’s activities and key planning assumptions; • a comprehensive risk management plan, explaining how risks might best be managed; • key investment programmes; • a forecast of anticipated resource needs, including staff; • the Agency’s proposed capital expenditure requirements;

• efficiency objectives, strategies and plans; • the Agency’s staff development programme; and • any such additional information as the Agency may be required or decide to provide.

2.1.4 Lessons from Northern Ireland Experience A number of members of the Working Group and the Secretariat met with members of the Executive Team of Land and Property Services Northern Ireland, to discuss the issues which arose in the context of the merger of the relevant organisations in Northern Ireland to form LPS.

Firstly, it was noted that merging the relevant organisations in Northern Ireland 12 to form LPS did not require any legislation 13 , i.e. it was done on an administrative basis. This is because the legislation in relation to these various organisations was written around their business functions, not around the internal structure of those organisations.

Some of the key learning points from the Northern Ireland experience were:

• It is possible to merge land registration, valuation and ordnance survey organisations; • Some of the key synergies/efficiencies will not manifest themselves for some time – up to five years or more; • Substantial upfront costs in merging the three organisations need to be recognised and resources need to be put in place to facilitate the merger, e.g. for change management/transformation costs, systems integration, accommodation costs, capital investment; • Future Government policy (e.g. in the area of property tax) must be aligned to the operational plan of the organisation; • Stakeholder and organisational reputation issues will emerge and will need careful management, as will internal and external communications; • A well resourced management team will be required to deliver an effective merger.

The Chief Executive of LPS stressed the desirability of bringing together all the staff from merged organisations to a single centralised location as soon as possible to contribute to the development of a shared organisational ethos. He was strongly of the view that in the short term, a dedicated resource should be made available to support the merger and drive business transformation. He confirmed that it would be possible to achieve efficiencies in back office areas (HR/Finance/Corporate Affairs) relatively quickly. It would also be possible to achieve efficiencies in operational areas over a longer time frame.

12 The Agency (LPS) was initially established from the merger in 2007 of the former Rate Collection Agency and the Valuation and Lands Agency. This was followed with the addition of the Land Registers of Northern Ireland and the Ordnance Survey of Northern Ireland in 2008. 13 As will be seen later in this Report, this would not be the case in the Republic. Legislation would be required to effectively merge the three Agencies under consideration. 23

It was noted that LPS had just begun (May 2012) to publish a Quarterly Residential Property Price Index (in respect of Quarter 1 2012). This Index has been prepared with the assistance of the Northern Ireland Statistics & Research Agency. It might be noted that in the Republic, the new Property Services Regulatory Authority which was established in April 2012, will have as one of its potential functions “to maintain and publish particulars of residential property sales prices”.

2.2 Australia Four Australian jurisdictions have Title, Survey and Valuation functions merged. Three of these organisations are Divisions of Government Departments. The organisations in question are:

• Land Victoria 14 • Landgate, Western Australia 15 • Land & Property Information, New South Wales 16 • Land Services Group, South Australia 17

Summary information on each of these is provided hereunder.

2.2.1 Land Victoria Land Victoria is a Division of a central government department, i.e. the Department of Sustainability and Environment. It was established in 1996 when a number of separate government entities were merged to create a coordinated land administration system and to deliver business efficiencies and improvements to customer service. Land Victoria’s functions include: • Geospatial information • Mapping • Survey • Valuation • Crown land management • Title creation and management

The Executive Director of Land Australia is Registrar of Titles and Registrar- General. When established, Land Victoria commenced a comprehensive reform programme designed to lead to three major areas of benefit: • Reduced costs to Government through re-engineering business processes; • Reduced transaction costs for business and consumers through reengineering of business processes and streamlining of legislation; • Increased competitiveness of the State and industry growth due to more efficient use and availability of land information;

Land Victoria’s suite of reform initiatives has been progressively developed and refined over time. Key projects within this reform programme have been:

14 See www.dse.vic.gov.au/property-titles-and-maps 15 See www.landgate.wa.gov.au 16 See www.lpi.nsw.gov.au 17 See www.landservices.sa.gov.au 24

• Land Channel – a whole of government website, providing access to land related information, services and transactions from all levels of government; • Land Titles Automation – a multi-million dollar project to improve access to Victoria’s 3.8 million freehold titles by converting them from paper to digital format and building a reengineered business system; • Property Information Project – a joint initiative with local government designed to construct a Statewide view of all properties in Victoria; • The Standard Parcel Identifier – a project allocating a unique identifier to all land in Victoria thereby enabling data on land parcels collected by different bodies to be linked together; • Valuation Best Practice – a joint initiative with local government to improve land valuation practices across the State and encourage the collection, storage and transmittal of valuation information electronically (local government is the valuation and rating authority in Victoria); • Reengineering Public Land Management – a major effort to streamline and simplify management processes to enable responsive public land management by local and regional managers.

These projects have not only improved basic land administration systems and procedures, but have also assisted in establishing a comprehensive Spatial Data Infrastructure across Victoria. By 2000, the Land Victoria reform programme had developed to the stage that many of the major initiatives focusing on Victoria’s basic information infrastructure were now well advanced. Land Victoria’s strategy was therefore redeveloped to focus on realising the benefits of the integrated land information and administration framework. The resultant Property Information Online Initiative focuses on online service development and delivery. This Initiative was designed to provide the practical framework that enables Government to assemble, link, integrate and deliver land information and transactions electronically to the community, business and industry.

2.2.2 Landgate, Western Australia Landgate is the trading name of the Western Australian Land Information Authority. It is a statutory authority with commercial powers and is accountable to the Minister for Lands. Landgate’s main objectives and functions are to: • Maintain the quality and integrity of the Government’s location information services (including the State’s survey, mapping, titles and valuation functions); • Provide access to location information; and • Earn a fair commercial return on the State’s location information asset, with a view to sustaining reinvestment in high quality systems and services.

Landgate provides the public with easy access to location information including:

• Property details • Titles • Valuations • Property sales reports • Maps • Aerial photography and • Satellite imagery.

Landgate has a Board of Management that sets the strategic direction for the Authority. The Board has seven members and meets on a monthly basis. The Chief Executive has the responsibility for the alignment of the Authority’s operations with the strategic direction. The CEO is a member of the Board of Management. CEO of Landgate is the Surveyor General of Western Australia.

The Agency in conjunction with the Western Australian Land Information System (WALIS 18 ) Office has led the development of a concept that allows multiple government agencies to share spatial information – The Shared Land Information Platform (SLIP). The SLIP Enabling Framework is the infrastructure that allows users to access the government’s significant land and geographic information resources.

2.2.3 Land & Property Information, New South Wales Land & Property Information (LPI) is a Division of the Department of Finance & Services of New South Wales. LPI Division is the key provider of land information services in New South Wales. The Division’s integrated framework connects the public to a comprehensive package of land and property services, including:

• Land title information • Property information • Valuation • Surveying and mapping.

The Division seeks to maximise efficiency of and access to property information through electronic service delivery. This work focuses on automating manual processes, converting hard copy records to electronic formats and implementing electronic products and services. Key performance indicators in the regard include:

• Continued support for the development of national E-conveyancing through specifying business practice changes and systems required, and conducting a programme of industry consultation; • Establishing a Digital Plan Processing System programme to streamline the use of plan and survey information across a number of key systems,

18 Western Australian Land Information System (WALIS) is a dynamic partnership of government agencies working with business, education and the general community to manage and promote the State’s land and geospatial information. See www.walis.wa.gov.au 26

increasing efficiencies in plan examination, improving the accuracy and currency of cadastral data and reducing the data capture effort; • Conversion of old titles to electronic Torrens title, thus increasing the number of land parcels in one integrate titling system and available for electronic conveyancing; • Developing an Electronic Product Information Catalogue which will facilitate 24/7 access for all products and services.

LPI works to meet service level requirements for the statutory officers of the Valuer General, Registrar General and Surveyor General. Each of these statutory officers reports directly to the Chief Executive Officer.

2.2.4 Land Services Group, South Australia Land Services Group (LSG) is part of the Department of Planning, Transport and Infrastructure of South Australia. The Land Services Group includes the statutory offices of the Registrar General, Surveyor General and the Valuer General. LSG ensures: • That titles are the conclusive evidence of land ownership • That all dealings with land are registered • That there is an associated register of plans defining the legal boundaries of all freehold land • That the integrity of the State’s survey infrastructure and surveying standards meet community needs. • That there is a fair and equitable land valuation and property information service for rating and taxing purposes • That land information is easily available to Government, private sector and the public.

2.3 Land Information New Zealand (LINZ) 19 LINZ is a New Zealand government department responsible for land titles, geodetic and cadastral survey systems, topographic information, hydrographic information, managing Crown property and a variety of other functions including setting standards for local authorities for rating valuations. The Department includes four statutory officers – Commissioner of Crown Lands, Registrar General of Land, the Surveyor General and the Valuer General.

2.4 Canada – Land Title and Survey Authority, British Columbia The Land Title and Survey Authority 20 , British Columbia (Canada) has Title and Survey functions merged. It does not have valuation functions. [A separate Agency, BC Assessment 21 produces independent, uniform property assessments on an annual basis for all property owners in the province.] It is a statutory corporation (independent Agency) established in 2005 to manage, operate and maintain the land title and survey systems of British Columbia. While independent from Government, the Authority operates under the Land

19 See www.linz.govt.nz 20 For further information on Land Title and Survey Authority, see www.ltsa.ca . 21 See www.bcassessment.ca 27

Title and Survey Authority Act and the Operating Agreement between the Authority and the Province.

LTSA was established to deliver three main services in accordance with the land title and survey legislation: • Land title registration • Land survey standards and approvals • Crown grant issuance – i.e. issuing when appropriate Crown grant documents transferring Crown land into private ownership.

The LTSA is a statutory corporation with a unique governance structure which is governed by legislation, led by the LTSA Executive Team (headed by the Chief Executive Officer) and directed by the Board of Directors with input from the Stakeholder Advisory Committee .

LTSA is governed by an eleven-member Board of Directors responsible for strategic oversight of its business. The CEO reports to the Board of Directors. The Board is accountable to the “principals” of LTSA, namely the users of British Columbia’s land title and survey systems. Statutory post holders (Director of Land Titles and Surveyor General) report directly to the CEO.

The LTSA is fully self-financing . All its operations are funded from revenues earned from land title and survey services provided to customers. Service fee levels are established in compliance with requirements set down in the Operating Agreement with the BC Government. Under the Operating Agreement, two-thirds of the revenue from most services is collected by the LTSA and remitted back to the BC Ministry of Finance. All Property Transfer Tax fees collected by LTSA’s Land Title Offices are remitted back to the Province. Management determine staffing levels and levels of pay at LTSA.

2.5 Lessons from Experience in Other Common Law Jurisdictions

It is clear from this survey that several other common law jurisdictions have taken the approach of merging their land registration, mapping and valuation functions, either in an independent Agency or as a Division of a Government Department.

In these cases, the drive towards merging these organisations was derived from a general streamlining of Government functions and/or a desire to develop a comprehensive land administration system and/or a spatial data infrastructure. Generally the move to a merged organisation afforded an opportunity to re-engineer business processes and to focus, in particular, on web-based services to provide a more efficient and customer-friendly service.

Where the merged organisation took the form of an independent Agency, rather than a Division of a Government Department, it tended to be the case that there was in place a formal Operating Agreement or Service Level Agreement between the Agency and the relevant Minister.

Chapter 3 Administrative Costs and Benefits of Proposed Merger

3.1 Broad Organisational Structures

3.1.1 Property Registration Authority

Property Registration Authority

Chief Executive & Accounting Officer

Deputy Registrar Deputy Registrar Deputy Registrar Deputy Registrar Casework Management Corporate Affairs Operational Casework, Legal Services and and Registry of Deeds Standards (Dublin) (Dublin) (Roscommon) (Waterford) Audit Committee

Overall Caseload Management Human Resources Unit Operational Casework Overall Legal Standards HR Manager (Land Registry Roscommon) Internal Audit Operational Casework Divisional Managers Mapping Standards & (Land Registry Dublin) Corporate Services Unit Procedures Unit Divisional Managers Corporate Services Manager Operational Casework Mapping Advisor Head of (Registry of Deeds ) Internal Audit Ground Rents Casework Finance, Procurement & Observations on draft (Land Registry Dublin) Statistics Unit Adverse Possession Casework legislation Chief Examiner of Titles/ Financial Controller (Land Registry Roscommon) Divisional Manager Assistant Principals Operational Casework ICT Unit (Land Registry Waterford) Adverse Possession Casework ICT Manager First Registrations Head of Administration & (Land Registry Dublin) (Land Registry Roscommon) Divisional Managers Assistant Principals Services to Authority Chief Examiners Divisional Manager & Examiners of Titles Adverse Possession Casework First Registrations (Land Registry Waterford) (Land Registry Dublin) Office of the Chief Executive Process Assurance Group Assistant Principals Chief Examiners Secretary to Chief Executive & Examiners of Titles Data Protection First Registrations (Land Registry Waterford) Compensation Chief Examiners & Examiners of Titles Court Attendance

The Authority is a statutory body whose members are representative of the main users and consumers of property registration services. The Property Registration Authority is managed on a day to day basis by the Chief Executive, who is also the Accounting Officer. The Chief Executive Officer is, in turn, supported by four Deputy Registrars. The main functional areas are as follows:

• Casework comprising of Operational Casework, First Registrations, Adverse Possession cases, Registry of Deeds and Ground Rents. • Information services in relation to property registered. • Professional and Legal Standards and Procedures. • Administrative Support Units including HR, ICT, Corporate Services and Finance • Management Support Units including Secretariat for the Authority, data protection, process and quality assurance, internal audit, etc

3.1.2 Valuation Office

The main functional areas in the Valuation Office are as follows:

• Valuation Services – comprised of Revision, Revaluation, Market Valuation and Global Valuations and Central Administration Services; • Appeals – processes appeals to the Commissioner and appeals to the Valuation Tribunal and to the Courts • Data Capture and Analysis – Central Market Analysis Unit, Quality Assurance Testing, Data Capture Unit (Physical Data Capture), Modelling and Statistical Analysis, Statistical Reporting on Performance; • ICT – ICT Unit, Hardware and Software maintenance and development, Geographic Information Systems, Network Support, IT Security and Backup; • Public Office and Archives – Provides a face to face service to members of the public, provides a back office service for the provision of genealogical material and certified copies of extracts from valuation lists and maps for legal purposes; • Administration Support Units – Finance Unit, HR Unit, Corporate Services Unit, Training and Development, Business continuity planning, Procurement, Risk, Records Management; • Management Support Services – Legislative issues, Internal Audit, FOI, Ethics and Standards, Preparation of reports and replies to PQs and Reps, Quality Customer Service, Data Protection, Media Liaison and liaison with other Government Departments and Offices.

3.1.3 Ordnance Survey Ireland

Ordnance Survey Ireland is the National Mapping Agency since 1824 and it currently operates under the Ordnance Survey Act 2001 . It is the State Agency, with a commercial mandate, responsible for the official, definitive surveying, topographic mapping and related spatial information products and services for the public and private sectors in Ireland.

Its primary product is mapping services. OSI produces a very comprehensive range of urban, rural, tourist and leisure products at a variety of scales in both digital and paper form. OSI, a leading source of authoritative geographic data, contributes to modern Government, economic growth and delivering value to all stakeholders in Ireland. Other spatial products include aerial photography, digital terrain models and online web services.

3.2 Income and Expenditure of the three organisations

The following summary table outlines income and expenditure for each organisation in 2011. The table also gives a total for income and expenditure across the three organisations.

OSi PRA VO TOTAL

INCOME €M €M €M €M

NonState sources 8 24 0.7 32.7 State sources 10.8 0.6 1.7 13.1 Govt SLA 4.8 4.8

Less 2.6 2.6 interorganisation transfers

TOTAL INCOME 21 24.6 2.4 48

EXPENDITURE €M €M €M €M

Salaries and 13 25 7.5 45.5 Wages Non-pay costs 7.8 7 3 17.8

Less inter- 2.6 2.6 organisation transfers

TOTAL 20.8 29.4 10.5 60.7 EXPENDITURE

Surplus/Deficit 0.2 - 4.8 - 8.1 -12.7

The above table indicates that across the three organisations income came to approximately €48m (of which €15m came from non-voted public service sources) while expenditure was in the region on €61m. Indeed, the overall picture shows that, across the three organisations, a deficit of some €12.7M existed in 2011.

3.3 Staff Numbers

3.3.1 Property Registration Authority

Staffing : As at 30 April 2012, the PRA has 553 whole time equivalent posts. All staff of the PRA are civil servants, and as such their pay rates are in accordance with Department of Finance Circular 28/9 Revision of pay.

Locations : T he PRA’s Head Office is in Dublin and it also has offices in Waterford and Roscommon. Of the 533 WTEs, 305 are located in Dublin, 175 in Waterford and 73 in Roscommon.

3.3.2 Valuation Office

Staffing: All staff of the Valuation Office are civil servants. There are 140 staff in that Office comprising 77 professional valuers, 56 administrative staff and 7 technical mapping staff. The Valuation Office is located in Dublin. There are no regional or decentralised offices.

Valuation Tribunal

Status and Funding: The Valuation Tribunal is commonly referred to as a totally independent agency which deals with appeals against decisions of the Commissioner of Valuation. The Tribunal is currently located at Holbrook House, Holles Street, Dublin 2. Appendix 5 to this Report provides more detail in relation to the Valuation Tribunal. Funding for the Tribunal is provided from the Valuation Office vote.

• All Tribunal staff (between 5 and 8 depending on the program of work) are paid from the Valuation Office vote • All Tribunal staff, with the exception of the Registrar, are included in the approved Valuation Office staff complement • All expenses incurred by the Chairman and members of the Valuation Tribunal (who are appointed by the Minister for Public Expenditure and Reform, are paid for by the Valuation Office.

Accountability: The Commissioner is accountable to the Public Accounts Committee for the Valuation Office Vote which includes a provision for the Valuation Tribunal

External Consultancies

There are currently two external consultants working with the Valuation Office on IT projects. These are - .Net Development (VOS System) and Web Development (VO Website). It is expected that the contracts will finish in Sept 2012

- GIS Development. This contract will extend to December 2012.

3.3.3 Ordnance Survey Ireland

Staffing: OSI staff are public servants. There are approximately 250 staff in OSI. A significant number of these are technical mapping staff. The number of WTEs forecast in OSi as at mid 2012 is as follows:

Level Number CEO 1 Senior Managers 8 LEVEL 2 14 LEVEL 3A 31 LEVEL 3B 37 LEVEL 4 147 LEVEL 5 2 LEVEL 6 8 248 (Mid 2012)

Locations: OSI Head Office is at the Phoenix Park, Dublin. It also has local offices in Sligo, Longford, Tuam, Kilkenny, Ennis (Air Survey Unit linked to Shannon Airport) and Cork. 83 staff are located in these local offices. 22

Figures for 2011 indicate that staff pay costs amount to over 75% of the overall combined expenditure of the three organisations.

All three organisations report good working relationships with staff interests. The Working Group is conscious that, if the Government decides to proceed with the merger, it will be necessary to address staff concerns and considers that an intensive communications process with staff interests, including unions, will be required as the merger proceeds.

3.4 Non-Pay Administrative Costs

3.4.1 Property Registration Authority

The PRA, in carrying out its mandate, is directly funded by the Exchequer in the form of an annual allocation of Voted Expenditure. Significant progress has been made in recent years in reducing the cost base of the PRA. Actual expenditure from the PRA Vote for 2011 amounted to €31.5m.

In 2011, total gross non-pay expenditure amounted to some €7m. It is worthy of note that of this amount some €2.6m was paid to OSI in the form of licence fees for the use of mapping data. Payments to OSI therefore represented some 38% of all non-pay expenditure in the PRA in 2011.

22 20 staff in Cork, 9 in Ennis, 14 in Kilkenny, 15 in Longford, 15 in Sligo and 9 in Tuam. 34

3.4.2 Valuation Office

The Valuation Office in carrying out its mandate is directly funded by the Exchequer in the form of an annual allocation of Voted Expenditure. Actual expenditure from the Valuation Office Vote for 2011 amounted to €10.5m. Non-pay costs for 2011 totalled approximately €3m.

3.4.3 Ordnance Survey Ireland

Total expenditure in the OSi in 2011 came to €20.8M of which €7.8m was attributable to non-pay costs.

3.5. Major Deliverables set out in Strategic and Business Plans

3.5.1 Property Registration Authority

The PRA’s 2010 – 2012 Strategic Plan focuses on meeting its legislative responsibilities, implementation of government initiatives and the provision of an effective and efficient service to its customers. These will be achieved by:

• Continuing to advance completion of the land register by the introduction of compulsory first registration;

• Continuing roll out of the PRA’s eRegistration Programme;

• Offering a fully electronic national register of property ownership and related information, through completion of the Digital Mapping Project

• Continuing to focus on achieving ‘Value for Money’ and

• Effective corporate governance. Property Registration Authority Services The PRA’s work falls mainly into two categories, Registration and Information Services. The PRA also increasingly provides property and ownership related information and advice to other Government Departments and State Agencies. The PRA is also responsible for managing the Registry of Deeds and Ground Rents system.

Registration Services As ownership of property changes through the conveyancing process or finance is raised against the property the Registration of applications for those changes on existing registered titles are lodged in the PRA. This area of casework constitutes the main area of Registration work for the PRA. In 2011 in excess of 246,000 registrations were completed. This level of activity resulted in 529,506 changes being recorded on the Land Register.

The specific benefits of an effective system of Land Registration include:

• State guaranteed ownership and security of tenure • Basis for land and property taxation • Simplified conveyancing • Provision of security for credit • Guarantees the result of judicial procedures relating to land rights, including rights of repossession of land • Reduced land disputes • Develop and monitor land markets • Protect State lands • Facilitate land reform • Improve urban planning and infrastructure development • Support environmental management • Produce statistical data as a base for social and economic development.

It is now estimated that some 94% of the land mass and 90% of titles are captured on the Land Registry system.

The completion of the register is an express mandate of the PRA as set out in the Registration of Deeds and Title Act 2006. To date this has been driven by the Authority and successive Ministers by the extension of compulsory first registration (CFR). CFR of land means that in the event of a title being sold ownership of that title must be registered in the Land Registry. Significant progress continues to be made in this regard. On 1 June 2011, CFR was extended to cover the entire 26 counties with its extension to counties Cork and Dublin. As a result, all changes of ownership for value, regardless of the location, will now trigger a requirement for registration in the Land Registry. The extension of CFR to Cork and Dublin has seen an increase in the number of applications for first registration received by the Land Registry and a continued phasing out of the Registry of Deeds system. Further events to trigger a first registration are currently being considered. The ongoing growth of the Land Register, as a result of the CFR programme and the subdivision of existing registered titles, can be seen from the total number of titles registered at the end of each of the last five years.

2007 2008 2009 2010 2011

1,808,552 1,849,388 1,908,843 1,968,024 2,022,061

Information Services Online Information Services The PRA has developed extensive online services, which are available over the Internet via the landdirect.ie service. In 2011, more than 3 million searching and certification transactions were processed through the landdirect.ie portal .

Year 2000 2008 2009 2010 2011 No. of professional 1,700 13,872 14,837 15,775 16,565 users No. of online transactions* 0.2 2.5 2.6 2.5 3 million million million million million

2011 saw the commencement of the roll-out of an online public access facility whereby an individual can inspect the Land Register online for a fee to be paid on the basis of usage. This will not require the setting up of an account with the PRA, and makes Land Registry information more accessible. As at April 2012 members of the public can inspect the Land Register on an online basis for 18 counties. It is anticipated that the entire land register will be available online before the end of 2012.

Cooperation with other Departments and Agencies

The PRA provides a range of additional services to Government Departments and Agencies. The PRA’s modernisation programme has provided a feature- rich database of property ownership and related information. This has facilitated the PRA to assist other Departments and Agencies in the delivery of Government policy in a value for money manner. For example, the PRA can now provide advanced spatial information for the National Roads Authority’s national motorway programme, input for a number of the Environmental Protection Agency’s regulatory projects and information to the Department of the Environment in relation to implementing various EU Directives and has facilitated the construction of Property Interest Registers for Local Authorities. This database contains a vast amount of statistical information relating to property which potentially provides an opportunity for delivery of other property related information for uses beyond title registration.

The PRA is also in a position to play an active role in emerging initiatives, which would not have been possible previously, such as: • Provision of a facility to assist the National Asset Management Agency (NAMA) in managing its property portfolio. A number of PRA staff have been specifically allocated to the provision of a register of NAMA interests. • The PRA is a prescribed organisation to deliver data to LGMA under the Household Charges Act 2011. Consulting with the Departments of Finance and the Environment and Local Government and other Government organisations regarding the establishment of a possible Site Value or other Property Tax . Work with Office of Public Works to establish a state property register. Facilitating local authorities and Health Service Executive in ensuring all of their property interests are correctly registered.

Registry of Deeds

Registry of Deeds was established in 1707 to provide a system of voluntary registration for deeds and conveyances affecting land and to give priority to registered deeds over unregistered registerable deeds. There is no statutory requirement to register a document but failure to do so may result in a loss of priority. The effect of registration is generally to govern priorities between documents dealing with the same piece of land. The primary function of the Registry of Deeds is to provide a system of recording the existence of deeds and conveyances affecting unregistered property. As the extension of Compulsory First Registration brings more Titles within the Land Register it will result in a consequential reduction in activity in the Registry of Deeds.

Ground Rents

The Property Registration Authority administers a scheme under which owners of leasehold property can purchase their Ground Rent and enlarge their interest into a freehold. (A leasehold interest is for a fixed term of years and subject to a rent whereas freehold has the capacity to last forever.)

3.5.2 Valuation Office The three main goals in the Valuation Office Statement of Strategy for 2011 – 2014 are as follows:

1. Produce and maintain up-to-date valuation lists The 2012 Business Plan breaks this goal into specific components namely, i. Revaluation programme ii. Revision programme iii. Special Projects and Market Valuations iv. Other organisational initiatives

2. Provide an efficient, effective, accessible, quality service to our customers to meet their evolving needs The 2012 Business Plan breaks this goal into specific components namely, i. VOS Database ii. eGovernment and Website iii. Digitisation of Records iv. Customer Services v. GIS (Geographic Information Systems)

3. Maximise organisational capacity by developing appropriate human, management, financial and technological resources to foster a modern, capable, responsive and results-orientated organisation. The 2012 Business Plan breaks this goal into specific components namely, i. Financial Resources

ii. Human Resources iii. Management Resources

In particular, the Statement of Strategy notes that the Valuation Act 2001 provides for a revaluation of all commercial property in the State. The consequent requirement for valuations of 180,000 properties presents a particular challenge to the Office. There are pressures from external stakeholders for the Office to increase the efficiency of its operations. Accordingly, the Valuation Office has proposed amendments to the Valuation Act 2001 for consideration by Government.

3.5.3 Ordnance Survey Ireland

Ordnance Survey Ireland’s Statement of Strategy 2010 – 2012 outlines a number of strategic themes which focus on ensuring that OSI continues to fulfil and build on its role as the national mapping and spatial information supplier of choice. The Strategy notes that the proactive and continued development of OSI’s commercial mandate as well as its public interest role is and will be of crucial importance to the ongoing success of OSI in the future. The OSI Mission is stated to be excellence in providing quality mapping and spatial information services to meet society’s needs.

KEY STRATEGIC THEMES

Developing Spatial Data Infrastructure (SDI) • Continue to play a leading role within the Irish Geographic Information industry in developing an SDI to support the Smart Economy. • Development of the next generation spatial database (Prime2) that will have increased intelligence, 3D mapping capability and will be based rigorously on industry standards and best practice. • OSI will focus on providing geographic information solutions to the market based on detailed knowledge of user business process requirements gained through increased customer interaction. • Developing new products and services to be provided for customers over the internet. This will provide customers with greater efficiencies in accessing, using and integrating OSI spatial data within their business processes. The provision of OSI web services will also provide small to medium sized companies with an opportunity to access and exploit OSI products and services who would previously have found using OSI data prohibitive due to data volumes and internal ITC resource overheads which will be significantly reduced using web services. • Maintaining national infrastructure such as the Active GPS network. OSI has implemented one of the most advanced and comprehensive positioning infrastructures in the world. It includes a permanently- recording GPS network providing data for downloading and data supporting real-time positioning with GPS in all areas of the country. It incorporates a height model allowing orthometric (sea level) heighting with GPS, and a GPS compatible coordinate reference system.

MARKETING DEVELOPMENTS • Continue to build the OSI marketing strategy in respect of its brand and image as a data producer and supplier. OSI focus will remain on working directly with key users and distribution channels, rather than investing in wider advertising and promotion directed at the public. • Ensure the consolidation of core business while opening up new markets in the area of small to medium sized business. This will comprise the increasing development of web based services and a focus on providing customers with the benefit of OSI’s geographic skills and knowledge through consultancy based projects where appropriate. • Developing tailored sales and marketing strategies by sector to realise broad-based sustainable revenue in both traditional and new markets. OSI will continue to broaden its range of channels to market and build on the provision of digital map data via its Place Map Agents and online systems. • Consolidating supply arrangements to meet customer needs. OSI’s eCommerce system provides a fundamental underpinning of its supply systems, being used in both direct and indirect channels to market. • Offer new customers opportunity to experience the benefits of using GIS. • Develop new services to meet customers’ needs. OSI’s services and products have expanded on an ongoing basis. OSI will build on this, leveraging its skills, customer relationships and strong technological base. • Continuing to enforce clear policies and procedures on intellectual property rights (IPR) protection. Progress has been made over the last few years in protecting Government of Ireland and OSI copyright. This ensures a proper financial return for the use of data, which in turn provides financing flows for ongoing data improvements.

PEOPLE • OSI will increase the skills capability of its people to meet the technological demands of its customers. • Managing the demographics of the workforce in terms of succession planning and knowledge management is a key strategic issue.

STATUTORY MANDATE • Continue to place high priority on delivering against the commitments specified in our Service Agreement 23 with the Minister for Communications, Energy & Natural Resources. This Agreement sets out OSI’s public service commitments, including maintenance of positioning infrastructure services and of up-to-date mapping of rural areas. This is a crucial element in delivering the OSI Mission of meeting society’s needs. • Promote value of authoritative consistent OSI data to private sector and Government, enabling joined up thinking and strategic decisions.

23 Further Information on the OSI Service Agreement is set out at Appendix 8 to this Report. 40

STRENGTHENING CONTACTS WITH WIDER GEOGRAPHIC COMMUNITY • Strengthen OSI links with industry bodies and academic institutions nationally and internationally, enabling bi-directional learning and building further on OSI role in education. • Develop OSI educational role by proactively engaging with second and third level learning institutions in advancing new teaching methodologies in the area of spatial information. • Proactively develop the customer’s knowledge base of existing and emerging mapping technologies. • Maintain and develop European linkages to support OSI and the market. OSI plays a key role in EuroGeographic (the association of European national mapping agencies), OSI will continue to engage actively in the activities of EuroGeographic, enabling the sharing of key learning between organisations. OSI will also continue to work with its colleagues in the mapping agencies of Northern Ireland and Great Britain to meet the needs of pan-national customers, and to spread best practice between organisations.

Chapter 4 Policy Risks and Benefits

4.1 Funding

There are a number of factors to be taken into consideration in any examination of funding.

Firstly, the Valuation Office, by its nature, does not generate sufficient fees to cover its costs

Secondly, the income of the Property Registration Authority, all of which is remitted to the Exchequer on a weekly basis, is dependent upon activity in the property market. While income has exceeded expenditure on an annual basis between 1992 and 2009, this has not been the case in recent years. It is anticipated that PRA expenditure in 2012 will be of the order of €31m while registration fees collected and paid over to the Exchequer will be of the order of €24m.

Thirdly, OSI’s financial funding model is designed to ensure that the services provided to all stakeholders and customers are delivered through commercial terms and are thereby payments for service rather than a means of funding the organisation. There is a clear link between the service delivery by OSI and payment by the customer, thereby providing an appropriate means of facilitating accountability and regulating the use of OSI services. OSI also receives Exchequer funding via DCENR’s vote in respect of services provided under a Service Level Agreement, for its capital programme and in respect of its pensions liability.OSI Accounts reveal a very substantial pensions liability which will need to be addressed in the context of the proposed merger [perhaps the pension liability could be transferred to the Superannuation Vote].

Figures for 2011 indicate that across the three organisations income came to approximately €48m (of which €15m came from non-voted public service sources) while expenditure was in the region on €61m. At present only OSI shows a minor surplus. Indeed, the overall picture shows that, across the three organisations, a deficit of some €12.7M existed in 2011.

Merging the three organisations would result in the establishment of a large new Land, Property and Spatial Information Services Organisation which would initially have approximately 950 staff. Based on the current situation, it is likely that State funding of some €28 million per annum would be required to operate the new organisation. The Working Group notes however that funding of this magnitude is already paid by the State by means of payments for services, through a Service Level Agreement with OSI and through the Votes for the Valuation Office and the Property Registration Authority.

Based on current activity levels and fee structures, it would appear that the proposed merged organisation would not be self-financing. In that context, the Working Group considers that the merged organisation would not be appropriate to a commercial State Agency status.

Instead, the Working Group is of the opinion that the Vote structure under which the PRA and the Valuation Office are currently funded would best suit the merged organisation. All receipts of fees would, under this system, be returned directly to the Exchequer in the form of Extra Exchequer Receipts.

The Vote structure would also ensure that an Accounting Officer is charged with safeguarding the funds afforded to the organisation and is answerable for the regularity and probity of all transactions. The Accounting Officer of the merged organisation would carry a responsibility to ensure that all guidelines on governance and accountability would be adhered to at all times.

The Vote structure would also ensure that sanction for all expenditure, including both pay and non-pay, would ultimately rest with the Minister for Public Expenditure and Reform. In addition, employee numbers, salary scales, etc. would be subject to normal DPER arrangements.

The Working Group further considers that a funded Pan-Government Service Level Agreement for the merged organisation could be a vital tool in ensuring the financial viability of the newly merged organisation. In addition, the Working Group noted that future income streams of the merged organisation could be affected by European policy in the area of the provision of spatial information (Public Service Information (PSI) Directive).

4.2 Leadership/Governance

Governance Model

The Working Group considers that a single governance model would be required for the new organisation and notes that different governance models apply in each of the three organisations at present.

The Property Registration Authority is a statutory body whose function is to provide a secure, reliable and effective legal system for registering property ownership and so enable property and related financial transactions to take place in confidence. The Authority was established in 2006 to ensure appropriate stakeholder involvement in the strategic management and modernisation of the organisation. Its membership is appointed by the Minister for Justice and Equality and is representative of the main users and consumers of property registration services.

The Valuation Office is the State property valuation agency. The Valuation Office is the office of the Commissioner for Valuation and Chief Boundary Surveyor and is governed by the Valuation Act 2001 which comprehensively revised and updated the law in relation to the valuation of properties for the purposes of the making of rates in relation to them.

Ordnance Survey Ireland is the national mapping agency for Ireland and was established under the Ordnance Survey Act 2001 . It is the State Agency

responsible for the official, definitive surveying and topographic mapping of the Republic of Ireland. OSI has a Board of ten members who are appointed by the Minister for Communications, Energy and Natural Resources.

The Working Group considered a number of Governance options in relation to a merged organisation including the establishment of a State body with a Board, similar to those which already exist in the PRA and OSI.

While recognising the potential benefits of stakeholder involvement in a Board, the Working Group was mindful of the indications in Public Service Reform that newly merged organisations should not have a Board. There was no consensus as to the best governance arrangement in respect of the merged organisation. The precise governance arrangements in respect of the merged organisation can be examined further if the Government decides to proceed with the merger.

The Working Group is however conscious of the commercial aspects of any merged organisation. In that context the Group proposes that consideration be given to the possibility that the commercial arm of the merged organisation be constituted as a wholly owned subsidiary, and would have an independent Board, with members who have relevant expertise and a commercial orientation, to ensure an appropriate commercial focus.

The Working Group considers also that a Chief Executive Designate of the new Organisation should be appointed in the early stages to drive forward the merger pending the completion of the necessary legislative changes.

4.3 People/Staff

Human Resource and Staffing Issues

In any merger of three separate organisations, significant HR and IR issues will arise. In the case of this proposed merger, this will be compounded by the fact that two of the organisations (PRA and Valuation Office) are staffed by civil servants and the third (Ordnance Survey) by public servants – with different terms, conditions, and pay rates. However it is understood that OSI has moved to align its pay rates with General Civil Service Grades in recent years.

The fact that staff of the PRA and the Valuation Office are civil servants should facilitate redeployment of staff in or out of these offices as required. In the absence of any central agreement on common terms and conditions for civil and public servants (in particular, security of tenure and pension arrangements) there potentially could be significant IR issues if civil servants were to be designated as public servants and vice versa. However, the Working Group considers that the provisions of the Croke Park Agreement may be of assistance in dealing with this issue. Outstanding issues in relation to the funding arrangement for OSI pensions are likely to give rise to significant concerns on the staff side. 44

Chapter 5 Legislation and Statutory Roles

5.1 Property Registration Authority The Property Registration Authority was established by the Registration of Deeds and Title Act 2006 [PRA Act].

Functions

The Act provides that the functions of the Authority are:

(a) to manage and control the Registry of Deeds and the Land Registry, (b) to promote and extend the registration of ownership of land, (c) to deal with applications under Part III of the Landlord and Tenant (Ground Rents) (No. 2) Act 1978, (d) to undertake or commission, or collaborate or assist in, research projects and activities relating to the registration of ownership of land, including the compilation of statistical data needed for the proper planning, development and provision of services related to such registration, (e) to perform any additional functions conferred on it [under a Ministerial order] (f) to keep the Minister informed of progress in relation to the registration of ownership of land and to assist him or her in the development of policy in relation to such registration.

Membership of the Authority

• The Act provides that the Authority shall not consist of more than 11 members. The members of the Authority are appointed by the Minister for Justice and Equality, who shall designate one of them as its chairperson.

• Members of the Authority shall hold office for a four year term.

Chief Executive

The PRA Act provides for the appointment by the Minister, on the recommendation of the Public Appointments Service, of a Chief Executive of the Authority. The CEO is a civil servant. The functions of the CEO are to:

• implement the policies and decisions of the Authority; • manage and control generally its staff, administration and business, and • perform any other functions which may be conferred on him/her by the Act or as may be authorised by the Authority.

The Chief Executive is the accounting officer in relation to the appropriation accounts.

Staff

The Authority may appoint such number of persons to be members of staff and shall determine the grades of the members of its staff and the numbers in each grade, subject to the approval of the Minister for Justice and Equality and the consent of the Minister for Finance. Members of the staff of the Authority are civil servants.

5.2 Valuation Office

The Valuation Act 2001 comprehensively revised and updated the law in relation to the valuation of properties for the purposes of the making of rates in relation to them. The main purpose of the Valuation Act 2001 is to provide for a national revaluation of commercial and industrial property, to bring fairness and uniformity to the distribution of the rates burden among commercial and industrial ratepayers. Neither residential nor agricultural property is currently rateable. The Act also made provision for an ongoing revision programme to allow for valuation of new properties and changes to valuations of existing properties.

Commissioner of Valuation

The 2001 Act provides for the office of the Commissioner of Valuation. The Commissioner shall be appointed by the Minister for Finance and is independent in the performance of his or her functions. – Section 9 (10). The Commissioner shall provide for the determination of the valuation of all relevant properties in accordance with the provisions of the Act.

Valuation Tribunal The 2001 Act provides for the continued existence of the Valuation Tribunal. Currently all expenditure relating to the administration and operation of the Valuation Tribunal is accounted for via the Valuation Office Vote and the Commissioner of Valuation is Accounting Officer for the Tribunal. This gives rise to the anomalous situation that the Commissioner is responsible for the administration costs and any costs associated with the operation of the Tribunal but is also a party to the cases coming before it. Clearly, this situation is capable of giving rise to potential conflicts of interest and is at variance with good governance principles. Accordingly, in the context of any amalgamation of organisations, it is strongly recommended by the Valuation Office that consideration be given to relocating administrative responsibility for the Valuation Tribunal to a different organisation such as the Courts Service.

Appeals to Tribunal

A person who makes an appeal to the Commissioner may appeal in writing to the Valuation Tribunal against a decision of the Commissioner to allow or disallow an appeal in relation to a property.

5.3 Ordnance Survey Ireland

Ordnance Survey Ireland was established by the Ordnance Survey Ireland Act 2001 .

Functions

The Act provides that the general function of the OSI is to provide a national mapping service in the State. In this regard the OSI is to act in the public interest by creating and maintaining the definitive national mapping and related geographic records of the State.

OSI’s functions include all such tasks as necessary to fulfil is general function including, but not limited to the following: a) to maintain and develop the underlying physical infrastructure which is needed to support mapping applications, including to maintain a national grid and the national geodetic and height frameworks and to link these to international systems, b) to create and maintain for the entire State mapping and related geographic databases which have national consistency of content, currency, style and manner including those areas which do not provide a commercial return on the activity, c) to provide mapping and related geographic information to the public and private sectors in support of social, economic, legislative, educational, security, business and administrative functions and requirements, d) to encourage and promote the benefits of the use of the national mapping and related databases and the development of products, services and markets to meet national and user needs, e) to advise the Government, a Minister of the Government, a body established by or under statute and other public sector organisations on matters relating to the policy and practice of survey, mapping and geographic information and on the development of national spatial data infrastructures, f) to represent the State at international level on matters relating to mapping and geographic information, g) to provide the necessary technical support to the Chief Boundary Surveyor in the performance of his or her duties in delimiting statutory boundaries and the delineation of such boundaries on maps, h) to depict place-names and ancient features in the national mapping and related records and databases including the Irish language equivalent of place-names as advised by An Coimisiún Logainmneacha and declared in place-names orders,

i) to protect the Government copyright on OSI records, databases, products and published material made prior to the establishment day.

The Act further provides that OSI shall:

(a) conduct its affairs to as to ensure revenues (including moneys provided by the Oireachtas) of OSI are not less than sufficient to –

(i) meet all charges properly chargeable to revenue account (including depreciation of assets and proper allocation to general reserve) taking one year with another,

(ii) generate a reasonable proportion of capital needs, and

(iii) remunerate its capital, pay interest on and repay borrowings and

(b) conduct its business at all times in a cost effective and efficient manner.

Establishment of companies by OSI

S.7 of the 2001 Act provides that OSI may (with the consent of the Minister for Communications, Energy and Natural Resources) promote and take part in the formation or establishment of a company to perform any of the functions conferred on it.

In that context, OSi is a 49% shareholder of GeoDirectory, a company set up with An Post in 2011. See Appendix 7 to this Report for further information.

Board of Ordnance Survey Ireland

Section 11 of the 2001 Act provides that there shall be a Board of OSI. Members of the Board are to be appointed by the Minister. The Board shall consist of a Chairperson and not less than 4 and not more than 9 ordinary members. Members of the Board can not serve more than two consecutive terms (of up to five years).

Chairperson of Board of OSI

The term of office of the Chairperson shall be 5 years.

Chief Executive Officer

Section 14 of the 2001 Act provides that the Board shall appoint a Chief Executive Officer subject to the approval of the Minister. The CEO shall manage and control generally the staff, administration and business of OSI and perform other such functions as may be conferred on him or her under the Act or determined by the Board. The CEO is responsible to the Board for the performance of his or her functions. The CEO shall not be a member of the Board. However, he or she will have the right to attend Board meetings

and to address the Board on matters relating to the performance of the functions of OSI.

Staff

Section 15 of the 2001 Act provides that OSI may appoint such number of persons to be members of the staff of OSI as it may determine from time to time with the consent of the Minister. A member of staff of OSI shall be paid out of the moneys at the disposal of OSI such remuneration or allowances for expenses as the Board may, with the consent of the Minister, determine. The grades of staff and the numbers of staff in each grade shall be determined by the Board with the consent of the Minister.

Service Agreement

Section 25 of the 2001 Act provides that the Minister shall, from time to time, make an agreement with OSI (a “service agreement”) that certain tasks will be carried out, functions performed or standards adhered to in the performance of its functions in the public interest, and such agreement may encompass such supplementary matters as the Minister and OSI may decide.

5.4 Legislative Changes Required to Achieve A Merged Land and Property Organisation

If the Government decides to proceed with a merger of the three organisations under consideration, the Working Group considers that it would be desirable that each of the three existing statutes be revoked and replaced by a new dedicated piece of legislation establishing a new merged Land and Property Organisation.

The Working Group recognises that the legislation to establish a new merged organisation could be complex and time consuming. However, if a decision to proceed with the merger is taken, legislation to provide for a merged organisation could be added at the earliest possible stage to the legislative priorities list.

Chapter 6 Inputs from Agencies

6.1 Valuation Office

Valuation Office & Ordnance Survey Ireland - The Historic Relationship

In 1824, a House of Commons Committee recommended that Ireland should be mapped at a scale of six inch to one mile (1:10560). The main reason for this choice of scale was that the maps were to be used in the first instance to carry out a townland valuation of the entire country for tax purposes. Thus, the Ordnance Survey and the Valuation Office were inextricably linked from the time both organisations were formed, i.e. Ordnance Survey in 1824 and the General Valuation of Ireland in 1825.

The work of the Ordnance Survey resulted in the publication between 1833 and 1846 of the six-inch map of Ireland in 2,000 sheets. The sheets represented county, barony, parish and town land boundaries, but the OS did not undertake the task of making the multitude of local enquiries necessary to locate the boundaries on the ground. A separate Perambulation or Boundary Survey was therefore established and Mr. Richard Griffith, the pre-eminent Engineer, Geologist and Surveyor of his day, was appointed to be its conductor as Chief Boundary Surveyor. Accordingly, an Act of Parliament was passed on 5 th July, 1825 authorising the creation of civil boundaries and the Boundary Survey was inaugurated on 27 th August, 1825. Mr. Griffith was subsequently appointed Commissioner of Valuation in 1827.

The Ordnance Survey continued to be part of the military establishment and following the formation of the Irish Free State in April, 1922, came under the control of the Department of Defence until its transfer to the Department of Finance in 1924. While no statute was required to bring the services together under the Department of Finance, the budgeting arrangements were governed by the Appropriation Act on a yearly basis. From then onwards, the Commissioner of Valuation and Chief Boundary Surveyor was also Director of Ordnance Survey and Accounting Officer for the two separate Votes - Valuation and Boundary Survey Vote and Ordnance Survey Vote, which were later combined into one Vote, the Valuation and Ordnance Survey Vote for the financial year ending on 31 st March, 1961 and this position endured for the next 40 years until 2001.

While each Office pursued its own specialist area of work, i.e. surveying in the OS and valuing in the VO, they shared finance and personnel functions under the governance of the Commissioner/Director, who was based in the Valuation Office. This arrangement pertained until the passage of the Ordnance Survey Act, 2001, when the OS changed from being an executive agency under the Dept. of Finance to a state agency called Ordnance Survey Ireland and ceased to be part of the civil service, thus severing the link with the Valuation Office.

See also detailed paper from the Valuation Office in relation to several aspects of the proposed Merger which is attached at Appendix 10.

6.2 Ordnance Survey Ireland

OSI identified a range of options which could meet the objectives of cost management and service enhancement. From financial and operating perspectives OSI has delivered its dual mandate successfully. OSI considers there are some opportunities to create a shared service centre to provide back office support to administrative services such as finance/procurement, general ICT, HR and Corporate Services. OSI posited that it is not necessary to deliver short term potential cost reductions in relation to all three organisations.

OSI identified a number of critical issues would need to be addressed in advance of a merger:

• The timeframe for the establishment of a merged organisation.(It took between 5 to 10 years before the LPS achieved efficiencies and savings.); • Substantial upfront costs in merging the three organisations needs to be recognised and put in place, such as change management/transformation costs, systems integration, accommodation costs, capital investment; • A rigid health check similar to a due diligence process would be required to identify and cost the issues which must urgently be addressed in advance of a merger; • Future Government policy (i.e. Property tax) must be aligned to operational plan; • A risks and benefit analysis would need to be completed to cover potential stakeholder and organisation reputation emerging risks and would need careful management as does internal and external communications; • Requires a well funded and dedicated team to deliver.

Since OSI’s establishment in its current form in 2001, it has evolved a highly competitive, customer focused, value creating and cost effective organisation with a national mapping provision remit and a competitive and measureable Service Level Agreement which is annually reviewed. This illustrates in a very transparent way that OSI’s commercial and financial operation is at best practice, delivering real value to the exchequer, driving commercial performance and exemplary customer service. The fact is that the decision to create OSI as a commercial organisation to support efficiency through the use of mapping data has worked and its key achievements have been in customer service, managed headcount reduction, product development and productivity improvement with an annual operating surplus and dividend to the Exchequer prior to the collapse of the property market.

A key remit of OSI is to advise Government on developing policy for the National Geospatial infrastructure for Ireland. Government is now more than ever advocating the use of various state data sets including OSI mapping databases to support joined up thinking in Government. OSI could play a leading role in enabling these developments and in the development of new

and exciting Geo spatial initiatives and developments.

As OSI has developed strong commercial expertise, it believes this will complement the aim of reducing exchequer costs in the short to medium term across the public sector. In this respect OSI have made a substantial contribution already in reducing the Service Level Agreement cost to under €5m from a high of €15m (£13m punts) back in the late 1990’s a net reduction in exchequer costs of over €10m and has delivered an operating surplus for the past few years.

Conclusions:

In light of NI’s experience it is likely that while it appears that synergies and cost savings could be achieved quickly, they are unlikely to emerge for up to 5 to 10 years. Overall OSI identified a number of matters should be addressed. In considering options

• A well managed process to eliminate the risk of deflecting management’s attention from reducing cost and adding value to the State;

• A merger would require the provision of upfront investment and funding;

• A rigid health check similar to a due diligence process would be required to identify and cost the issues which must urgently be addressed in advance of a merger;

• A risks and benefit analysis would need to be completed to cover potential stakeholder and organisation reputation emerging risks and would need careful management as does internal and external communications.

See also detailed paper from Ordnance Survey Ireland in relation to several aspects of the proposed Merger which is attached at Appendix 12.

Chapter 7 Recommendations to Government

The Working Group hereby makes the following recommendations to Government in respect of the proposed merger of the Property Registration Authority, the Valuation Office and Ordnance Survey Ireland:

1. In principle, the Government should decide to proceed with a merger of the Property Registration Authority, the Valuation Office and Ordnance Survey Ireland.

If the Government decides to proceed with the merger:

2. A Transition Team should be put in place as soon as possible to advance the merger process;

3. Consideration should be given to the appointment at an early date of a Chief Executive Officer Designate of the new merged organisation to act as a key driver in respect of the merger;

4. Responsibility for the Property Registration Authority, the Valuation Office and Ordnance Survey Ireland should be transferred to a single Minister;

5. The legislative requirements for the merged organisation should be assessed as a matter of priority.

These recommendations are discussed in further detail below.

7.1 The Working Group recommends to Government that, in principle, it should decide to proceed with a merger of the Property Registration Authority, the Valuation Office and Ordnance Survey Ireland .

The Working Group concluded from its research that mergers of this type, which include the national property registration, valuation and mapping agencies, have been successfully achieved in several other Common Law jurisdictions. However, it was noted that significant additional resources would be required to complete the above exercise while maintaining day-to-day operations. Additional resources may also be required in the early years of the merged organisation, e.g. for integration of IT systems, possible centralisation of office premises, cultural integration, training, and the achievement of appropriate synergies.

The merger of the Property Registration Authority, Valuation Office and Ordnance Survey Ireland potentially provides an opportunity for more efficient and cost-effective delivery of land and property administration services. Medium term savings are likely to be achievable in the areas of common back office functions such as HR, conventional (non-specialised) IT systems, Financial Management and Corporate Services. There may also be potential

savings in the areas of accommodation and software licences. In the longer term, more efficiencies/synergies in delivery of the merged organisation’s services may lead to further savings in operational areas. Additional commercial revenues which would reduce the burden on the State may also be achievable in the medium to long term.

Several members of the Working Group strongly made the point that a major opportunity may arise from combining the datasets held by the three organisations. The PRA, VO and OSI together manage the most comprehensive set of property and land-related data in Ireland. Over the last decade, the State has made very substantial investment in the development and population of the databases managed by the three organisations. Examples from other jurisdictions suggest that the State could achieve a very powerful tool/resource for planning, delivery and enforcing new policy initiatives from combining such datasets. By combining the information resources maintained by the three organisations there is a real opportunity to create the core reference material for the development and maintenance of a National Land Administration system and the primary fundamentals for the development of a National Spatial Data Infrastructure.

7.2 The Working Group recommends to Government, that, if it decides to proceed with the merger, a Transition Team should be put in place as soon as possible to advance the merger process.

The Working Group recommends that, if the Government decides to proceed with the merger proposal, a Transition Team should be established, representative of the parent Departments of the three Agencies and of management in the Agencies, to assist in the practical preparations for the establishment of a Land, Property and Spatial Information Services Organisation. The Transition Team should give priority to:

• Developing a Corporate Data Model for the new organisation;

• Carrying out a formal Cost Benefit Analysis of the merger;

• Preparing a detailed Risk Assessment associated with the merger, including proposals to ameliorate any risks identified;

• Assessing the investment requirements, including the required investment to integrate the IT systems of the three Agencies;

• Considering further the legislative changes required to effect the merger process.

• Considering an appropriate governance framework for the merged organisation.

The Working Group believes that progress towards a successful merger would be assisted by the appointment, at an early stage, of a Chief Executive Officer Designate who would be tasked with bringing the merger to a successful conclusion.

At present, the three organisations have separate lead Departments. The Valuation Office currently comes under the remit of the Minister for Public Expenditure and Reform. The Minister for Justice and Equality has responsibility for the Property Registration Authority, the largest of the three organisations under consideration.

Ordnance Survey Ireland currently comes under the remit of the Minister for Communications, Energy and Natural Resources. A question was raised with the Working Group in relation to the substantial pension deficit currently in existence in the Accounts of OSI. In this context, it must be noted that on OSI’s establishment the existing civil service staff of the OSI transferred to the new statutory body with a legislative guarantee of retaining civil service conditions including pension entitlements. No provision for pensions was made on its separate establishment under the 2001 Act and OSI funded pensions from current income. This legacy pensions liability equates to approx 10% of commercial income. This legacy issue will need to be addressed in any future evolution, but in light of ambitions under the Croke Park agreement to address apparent civil and public service differences, including in relation to pensions, this issue, though important in terms of its resolution, should not be insurmountable.

If a decision is taken to proceed with the merger, the Working Group considers that it will be important that responsibility for all three organisations rests with one Minister.

However, there was some debate amongst the members of the Working Group as to the most appropriate Minister/Department to take responsibility for the new merged organisation. Suggestions in this regard included:

• the Minister for Justice and Equality, as indicated in the Public Service Reform document and who has responsibility for the PRA;

• the Minister for the Environment, Community and Local Government, who has policy responsibility for the National Spatial Strategy, the Irish Spatial Data Infrastructure and the INSPIRE Directive; however, the Valuation Office identified concerns as to the suitability of the valuation function being under the direct responsibility of the Minister for the Environment, Community and Local Government as perceived conflicts of interest could arise for the Minister involving the body setting the valuations and those bodies (i.e. local authorities) who are collecting revenue on the basis of those valuations;

• the Minister for Public Expenditure and Reform, who has responsibility for the Valuation Office and for public sector reform;

• the Minister for Communications, Energy and Natural Resources, who has responsibility for OSI.

Accordingly, the Working Group recommends that, if the Government decides to approve the merger proposal:

• An early decision should be taken as to the appropriate Minister to have responsibility for the merged organisation. Arrangements should then be made to transfer responsibility for the three Agencies to that Minister;

• Arrangements should be made between the Department of Public Expenditure and Reform and the Department of Communications, Energy and Natural Resources to “crystallise” and fund the pensions liability in Ordnance Survey Ireland. This issue must be resolved before Ordnance Survey Ireland is transferred from the remit of the Department of Communications, Energy and Natural Resources;

• The appropriate lead Department, in conjunction with the Transition Team, the Chief Executive Officer designate and the three organisations, should develop a future funding model for the new organisation.

7.5 The Working Group recommends to Government that, if it decides to proceed with the merger, the legislative requirements for the merged organisation should be assessed as a matter of priority.

The Working Group notes that each of the three Agencies under review has its own specific legislation, as outlined in Chapter 5 of this Report, and that to achieve a fully merged new organisation, significant legislative amendments will be required by way of new legislation. In this context, the Working Group would emphasise the importance of legal certainty in relation to such fundamental issues as Property title, mapping, rates, etc., and considers the most appropriate intervention would be to revoke each of the existing three

pieces of legislation and replace them with a new tailored piece of legislation establishing on a formal basis the new organisation.

The Working Group is conscious that the legislative requirements for bringing the organisations together will, of their nature, be complex and time consuming. For that reason, the Group recommends that, if the Government decides to proceed with the merger, an early assessment of the legislative challenges should be made.

APPENDIX 1 MEMBERSHIP OF THE WORKING GROUP

Deirdre O’ Keeffe, Dept of Justice & Equality (Chair) John O’Sullivan, Valuation Office Mary Smyth, Valuation Office Geraldine Ruane, Ordnance Survey Ireland Colin Bray, Ordnance Survey Ireland Charles Collier, Ordnance Survey Ireland Frank Treacy, Property Registration Authority James O’Boyle, Property Registration Authority Greg McDermott, Property Registration Authority David Denny, Dept. of Public Expenditure and Reform Brian Carroll, Dept. of Communications, Energy and Natural Resources Deirdre de Brún, Dept. of Communications, Energy and Natural Resources John Laffan, Dept. of Justice & Equality Michael Holohan, Dept. of Justice & Equality (Secretary)

APPENDIX 2 TERMS OF REFERENCE FOR THE WORKING GROUP

Terms of Reference for Working Group

The Government’s Public Service Reform document, published in November 2011, sets out an ambitious programme for the rationalisation of State Agencies.

The potential merger of Ordnance Survey Ireland, the Valuation Office and the Property Registration Authority is one of the proposals to be critically reviewed by end June 2012. This Review is to be steered by the Department of Justice and Equality.

Guidance from the Department of Public Expenditure and Reform indicates that the Working Group shall include representatives from the relevant parent Departments, the Agencies under review, and from the relevant Vote Section of the Department of Public Expenditure and Reform.

The Working Group will prepare a Review Report, including relevant information under the headings set in the Annex to this document, with a formal recommendation to Government on the proposal, by end June 2012. The Working Group will seek to clearly address potential synergies which could lead to more flexibility and efficiency in the use of resources, in addition to the potential simplification of the administrative landscape.

ANNEX TO TERMS OF REFERENCE – Information/Material to be set out in Review Report 1. Rationale for Potential Merger • Business Continuity • Stage in Regulatory Cycle • Technology Background • Common Issues • Complementarities • Customer Service/Enhanced flexibility in use of resources • Cost • Approach in Other Countries 2. Administrative Costs and Benefits • Broad Organisational Structures • Staff Costs (Organisational Chart, Staffing and Pay Levels, External Consultancies) • Non-Pay Administrative Costs • Major Deliverables as set out in Strategic and Business Plans • Cost of Change 3. Policy Risks and Benefits • Strategic Mandate • Funding • Structures • Systems • Leadership/Governance • People/Staff • Core Competencies • Culture • External Relationships 4. Input of Agencies

5. Legislation and Statutory Roles

6. Recommendation to Government

APPENDIX 3 GUIDING PRINCIPLES INFORMING THE GOVERNMENT’S APPROACH TO AGENCY RATIONALISATIONS

Citizen focus: The relationship between citizens and the State is the key relationship in any democratic society. Proposals should respect and enhance this relationship, in particular by ensuring that bodies are designed to deliver quality public services, and to contribute effectively to the business of public administration whether directly or via their parent Department.

Policy formulation: In the Irish system of public administration, Government Departments are and should be the primary locus of public policy formulation, evaluation and advisory functions should not, as a general rule, be carried on by external State-funded bodies. Specialist advice and consultancy may be availed of from time to time by Government Departments, subject to the tightened Government strictures on the budgets for external consultancies.

Clear democratic and/or cost benefit: Merging and restructuring of bodies should have a clear and demonstrable benefit in terms of delivering greater democratic control, improved service delivery and/or real cash savings.

Specialist bodies: Decisions should take into account whether it is appropriate that a separate agency carry out particular functions in areas where specialist skills may be required, and where independence in the performance of functions requires functional separation from Government Departments.

Streamlining: Decisions should be cognisant of duplication, overlapping and similarities of functions and roles of bodies, and the synergies from bringing together separate bodies in cognate areas.

Service sharing: Even where bodies should remain separate from one another, or from a ‘parent’ Department, the possibility of sharing services, including back-office functions, should be explored to the maximum extent possible.

Agency life cycle: Government should consider on a regular basis whether the goal for which an Agency was originally established has been achieved (or has been found to be unachievable) and whether the original objective remains relevant today having regard to developments in society, changes in Government priorities, and the much more limited availability of resources.

Performance focus: Citizens are entitled to expect that every State agency has a clear mandate, clear benchmarks for the level of services that they are expected to deliver with their resources, and an appropriate governance structure that delivers accountability for results and performance.

Respect for staff interests: Finally, in relation to staff employed in the various bodies, the Government will abide by the commitments given in the Croke Park Agreement in considering and implementing specific agency rationalisation proposals, subject to the necessary flexibilities, in particular on redeployment, being delivered.

APPENDIX 4 NATIONAL REVALUATION PROGRAMME

Over time the dynamic of property economics results in shifts and adjustments in both absolute and relative values of property. This results in anomalies and inconsistencies developing in the valuation lists which are exacerbated over time until they become inequitable as a basis for the collection of a tax (commercial rates). The revision process is not designed to and cannot address these anomalies. The revaluation provision in Part 5 of the Valuation Act, 2001 is designed to provide a corrective mechanism to deal with this issue on a regular basis. Failure to carry out revaluations exposes the system to potential legal challenge and local authority rates income to potentially significant losses. The Supreme Court in the case of Brennan & Others (land valuation case which struck down the collection of rates on agricultural land) found that in the assessment of a tax such as rates, reasonable uniformity of valuation is essential to justice). It is arguable that in recessionary times, when commercial and industrial entities are experiencing serious cost pressures, the potential for such a challenge to be mounted is greater than at other times.

The importance of a revaluation can be summarised as follows:

• The purpose of a revaluation is to restore equity, fairness and transparency in the local authority rating system; • It underpins local authority rates revenue; • Following a revaluation there will be a much closer and more uniform relationship between the current rental values of properties and their commercial rates liability.

The basis of rateable valuation for all commercial property is net annual value (NAV) i.e. the rental value of the property. In a revaluation properties are assessed, in accordance with statute, by reference to rental values at a specific valuation date and a new list of valuations is produced. This new list is then used by the rating authority to levy rates on individual ratepayers.

The old valuation lists date from the Griffith Valuation carried out in the 19 th century. Maintaining these lists requires the Valuation Office to determine valuations by reference to the values of comparable properties on the same valuation list. The result is a list of valuations that bear no resemblance to modern valuation levels and contain many anomalies. It has long been recognised that protecting the integrity of the local authority rating system nationally requires that this be addressed and the national revaluation programme is the means by which this is being done.

The Valuation Act 2001 provides for the rates income to be capped in the year following a revaluation so that the total amount of rates income of a local authority in the year following a revaluation shall not exceed the total amount of rates income of the preceding year, adjusted to take account of changes to the Consumer Price Index.

Revaluation is essentially about the redistribution of the commercial rates burden between ratepayers depending on the relative shift in the rental values of the properties they occupy. It is the relative value of properties to each other rather than the absolute value of an individual property, which will determine whether the rates liability of any given property decreases or increases following a revaluation.

The national Revaluation Programme is the first of its kind in Ireland since the middle of the nineteenth century and is a major undertaking for the organisation. The

essential purpose of a revaluation is to redistribute the burden of rates more equitably in line with changes in valuations. It does not increase the total quantum of rates payable in the year following a revaluation. Any increase will be limited to the rate of inflation.

The National Revaluation Programme began in November 2005 in the South Dublin County Council area and continued subsequently in the Fingal and Dun Laoghaire- Rathdown County Council areas. The revaluation of South Dublin was completed in December 2007. Fingal was completed in 2009 and Dun Laoghaire-Rathdown was completed in 2010.

Over the past year or so renewed efforts have been made to speed up the programme. The revaluation of Dublin City Council area commenced in May, 2011 and is making good progress. This is a significant part of the programme, involving the revaluation of some 25,000 properties. The new list of valuations for Dublin City will be published in December 2013. As at end 2011, 10% of the national revaluation programme had been completed in terms of the number of rateable properties. This represented over 20% of the national valuation base in monetary terms. When the Dublin City revaluation has been completed by end-2013 nearly 50% of the national valuation base (approximately 26% of the total number of rateable items in the country) will have been revalued. Revaluation also commenced late last year in the three Waterford rating areas - Waterford City and County and Dungarvan Town Council. The new lists for these areas will also be published in December 2013.

The Commissioner of Valuation made an order in March this year to commence revaluation in Limerick City and County with the intention of publishing an integrated valuation list in respect of these two areas in the second half of 2014 (following the proposed integration of the two local authorities). The Valuation Office is under considerable pressure from the Oireachtas and from Local Authorities and other Government bodies to accelerate the pace of the national Revaluation programme. The Office accepts that programme needs to be expedited and is actively pursuing innovative ways of achieving this. Following detailed examination of the possibilities, the Office decided to seek amending legislation that would allow it to undertake pilot projects for the introduction of a Self Assessment methodology and also to seek an external service provider to carry out a portion of the revaluation. The Valuation (Amendment) Bill 2012 is expected to be published in the near future and it is envisaged that the legislation will be in place before the end of 2012. Detailed schemes are being drawn up in advance of such legislation so as to ensure that the pilot projects are adequately prepared and can be implemented rigorously once the legislation is in full force and effect.

Redistribution of commercial rates liabilities following Revaluation The purpose of a revaluation is to redistribute commercial rates liabilities among ratepayers based on up-to-date values. Following revaluation, there will be a much closer relationship between rental value and commercial rates liability. Even though property values have fallen generally, some ratepayers will gain while others will lose from the process of redistribution but, overall, there will be a fairer distribution of the

rates burden. In general, however, the number of ratepayers who have gained has exceeded the ‘losers’ in the revaluations carried out to date.

External Service Provision (Outsourcing) and Self-assessment Methodology Following detailed examination of the possibilities for accelerating the pace of the Revaluation, the Office sought amending legislation (details above) to allow it to undertake pilot projects for the introduction of a Self Assessment methodology and also for engaging an external service provider to carry out a portion of the revaluation work. Detailed schemes are being drawn up in advance of the proposed legislation so as to ensure that the pilot projects are adequately prepared and can be implemented rigorously.

Data Capture Project It has long been acknowledged that, in order to undertake revaluation in any local authority area, the data in that area must be captured electronically on the Valuation Office systems. Much of the data exists in hard copy format only. To this end, a Data Capture Unit was established early in 2012 to assist with speeding up the capture of data. A pilot project to outsource a small representative sample of records for data capture was completed in April 2012 and the results are being assessed to ascertain the viability of extending the pilot to other Local Authority areas.

APPENDIX 5 VALUATION TRIBUNAL

The Valuation Tribunal is an independent statutory body which hears and decides: • Appeals against decisions of the Commissioner of Valuation on the valuation and revaluations of commercial properties for rating purposes under the Valuation Act 2001; and • Appeals by owners of derelict sites against the determination by local authorities of the market values of those sites under the Derelict Sites Act 1990.

The Valuation Tribunal was established in 1989 under Section 2 of the Valuation Act 1988 and continues in being by virtue of Section 12 of the Valuation Act 2001. Part 7 of the 2001 Act sets out the appellate functions and jurisdiction of the Tribunal.

The Valuation Tribunal and the Valuation Office are separate bodies, independent of each other. The role of the Valuation Tribunal is to hear appeals against decisions of the Commissioner of Valuation.

The Tribunal also deals with appeals against determinations of market value on derelict sites made by local authorities under the Derelict Sites Act 1990.

Subject to a right of appeal to the High Court and ultimately to the Supreme Court on a point of law, the decision of the Tribunal is final. The Chairman and members of the Valuation Tribunal (the current number is 20) are appointed by the Minister for Public Expenditure and Reform.

All expenses relating to the administration of the Valuation Tribunal are paid from a specific subhead of the Valuation Office Vote. This amounted to €650,000 in 2011 and is estimated at €574,000 for 2012. Valuation Tribunal staff (between 5 and 8 depending on the programme of work) are included in the approved Valuation Office ECF numbers and are paid from the Valuation Office Vote. The Registrar of the Valuation Tribunal is seconded from the Department of Public Expenditure and Reform. The arrangements relating to the funding and staffing of the Tribunal appear to be administrative and are not specifically provided for in the 2001 Act.

Currently all expenditure relating to the administration and operation of the Valuation Tribunal is accounted for via the Valuation Office Vote and the Commissioner of Valuation is Accounting Officer for the Tribunal. This gives rise to the anomalous situation that the Commissioner is responsible for the administration costs and any costs associated with the operation of the Tribunal but is also a party to the cases coming before it. Clearly, this situation is capable of giving rise to potential conflicts of interest and is at variance with good governance principles. Accordingly, in the context of any amalgamation of organisations, it is strongly recommended by the Valuation Office that consideration be given to relocating administrative responsibility for the Valuation Tribunal to a different organisation such as the Courts Service.

APPENDIX 6 ORDNANCE SURVEY IRELAND PENSIONS ISSUE

OSI operates defined benefit pension schemes which are funded annually on a pay as you go basis from monies available, including monies provided by the Department of Communications, Energy and Natural resources.

OSI Gross Pension payment (incl. lump sums) trend/forecast over a seven year period is as follows:

€1,664,000 €1,953,000 €1,902,000 €2,477,000 €3,950,000 €3,254,000 €3,367,000

Pension scheme liabilities are measured on an actuarial basis using the projected unit method. Scheme liabilities are presented separately on the balance sheet.

Actuarial gains and losses arising from changes in actuarial assumptions and from experience surpluses and deficits are recognised in the statement of total recognised gains and losses for the year in which they occur and are charged to the Pension Reserve.

The OSi scheme includes a defined benefit Staff Superannuation and Spouses’ and Children’s Contributory Pension Schemes. Superannuation entitlements arising under these schemes are paid out of OSI current income and are charged in arriving at the Surplus/ (Deficit) on the Income and Expenditure account in the year in which they become payable. No separate fund is maintained and no assets are held to finance the payment of pensions and gratuities. An actuarial valuation at 31 ST December 2011 determined a valuation of pension liability in respect of serving and retired staff in the sum of €147m (€138m at 31 st December 2010). At vesting date (March’2002) the liability was €62m. Valuations are carried out by a qualified independent actuary for the purposes of the accounting standard, Financial Reporting Standard No.17 – Retirement benefits (FRS 17).

It was agreed, subject to conditions, between the Department of Communications, Energy and Natural Resources and the Department of Finance that pension payments would be included in grant in aid payable to OSI from January 2011.

APPENDIX 7 GEODIRECTORY [ORDNANCE SURVEY IRELAND JOINT VENTURE WITH AN POST] GeoDirectory Structure GeoDirectory, legally An Post GeoDirectory Ltd, was formed in 1997 as a joint venture between the Minister of Finance, (OSI were a section within the Department of Finance at that time) and An Post. The relationship was formalised in a Memorandum of Understanding. The JV has recently being completed. An Post has a majority share of 51% in GeoDirectory and OSI has 49%.

GeoDirectory has a Board of five directors two directors are selected by An Post (Liam O’Sullivan and Peter Quinn) and two are selected by OSI (Charles Collier is currently serving and there is one vacancy to be filled by OSI ). The fifth Director and Chairman, Pat Massey, is nominated by the Minister of Department of Communications, Energy and Natural Resources. Each Director has one vote each. GeoDirectory has two direct employees who are on secondment from An Post with all other services contracted in as required. The main supplieRs are An Post and OSI. Day-to-day management of the company rests with its CEO, Dara Keogh.

Brief Product/ Market Overview GeoDirectory provides a Geocoded buildings address database for the Republic of Ireland. The database provides the address in a standardised consistent format, a Geocode that sits within the footprint of the building and a unique identity or fingerprint to every building in the Republic of Ireland. The GeoDirectory is used across both the Public and private sectors. GeoDirectory is a supplier to a large variety of industries and organisation size that are located both national and internationally. GeoDirectory supplies the market both through directly and through its re-seller/agent/partner channels. The GeoDirectory grew its sales revenues by 10% in 2011 to just over €2.37 million and reported a small profit for the first time in its history.

Major Issues The major issues currently facing GeoDirectory: 1. The recession and its downward pressure on prices 2. Developing products and markets to both protect and grow revenues 3. Its role in postcode project and future revenue opportunities that postcodes can bring

APPENDIX 8 OSI Service Agreement

Section 25 of the Ordnance Survey Ireland Act 2001, as amended, provides that the Minister for Communications, Energy and Natural resources shall from time to time make an agreement with OSI that certain tasks will be carried out, functions performed or standards adhered to in the performance of its functions, in the public interest, by OSI.

The 2012 Service Agreement (close to being finalised) provides for: • OSI to carry out its functions in accordance with Sections 4 and 6 of the Act; • OSI to develop and maintain its services so as to meet customer needs in a responsive and cost-effective manner; • OSI to seek to maximise operational efficiency so as to ensure that both the Exchequer subsidy and the burden of coasts borne by public and private-sector clients are kept to the lowest possible levels consistent with maintaining quality standards; • OSI to ensure the successful delivery of mapping and geographic information services as required in the national interest; • OSI to maintain its Accounts in accordance with Section 26 of the Act; • Any funds advanced by the Minister under Section 24 of the Act to be subject to such terms and conditions as the Minister may determine; • The level of funds advanced by the Minister to be subject to such limits as may be determined by the Oireachtas and to take into account all costs and income of the OSI, including such pension inflows and outlays as are relevant, and in no case to result in advances being made which would lead to excess cash being held by the OSI.

The Service Agreement also specifies the maximum Exchequer advance for 2012 (€4.7666 million), and also specifies a sum (€3.7 million) to be provided in 2012 towards superannuation costs.

Appendix 9 Details of Technology Employed by the Three Agencies

ICT INFRASTRUCTURE

Distinct/Mission Critical Systems

VALUATION OFFICE (VO)

VOS Database: an application is being developed specifically for the organization in VB.NET / SQL Server to maintain the Valuation Office List.

VO Worklist / Reval System: current applications specifically developed in VB6 / SQL Server to maintain the Valuation Office List. These applications will be replaced by the VOS Database but need to be retained for archival purposes.

GIS Development: VO have customized GIS components (MapX) which are integrated into the main database application (VOS) and website services. A GIS Android Smart Phone App is also under development.

PROPERY REGISTRATION AUTHORITY (PRA)

ITRIS: the key operational system used internally by about 500 members of PRA staff to process casework is known as Integrated Title Registration Information System (ITRIS). This is a client-server bespoke system developed in Oracle Forms, Version 6.0.8.22 which currently accesses an Oracle Enterprise RDBMS, Version 10g Release 10.2.0.5.0 database through Oracle .Net over a TCP/IP protocol environment.

Document Imaging Management System (DIMS): used to index and store images of the Land Registry records including folios (the register) and related maps (title plans). This technology is provided as a seamless service to ITRIS users through a close integration with ITRIS, www.landdirect.ie and the underlying database. The DIMS application comprises Open Text Transactional Content Processing (TCP) Server and Open Text Enterprise Archive Storage Services (ECR) with SQL Server 2008 database.

Digital Mapping Systems (DMapS): used to manage and report on the spatial element of the Title Register held within the ITRIS database. It comprises of approximately 3 million parcels made up of 19 million boundaries, 350,000 area burdens (e.g. rights of way) and 60,000 line or point burdens (e.g. pipelines, wells). It is used to service the mapping requirements of the Registration process and to support and provide map inspection services and certified document services to customers through the mapping components of www.landdirect.ie . The title boundaries are represented in the context of the OSi Irish Transverse Mercator map with relevant reference to OSi feature data where appropriate. The map related data is made up of three primary components, PRA Title Boundary and seedpoint data, OSi reference data and the Geodirectory address point data. It utilises a number of technologies and services, for example: Autodesk products (licensed from Autodesk) for general map and boundary

management and presentation, 1Spatial’s Radius Topology to manage the topology, and FME from Safe Software to manipulate data for loading, interrogation and extraction.

ORDNANCE SURVEY IRELAND (OSI)

GPS Network: national network of 25 permanently recording GPS stations with an on-line service to both public and private surveyors via OSi’s corporate website. Based on Leica Geosystems’ ‘SPIDER’ Application / SQL Server and includes a data streaming service to GPS service providers (currently Leica Geosystems & Topcon).

Digital Aerial Data Capture: OSi operate two aircraft on a lease basis to carry out low to medium altitude aerial surveys using specialist flight planning software (FPES). One aircraft is dedicated to the collection of imagery to update the large scale mapping and to compete in commercial contracts and operates a Leica Geosystems ADS80 digital line scanner camera system. This aircraft is also used for contingency operations to assist the Dept. of Agriculture in complying with European regulations when making payments to the farming community. The second aircraft is dedicated to the collection of height data by means of Laser scanning and operates a Leica Geosystems ALS50-11 Laser system. OSi also contracts (by means of public procurement) the collection of high altitude imagery for the Dept. of Agriculture so they can comply with European regulations in making payments to the farming community and for OSi’s updating of its 1:5000 scale mapping.

Aerial Triangulation: process of performing a number of measurements in the captured aerial imagery, and combining a number of surveyed selected ground points, to tie the imagery into Ireland’s national grid to enable national mapping to be created or updated. Software deployed is Leica Geosystems’ ORIMA and XPro.

Digital Image Processing: the aircraft trajectory (flight path of aircraft) is processed utilising both on board IMU and GPS positional data together with the simultaneous ground station GPS data. The aircraft trajectory is applied to the raw image data creating geo-referenced image data to allow use of this imagery in Ireland’s national coordinate system. Specialist hardware and software used are: • Image processing - Leica Geosystems XPro • Orthophotography processing - Orthovista • Specialist software - Condor for parallel processing • Digital Image Scanning - 2 x DSW 700 high res (1micron) digital scanners • Trajectory processing software – IPASS.

Digital Capture Processing : triangulated imagery is uploaded onto a Digital Photogrammetric Workstation (DPW) where it can be viewed in stereo. Stereo viewing is made possible by the use of specialised technology combining specific graphics, monitors and glasses. Three dimensional accurate measurements are made and recorded and applied to existing mapping as part of OSi’s National Mapping update programme. Specialist software includes: • Terrain extraction software – SocetSet/Microstation • Data capture software - Pro600/Microstation • LiDAR point cloud processing software - TerraScan / TerraModel

• 3D landscape modeling software – TerraModeller / Descartes v3 / BentleyMap.

Field Surveying Technology : OSi has a team of 35 field Surveyors competent in the use of the following technology to capture data in a highly efficient digital process: • Panasonic Toughbook PC (field computer) • Leica Geosystems Total Station surveying instrument (digital theodolite) • GPS Receiver (real-time surveying with Bluetooth connection to field computer) • Hand-held laser measuring device • Data Editing software application (1Spatial Radius Mobile with bespoke survey tools) • Connection to OSi active GPS network using mobile technology for real-time surveying.

Data Completion Technology (Office) : the data editing software application used is 1Spatial’s ‘Radius Vision’ with various complementary applications/utilities to assist in the completion and management of vector/raster data. The data collection flowline also makes use of Safe FME (Feature Manipulation Engine) software application for integration of NRA roads, Waterways Ireland, Bord Fáilte, CSO (Statistical Small Areas) data, etc.

Data Quality Management: OSi operates an embedded Data Quality Management System that caters for all Large Scale data quality issues, including a Data Quality Help Desk which is a customer (external & internal) focused help desk using Wonderdesk. Integrated data quality control based on predefined rules and behaviours for digital vector data using 1Spatial’s ‘Radius Studio’ running on Oracle WebLogic Server 12c (12.1.1) and Oracle database Oracle 11g R2 platform version 11.2.0.2.

Map Publishing System : OSi operates an in-house publishing flowline running on StarApic’s ‘MercatorDB’ cartographic publishing application using Oracle database Oracle 11g R2 platform version 11.2.0.2.

Digital Image Management : operates using Erdas Apollo for internal operations and ESRI Image Server for customer supply.

National Address Database : OSi database is linked in real-time over a private network to An Post, co-owners of the Geo-Directory. Each evening datasets are reconciled between both organisations and every month datasets are quality checked by running comparison scripts. Maintenance of the database is achieved using 1Spatial’s ‘DNMS’ application.

Ecommerce Supply System : OSi updates over 250 map sheets per week and over 500gb of data from production to supply systems each fortnight which involves database tuning and administration, backups of all mapping data taken and sent off- site and a system refresh allowing supply operate successfully. The system’s operational software comprises Microsoft Commerce Server, Microsoft BizTalk and ESRI GIS Server; the database is Oracle 9.2.0.7.0 and SQL Server 2008.

Web Services : online delivery of the national map database directly to our customers desktop applications, or online web applications via ESRI ArcGIS technology and Oracle databases; hosted both internally and on the Amazon Cloud infrastructure (for key accounts).

Finance / MIS System: software deployed is Captia’s ‘Integra’ client and web-based software and includes a real-time interface to eCommerce, Production and HR systems. Running on Windows Server 2008 R2, Oracle 11g R2 database with Java- based bespoke software.

Customer Relationship Management System: OSi uses Microsoft Dynamics CRM software.

Human Resources System: CoreHR application running on Oracle 9.2.0.7.0. Business Intelligence is captured to assist product costs and staff productivity.

DATABASE PLATFORMS / SOFTWARE

VALUATION OFFICE (VO)

Access: There are a number of Databases developed in Access 2007 in use through the organisation.

SQL: The VO operate and manage SQL Server 2005 Standard / Enterprise.

Oracle: Version 8.1.6 (Core Salary & Expenses System V12.31).

PROPERY REGISTRATION AUTHORITY (PRA)

Oracle: operate and manage an Oracle Enterprise RDBMS, Version 10g Release 10.2.0.5.0 database utilizing certain spatial functions through Oracle .Net over a TCP/IP protocol environment.

ORDNANCE SURVEY IRELAND (OSI)

Oracle: 17 x Oracle databases (Production, Supply, Imagery and other) running v 9, 10 and 11 the GeoDirectory National Address database running on Oracle 9.2.0.1. OSi is a corporate reference site for Oracle due to the OSi’s advanced use of Oracle Spatial technologies and OSi receives significant procurement value as a result.

Oracle Real Application Cluster (RAC): key databases reside within a 2-node RAC running O racle 11.2.0.2.0.

Oracle Spatial: provides OSi with the spatial tools to administer, edit, validate and access data geometry. Oracle Spatial database 11g allows OSi re-project from within the database between Irish Grid (IG) Irish Transverse Mercator (ITM) or to ETRF 89 GPS Co-Ordinates. OSi has developed a high level of expertise in the use of these technologies and in creating packages to manage large volumes of mapping data.

Oracle GRID: Oracle GRID Control software is used as a single point of monitoring for all Oracle databases facilitating alerting notification and assisting with issue resolution They also operate and manage a SQL Server 2008 database and have a number of small Microsoft Access databases.

SQL: 13 x SQL databases (Production, Supply, Imagery and other) running v 2005, 2008 and 2010.

Database modeling: During the last 5 years OSi has developed competency and skill in geo-spatial data modeling, having developed and industry leading data model for Ireland known as Prime2.

NETWORKS, INFRASTRUCTURE AND SECURITY

VALUATION OFFICE (VO)

WAN/LAN: VO Network is based on the star topology, where each network host is connected to a central hub with a point-to-point connection. Servers: 12 Servers in use. None are Virtual Servers. All of Valuation Office servers are running a mixture of Windows Server 2003 Standard / Enterprise These are utilised in a number of bespoke facilities.

Security: Intrusion Protection System is Fortigate 80C.

Firewall: 2 X Cisco ASA 5510.

PROPERY REGISTRATION AUTHORITY (PRA)

WAN/LAN: operates a TCP/IP Wide Area Network across six locations, connected by a combination of the Smart MetroNet and leased data lines. In addition, the Authority’s networks are connected to the public infrastructure through Government Networks to facilitate internet e-mail and web browsing and to provide access to those specific Government Networks such as the Inter-Agency network. Also, the data contained in the PRA’s Registers is accessible to customers (again via Government Networks) through its e-commerce applications www.landdirect.ie and www.edischarges.ie.

Network management: A combination of Solarwinds and Cisco works is utilised for Network management.

Domain: The PRA operates a single Windows Domain model with Windows Server 2003 Active Directory Domain Controllers in each physical location. The operating system on the PCs is Windows XP Professional utilising the MS Office 2003 suite.

Security: The PRA utilises several specialist security products/software to ensure the integrity of its systems and data. These are set out in the table below:

Service Application Version Perimeter Protection Checkpoint firewalls X 2 (clustered) R71 (currently being upgraded to R75) Perimeter Protection Checkpoint IPS R71 (currently being upgraded to R75) Perimeter Protection Active Scout IPS V3 Perimeter Protection Qualysguard online vulnerability N/A scanning Perimeter Protection Quaylsguard online Web Application N/A Scanning (WAS) E-mail content and spam Ironport C150 X 2 V 7.5.1.102 Internet content Webmarshal 6.9 Virus Guard Sophos 10.0 Endpoint Enterprise console V5 Laptop encryption Checkpoint endpoint V8 Remote access Juniper SSL with secure meeting V7 Internal domain accounts Active Directory group policies and Windows Server 2003 mandatory profiles

ORDNANCE SURVEY IRELAND (OSI)

WAN/LAN: connected to eGov network via 200Mb fibre connection to HQ with 20Mb Regional Office connectivity over Eircom’s NGN network; resilience provided by 10Mb Airspeed wireless circuit. The LAN in place is Cisco Catalyst 6509Eprovide layer 2 and layer 3 network for Dublin; all users connected at 1Gb; Regional Offices have Active Directory replication and can run independently of HQ. Solarwinds is used for internal network management; Eye of the Storm for external analysis.

Network: Cisco wireless infrastructure exists within Dublin to provide both guest and staff wireless connectivity. VPN (Virtual Private Network) which Uses three methods: 1. Point-to-Point VPN’s are supplied to trusted third parties, 2. Clientless VPN’s provide restricted access for roaming users, 3. SSL client VPN’s provide for a full e-working solution. GPS Network data is sent to Dublin via individual DSL lines and relayed to third party customers.

Firewalls: Cisco ASA firewalls in active/standby configuration; eCommerce network is secured downstream from the ASA firewalls using Juniper Netscreen firewalls in active/standby configuration; VPN users are managed on a separate Cisco ASA firewall also in active/standby configuration BlueCoat.

Email security : infrastructure consists of the following systems: 1. Barracuda anti- spam firewall manages inbound mail at the first layer, 2. GFI Mail Essentials & Mail Security perform content checking and anti-virus scanning at the second layer and 3. GFI products manage outbound mail delivery.

AntiVirus: McAfee ePolicy Orchestrator (ePO) provided endpoint anti-virus solution; managed by a central repository located in Dublin with distributed repositories at each regional location.

Encryption: All laptops are encrypted with McAfee SafeBoot.

Active Directory security: achieved through the use of the NetIQ security suite.

INFRASTRUCTURE & STORAGE

VALUATION OFFICE (VO)

Servers: 12 x servers.

Storage: 2 x NAS’s in use but no SAN’s with approximately 6TB of data.

PROPERY REGISTRATION AUTHORITY (PRA)

PRA divided its infrastructure into two distinct components which they describe as ‘Core’ and ‘Non-Core’ The non-core hardware environment, comprises 4 ESX servers attaching to a HP 4400 EVA storage area network (SAN), and other ancillary servers, hosting approximately thirty virtual machines (VMs). The core hardware environment comprises 4 ESX servers attaching to a second HP 4400 EVA, and other ancillary servers, hosting approximately 25 virtual machines (VMs). The ITRIS (production) database is hosted on a 2 node Windows Server 2003 R2 Enterprise X 64 Edition cluster using MS Cluster Services attaching to the same SAN

ORDNANCE SURVEY IRELAND (OSI)

Servers: 120+ servers of which more than 50% reside in our virtual environment. Windows 2003 and Windows 2008 server operating systems deployed with Microsoft’s System Centre 2007 monitoring the status of all servers.

Storage: both Fibre Channel / FATA disks and iSCSI useable storage currently exceeds 500TB; tiered across fast disks for databases and current production data, and slower disk or iSCSI storage for less demand intensive or archived data. The SAN infrastructure includes 2 xHP EVA8100s, one HP P6500 and one EMC VNX5500 within an 8GB/4 GB fibre Brocade SAN network; iSCSI environment consists of three HP MSA2000is and seven HP P2000 units. SAN Monitoring is provided using HP Storage Essentials SAN management tool which provides unified server and storage management and the ability to forecast future demand based on actuals.

Mobile Communications : BlackBerrys, iPads and iPhones Devices which are supplied for senior managers, sales force and field surveyors; devices are integrated into the network, secured and configured to receive mail from OSi mail server.

Hardware and Software Asset Management: Novell’s Zen Asset Management (ZAM) is deployed for all hardware and software asset management; running on SQL Server.

Intranet : running on SharePoint 2010

Email : MS Exchange 2010 rollup 5; three-node DAG for high availability with a node residing in each server room in HQ and a third node located in the Kilkenny RO for redundancy and high availability; infrastructure (both in Kilkenny and HQ) resides within OSi virtual environment.

HOSTING /DISASTER RECOVERY

VALUATION OFFICE (VO)

The VO utilises a backup server for both the main database & accounts servers. Their website is hosted by Eircom at their City West Data Centre. Their main database is also replicated to this server in real-time. There are no dedicated “Hot-Site” facilities.

Backup: VO backs up its data to tape using Commvault backup utility. Tapes are stored off-site on a weekly basis with monthly backups retained.

PROPERY REGISTRATION AUTHORITY (PRA)

All of the PRA’s applications are hosted and supported in one central location i.e. Chancery Street, Dublin 7 where they operate a completely virtualised environment (with the exception of the ITRIS database server cluster) using VMware on HP physical platforms. Its Disaster Recovery (DR) facility operates out of the Waterford office. The Infrastructure in DR is identical to that in production and capable of providing all ICT functions indefinitely in the event of a disaster. All data and VMs are continuously replicated to DR. This is achieved using technologies such as SAN to SAN replication (HP Continuous access (CA)) and VMware SRM.

Backup: The PRA currently uses two backup solutions, CA Arcserve for Non Core and HP Dataprotector for Core. In each case, the backup job consists of a ‘disk to disk’ and subsequent ‘disk to tape’ process. Also, in each case all VMs are backed up as well as specific file level and database backups Currently have approximately 39 Terabytes of storage capacity.

ORDNANCE SURVEY IRELAND (OSI)

OSi host two data centres located the Phoenix Park; resilience between two locations is achieved via resilient network and SAN fabric, stretch VMWare cluster, multiple SANs, tape libraries and UPSes located in each centre. VMWare was used to consolidate server functions onto six core cluster servers located across the two server rooms in HQ. OSi’s corporate website is hosted by the Local Government Management Agency running SQL Server.

Backup: systems are captured via Acronis and Netbackup running daily/weekly/monthly backups. Policies and procedures are applied based on various elements and includes off-site storage on a monthly basis for the most recently captured month-end backups. Oracle databases are protected via Oracle’s RMAN backup software. The Physical backup environment consists of two Quantum Scalar i2000 tape libraries with twelve LTO3 and twelve LTO4 drive capacity. Key data sets are replicated to OSi Kilkenny via VMware virtual environment.

CUSTOMER FACING SYSTEMS

VALUATION OFFICE (VO)

The VO website hosts a number of On-Line Services where both Local Authority & Ratepayer can view & track requests, download completed valuations and submit valuation requests on-line. These on-line services interface with our main office systems as outlined under the Distinct / Mission Critical Systems heading.

PROPERY REGISTRATION AUTHORITY (PRA)

The PRA website hosts a number of online-services to professional customers and the citizen. Landdirect for account holders is a web based application that allows customers to gain access via a Web browser and the Internet to services provided by the Property Registration Authority e.g. map and index searching and viewing and printing of Folio records. It currently uses the following technologies: Apache Server version 2.2 integrated with Tomcat version 6.0., 128-bit SSL certificate from Digisign Corporation and Autodesk Liteview

Landdirect for non-account holders is a web-based mapping application that allows members of the public to interact with the Land Registry map and retrieve spatial and non-spatial data. The application is .net (version 3.5) running on IIS 7.0 (Windows webserver 2008). The mapping elements are based largely on open-source products. The maps are delivered using GeoServer, an open source map server. Rendering on the client is done using openLayers, an open source javascript library in conjunction with jQuery and custom written javascripts. Where the service availed of requires a fee to be paid, the customer is redirected to credit/debit card payment facilities hosted by LGCSB/Realex.

eDischarges/eNursing home charges is a web based application that allows PRA clients (financial institutions, local authorities and the HSE) to lodge applications for the discharge of entries on folios electronically. In the case of the HSE, applications for the creation of charges in relation to the Nursing Homes Act are also permitted. The application is .net (version 3.5) running on IIS 6.0 (Windows server 2003). Authentication is by means of Oracle Membership provider .net. Access is also restricted to assigned IP address ranges. .net Code is written in Visual Basic Client.

ORDNANCE SURVEY IRELAND (OSI)

OSi hosts a number of On-Line Services as outlined under the Distinct / Mission Critical Systems heading – see Ecommerce Supply System and WebServices.

DEVELOPMENT & ICT SUPPORT

VALUATION OFFICE (VO)

Staff numbers: the IT Team in the VO consists of 6 staff. These 6 staff provide all the day-to-day support for the entire organization with additional support provided by 2 external support companies.

Staff skills: some of the skills / accreditations within the team include: Higher Diploma in Computer Studies (NUI), Comptia Network +, Comptia A+, Windows XP (70-270), Windows Server 2003 (70-290) and Certified Internet Webmaster (CIW). VB.NET, Visual Basic 6, Access 2007, Basic HTML.

PROPERY REGISTRATION AUTHORITY (PRA)

Staff numbers: The ICT Unit in the PRA comprises 26 people and is divided into Networks & Infrastructure, Security, Operations & Helpdesk (14) and Application Development & Support (11) together with an ICT Manager.

Staff skills: There would be a range of staff with third level qualifications and specific training relating to the role the proved within the ICT Function including Networking, Hardware, Storage and Server management, VMware, Software Development, Database Administration and Project management . Over the last number of years we developed a self sustainable operation in terms of software development, support and infrastructure. This has allowed us significantly reduce our dependence on external support.

ORDNANCE SURVEY IRELAND (OSI)

Staff numbers: The Mapping Technology department in OSi comprises 69.6 FTE staff and is divided into Geodesy & GPS, Data Strategy & Development and ICT.

Staff skills: education includes a range of relevant Masters and degree-qualified staff; various accreditations awarded include Prince2, ITIL, Cisco; OSi development expertise includes XML, GML, PL/SQL, Flash, JavaScript, HTML, ASP.

Key technology partners: include Oracle, ESRI, 1Spatial, Star-Apic, ERDAS, Bentley and Leica Geosystems which operate under non-disclosure agreements for the joint strategic development.

APPENDIX 10 Detailed Paper from the Valuation Office

Valuation Office Administrative and Background Material

This document has been prepared to assist the Working Group on the potential merger of the Property Registration Authority, Ordnance Survey Ireland and Valuation Office

Authors: Mary Smyth & John O’Sullivan

Date: 30 th May 2012

1. Valuation Office

Function

The Valuation Office is the State property valuation agency. The core business of the Office is the establishment and maintenance of a uniform and equitable valuation base on which commercial rates are raised by local authorities. The Office also provides a property valuation consultancy service to other Government Department, local authorities, the Health Service Executive and the Revenue Commissioners.

The Valuation Office is a statutory body which operates under the aegis of the Department of Public Expenditure and Reform. The Commissioner of Valuation is appointed under Section 9 of the Valuation Act 2001 and is independent in the performance of his functions. The Office is funded by the Exchequer through Vote 16 which is one of the Public Expenditure and Reform group of Votes.

The principal statutory function of the Valuation Office is to set and maintain equitable and uniform valuations of property for rating purposes. Its non-statutory functions include the provision, where possible given the limits on its resources, of an essential professional property valuation service for public bodies.

The activities of the Office underpin the collection of some € 1.35 billion in rates by local authorities, which is a very significant element in financing their activities.

Status The Valuation Office is the office of the Commissioner for Valuation and Chief Boundary Surveyor and is principally governed by the Valuation Act 2001. It operates under the aegis of the Department of Public Expenditure and Reform. It is not governed by a Board or Authority.

Staffing All staff of the Valuation Office are civil servants. There are 140 staff in the Office comprising 77 professional valuers, 56 administrative staff and 7 technical mapping staff.

Location The Valuation Office is located in the Irish Life Centre, Dublin 1 (the lease for which location is due for renewal in September 2012). There are no regional or decentralised offices.

Functional Areas The main functional areas in the Valuation Office are set out hereunder:

1. Valuation Services – comprised of Revision, Revaluation, Market Valuation and Global Valuations and Central Administration Services

2. Appeals – processes appeals to the Commissioner and appeals to the Valuation Tribunal and to the Courts

3. Data Capture and Analysis - Central Market Analysis Unit, Quality Assurance Testing, Data Capture Unit (Physical Data Capture), Modelling and Statistical Analysis, Statistical reporting on Performance

4. ICT– ICT Unit, Hardware and Software maintenance and development, Geographical Information Systems, Network support, IT Security and Backup

5. Public Office and Archives – Provides a face to face service to members of the public, provides a back office service for the provision of genealogical material and certified copies of extracts from our valuation lists and maps for legal purposes.

6. Administration Support Units: Finance Unit, HR Unit, Corporate Services Unit, Training and Development, Business continuity planning, Procurement, Risk, Records Management

7. Management Support Services – Legislative issues, Internal Audit, FOI, Ethics and Standards, Preparation of reports and replies to PQs and Reps, Quality Customer Service, Data Protection , Media Liaison and liaison with other Government Departments and Offices.

2. Valuation Tribunal

The Valuation Tribunal is an independent statutory body which hears and decides:

• appeals against decisions of the Commissioner of Valuation on the valuation and revaluation of commercial properties for rating purposes under the Valuation Act 2001 and • appeals by owners of derelict sites against the determination by local authorities of the market values of those sites under the Derelict Sites Act 1990.

The Valuation Tribunal was established in 1989 under Section 2 of the Valuation Act, 1988 and continues in being by virtue of Section 12 of the Valuation Act, 2001. Part 7 of the 2001 Act sets out the appellate functions and jurisdiction of the Tribunal.

The Tribunal also deals with appeals against determinations of market value on derelict sites made by local authorities under the Derelict Sites Act 1990.

Subject to a right of appeal to the High Court and ultimately to the Supreme Court on a point of law, the decision of the Tribunal is final.

The Chairman and members of the Valuation Tribunal (the current number is 20) are appointed by the Minister for Public Expenditure and Reform.

All expenses relating to the administration of the Valuation Tribunal are paid from a specific subhead of the Valuation Office Vote. This amounted to €650,000 in 2011 and is estimated at €574,000 for 2012. Valuation Tribunal staff (between 5 and 8 depending on the programme of work) are included in the approved Valuation Office ECF numbers and are paid from the Valuation Office vote. The Registrar of the Valuation Tribunal is seconded from the Department of Public Expenditure and Reform. The arrangements relating to the funding and staffing of the Tribunal appear to be administrative and are not specifically provided for in the 2001 Act.

Currently, all expenditure relating to the administration and operation of the Valuation Tribunal is accounted for via the Valuation Office Vote and the Commissioner of Valuation is Accounting Officer for the Tribunal. This gives rise to the anomalous situation that the Commissioner is responsible for the administration costs and any costs associated with the operation of the Tribunal but is also a party to the cases coming before it. Clearly, this situation is capable of giving rise to potential conflicts of interest and is at variance with good governance principles. Accordingly, in the context of any amalgamation of organisations, it is strongly recommended that consideration be given to relocating administrative responsibility for the Valuation Tribunal to a different organisation such as the Courts Service.

3. Staff

Valuation Office Staffing The Professional (Valuer) and Technical (Mapping) staff members are recruited directly for the Office, albeit sometimes using the Public Appointments Service as a recruitment partner, and they spend their entire Public Service careers in the Valuation Office. Promotions within each of the staffing streams have, up to the current time, been confined to staff members within that particular stream.

All staff in the Valuation Office are Civil Servants.

The majority of Valuation Office staff are members of one of four Unions with six representative bodies (there are three separate branches of IMPACT). Arising from its Action Plan under the Croke Park Agreement, the Valuation Office has achieved an increasing level of flexibility in the development and operation of its organisational and human resource strategies.

Grade Structure The grade structure for each of the Professional and Technical streams is as outlined below:

Professional (Valuer) Grading Structure Technical (Mapping) Structure Grade Civil Service Number Grade Civil Service Numbe Equivalent Serving Equivalent r Serving Grade 3 (Entry Administrative 47 Mapping 0 level) Officer Draughtsperson Salary at Engineer Grade 3 Grade 2 Assistant 11 Examiner of 0 Salary at Principal Maps Engineer Grade 2 Grade 1 Assistant 2 Examiner in 0 Salary at Principal Charge Engineer Grade 1 Team Assistant 11 Superintendent Higher Executive 3 Leader/Appeal Principal of Mapping Officer Officer Salary at Engineer Grade 1 + Allowance Managing Principal 4 Higher Higher Executive 2 Valuer Officer Superintendent Officer (with Standard of Mapping allowance) Head of Principal 1 Chief Assistant 2 Valuation Officer Higher Superintendent Principal Services of Mapping

The grade structure for the Administration staff is outlined in the table below

Administrative Grading Structure Grade Number Serving Valuation Office Valuation Tribunal

Commissioner of Valuation 1 1 0 (Assistant Secretary) Principal Officer 1 1 0 Assistant Principal 4 3 1 Higher Executive Officer 6 5 1 Executive Officer 14 13 1 Staff Officer 12 12 0 Clerical Officer 13 8 5* Service Officer 3 3 0 Cleaner 3 3 0 Totals 57 49 8

*3 staff are seconded and will be returning to parent Departments at end July 2012

Staff Costs Staff costs in 2011 amounted to €7.974M, some 83% of the total expenditure on the Valuation Office Vote. Of this amount, overtime accounted for €27K and other

allowances €122K. Overtime is limited to building security duties and essential maintenance. Allowances paid, for the most part, relate to allowances for higher duties (managerial) and allowances for Service Officer duties.

Age Profile of Staff in the Valuation Office

17% of staff are under 30 35% of staff are under 35 47% of staff are under 40 62% of staff are under 50 38% of staff are over 50

4. Valuation Services

The various Valuation Services conducted by the Valuation Office are outlined hereunder.

Revision

On request from the Local Authorities and ratepayers, the Valuation Office undertakes the revision of properties, as requested, to determine whether a change has occurred since the previous revision and whether the valuation on that property needs to be updated as a result of any change. Revisions are carried out under Section 28 of the Valuation Act 2001. Collection of Fees for Revision In compliance with Statutory Instrument 381 of 2004, the Office issues invoices to each Local Authority based on Revision outputs produced. Third-party applications from individuals and organisations, other than Local Authorities, attracted a fee in advance. The invoicing system is designed to ensure consistency in the receipt of income throughout the year and it helps to streamline the fee-collection process. During 2010 the Office processed 9,881 Revision cases (including 3394 new records added to the Valuation List) and received income of €1,377,000 in respect of Revision outputs.

The main concentration of resource in the Office is currently on the completion of the Dublin City Revaluation programme and the roll out of the Revaluation to other areas. The Office has marginally reduced its revision service to the Local Authorities as a result but still maintains a core service to those bodies.

Commercial Rates There has been a lot of discussion recently about the rates that businesses have to pay, especially given the pressures of the current economic climate.

It should be noted that the amount of rates payable in each local authority area is not determined by the Valuation Office. Local authorities use the valuations for individual properties prepared by the Valuation Office to calculate the amount of rates payable by multiplying the valuation by the annual rate on valuation (ARV), formerly

known as the rate in the pound, to determine the amount of commercial rates payable per annum. They determine the ARV based on their financing needs.

Revaluation

National Revaluation Programme Over time the dynamic of property economics results in shifts and adjustments in both absolute and relative values of property. This results in anomalies and inconsistencies developing in the valuation lists which are exacerbated over time until they become inequitable as a basis for the collection of a tax (commercial rates). The revision process is not designed to and cannot address these anomalies. The revaluation provision in Part 5 of the Valuation Act, 2001 is designed to provide a corrective mechanism to deal with this issue on a regular basis. Failure to carry out revaluations exposes the system to potential legal challenge and local authority rates income to potentially significant losses. The Supreme Court in the case of Brennan & Others (land valuation case which struck down the collection of rates on agricultural land) found that in the assessment of a tax such as rates, reasonable uniformity of valuation is essential to justice). It is arguable that in recessionary times, when commercial and industrial entities are experiencing serious cost pressures, the potential for such a challenge to be mounted is greater than at other times.

The importance of a revaluation can be summarised as follows:

The national Revaluation Programme is the first of its kind in Ireland since the middle of the nineteenth century and is a major undertaking for the organisation. The essential purpose of a revaluation is to redistribute the burden of rates more equitably in line with changes in valuations. It does not increase the total quantum of rates payable in the year following a revaluation. Any increase will be limited to the rate of inflation.

The revaluation programme began in November 2005 in the South Dublin County Council area and has since been rolled out to Fingal and Dún Laoghaire-Rathdown County Councils. The revaluation of South Dublin was completed in December 2007. Fingal was completed in 2009 and Dún Laoghaire-Rathdown was completed in 2010.

ensure that the pilot projects are adequately prepared and can be implemented rigorously once the legislation is in full force and effect. Redistribution of commercial rates liabilities following Revaluation The purpose of a revaluation is to redistribute commercial rates liabilities among ratepayers based on up-to-date values. Following revaluation, there will be a much closer relationship between rental value and commercial rates liability. Even though property values have fallen generally, some ratepayers will gain while others will lose from the process of redistribution but, overall, there will be a fairer distribution of the rates burden. In general, however, the number of ratepayers who have gained has exceeded the ‘losers’ in the revaluations carried out to date.

Global Valuations Section 53 of the Valuation Act, 2001 makes provision for the valuation of the relevant property of certain public utility undertakings on a global basis, that is, relevant properties taken as a whole as respects the particular undertaking.

Market Value The Valuation Office provides a limited non-statutory valuation service to Government Departments, the Revenue Commissioners, State bodies and agencies, Local Authorities and the Health Services Executive. Provision of this service is contingent on resource availability.

Central Market Analysis Unit A central Market Analysis Unit was established and became operational in May 2011. The core function of the unit is to undertake both analysis of macro data on trends in the property market and research on categories, uses and locations of properties. It is also tasked with analysing headline/complex transactions and to provide support to the Office’s Revaluation Board in relation to quality assurance and consistency in valuations.

Indexation and Statistical Methodologies In July 2011, the Office undertook a comprehensive project to ascertain the feasibility of applying a relativity factor or index derived from a detailed market analysis exercise to allow all properties in a particular category to be converted from their existing Rateable Valuation (RV) to Net Annual Value (NAV). The findings revealed that establishing an accurate multiplier may be problematic given the anomalies that currently exist in the Valuation List. Work is continuing, however, to explore the use of this methodology which could certainly have a role to play as anomalies in the current list are reduced.

The Valuation Office is also examining, with the assistance of the Central Statistics Office, the possible development and use of statistical modelling techniques.

Market Information In conjunction with the Revenue Commissioners, the Office was successful in obtaining amending legislation whereby access to property transactional information contained in the Revenue Commissioners eStamping system will be made available to the Office. The necessary provision was enacted in Schedule 8 of the Property Services (Regulation) Act, 2011.

Appeals

Revision Appeals In 2011 the Office decided 582 First Appeals (Appeals to the Commissioner) arising from the ongoing revision programme. This represented some 4.9% of revision cases, 45.7% of these cases had the valuation reduced, and the percentage reduction in the total valuation under appeal was 4.7%.

The Office implemented 123 Valuation Tribunal decisions, arising from the Tribunal’s consideration of determinations of the Commissioner at First Appeal, 17.1% of the Tribunal cases involved legal issues. This percentage of Tribunal cases involving legal issues compares to 19.5% in 2010 and 19% in 2009. Of the revision cases decided by the Valuation Tribunal in 2011, 52.8% had their valuation reduced, compared with 68% in 2010.Appeals

Revaluation Appeals A total of 1148 First Appeals were received from the revaluation of Dun Laoghaire Rathdown. 291 of these decisions were subsequently appealed to the Valuation Tribunal and 11 of these were issued by the end of 2011. Two additional Appeal Officers were appointed on a temporary basis to deal with these appeals.

5. Funding the Valuation Office The information hereunder is provided in response to a request from Mr. David Denny, Department of Public Expenditure and Reform made at the meeting of the sub-group on 16 th May 2012. Breakdown of the 2011 Actual and the 2012 Estimated income and expenditure for the Valuation Office (including Administrative Services for Valuation Tribunal) is as follows:

Year 2011 Actual 2012 Estimated Description/Source From the From the From the From the Public Private Public Private Sector Sector Sector Sector Directly Voted expenditure €7,132,000 - €8,548,000 -

Other Income – Appropriations in €1,695,000 €731,000 €1,576,000 €598,000 Aid (breakdown hereunder): Valuation Tribunal Appeal Fees - €126,000 - €60,000 Public Office Receipts - €139,000 - €158,000 Valuation Revision Fees €1,167,000 €210,000 €1,080,000 €190,000 Fees from Appeals to the Commissioner - €233,000 - €165,000 Miscellaneous Receipts €37,000 €23,000 €40,000 €25,000 Pension Related Deduction Receipts €491,000 - €456,000 -

Sub Totals €8,827,000 €731,000 €10,124,000 €598,000

Overall Total €9,558,000 €10,722,000

Conclusion: 93% - 94% funding is provided from Public Purse

Note: All income from fees and receipts is treated as Appropriations in Aid

6. Other Developments

Legislation

Valuation Act 2001 The main purpose of the Valuation Act, 2001 Act is to provide for a national revaluation of commercial and industrial property, to bring fairness and uniformity to the distribution of the rates burden among commercial and industrial ratepayers. Neither residential nor agricultural property is currently rateable. The Act also made provision for an ongoing revision programme to allow for valuation of new properties and changes to valuations of existing properties

Amending Legislation In order to help speed up the national revaluation programme the Government has approved the Heads of a Bill to modernise and streamline the Valuation Act 2001. These Heads are now with the Parliamentary Draftsman’s Office for drafting of the Valuation (Amendment) Bill and its publication is imminent.

Significantly, and based on proposals made by the Commissioner of Valuation, the new legislation will authorise the use of new methodologies for revaluation. In particular, it will provide for:

• Use of a Self Assessment methodology and • Performance of some of the work by an external service, subject to the appropriate checks and balances.

Detailed schemes to pilot these new methodologies in two local authority areas are currently being drawn up by the Valuation Office with a view to implementing them as soon as possible after the amending legislation is enacted.

The new legislation will also allow for the use of statistical methodologies for undertaking revaluations, or for keeping valuations up to date, in the future. It will streamline the appeals process and allow the Valuation Office to make better use of its resources.

All of this represents good progress in a short space of time. Reflecting its strategic importance to the Valuation Office and its key stakeholders, the national programme will be advanced as quickly as possible. It will provide an up-to- date and more transparent system of valuations on which to base rates and will give greater equity.

Other Initiatives

GIS/GPS In September 2011, the Management Committee agreed that Geographic Information System (GIS) technology had the potential to play an important role in the work of the

Office and in facilitating analytical work aimed at faster, fairer and more consistent valuations, as well as quality assurance. As an initial step, it was decided to procure the development of a GIS desk-top application for valuers. The Office also recently completed its national project to geo-code all commercial properties in the State.

Public Office - Genealogical Services/ Archive / Digital Scanning One of the services provided to citizens and tourists from abroad is assistance with genealogical research. Demand for this service increases during the summer months. The office is open to the public from 9.15am to 4.30pm Monday to Friday and there is no need to make an appointment.

To trace a particular property in a rural area, the minimum requirements are the name of the County, the name of the Townland and the name of the person or family. In a City or Town, the street name is also required.

The Office provides access to valuation records for those interested in their historical value. Historical valuation records kept by the Office constitute a unique and irreplaceable national resource, which needs to be protected and preserved for posterity while being simultaneously accessible to those who need recourse to it. The Office’s Archive Preservation Project is designed to preserve the manuscript valuation record books and associated maps dating from the 1840s and to provide this information digitally to our customers. Scanning of the archive books for Counties Kerry and Mayo are now complete. The programme for preservation of the manuscript valuation record books continued in 2011 with the scanning of the records for the Dublin city and county areas. The Dublin project was completed in January 2012.

The Office is continuing with the development of a system to utilise the digital data produced from the scanning of archive valuation books and files. The system allows staff to access information without recourse to the physical records. It is being rolled out on a county-by-county basis to coincide with the availability of the digital records.

The completion of the scanning of the manuscript records for the Dublin area significantly increased the number of records accessible as digital records and will help to preserve a greater proportion of the historical valuation source books. The long term aim is to restrict physical access to all manuscript valuation records so that they may be preserved in good condition. The continuation of the project for the digitisation of these records will be subject to the ongoing availability of funding.

Communication with Staff There was full engagement with staff on the preparation of the Office’s Statement of Strategy which covers the period 2011 to 2014. We consulted initially with all staff and subsequently set up smaller groups to consider issues and revert to Management. Other focus groups then examined the feasibility of particular proposals and suggestions. A considerable proportion of the ideas and suggestions which emerged were included in the Strategy Statement.

There is a monthly meeting of an “Open Forum” at which Management responds to issues raised by staff and a Technical Forum meets on a monthly basis to address any issues for valuer staff. Shared Services The HR unit is working with the Department of Public Expenditure and Reform and has provided significant information to that Department in 2011 to facilitate the move to a centrally managed HR Shared Service for Civil Service Departments and Offices. The ongoing efficiencies from the existing HRMS system through the better management of staff records and the provision of useful reports continue to be a support to management and staff. The Office has made initial enquiries about participation in Financial Shared Services with either the Department of Finance or the Department of Justice. We remain committed to participating in such a venture. Training and Development A Training and Development strategy was completed early in 2012 with the approach being focussed on Induction; Specialised learning, knowledge and skills; and Personal development.

The Office continues to run a programme of expert witness training for younger valuers. The programme is designed to enhance case preparation, presentation and advocacy skills, for valuers appearing before the Valuation Tribunal.

Internal Audit The Office has an Internal Audit function, which operates in accordance with a written charter. Following a review in 2011, the Office outsourced specific Audit functions to an external firm of Accountants who report directly to the Head of Internal Audit. The Audit Committee was reconstituted in 2011 and has two external members (including the Chairperson).

Performance Budgeting The Office participated in the pilot project on Performance Budgeting in the preparation of the Estimates for 2011 and will continue to refine the template to reflect fully the cost to the Exchequer of the outputs produced by the organisation. The Office is committed to delivery on its organisational targets on quality and outputs as outlined in the Performance Budgeting template.

Risk Management Following a review of Risk Management carried out by our Internal Auditors in 2011, work commenced on the development of a Risk Management Policy. The policy was presented to the Audit Committee early in 2012. A Chief Risk Officer has been appointed and a Corporate Risk Register is in place. The Management Committee discusses risk on a monthly basis.

Appendix 11 Detailed Paper from Ordnance Survey Ireland

DRAFT

Proposals for consideration by the Critical Review in assessing the rationale for a merger of Valuations Office, PRA and OSi to create a single Spatial Data Infrastructure organisation.

Contents

1. Key objectives of Public Service Reform

Introduction

Public Service Reform

Action Plan for Jobs

OSi’s Perspective

Critical Strategic Objectives

Diagram representing Spatial Data Infrastructure

The Collaborative Advantage

Impact of Global Trends on the Irish Industry

2. Funding Model

OSi Funding and Business Model

Conclusions

Option 1: Collaborative Approach

Option 2: Merger of Three Organisations

3. Recommendations

4. Summary

Appendix 1: Key Stakeholders

Market Solutions using OSi Mapping

Appendix 2: Funding Models

1. Key Objectives of Public Service Reform

INTRODUCTION:

In this paper we will outline OSi’s perspective on how as custodian of Spatial Data it can support the provision of necessary and crucial data for the Public Service and work with the private sector to develop new products and services necessary for economic recovery and jobs.

In considering the benefits of an all encompassing Spatial Data Infrastructure we must recognise that everything happens somewhere; this fact has resulted in a global industry built on location based information and services to businesses, governments and the general public. Location information and services are about understanding more about the nature of places, where events happen, their impacts on the people and assets at that location.

Location information and services allow the public to obtain information easily and plan better, this can allow businesses and government to manage risk better and use resources better. This will increase the success rate for new initiatives, assist in the reduction of the potential for future problems and give tangible financial benefits.

This document outlines the potential strategic objectives of state owned, commercially and customer focused organisations, it outlines a proposed funding model and at a summary level, drawing on international experiences, it describes the likely benefits and implications of a merged organisation or a collaborative approach to the development of a Spatial Data Infrastructure.

In considering the Public Service Reform agenda a key deliverable must be the exploitation of sectoral opportunities to create the environment that will lead to job creation. This should be at the heart of restructuring and redesign of how public services are provided and this focus on streamlining access to public services and making it easier for businesses to flourish must be a key consideration. Successive Government Ministers have spoken of the urgent need for an environment which will encourage foreign direct investment, entrepreneurship and cost effective provision of public services to support the job creation agenda

Public Service Reform :

The Public Service Reform Plan addresses a set of costcutting initiatives which are focused on delivering the necessary structures, processes, ways of working, technologies and capabilities across all of Government. Within this context, the following five major commitments to change address the need to improve the customer experience and address costs:

1. Placing customer service at the core of everything we do; 2. Maximising new and innovative service delivery channels; 3. Radically reducing our costs to drive better value for money; 4. Leading, organising and working in new ways; and 5. Strong focus on implementation and delivery.

Action Plan for Jobs

The Action Plan for Jobs addresses seven principal areas which are crucial to creating the environment for job creation, innovation and entrepreneurship.

Spatial Information Working Group The Spatial Information Working Group (SIWG) is a Working Group under the direction of the Public Service CIO Council to work on key spatial information issues of a cross-agency and cross-sectoral nature. They have identified:

The need for standardised data • The requirement for a national Spatial Information Strategy was identified. • The need for standardised ID’s and spatial referencing. • It was acknowledged that all data needs to be referenced to a standard reference framework i.e. OSi mapping.

The need for the public sector to have access to data • It is acknowledged that if data were to be made available to the public sector, then appropriate funding model would need to be developed. • Models exist in other countries (OSGB & Norway) whereby funding comes from a mixture of Pan Government Agreement / SLA and the undertaking of commercial activities outside of a pan government agreement.

OSI’s Perspective:

OSi considers that there are two options which can be aligned with public service reform and support the creation of an environment that encourages job growth and innovation. The first option, represents a collaborative model whereby OSi, VO and PRA to enter into a Spatial Data Infrastructure Agreement creating a shared service and back office function to achieve cost saving opportunities and expertise. The second option is a merger of OSi, PRA and the Valuations Office.

Critical Strategic objectives: There are four critical strategic objectives that should be taken into consideration when evaluating the proposal to merge the PRAI, OSi and the VO. They are as follows:

Public Service:

1. The aim should be to ensure and promote the best practice management and use of spatial data (e.g. see appendix 1) within Ireland.

• This is achieved through agreed data management policies • Increased and effective use of spatial data and analysis • Enhanced decision making processes in all areas of the economy, and in all levels of government. • Delivering cost savings through the use of spatial data resulting from greater efficiency.

2. The aim should be to enable easy access to and applied use of spatial data to problem solving and encourage / facilitate data sharing amongst key public service stakeholders.

• Location intelligence provides for more efficient operations, reporting and project management. • It delivers greater operational efficiency for organisations and allows for better analysis and prioritisation of investments or resources. • This is achieved by reducing barriers to use and increasing data awareness and sharing, including removing the data collection duplication across different organisations and poor application or adherence to standards.

These strategic objectives are funded through a pan-Government agreement.

Private Sector:

3. It should contribute to the continued creation of a strong and internationally competitive SMEs and jobs growth built on value-added spatial data products, software and services.

• Item 1 and 2 above should encourage and stimulate a strong and competitive SME industry focused on the development of value-added services to spatial data users, resulting in competitive advantage for Irish companies and potential job creation.

4. It should continue to be commercially minded and client-focused and as it would be operating in a fast changing industry, it should be structured to be responsive and innovative in meeting customers’ needs across both the public and private sector.

• There should be a recognition of and encouragement for a business like mind-set to drive operation efficiencies, to increase cost recovery and to develop innovative new services with the core data that can be commercially exploited.

Please see the diagram below which outlines how these strategic objectives flow from the combination of the PRA, VO and OSi data in a Spatial Data Infrastructure which incorporates a recognised international funding model of spatial data.

The Collaborative Advantage:

The red line services potentially become more valuable when the data flows between the PRAI/OSI/VO and other public bodies become two-way, providing for greater potential to commercially exploit new datasets.

The strategy should seek to bring together the various players in the location industry in Ireland, thereby creating a “collaborative advantage”, and setting out common goals (as described earlier). This concept differs from today’s model, which is very much solution centric, and normally only sees discrete, once off interacting between some of the key players.

In Ireland, there remains much duplication, too little reuse and too few linkages across datasets which are required to support policy implementation, for example, planning, housing, flooding, and traffic management. A collaborate approach would assist in the adaption of data standards enabling the easier exchange of geographically referenced information leading to an improvement in public administration.

This in turn can be exploited across commercial market segments to help carry out spatial analysis, acting as an aid to decision making by industry. The use of spatially referenced information is globally recognised as important in decision making processes, increasing the success rate for new initiatives, assisting in the reduction of the potential for future problems and giving tangible financial benefit.

Impact of Global Trends on the Irish Industry

The global trends are having a significant impact on the Irish location services industry. Mobile technology, web services and cloud computing are driving significant changes within the geographic information (GI) industry and opportunities exist to harness these changes, to create new products and services and attract new business to Ireland and develop indigenous companies.

OSi recognises that the objectives outlined above are also achievable in a full merger of the three organisations.

2. Funding Model:

OSi Funding and Business Model:

OSi was established in 2001 with a dual mandate i.e. OSi has public service responsibility and a commercial remit to develop the sector and create a customer centric mindset and benchmarks. OSi’s customer base spans all sectors of society. It includes both public and private sectors and also licenses the use of its data for a wide range of computer-based applications such as Computer Aided Design (CAD) and Geographic Information Systems (GIS). Using these systems and technological developments has also allowed disparate organisations to analyse their own data by using OSi mapping data in conjunction with their own information. These organisations include a wide range of utility businesses, private industry, the PRAI, the Valuation Office, local authorities and many State Agencies.

OSi’s financial funding model is designed to ensure that the products and services provided to all stakeholders and customers are delivered through commercial terms and as such are payment for these products services rather than a means of funding the organisation. This model has allowed the organisation to:

• Invest in its own systems and processes, • Minimise the burden on the State, • Drive cost effectiveness and continually seek efficiency in production processes

There is a clear link between OSi deliveries and payment by the customer which provides an appropriate means of facilitating accountability and

regulating the use of OSi services. In addition the level and type of products and services provided by OSi is designed in response to the needs of the spatial data community.

OSi supplies data products to various customers both public service, public sector and private sector including individuals. It is estimated that OSI will receive €19m in 2012 for services provided to the public and private sector on a commercial basis. In addition under a Service Level Agreement for specific services for the State OSi will receive €4.8m in 2012 down from €15m in the late 1990’s. Over the past few years a view has emerged that OSi’s revenues are Government funding. OSi considers that the principle that the user pays should continue to be a key element in any future funding arrangements that may be put in place if a merger should proceed.

To recap OSi considers that there are two options for the provision of services and products by OSi, VO and the PRA.

Please see appendix 2 for funding scenarios related to options 1 and 2.

3. Conclusions This paper has been developed by OSi to inform the Critical Review Group of the options and opportunities which must be understood and catered for in any new model of Spatial Data Infrastructure for Ireland. There are a range of complex and costcutting issues which must be clearly articulated and costed when considering how best to deliver on the Public Service Reform agenda and the role of Spatial Data Infrastructure in the creation of a jobs environment as outlined in the Action Plan for jobs.

There are options for the future which have emerged and must be considered. Clearly the evaluation of these options under the proposed criteria of commitments to change must address the need to improve the customer experience and address costs:

Option 1: Collaborative Approach

OSI, VO and PRA could enter into a Spatial Data Infrastructure Agreement creating a shared service and back office function to achieve cost saving opportunities and expertise on a collaborative basis. OSi considers that this can be achieved without an immediate merger and may be the most appropriate short to medium term strategy.

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Pros Cons • Allows for achievement of cost saving • Demands a higher level of integration and development of expertise in a of Data and deeper relationships; shorter timeframe; • Leadership and decision making • Recognises the need for focus in key challenge; public service delivery; • Doesn’t deliver on Government • Puts in place a strategic Spatial Data agenda to reduce number of Infrastructure, available to all public agencies. service stakeholders; • Costs of developing a new data • Streamlines Government funding and sharing computer model and focuses it into the appropriate areas combining the data through Pan-Government agreement • It may not be possible to develop the on funding; required new computer model on a • Eliminates the need for a significant collaborative basis than in a merged upfront expenditure to ensure the organisation creation of a viable entity; • There may be uncertainty as to who • Ensures the continuation of the owns what data and IP agreements commercial focus and remit, will be required to address this customer service, to offset costs to concern. Government through private sector • IP agreements will have to be sales; updated depending as different • Less risk of integration failures products and/or services are developed by the three organisations.

Option 2: Merger of Three Organisations

Merger of the three organisations under a single Board for Governance and one management team for leadership and delivery. We consider this to be a medium to long-term strategy.

Pros Cons • Reduces the number of state • Significant upfront cost needed to organisations; ensure a successful merger; • Achieves public perception of cost • Culture harmonisation issues; savings; • Potential for loss of focus on • One single model of ownership of operations and service delivery data; during merger and engagement • Reduces back office servicing costs; period; • A single entity would have more • Opportunity for significant industrial influence in national spatial strategy relations upset; implementation. • Will take 5 to 10 years to achieve • Puts in place a strategic Spatial Data longer term savings; Infrastructure. • Proven difficult for organisations to • Streamlines Government funding and maintain customer service during focuses it into the appropriate areas merger as focus in early years will be through Pan-Government agreement on IR and culture issues. on funding. • Potential for increased operating costs to the State.

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4. RECOMMENDATIONS

As outlined above OSi considers that there are two options available for consideration by the Critical Review Group in meeting its purpose of reporting to Government under the Public Service Reform agenda. The first option is to put in place a Collaboration Approach where all three organisations have a shared approach with legally formalised co-operation agreement between them. The second option is a full merger of the three organisations into one organisation. OSi considers that it may be perceived that mergers present significant opportunities for cost reduction and rationalisation but this is not always the case. For example OSNI’s experience of merging to form the Land and Property Services was that there were significant challenges.

OSi considers that the benefits sought by Government under its five criteria for Public Service Reform can be achieved more quickly through the Collaboration Model as outlined above. This approach will deliver cost savings through the Shared Service opportunities of HR, Finance, Procurement and IT services. The creation of a single data spine underpinning the Spatial Data Infrastructure will allow for access to data for public service users and the continuation of a commercial and customer service individually in the three organisations.

5. Summary

It is OSi’s position, that the benefits can be realised through greater collaboration between the key stakeholders, ensuring that the data, services and skills within the Geospatial Industry are aligned to current and future industry needs, and by adopting best practice principles in the area of data management, data use, industry initiatives, innovation and research.

OSi recognises that the collaborative model as with the full merger model will incur significant costs in so far as developing a new integrated spatial database is concerned. It is also cognisant of the fact that the collaborative model might potentially give rise to legal uncertainty in so far as IP rights are concerned.

The vision for the future should concern itself with how best to leverage the collaborative business model, where the government and industry is working together to reduce costs to the State, to exploit the opportunities presented by the better application of location intelligence to the public and private sectors.

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APPENDIX 1:

Key Stakeholders: Public • Ordnance Survey Ireland • PRAI • Valuation Office • Department of Communications, Energy and Natural Resources • Department of Agriculture, Food and the Marine • Department of Arts, Heritage and the Gaeltacht • Department of Defence • Department of Education and Skills • Department of Environment, Community and Local Government • Department of Finance • Department of Justice and Equality • Department of Public Expenditure and Reform • Department of Health • Department of Jobs, Enterprise and Innovation • Department of Social Protection • Department of the Taoiseach • Department of Transport, Tourism and Sport • Local Authorites • OPW • CSO • EPA • GSI • NRA • NTA • SEAI • Irish Spatial Data Infrastructure (ISDI) Policy Group – chaired by Dept of Environment Local Government Computer Services Board • Marine Institute • Private – • ESRI Value • Compass Informatics Added • eSpatial Resellers • Mapflow • IMGS • 1Spatial • Gamma

Private • ESB

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Utility & • Bord Gais Telcoms • Eirgrid • Eircom • Vodafone • BT • Airtricity • etc

Academic / • National Centre for Geocomputation (NCG) at NUIM Research • Analytics Institute • The Telecommunications Software & Systems Group (TSSG) at WIT • Digital Enterprise Research Institute at NUIG • The Coastal & Marine Resource Centre (CMRC)

Industry • IRLOGI

Global • Microsoft Businesses • Google with • Oracle presence in • Navtec Ireland • ESRI • Intergraph • Bentley • O2 • Vodafone • Orange New Global • Leica GeoSystems Businesses • Infoterra • Bloom

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Market Solutions using OSi mapping

Customers often have the potential to use mapping data as part of a number of any solutions within an organisation.

Id. Name of application (what the Examples data is used for) A • Environmental Coastal erosion • analysis Meteorology • environmental modelling • protection and conservation • contaminated land • national floodplain data and environmental modelling • Flood modelling & flood risk Assessment • Pollution risk and management • Noise pollution

B Land, building B1 Creating reference geographies and Land, • infrastructure Documentation of network structure building and management (e.g. underground imaging – utilities) infrastructure • Asset registration management • Recording rail assets, street furniture, – owners This is about location of flood defences

internal • boundary making and periodic electoral business reviews management. Where a Maintenance scheduling service is • Service company management (e.g. being lifts) provided see • Church estate management ‘E’ below • vegetation encroachment control (util) • Estate and housing management • Scheduling works and maintenance (e.g. housing association) • Asset maintenance (e.g. transmission lines) • Location of key workers and drive times to back up sites, location of hotels near to back up site

Land industries and development • Forestry management • Farm management • Land fill • design of new/changed road schemes, shopping centres, pylon lines • Quarrying

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• mineral extraction • Drainage and irrigation

• B2 Motorways management (contractors) • Forestry schemes Land, • Agricultural schemes building and • Utility contractors infrastructure management – Third parties

C Data must Register of land and property Land be: • registration The formal mapping of legal title by Land Highly Registry /Property Registration Authority detailed and maintenance of the ‘Index Map’ and Up-to- individual legal titles date May require survey services D • Land and (Guidance: National planning policy ( o Neighbourhood renewal property Valuation o planning and activity and Brown-field, housing density and green space assessment transactions legal o transactions Regeneration • are implied review of planning applications • Legal site surveys/ • extents are Property development business (land- essential to banks) the • Critical national infrastructure projects application)

E Service E1 Planning efficient use of time and resource provision Service • allocating number and location of Note – where planning ambulances to territories the ‘service’ is • Defining Police Force or HSE the provision boundaries/catchments of a map, then • sales force planning and locating this will fall • new connections (util) under ‘D’ or ‘I' • streetworks (util) • Planning renewable energy sources e.g. Wind modelling/Turbine placement

• Planning for major sports and cultural

events

Providing equal access to services/quantity planning • siting public services (e.g. Health service planning) • Digital TV switchover Help Scheme • Accessibility planning

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• Signal/radio propagation • water framework planning (util) • Bank branch location/ATM Location • interruptions to supply and services (util)

Policy making • Legislative development • rural and environmental policy making • Census planning and statistical planning

E2 Carrying out government policy/performing to Service targets delivery • Emergency response and incident management • Managing education services, children’s services and adult social care

Managing mobile services • Domiciliary care • Beach cleaning • Litter and dog waste wardens

Monitoring efficient use of resource • Supply chain management • Labour management

•

E3 Regulation Service • Communications , Electricity , Gas review • Complaints authorities and ombudsmen Now includes former Review and audit • Performance emergency services response times Management, • audit Regulation • business performance and audit • post incident analysis • Monitoring police force performance • Central govt Public Service Agreements • Dept for Children, Schools and Families truancy tracking

F Financial F1 Sales and marketing benefit Revenue • Location marketing generation • ‘how-to-find us’ maps on web • Property details for sale purposes • Property portfolio analysis and valuing stock • prospect location and targeting

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o retail services research o mail shots o market analysis o customer analysis e.g. socio- demographic research • CRM Collecting taxes, invoicing, billing and tolls • Property Tax and non-domestic rates calculation • Road User charging and parking • Taxation • Metering (Util)/billing

F2 F2 a Loss Evasion and recovery limitation • detecting TV licence evasion • billing (utils) and revenue protection • tax evasion

F2 b Assessing financial risk • Actuarial activity (calculating level of exposure) • provision of asset value for credit rating service • Risk Accumulation • Concentration risk • Credit risk • Aggregation risk • Risk surveys • Financial risk • Contract management (local government)

F2 c Tackling fraud • Fraud prevention/analysis/detection • Anti-money Laundering • Terrorism financing • Mortgage Fraud • Insurance fraud • Account takeover (identity theft)

F3 ‘Fair share’ distribution Benefit • Lottery fund allocation provision • grant allocation Identifying rights to/level of benefit • Single Payment Scheme (Dep of Agriculture)

G Protection Contingency planning and National protection

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• of people, Defence and security • property, land Emergency planning including railways • and Crisis management infrastructure • critical national infrastructure projects • critical infrastructure analysis (util) • Civil contingency planning and response (cabinet office) • Analysis and prevention of crime/fire • National Fire risk assessment • road accident diagnosis and analysis Health and safety • Safe routes to schools • Animal health/Veterinary disease surveillance • Identifying ‘at risk’ individuals (NHS, Social Services….) • operational risk • Epidemiology modelling (HPA – swine flu, bird flu) • Emergency building management e.g. fire evacuation

Heritage protection • Recording off-shore wrecks • Care for the archaeological and built heritage (OPW ) H • Transportation H1 Personal Navigation services • and Navigation (TomTom, Garmin, Nokia) Navigation • navigation Routing and route optimisation services • routing for emergency services • home delivery services (mobile • road navigation through satnav/mobile assets) navigation/GPS unit • Rail timetabling • Road navigation using street directions and road atlases • H2 Vehicle/asset tracking • View, Tracking and Scheduling SUC Tracking (former Fleet Management/Car sharing/ASP tracking or car sharing) • vehicle breakdown and recovery services • telemetry solutions for vehicle fleets • Telematics and fleet management • ITS (intelligent transport solutions) I • Outdoor Internet, Wireless and Leisure SUC exploration (which is only applicable to licensed data for personal use) – SatMap, Memory Map, Anquet • Smart phone raster mapping

J ( • Corporate and Education – exam extracts, curriculum

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social activity responsibility • University research (OSI)

Application ID no. Description A Environmental analysis B1 Land, bldg & I'structure mgmt - owners B2 Land, bldg & I'structure mgmt - 3rd pty C Land registration D L&P planning & transactions E1 Service planning E2 Service delivery E3 Service review F1 Revenue generation F2A Evasion and recovery F2B Assessing financial risk F2C Tackling fraud F3 Benefit provision G Protection people, L&P & infrastructure H1 Navigation H2 Tracking I Outdoor exploration J Corporate & social responsibility

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APPENDIX 2:

Funding Models

There are many funding options to be considered depending on the business model selected and/or phasing approach. See below some potential options together with assumptions.

1) Current Status OSi PRA Valuation Total €000's €000' €000's €000' s s

Income Public 10.8 0 1.2 12 Sector

Private 8 24 0.7 32.7 Sector SLA - 4.8 4.8 Gov.

Total 23.6 24 1.9 49.5

Expenditure Total 20.8 32 9.6 62.4

Surplus/(Deficit) Total 2.8 -8 -7.7 -12.9

Pensions-2011 Payments 3.2 3.7 1.7 8.6 Levy/Ded -1.2 -1.4 -0.5 -3.1 Net Cost 2 2.3 1.2 5.5

Employees WTEs 245 572 140 957

2)Option A (Collaboration)

OSi PRA Valuation Total Assumptions €000's €000's €000's €000's

Income Pan Gov. 15.6 0 1.2 16.8 *Shared Services(HR, Fin, IT, ) *Data Management Collaboration Private 8 24 0.7 32.7 *Pan Government Sector Agreement-OSi/Valuation *20% staff reduction *Breakeven Operating Target Total 23.6 24 1.9 49.5 *2 to 3 year timeframe. *Capital Costs Systems €3m+ *Procurement shared savings Expenditure Total 17.8 22.3 7.8 47.9 *New Commercial Opportunities *Target VER Surplus/(Deficit) Total 5.8 1.7 -5.9 1.6

Pensions-2011 Payments 3.2 3.7 1.7 8.6 -1.2 -1.4 -0.5 -3.1 Levy/Ded Net Cost 2 2.3 1.2 5.5

Employees WTEs 196 458 112 766

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3)Option B (Merged Agency)

OSi PRA Valuation Total Assumptions €000's €000's €000's €000's

Income Pan Gov. 15.6 0 1.2 16.8 *Combined Services(HR, Fin, IT, ) *Data Management Merged Private 8 24 0.7 32.7 *Pan Government Sector Agreement-OSi/Valuation *20% staff reduction *Breakeven Operating Target Total 23.6 24 1.9 49.5 *5 to 8 year timeframe . *Capital Costs Systems €3m+ *Procurement combined savings Expenditure Total 17.8 22.3 7.8 47.9 *New Commercial Opportunities *Target VER Surplus/(Deficit) Total 5.8 1.7 -5.9 1.6

Pensions-2011 Payments 3.2 3.7 1.7 8.6 -1.2 -1.4 -0.5 -3.1 Levy/Ded Net Cost 2 2.3 1.2 5.5

Employees WTEs 196 458 112 766

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APPENDIX 12 Detailed Paper from Property Registration Authority Property Registration Authority

Function: The function of the Property Registration Authority is to provide a secure, reliable and effective legal system for registering property ownership and so enable property and related financial transactions to take place in confidence. There are two separate systems for recording transactions in relation to property in Ireland: • The Property Registration Authority (PRA) manages and controls three distinct and mutually exclusive functions in relation to property namely o :The Registration of Title system operated by the Land Registry since 1892 which provides a State-guaranteed title to property. 94% of the land mass is registered on the Land Register. o The Registry of Deeds system operated by the Registry of Deeds since 1708 which caters for property not yet registered in the Land Registry.). o The operation of the Ground Rents purchase scheme

Status: The Property Registration Authority is a statutory body which was established on 4 November 2006 under the provisions of the Registration of Deeds and Title Act 2006 and operates under the aegis of the Minister for Justice & Equality. The Authority currently consists of eleven (11) members (the maximum permitted under legislation) appointed by the Minister. Its members are representative of the main users and consumers of property registration services.

Prior to establishing the PRA, the Dept of Justice conducted a detailed review of the Land Registry with a view to its proposed reconstitution as a commercial State- sponsored body. A concern of the review undertaken by the Dept was that the provision of title registration (through a commercial State company) should not be exposed to the commercial uncertainties of company law, such as receivership and liquidation arising from insolvency. The conclusion arrived at, in consultation with the Dept. of Finance, was to the effect that a commercial semi-State body was neither an appropriate legal or organisational model for registration of title.

Locations: The PRA’s Head Office is in Dublin and it also has offices in Waterford and Roscommon.

Organisation Structure

The broad organisation structure of the Property Registration Authority is reflected in the following diagram

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Property Registration Authority

Chief Executive & Accounting Officer

The Authority is a statutory body whose member s are representative of the main users and consumers of property registration services. The PRA replaced the Registrar of Deeds and Titles as the "registering authority" in relation to property registration in Ireland. The Property Registration Authority is managed on a day to day basis by the Chief Executive, who is also the Accounting Officer.

The Chief Executive Officer is, in turn, supported by four deputies, referred to as Deputy Registrars.

The main functional areas are as follows

• Casework comprising of Operational Casework, First Registrations, Adverse Possession cases, Registry of Deeds and Ground Rents.

• Information services in relation to property registered

• Professional and Legal Standards and Procedures

• Administrative Support Units, including HR, ICT, Corporate Services and Finance.

• Management Support Units including , Secretarial support for the Authority, data protection, process and quality assurance, internal audit etc

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Staffing

As at 30 April 2012, the PRA has 553 whole time equivalent posts. All staff of the PRA are civil servants, and as such their pay rates are in accordance with Department of Finance Circular 28/9 Revision of pay. The following table reflects the numbers of staff currently serving in both Administrative and Technical grades.

Locations : As reflected on the table, t he PRA’s Head Office is in Dublin and it also has offices in Waterford and Roscommon.

Breakdown of PRA Staff as of 30th April 2012 Total Grade Serving Dublin Waterford Roscommon Chief Executive 0 1 Deputy Registrar 2 1 Mapping Adviser 1 1 Principal Officer (1) 0 Principal Officer (2) 4 2 2 Chief Examiner of Titles 4 2 1 1 Examiner of Titles 5 3 2 Assistant Principal 22 18 3 1 H.E.O. Systems Analyst 2 2 Higher Executive Officer 51 32 12 7 Executive Officer 142 72 39 31 Executive Officer Jnr Systems Analyst 1 1 Staff Officer 18 14 4 Clerical Officer 179 98 60 21 Head Services Officer 2 1 1 Service Officer (P/K allowance) 9 5 4 Service Officer 3 1 2 Senior Mapping Manager 2 1 1 Chief Superintendent Mapping 2 1 1 Regional Mapping Director 6 4 2 Superintendent of Mapping 19 12 6 1 Examiner in Charge 36 23 11 2 Examiner of Maps 43 13 26 4 Mapping Draughtsperson 0 Total 553 305 175 73

PRA staff costs in 2011 amounted to €26.046M, some 82% of the total spend on Vote 23. Of this amount, overtime accounted for €153K and other allowances €86K. Overtime is limited to building security duties and essential ICT maintenance. Allowances paid, for the most part, relate to ICT shift allowances and allowances related to opening and closing buildings etc.

The majority of PRA staff are members of one of four Unions with six representative bodies (there are two separate branches of IMPACT). Under the Croke Park Agreement, the the PRA has achieved significant changes in work practices already.

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The Technical (Mapping) staff members were recruited directly for the Office, and they have generally spent their entire Public Service careers in the PRA. Up to this point promotions within each of the staffing stream s(i.e. General Service and Technical) have, up to the current time, been confined to staff members within that particular stream. The process of assimilating technical (mapping) and administrative grades in the PRA is underway and management’s proposals in that regard are currently being considered by the staff representative groups. It is intended that when implemented, this initiative will result in technical grades being recertified as General Service Grades (on a red-circled basis) and will bring increased flexibility and operational capacity in carrying out tasks and will mark a departure from demarcations and historically assigned duties

Strategic Plan

Over the period of its 2010 – 2012 Strategic Plan, the PRA’s overall focus continues to be on meeting its legislative responsibilities, the implementation of government initiatives and the provision of an effective and efficient service to its customers. These, it is envisaged, will be achieved by:

• Continuing to advance the completion of the land register by the introduction of compulsory first registration;

• Continuing the roll out of the PRA’s eRegistration Programme;

• Offering a fully electronic national register of property ownership and related information, as a result of the completion of the Digital Mapping Project

• Continuing to focus on achieving ‘Value for Money’ and

• Ensuring that corporate governance processes remain a high priority within the organisation.

Property Registration Authority Services

The work of the PRA falls mainly into two main categories, being Registration and Information Services. The PRA is also, on an increasing basis, providing property and ownership related information and advice to other Government Departments and State Agencies.

In addition to Land Registration activity, the PRA is also responsible for managing the Registry of Deeds and Ground Rents system.

Registration Services

As ownership of property changes through the conveyancing process or finance is raised against the property the Registration of applications for those changes on existing registered titles are lodged in the PRA This area of casework constitutes the main area of Registration work for the PRA. In 2011 in excess of 246,000

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registrations were completed. This level of activity resulted in 529,506 changes being recorded on the Land Register.

The specific benefits of an effective system of Land Registration include.

• State Guaranteed ownership and security of tenure ; • Basis for land and property taxation ; • Simplified conveyancing ; • Provision of security for credit ; • Guarantees the result of judicial procedures relating to land rights, including rights of repossession of land; • Reduced land disputes ; • Develop and monitor land markets; • Protect State lands ; • Facilitate land reform ; • Improve urban planning and infrastructure development ; • Support environmental management ; • Produce statistical data as a base for social and economic development.

It is now estimated that some 94% of the land mass and 90% of titles are captured on the Land Registry system.

The completion of the register is an express mandate of the Property Registration Authority as set out in Section 10(b) of The Registrations of Deeds and Title Act 2006. To date this has been driven by the Authority and successive Ministers by the extension of compulsory first registration (CFR). CFR of land means that in the event of a title being sold the ownership of that title must be registered in the Land Registry.

Significant progress continues to be made in this regard. On 1 June 2011 Compulsory First Registration (CFR) was extended to cover the entire 26 counties with its extension to counties Cork and Dublin. As a result all changes of ownership for value, regardless of the location will now trigger a requirement for registration in the Land Registry. The extension of CFR to Cork and Dublin has seen an increase in the number of applications for first registration received by the Land Registry and a continued phasing out of the Registry of Deeds system. Further events to trigger a first registration are currently being considered.

The ongoing growth of the Land Register, as a result of the CFR programme and the subdivision of existing registered titles, can be seen from the total number of titles registered at the end of each of the last five years.

2007 2008 2009 2010 2011

1,808,552 1,849,388 1,908,843 1,968,024 2,022,061

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Information Services

Online Information Services

As a result of the investment in technology, the PRA has developed extensive on-line services, which are available immediately over the Internet via the landdirect.ie service. During 2011, upwards of 3 million searching and certification transactions were processed through the landdirect.ie portal .

Year 2000 2008 2009 2010 2011 No. of professional 1,700 13,872 14,837 15,775 16,565 users No. of online transactions* 0.2 million 2.5 million 2.6 million 2.5 million 3 million

2011 saw the commencement of the roll-out of an online public access facility whereby an individual citizen can inspect the Land Register online for a fee to be paid on the basis of usage. This will not require the setting up of an account with the PRA, and to that end makes Land Registry information more accessible. As at April 2012 members of the public can inspect the Land Register on an online basis for 18 counties. It is anticipated that the entire land register will be available online to the citizen before end of year 2012.

Cooperation with other Departments and Agencies

In addition to the output of cases, and the provision of searching and certification services, the PRA provide a range of additional services to state and semi- state organisations.

The modernisation programme engaged in by the PRA has provided a very feature- rich database of property ownership and related information. This has been a powerful enabler in facilitating the organisation to assist other Departments and agencies in the delivery of Government policy in a value for money manner. Thus, for example, the PRA are now able to provide advanced spatial information for the National Roads Authority’s national motorway programme, input for a number of the Environmental Protection Agency’s regulatory projects and information to the Department of the Environment in relation to implementing various EU Directives and has facilitated the construction of Property Interest Registers for Local Authorities.. This database contains a vast amount of statistical information relating to property which currently remains untapped and therefore provides an opportunity for the delivery of other property related information for uses beyond title registration.

The PRA is also in a position to play an active role in emerging initiatives, which would not have been possible previously, such as:

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• Provision of a special facility to assist the National Asset Management Agency (NAMA) in managing its portfolio of interests in property. A number of staff in PRA have been specifically allocated to the provision of a register of NAMA interests. • The PRA is a prescribed organisation to deliver data to LGMA under the Household Charges act 2011.

Consulting with the Department of Finance, the Department of Environment and Local Government and other Government organisations regarding the establishment of a possible Site Value or other Property Tax .

Working with the Office of Public Works in establishing a register of state property.

Facilitating local authorities and Health Service Executive in ensuring all of their property interests are correctly registered.

Registry of Deeds

The Registry of Deeds was established in 1707 to provide a system of voluntary registration for deeds and conveyances affecting land and to give priority to registered deeds over unregistered registerable deeds. There is no statutory requirement to register a document but failure to do so may result in a loss of priority. The effect of registration is generally to govern priorities between documents dealing with the same piece of land. The primary function of the Registry of Deeds is to provide a system of recording the existence of deeds and conveyances affecting unregistered property. As the extension of Compulsory First Registration brings more Titles within the Land Register it will result in a consequential reduction in activity in the Registry of Deeds.

Ground Rents

The Landlord and Tenant (Ground Rents)(No 2) Act 1978 which came into operation on 1st July 1978 provided a new method for the purchase of ground rents on dwellinghouses. Under the 1967 Act the purchase was a matter for the parties themselves to arrange and any difficulty or dispute arising was referable to the County Registrar, whose award was appealable to the Circuit Court. The purchaser was liable for the landlord's costs of the transaction. The approach adopted by the 1978 (No 2) Act is, that for a prescribed fee, the Property Registration Authority undertake to do the legal work of completion of the purchase of the fee simple and the Property Registration Authority was entrusted with the administration of the new scheme instead of the County Registrar.

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Property Registration Authority Funding

The income of the Property Registration Authority, all of which is remitted to the Exchequer on a weekly basis, is dependent upon activity in the property market. While income has exceeded expenditure on an annual basis between 1992 and 2009, this has not been the case in recent years. It is anticipated that PRA expenditure in 2012 will be of the order of €31m while registration fees collected and paid over to the Exchequer will be of the order of €24m.

Expenditure and Receipts

PRA Expenditure 2011

€000 Salary and Wages €24,691 Ordnance Survey Costs €2,588 Administration Costs €4,191

Overall Total €31,470

PRA Exchequer Extra Receipts 2011

From the From the Public Purse Private Sector €000 €000 Registration Fees 308 18,841 Information Services 282 3,899 Registry of Deeds 15 1,344 Ground Rents 77 Sub Totals 605 24,161

Overall Total €24,766,000

The PRA does not charge a fee to Departments and Offices that are funded by the Exchequer, in accordance with the Land Registry Fees Order of 1999. By way of example it is estimated that in excess of €1M in fees have been foregone in respect of NAMA registrations.

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