Evidence of meeting #15 for Government Operations and Estimates in the 39th Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was meeting.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Dimitri Soudas  Deputy Press Secretary, Office of the Prime Minister
Michael Rosenberg  President and Chief Executive Officer, Rosdev Group
Frédéric Loiselle  , As an Individual
John Lemieux  Lawyer, Fraser Milner Casgrain LLP, Rosdev Group
David Roebuck  As an Individual
Michael Fortier  Minister of Public Works and Government Services

9:30 a.m.

, As an Individual

Frédéric Loiselle

All I can say about Mr. Soudas is that he was interested in this file. I can't tell you any more.

Meili Faille Bloc Vaudreuil—Soulanges, QC

And how did he convey his interest? Were e-mails exchanged? Earlier, you said he was fairly interested in having a meeting and interested enough for you to later ask officials to arrange two briefings. Were any e-mails exchanged with your office?

9:30 a.m.

, As an Individual

Frédéric Loiselle

I cannot recall if e-mails were exchanged. With BlackBerries, e-mails can be exchanged quite easily. All I remember is that there were several telephone calls. As I mentioned, we had three meetings. I was not present at these three meetings, but I do know that they took place. Basically, that's all I know about this matter.

The Chair Liberal Diane Marleau

Thank you, Ms. Faille. Your seven minutes are up.

Please go ahead, Mr. Moore, for seven minutes.

9:35 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Thank you very much. My questions are going to be to Mr. Rosenberg.

We want to understand, first of all, the relationship of Rosdev and the federal government. The essential matter of this is whether Rosdev was promised anything or if there was any kind of behaviour that was out of the ordinary with regard to your company and your relationship to the federal government, so first tell us a bit about Rosdev and when it began and your lineage with the company.

9:35 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

Rosdev came to the Ottawa and Gatineau area to purchase the first building in 1991. That was in Gatineau, Les Terrasses de la Chaudière. Then they went on to buy a couple more buildings. In January 1996 they purchased the building called L'Esplanade Laurier—it was Rostrust.

We became the largest landlord of the government at that time. When we took over the building—L'Esplanade Laurier—it was from a trustee in the bankruptcy of O and Y, and there was a lot of dispute at that time already. We tried to sort it out. We had many meetings with different officials at Public Works in their offices, trying to come to some conclusion and to see if we could come to a certain understanding. Unfortunately, time was running. Some people did want to make a settlement, not to get into a lawsuit; some others from Public Works did not want to.

There came the time that, based on our lawyers' advice, we had no choice but to institute a lawsuit, because that was becoming prescribed after certain years. Once we instituted a lawsuit, there was a lot of money owing in operations to the building, because, as I said before, there were many disputes outstanding at the time we took over from the O and Y trustee.

9:35 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Beginning in 1996, then--my notes have January 9, 1996--there were already disputes between Rosdev and the federal government, going back now 12 years.

9:35 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

Yes. We were stepping into the shoes of what they already had with O and Y. Since time was going, we had many meetings with different ADMs, with Public Works, with officials, and with different parties--Liberal Party, Conservative Party--trying to see if there could be some kind of understanding to settle this file. We tried and we couldn't get it, as I said before, so we had no choice but to institute a legal proceeding. There was a lot of money owing to the company.

Since then, things have been going down. We were hitting our head against a wall since our lawsuit. Then they started a notice of an option, which didn't make any sense whatsoever, and we went to court and won on that, but they threw everything at us.

We tried our best to run the buildings in the proper fashion. We did do it until the beginning of 2004. At the beginning of 2004, out of the blue they took away our management, based on no default. Never was there any indication or letter, verbally or written, that we mismanaged or that we did anything wrong. On the contrary, we had many letters of praise, which I have in the file, praising us for good-quality management skills. Actually, we scored 93% in one of our buildings, which was the highest in the region.

9:35 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Mr. Rosenberg, have you ever met any Minister of Public Works, going back to 1996? There have been five.

9:35 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

I have met quite a few ministers from different parties. I met Mr. Brison, a former public works minister, after one of the functions. I go to a lot of functions. I'm invited by different parties to different functions--

9:35 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Did you discuss your litigation with Mr. Brison?

9:35 a.m.

President and Chief Executive Officer, Rosdev Group

9:35 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Did you discuss the legal issues you have with the public works department with Mr. Brison when he was the minister?

9:35 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

No, I did not.

I got a letter from him praising us for the good work we had done in the 15 years in the region. I have it with me. If you want, I can read it to you.

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Who invited you to that meeting?

9:40 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

I was at 24 Sussex Drive with Mr. Jean Lapierre, who was in charge of Montreal region—Quebec, I think, too—at the Prime Minister's home. I met Mr. Jean Lapierre at a function in Montreal, which one of our organizations has—

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

This was when he was transport minister?

February 28th, 2008 / 9:40 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

He was the transport minister.

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Did you have to pay to attend any of those meetings or functions?

9:40 a.m.

President and Chief Executive Officer, Rosdev Group

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Was it a function for which to enter you had to—

9:40 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

In the Liberal Party, I think it was $1,000 or something to be invited to something like what I was invited to.

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

So you paid $1,000 to go to an event to meet the Minister of Public Works, with whom you were having litigation.

9:40 a.m.

President and Chief Executive Officer, Rosdev Group

Michael Rosenberg

There were many other people there at the function.

9:40 a.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

Over the years, how much money would you say you've given to the Liberal Party since Rosdev got into business with the federal government in 1996?