Real property activities: Standing Committee on Government Operations and Estimates—March 22, 2023
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Leases and contracts related to the St-Bernard-de-Lacolle border crossing
Context
Since 2017, Public Services and Procurement Canada (PSPC) has supported the Royal Canadian Mounted Police (RCMP), the Canada Border Services Agency (CBSA), and Immigration, Refugees and Citizenship Canada (IRCC) by putting in place contracts and, leases on their behalf to help accommodate an increase in asylum seekers at the St-Bernard-de-Lacolle border crossing. The leases were with companies owned by Pierre Guay, due to the location of his properties. When asked by La Presse in a media call received in October 2021, CBSA did not disclose the value of the leases, citing confidentiality reasons. Pierre Guay is characterized in media stories and by members of opposition parties as a supporter of the Liberal Party of Canada. It is important to note that no procurement contracts, but only leases have been issued to companies associated with Pierre Guay.
Since October 2021, multiple media stories have been published on the Roxham Road crossing, criticizing the government for not releasing the lease costs associated with the processing of asylum claims. On October 17, 2022, senior managers from PSPC and CBSA appeared in front of the Standing Committee on Access to Information, Privacy and Ethics.
Suggested response
- Transparency and accountability are of the utmost importance to this government
- As Minister of Public Services and Procurement, my department works with federal organizations to meet their needs through fair and open contracts and lease arrangements
- There are 35 contracts related to the Roxham Road crossing, worth a total of an estimated 224 million. The information is in the public domain. We will continue to be open and transparent in our procurement practices and will continue to provide the best value for Canadians
- Unlike contracts, lease agreements are structured differently and as a result of the commercially sensitive nature of some elements of leases, such as the rental rate per square metre, not all details have been disclosed
- The total amount of the leases and sub-agreements, for the period between May 1, 2017 and February 24, 2023, is $29.97 million
Evolution of the office portfolio
Context
PSPC is the federal government’s administrator of real property and is responsible for approximately 6 million square metres of rentable office space across Canada. Studies undertaken prior to the COVID-19 pandemic showed that office space was underutilized by approximately 40%, and considered inefficient given annual operating and maintenance costs of approximately $2.4 billion.
Suggested response
- PSPC is committed to ensuring sound stewardship of the Government of Canada’s real property office portfolio
- The post-pandemic environment represents an opportunity to redefine the future of work and drive a rationalization of the entire portfolio
- PSPC is working with client departments and agencies to meet their future office needs. We expect that, for many, this will mean the extensive use of unassigned office space and, where feasible, leveraging interdepartmental shared space
- Subsequent to the Treasury Board Secretariat’s direction on prescribed presence in the workplace, PSPC is working in close collaboration with client organizations to help identify their office accommodation needs as they transition to a hybrid work model
If pressed on specific actions:
- PSPC’s office long‑term plan was submitted to the Treasury Board Secretariat in early 2021 and identifies opportunities to modernize and green the Government of Canada’s office portfolio over a 25-year planning horizon as well as dispose of assets that are no longer required to support accommodation needs in order to support portfolio rationalization
- This plan is an evergreen document that will evolve as we learn, revise assumptions and refine investment timelines
- PSPC will continue to work closely with departments and agencies and with other key stakeholders to achieve the strategic objectives of the plan, which are grouped under 5 pillars:
- office portfolio
- people
- environmental
- digital technology
- socio economic
Greening Public Services and Procurement Canada’s portfolio
Context
PSPC Crown-owned building portfolio (excluding housing) is achieving results in the reduction of greenhouse gas emissions and towards becoming net-zero carbon, in response to the Greening Government Strategy. The department is also achieving results toward zero plastic waste.
Suggested response
- The government is taking action to reduce greenhouse gas emissions from its buildings
- In 2021 to 2022, PSPC reported a 57.3% reduction in greenhouse gas emissions from its own buildings compared to the 2005 to 2006 baseline
- These reductions came from actions to improve buildings’ energy efficiency, electricity grid improvements and the procurement of renewable energy credits
If pressed on how the remaining greenhouse gas emissions will be reduced in its Crown-owned portfolio:
- A decrease of 19% of the remaining emissions is expected by 2025 through the procurement of clean electricity (National Clean Electricity Initiative)
- A decrease of 40% of the remaining emissions is expected by 2025 by modernizing the heating and cooling system for up to 80 buildings in the National Capital Region (Energy Services Acquisition Program)
- Additional greenhouse gas emission reductions are expected as we right-size, recapitalize and modernize federal office space (National Office Long Term Plan)
- Target is over 82% greenhouse gas emissions reductions by 2025 and net-zero carbon by 2030 for the Crown-owned portfolio
- These ongoing actions, in conjunction with achievements to date, are leading PSPC towards achieving over 82% greenhouse gas emissions reductions by 2025 and in a very good position to achieve net-zero carbon by 2030 for its Crown-owned portfolio
If pressed on zero plastics:
- The 236 waste audits completed indicate that plastic waste makes up a small percent of the total waste produced per occupant per year
- Efforts to reduce the use of plastics from operations and divert plastic waste from landfill are guided through the implementation of a plastics action plan which includes:
- delivery of sustainability awareness programs and engagement strategies for new hybrid workplace environments
- new recycling infrastructure and services for hard to recycle plastics
- reduction of plastics through green procurement initiatives
National Capital Region bridges
Context
Budget 2019 provided funding for the replacement of the Alexandra Bridge, and the rehabilitation and ongoing maintenance of the Macdonald-Cartier Bridge and the Chaudière Crossing. It also provided direction for refreshing technical studies on a potential 6th interprovincial crossing in the National Capital Region and developing a long-term integrated interprovincial crossings plan.
Suggested response
- The government continues to improve the condition of interprovincial crossings in the National Capital Region
- PSPC is working closely with the National Capital Commission, the cities of Ottawa and Gatineau, and other partners to ensure federal bridges in the National Capital Region are safely and effectively serving Canadians
If pressed on the long-term integrated interprovincial crossings plan:
- The National Capital Commission developed the long-term integrated interprovincial crossings plan, in collaboration with the city of Ottawa, la ville de Gatineau, the provinces of Ontario and Quebec, transit authorities, and other stakeholders
- The plan, approved by the National Capital Commission’s board of directors in January 2022, confirmed the vision, policies and infrastructure priorities for sustainable interprovincial travel for a 2050 planning horizon
- The plan will serve to inform decisions around regional transportation in ways that are sustainable, equitable, environmentally sensitive and work towards creating a more liveable and prosperous National Capital Region
- The National Capital Commission will complete a technical update to this plan based on new regional travel data, which is expected in mid-2023. This technical update is required to ensure the National Capital Commission can continue to provide the most up-to-date advice, strategies and actions to achieve sustainable interprovincial mobility
If pressed on an additional National Capital Region crossing (for example the 6th crossing):
- PSPC and the National Capital Commission are working in close collaboration through the dedicated project office to coordinate the gathering of new information to help the Government of Canada consider its options for an additional National Capital Region crossing
If pressed on replacing the Alexandra Bridge:
- Planning activities, including a multi-year impact assessment process, are underway to replace the Alexandra Bridge, with construction of the new bridge scheduled to begin in 2028. In the meantime, inspections and repair work continue to ensure the bridge remains safe and accessible until it is replaced. The repair work has the added advantage of preparing portions of the structure for its eventual deconstruction
- PSPC and the National Capital Commission hosted public consultations in November 2020 and November to December 2021, which included numerous local stakeholder groups and engagement with Indigenous groups
- This engagement will continue throughout the project and will inform the impact assessment and design phases to deliver a new bridge that meets the community’s needs
- In February 2021, PSPC published on its website the executive summary of the cost analysis study in order to be transparent about the data behind the decision to replace the bridge, and the department has since made available other reports and has committed to proactively publish new reports as the project progresses
If pressed on interprovincial tramway connections:
- As announced in Budget 2021, the National Capital Commission has established an interprovincial transit project office within the National Capital Commission that will study and plan for potential interprovincial tramway connections between Ottawa and Gatineau, in addition to consulting and collaborating with municipal, provincial, and transportation partners
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