Portfolio organizations: Standing Committee on Government Operations and Estimates—March 22, 2023

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Canada Post Corporation financial stability

Context

Suggested response

• Canada Post is a Crown corporation that operates at arm’s length from the government
• As is the case with other postal carriers around the world, Canada Post is evolving to meet the changing customer needs and expectations
• Canadians relied heavily on the essential services provided by Canada Post during the COVID-19 pandemic
• Canada Post connects this country from coast to coast to coast. We continue to work with the corporation to examine opportunities to improve the financial sustainability of its important operations

If pressed on specifics of the financial situation:

• While it is forecasting a fifth consecutive year of operating losses in 2022, Canada Post’s immediate focus is on much-needed investments and improvements to meet the changing needs of Canadians and businesses. Financial self-sustainability remains the corporation’s medium-to-long term goal
• Parcel revenues and volumes have declined as Canadians’ online shopping slowed from elevated levels in 2021
• Direct marketing continued to recover compared to 2021, although volumes remain below pre-pandemic levels
• Letter mail volumes continued to decline due to ongoing digital substitution

Rehabilitation of National Capital Commission assets including 24 Sussex, Stornoway and Rideau Hall and Harrington Lake

Context

The Official Residences of Canada: 2021 Asset Portfolio Condition Report was released by the National Capital Commission (NCC) in 2021 and identified a requirement for a one-time injection of $175 million over 10 years to address the deferred maintenance deficit for all 6 official residences.

Suggested response

• The NCC is an independent Crown corporation and is responsible for year-round maintenance and operations for the 6 official residences in Canada’s National Capital Region
• Both the NCC and the Government of Canada recognize the importance of the official residences and their heritage and cultural value
• The NCC is committed to full transparency and reports annually on capital expenditures incurred at the official residences

If pressed on 24 Sussex:

• 24 Sussex remains the only official residence in critical condition
• In order to protect the health and safety of residence staff, as well as to ensure the integrity of this classified heritage asset, the NCC is in the process of closing 24 Sussex Drive to undertake necessary work
• This includes the abatement of designated substances as well as the removal of obsolete systems, work that must be undertaken regardless of any decision taken on the future of the residence. This work is scheduled to begin in spring 2023

If pressed on Harrington Lake:

• The NCC’s work at Harrington Lake was part of a broader program to preserve, maintain, and restore all official residences under NCC management
• As detailed in the 2018 Asset Portfolio Condition Report released by the NCC, the Harrington Lake main cottage was one of 2 main residences deemed to be in “critical” condition; the other being 24 Sussex
• The NCC completed works at Harrington Lake in December 2020 with an overall cost of $5.8 million, which is less than the original budget of $6.1 million. The asset is no longer considered to be in “critical’ condition
• As an independent Crown corporation led by its board of directors, the NCC plans, initiates, and implements the works and investments related to the official residences to ensure their continued operation and to safeguard their national heritage

If pressed on Stornoway:

• The NCC works in close collaboration with the offices of each future resident of an official residence—including leaders of the official opposition destined to live at Stornoway—to determine the timing and logistical details of their move, including required updates to the residence
• During transitions, typical moving tasks are performed to ensure the residence is clean and appropriately furnished so that occupants can feel at home and are able to execute their official duties as soon as they move in
• Moving costs are not associated with the occupant’s personal belongings

If pressed on the NCC’s Asset Portfolio Condition Report:

• The NCC released this report in June 2021 to remain transparent and open with the Canadian public and it remains committed to working with its partners to ensure that issues related to security, heritage preservation, sustainability, and accessibility are addressed
• The 2021 report found that the overall condition of the portfolio continues to deteriorate with only 24% of the assets considered to be in “good” condition, down from 34% in 2018
• Of the 6 main official residences, 4 are in “fair” condition (Rideau Hall, Harrington Lake, Stornoway, 7 Rideau Gate), and the farm is in “poor” condition while 24 Sussex remains in “critical” condition

If pressed on Rideau Hall:

• All NCC projects that are planned or underway at an official residence are important to ensure the residence’s continued operation and to safeguard its national heritage
• The NCC works in close collaboration with the Office of the Secretary to the Governor General to ensure the effective implementation of planned projects

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Date modified:

2023-07-19