Mr. Speaker, it is interesting to listen to talk on a motion with which the government and I concur. It is an excellent motion. We will be supporting it when it comes time to vote.
I am pleased to speak to the motion brought forward by the member for Winnipeg Centre. We appreciate the opportunity to speak about the government's commitment to energy efficiency. We know we can do more. We thank the member again for bringing it to everyone's attention. My comments today will focus on the government's federal buildings initiative and specifically on the role of Public Works and Government Services Canada in this initiative.
Energy efficiency makes sense not only for government but for all Canadian homeowners, drivers, businesses and industry. Energy efficiency is a winning strategy for reducing greenhouse gases, for promoting a competitive economy and for creating skills, sustainable jobs and expertise in high tech fields as was pointed out.
The federal government must show leadership on this issue. The best way to do that is through action rather than words. The Department of Public Works and Government Services is a common service agency providing a wide range of services to federal departments and other agencies. The department's mandate provides the unique opportunity for helping client departments identify and implement best practices in the areas of procurement, fleet management, waste management, water conservation, land use management and energy efficiency.
As a major property owner in Canada with about 350 office buildings and close to 2,000 lease contracts within Public Works, it is a unique position to promote and implement energy management initiatives such as the federal buildings initiative. If the other 16 departments under the Government of Canada, such as Health Canada, National Defence and Revenue Canada, are added we either own or lease 50,468 buildings. We have downsized the government; maybe their statistics are a little older than mine. It is impressive to know that over 24 million metres square is under government control. Also we have 22,793 vehicles which should be energy efficient as well. The department has been an active player in the development of this initiative in concert with Natural Resources Canada.
The federal buildings initiative helps federal departments and agencies reduce their energy consumption and greenhouse gas emissions by improving the energy efficiency of their buildings. This is achieved through partnerships with the private sector and at no upfront cost to the taxpayer.
In these times of fiscal restraint it is fair to ask where the government is finding the money to invest in energy efficiency. The member opposite talked about trade unions and various other organizations which have gone into partnership to improve energy efficiency. The answer is to get a willing third party, an energy service company to find the money for us.
The company provides the capital, implements the project and assumes any risk associated with it. Once the project begins to reduce energy consumption, the energy service company recoups its investment from the dollar savings. After the company is repaid, which may take as little as two years, the savings then go to the taxpayers. This innovative financing strategy effectively means that energy efficiency retrofits are paid for through the savings they generate. At the end of the day everyone is a winner. The federal government gets to upgrade its facilities with modern equipment and technologies at no new cost.
I must make a brief aside. I have been married to an engineer for 30 years. His idea of energy efficiency is the new shower head. He has gone around the House and put a brick in the water tank of each toilet. I asked what he was doing and he said it was a very technological advanced way of saving water.
The federal government upgrades its facilities with a little more finesse, with modern equipment and technologies at no new cost. Energy management companies generate new business and make a reasonable return on their investment. Canada increases its global competitiveness by developing high tech expertise and a skilled workforce in this field. Energy efficiency upgrades require a combination of new equipment and systems, technological expertise and labour. That means more Canadians are being put to work, as the member opposite pointed out.
Job creation is a priority of the government. The growing demand for energy efficiency retrofits is helping energy service companies prosper and generate new jobs. Federal buildings initiative projects in the federal sector alone have a potential to create some 20,000 person years of employment.
I would like to share some very impressive figures. I think the House will be interested in them, not that is it jam packed. To date the Department of Public Works has signed 27 contracts representing about $32 million in energy investment by the private sector. This generates over $5.5 million in annual energy savings, reducing CO2 emissions by 20,000 tonnes per year, 5.25% from the 1995 levels, and creating in the process 640 jobs.
By the year 2000 public works will have reduced energy consumption by approximately $12 million per year and have reduced CO2 levels by 14%. This is an important element in the government's initial response to meeting the greenhouse gas commitments made in Kyoto last year.
Through the federal buildings initiative Public Works and Government Services Canada alone will generate about $60 million of private sector investment and will create approximately 1,200 jobs in the private sector.
At the same time as the department of public works has been implementing federal building initiatives projects it has also proceeded with a unique project in a leased facility. The Place Vincent Massey building, a complex which is leased by the government, underwent an impressive $1.4 million in energy upgrades which will achieve a potential $200,000 annually in energy cost savings. As a result of this success, public works is now pursuing federal buildings initiative projects in all the leased buildings it manages. This means even more savings and more job creation.
I am pleased to report to the hon. member for Winnipeg Centre that included in the 27 projects public works has already signed, four contracts for 12 buildings were awarded in the western region. The member may also be interested to know that four of these buildings are located in Winnipeg. Overall these contracts represent an investment of close to $4 million by the private sector, generating approximately $650,000 of energy savings and creating 73 jobs.
The Department of Public Works and Government Services is not alone. Virtually every federal department that owns buildings has made a commitment to pursue this unique opportunity.
In addition to launching its own projects, public works will help other departments implement the federal buildings initiative by undertaking project management on their behalf. I think that is why the hon. minister we have now was put into his position. When we were first elected in 1993, he went through and slashed budgets. Nobody could paint offices. He was a real tough character. He has been put in charge of this initiative. With his broad expertise in energy management and wide range of property management services, public works is well suited to the task as is its minister.
What is particularly exciting about the federal buildings initiative is that it can be easily replicated by other levels of governments and other sectors of the economy. Public works has been working in partnership with other levels of government, federal, provincial, territorial and municipal. Let us not forget that businesses, hospitals, schools and universities can all use the federal buildings initiative approach too, and many are. In the end everyone benefits from the federal buildings initiative: the government, the private sector, the taxpayer and our environment.
I assure the member for Winnipeg Centre that the federal buildings initiative program is alive and well. The government is committed to seeing that the program is implemented whenever and wherever it makes sense. We welcome the hon. member's support and I encourage him to follow the federal buildings initiatives progress as we make our way through the full inventory of federal buildings.