Mr. Pierre-Marc Mongeau (Assistant Deputy Minister, Real Property Branch, Department of Public Works and Government Services) at the Government Operations and Estimates Committee

Thank you for your question, Ms. Day.

Generally speaking, we were able to consolidate several departments that had offices in the three buildings you mentioned. A number of those departments significantly cut the number of square metres they had been using. The consolidation also means a reduction in the space the departments will use. Based on that space reduction, we can calculate the savings we will generate over the next few years. By moving we will save an average of $3 million in rental expenses a year and thus be able to recoup our investment in 8 or 10 years.

We will also keep the buildings and the departments will occupy them for 25 years. Our savings will start in the 8^th, 9^th or 10^th year, depending on the building, and will be significant. Although there are initial fit-up costs, we believe the rental cost reduction will enable us to achieve greater long-term savings.