Government Operations Committee on March 12th, 2020

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Great. Thank you.

Since we're speaking of heritage buildings, we're trying to renovate one just neighbouring this building here. As somebody who has renovated his bathroom knows, you have a plan, you want to do something and you start opening walls, and then the surprises come along.

As we are moving forward with the renovations of the parliamentary precinct, have we learned some lessons from renovating West Block? Are we continuing to be on line? How do we make sure that we continue to be on budget and on time?

[Anita Anand, Liberal, Oakville, ON]

Thank you for the question.

I appeared two weeks ago in front of PROC to talk exactly about the point. I was so pleased to be able to say that we have completed 24 key projects on time and on budget. We're talking about the Wellington Building, West Block and the renovations to the Senate of Canada Building. We are on top of it, and I'm so pleased to be able to speak so positively about the professionals who work in my department every single day.

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

Thank you.

I know it hires a lot of construction workers in the national capital region. I'm the member of Parliament representing that.

Minister, you may not have time to fully answer that question.

[The Chair, Conservative, Tom Lukiwski]

You're not even going to have time to ask the question.

[Voices]

Oh, oh!

[Francis Drouin, Liberal, Glengarry—Prescott—Russell, ON]

We implemented pay pods a few years back. I'm just wondering if you could provide an update to this committee. If you don't have time to answer verbally, perhaps you can give a written statement.

[The Chair, Conservative, Tom Lukiwski]

If you could do that in a written response, Minister, I would appreciate it greatly.

Thank you so much.

We'll go next to Mr. McCauley for four minutes, please.

[Kelly McCauley, Conservative, Edmonton West, AB]

Minister, you'll have to forgive me. I'm wondering if Mr. Muldoon or Mr. Matthews will be answering my question on the reinvestment.

[Anita Anand, Liberal, Oakville, ON]

The real estate...?

[Bill Matthews]

No, the $440,000 referred to was the previous question about the—

[Kelly McCauley, Conservative, Edmonton West, AB]

It's about the reinvestment of revenues.

[Bill Matthews]

No, but I'm happy to answer that now, if you like.

[Kelly McCauley, Conservative, Edmonton West, AB]

Okay. Yes, please, just briefly.

[Bill Matthews]

The department, as you know, maintains a large portfolio of real property. When we are able to sell real property, we are able to reinvest that money in our portfolio. The money referred to in the supplementary estimates, if I recall correctly—the CFO can correct me—relates to a transaction with Canada Lands on Front Street. This is that funding coming through. The department basically is seeking permission to reinvest that through this process into the broader portfolio.

[Kelly McCauley, Conservative, Edmonton West, AB]

Right. That's ensconced in the Treasury Board process. I'm asking what that will be reinvested in or what you are seeking to reinvest it in.

[Bill Matthews]

It's a broader portfolio issue. It doesn't get tied to one specific project. It's just a source of funds. It's part of the bank account; that's the way I would describe it.

[Kelly McCauley, Conservative, Edmonton West, AB]

Right, but again, this is the issue we have. You come before Parliament asking permission or approval to spend the money. We're asking what the money is for, but you don't have an answer. It goes back to the transparency issues we have. Again, parliamentarians are looking for answers on what we're voting to approve. We don't know. I'm asking what this money is going to be used for.

Are you asking just for blanket approval to spend at your discretion, or what is the plan behind it? I know there is a plan behind it, because you have to have it approved by Treasury Board. You've submitted the backup. What is it for?

[Anita Anand, Liberal, Oakville, ON]

To put this in context, we operate and maintain federal buildings across the entire country—

[Kelly McCauley, Conservative, Edmonton West, AB]

I realize that, but before you come for approval—

[Anita Anand, Liberal, Oakville, ON]

—and provide accommodation to 260,000 public servants.

[Kelly McCauley, Conservative, Edmonton West, AB]

I realize that, but there is backup information that you would have made to Treasury Board for this money. You know what it's being used for. What is it being used for? We're just asking. Again, when you ask for approval from Parliament, we have the right to ask what this money is for. You've asked Treasury Board. You've provided the risk analysis. You've provided the financial appendices to go with the application. So please, what is it for?

[Bill Matthews]

I would characterize the funding formula a little differently than the member. We put forth a plan to Treasury Board that covers all of our buildings and major investments as well. Treasury Board then looks at the money we can reinvest from other sources, this being one of them, and then we are effectively funded for the balance.

If members have the idea that when we resell it's project by project—

[Kelly McCauley, Conservative, Edmonton West, AB]

Is it just going in for general upkeep, or for renovations...?

[The Chair, Conservative, Tom Lukiwski]

Let's allow Mr. Matthews to try to give a complete answer to this.

[Bill Matthews]

It's for significant reinvestment. This is recapitalization, but it's part of the pot. If members are visualizing a building-by-building, project-by-project model that you attach to reinvestment, that's not the way the model works. It's part of the pot.