Thank you, Madam Chair.
Thank you, Mr. McKellar, for your very good summary of this issue. I feel that you pointed out in a very clear manner both the risks that are inherent and some of the potential benefits of the sale/leaseback.
You pointed out on page 2 of your summary that the big problem is the inability of almost all governments at all levels in all countries to meet the obligation to maintain their assets. You went on to point out that deferred maintenance is pervasive, from school boards to national groups.
I can certainly attest to the school board issue, having served as a trustee for a number of years. There was nothing easier at budget time than to find a few extra million dollars by deferring maintenance that we all knew was really necessary. But the horrendous challenges that would face us down the road, whether it was roof maintenance, avoiding mould, or structural challenges, certainly came back to hurt us.
You also went on to suggest that we need to admit we are lousy managers of property. You pointed out that finding good people to manage them is difficult because the competition is fierce.
You then indicated that the timing is good in terms of the value of the real estate right now. In addition, you've pointed out the possible improvement of working conditions for employers.
Having said all that, it seems to me as a committee member that this is a very reasonable path for our government to pursue in terms of getting good taxpayer value for the taxpayer dollar.
If we were to sign a lease and go to sale/back-leasing, what are some of the key contractual elements or agreements that you would encourage a prospective tenant, the Government of Canada, to make sure are in that lease?
You mentioned the possibility of a poor landlord not meeting obligations. What are some of the key items that we should make sure are in the lease?