Government Operations committee  With those seven buildings, we know that the federal government will require a presence in those locations for the long term, which is why we entered into a 25-year deal.

Government Operations committee  We are also looking at a continued augmentation in operating costs and recapitalization of those buildings over the long term. On the intent, the approach, and the success of the sale-lease factors, we have transferred--

Government Operations committee  I would like to emphasize to the committee that sale-leaseback is but one tool we use in managing an extensive portfolio of accommodations.

Government Operations committee  Since we sold those seven assets we've also bought others. We look at the business case to meet our particular need for accommodations. We own and are required to accommodate the Government of Canada from coast to coast to coast. Those market conditions vary--like the situation in Moncton compared to Edmonton and Toronto.

Government Operations committee  Obviously there need to be benefits to both parties for the business case to be solid.

Government Operations committee  Thank you, Mr. Chair. I'll cut my answer short to answer that as effectively as I can in the short period. The concept is that we transfer the risk, because there is recapitalization required. You are required to replace roof, mechanical, electrical systems in the life of a building.

Government Operations committee  We haven't had discussions per se. We don't have a next tranche planned, for example, along the lines of sale-leaseback. We will dispose of surplus properties when they are no longer required for our program needs, in accordance with the directions and policy of government in terms of disposal of assets.

Government Operations committee  In the sale-leaseback?

Government Operations committee  No, those are 25-year leases. At the end, we have no obligation to stay there beyond the 25 years.

Government Operations committee  Yes. There are three dams involved in this transfer--the Kipawa, the Des Quinze, and the Laniel dams. The Kipawa and Des Quinze are in a condition and state that the province has accepted. Once the work is complete, which is scheduled for December 2009, the transfer to the province will be able to be completed.

Government Operations committee  In terms of surplus engineering assets, Mr. Chair, there are 22 significant engineering assets that remain in the inventory of Public Works and Government Services Canada. These include bridges; dams; the Alaska Highway, for example; the Esquimalt Graving Dock. These are significant engineering works that we remain accountable for.

Government Operations committee  In terms of the pressures we face with the program, we have both our lease costs and the operating costs. I'd like to underline that these increases apply to both our leases and our crown-owned inventory. So we have increases that incur to both things we own and things we lease.

Government Operations committee  I could indicate that there's a multitude of departments that have obtained increases in their programs. The top five that I would highlight in these estimates include Health Canada, the Canadian Food Inspection Agency, Canada Revenue Agency, Public Safety and Emergency Preparedness Canada, and Citizenship and Immigration Canada.

Government Operations committee  Yes, Mr. Chair, it does. What we call the quasi-statutory increases include an amount for what my colleague referred to as “swing space”. This is space we acquire to move tenants into while major work is done, and then we move them back into their original space after the major repairs have been completed.

Government Operations committee  The difference refers not to the cost of the space itself, but to the cost of utilities, so that would include water, sewage, electrical and heat, and that varies. It would include the cost of other aspects of maintaining a large piece of inventory. For example, when we have to move tenants out of one location to another, we conduct a competitive process.