Thank you.
Thanks for inviting us here today.
My understanding is that the committee has expressed an interest in Treasury Board real property and particularly in relation to the sale of real property assets.
The real property is a significant corporate resource that is critical to enable the delivery of government programs. That is its purpose. Federal real property holdings are diverse and include such assets as military bases under the custody of DND, correctional facilities under Correctional Services Canada, research labs under the science departments, and office buildings under the custody of PWGSC.
The Treasury Board real property policy reflects a principles-based approach to the management of federal real property. It emphasizes deputy head accountability to ensure that sound stewardship and value for money are achieved through effective, efficient, and financially responsible management that enables program delivery while meeting broader government objectives such as the protection and preservation of our heritage and the environment. The policy ensures the equitable treatment of Canadians and value for the Canadian taxpayer through fair and transparent transactions at market value.
The management of real property by departments is a systematic, structured process that covers the life cycle of the asset. The first stage is planning, including the development of a long-term investment plan that takes into account government priorities and departmental objectives and resources.
The second stage involves the acquisition of the asset, which can be through purchase or lease. There is no policy requirement that an asset be owned. In fact, innovation is encouraged in asset-related decisions, and departments must consider in their analysis the full range of available options to best meet their program needs and achieve value for money over the full life cycle.
During the third stage of an asset's life cycle, its use, there would be a regular assessment of its performance in supporting departmental programs. Finally, when there is no longer a program need for the asset, the Treasury Board policy requires that the department take steps to dispose of it through sale or transfer.
As stipulated in the Treasury Board directive on the sale or transfer of surplus real property, there are two types of disposal through sale: routine and strategic. They differ mostly in terms of their importance and their value. In either scenario, departments are responsible for managing the disposal process, and due diligence must be carried out that takes into account legal risk, duty to consult with first nations, environmental considerations, heritage, impact on wildlife habitat, and the market value of the property.
Routine disposals are generally those smaller properties with a lower dollar value that can be sold easily without any substantial investment. They are normally sold as is directly by the custodian or its agent, usually PWGSC or a private sector firm. On the other hand, strategic disposals are properties with potential for significantly enhanced value that tend to be larger and more sensitive.
When properties have been identified as strategic, they are often sold to Canada Lands Company Limited, CLC, a federal crown corporation and the government's disposal agent. CLC then takes these properties and improves, manages, or sells them to produce the optimal benefits for the company's shareholder, the Government of Canada, and for local communities.
An indication of interest in the surplus routine or strategic property will be sought from federal departments, agent crown corporations, provincial and municipal governments. This will provide these priority interests with an opportunity to acquire the property for a public purpose before it is offered for sale on the open market, in the case of routine, or to have their interest reflected in the disposal strategy for strategic properties.
That concludes my remarks.
Thank you.
