Government Operations Committee on Oct. 3rd, 2024

[Emily Nicholson]

Mr. Chair, my colleague would be better placed to fully answer that question.

I can speak to what I intended to convey as a non-expert on this matter in the email I drafted. As I stated in my earlier remarks, my intent in utilizing the term “green light” was simply to demonstrate to the minister's office that the head of mission was aware a process was under way that would require him to move partway through his assignment and, therefore, would impact him.

In order to give a more fulsome answer to your question, I would refer you to my colleague Mr. Cousineau.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Mr. Cousineau, I think you've already responded to that effect, but, by all means, reaffirm it, if you can.

[Stéphane Cousineau]

Absolutely. The reason we make the consul and head of mission aware is not only that it will impact him personally when we move, but it will impact the whole operation of the mission. This makes it even more important to be aware of the process we're putting in place.

Once again, I'm going to reiterate that there is no involvement by the head of mission in the selection or purchase of any residence.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Does the purchase create a net benefit to the taxpayer?

[Stéphane Cousineau]

Absolutely. I could provide you with the breakdown. The business case is very clear.

In the overall picture, we're selling the current OR for $13 million. We're purchasing one for $9 million. We're also adding what we're going to be getting in cost savings from a renovation perspective. We're saving an annual, ongoing cost of $115,000, which leads to that net present value of roughly up to $7.4 million.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Can you give us a one-pager on that?

[Stéphane Cousineau]

We could.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

My next question is with regard to the consul general himself.

How long has this process been in play? How long have we been looking at relocating the residence?

[Stéphane Cousineau]

Mr. Chair, I can give that response as well.

As we explained, historically, we were looking into this file for probably the last 10 years. There was a report that came out on the 17th on the situation of the OR. I would say it started in 2017, when there were considerations for either renovating or replacing the residence.

With COVID and the increase in the price of the real property market in Manhattan, there was a very detailed analysis through the governance and tools process that we have that indicated very clearly that it was best to replace it with a new—

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Who made the decision to buy the property?

[Stéphane Cousineau]

Mr. Chair, the decision was made, according to the departmental authority, by our DG expert of real property.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Did the Minister of Foreign Affairs make the decision to buy the property?

[Stéphane Cousineau]

Mr. Chair, there was no political influence, and no, the minister was not involved.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Did the consul general make the decision to buy the property?

[Stéphane Cousineau]

Mr. Chair, no, the consul general was not involved in the selection and purchase of the OR.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

The process was followed and clarification was provided to ensure that the impacted people would be aware of and acknowledge the existence of this transaction. The transaction ultimately benefits Canadians to the tune of $7 million because the net value appreciation of that is in favour of the taxpayers, and the location is in keeping with other consuls general. In fact, it's one of the less affluent residences—

[The Chair, Conservative, Kelly McCauley]

I need you to finish up, Mr. Sousa.

[Charles Sousa, Liberal, Mississauga—Lakeshore, ON]

Is that correct, Mr. Cousineau?

[The Chair, Conservative, Kelly McCauley]

A yes-or-no answer is all we have time for.

[Stéphane Cousineau]

Mr. Chair, that is absolutely correct.

[The Chair, Conservative, Kelly McCauley]

Thanks.

Mr. Barrett.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

Ms. Nicholson, you said you received information from subject matter experts. Is that correct?

[Emily Nicholson]

Yes.

[Michael Barrett, Conservative, Leeds—Grenville—Thousand Islands and Rideau Lakes, ON]

You insert the information from the subject matter experts, but you are not the subject matter expert. Is that correct?

[Emily Nicholson]

That is correct.