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The Minister of Public Administration Mihhail Korb replied to the interpellation concerning the administration of state real estate (No. 295), submitted by members of the Riigikogu Andres Ammas, Külliki Kübarsepp, Krista Aru, Andres Herkel, Ain Lutsepp, Monika Haukanõmm, Artur Talvik and Jüri Adams on 19 January 2017.

The interpellators referred to the audit carried out by the National Audit Office according to which the state lacks a clear and uniform real estate policy. The interpellators wished to know why the maintenance of state real estate had not become more economical with the transfer of the property to State Real Estate Ltd.

Korb said that there certainly were some deficiencies or minuses for which the blame could be placed on State Real Estate Ltd. “However, we can say that the Government with its indecisiveness or procrastinating is behind many of these things,” Korb stated. He noted that the aim of being economical could be achieved through a whole set of measures.

“Analysing the real estate strategy, we find that today’s objectives and aims and strategy that have been drawn up are correct. There is no direct need to change the strategy,” Korb noted. Economical use of premises, minimum use of the resource, and increasing the efficiency of using the resource are the right things to do, and this is the direction in which we must move and work. However, the main issue in achieving the objectives is the measures used to achieve them, the Minister added.

Korb said that until today real estate policy has moved in the direction of favouring the building of new houses, which means that contribution to the renovation of houses is fairly minimal. “Practice shows that building new houses is clearly more expedient than renovating the old ones. New state-of-the-art premises are constructed at the same cost and with significantly better quality, i.e. the price and quality ratio very often favours new constructions,” Korb noted.

Real estate costs are directly related to the activities that the state offers and performs. Korb highlighted an important question that relates to the regional aspect. “At present, there is a plan to take some state authorities out of the capital. The other aspect is what use will be found for the county government buildings. The third aspect is, which real estate will be decided to be used eventually,” Korb explained. He thought that today we are at a stage where we are speaking only of the start of the state reform, that is, the first steps of the state reform. It is still early to tell what the final outcome will be and how much real estate the state will need.

The Minister of Public Administration also replied to the interpellation concerning the changing of the borders of Lääne county (No. 290).

Verbatim record of the sitting (in Estonian):

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Riigikogu Press Service
Gunnar Paal,
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Questions: press@riigikogu.ee