Rosemary Thew, DSA chief executive, said:
"DSA is funded by the fees we receive from customers, and our duty is to spend that money responsibly, while maintaining a good level of service.
"That means being as efficient as possible in every area of our work and considering closely any areas of spending which may not be necessary.
"Staff at Caradog House will be properly involved throughout the consultation process on the proposed office closure and we will be working hard to make sure that their questions and concerns are answered."
The office will close by 31 March 2012. Possible redeployment options for 87 staff at Caradog House are being explored. A small office would be retained to support operational staff in the area. Other responsibilities would be transferred to DSA's headquarters in Nottingham and northern area office in Newcastle.
Closure of Caradog House will not affect testing provision in Wales and DSA will continue to provide services under its agreed Welsh Language Scheme.
* For further information please contact DSA Press Office on 0115 936 6133 or email pressoffice@dsa.gsi.gov.uk
Notes to editors
1. Staff at Caradog House perform jobs including deployment of examiners, property management and procurement.
2. DSA promotes road safety through setting standards for drivers, riders and trainers, testing drivers and riders fairly and efficiently, maintaining the registers of Approved Driving Instructors; Large Goods Vehicle Instructors; Fleet Trainers; `Driving Instructor Trainers and Post Test Motorcycle Trainers; supervising Compulsory Basic Training (CBT) for learner motorcyclists; and driver education and the provision of learning resources.
3. DSA is a trading fund with planned turnover of £201.4 million in 2010/11, largely funded through fees and revenue from other road safety initiatives. It delivers tests from over 400 practical driving test centres and 158 theory test centres.
4. DSA employs nearly 2,700 staff, of which almost 1,900 are driving examiners. In 2009/10 DSA conducted 1.5 million practical car tests, over 55,000 vocational tests. Over 8,500 motorcycle tests were delivered from 1 April 2009 to 26 April 2009. On 27 April 2009 the new, two part motorcycle test was introduced. 50,778 module one tests and 37,866 module two motorcycle tests were delivered between that date and 31 March 2010. A total of 1.5 million theory tests were carried out. At the end of 2009/2010 there were around 44,768 people on the Register of Approved Driving Instructors.