Just think, a business can run an entire department without having to supply work spaces, rest rooms, break rooms, parking lots, security, and other resoureces. Employees do not have to worry about traffic, wardrobe, packing lunches (or eating out) or other headaches of "going" to work.
Fuel use, energy at company buildings, traffic, and pollution are all reduced significantly when workers can stay home to do their job.
Of course governments will find ways to kill a good thing. There is absolutely no downside to telecommuting, and all industries (where it is feasible) should be encouraged (not discouraged) to look into it.
Short-sightedness in government is among our greatest problems. Now it looks like the pin heads are at it again.