News release

September 21, 2004

Sale of government properties just a boondoggle

OTTAWA - A massive sell-off of government buildings will end up costing taxpayers more in the long run and shortchanging future generations, according to the Public Service Alliance of Canada (PSAC).

“The people of Canada have built up enormous equity in land and buildings over decades,” says PSAC National President Nycole Turmel. “If hundreds of buildings are sold, the government will have to pay rents that are subject to wide fluctuations in the market.”

According to Mark Brunell, President of the PSAC’s Government Services Union, the government isn’t talking about the billion dollars it could take to bring buildings up to standard, in order to sell them off. “If the government doesn’t do this, they could end up selling properties at bargain basement prices and having to pay new owners marked-up rates to recondition buildings and facilities.”

Once the buildings are sold, the government isn’t necessarily off the hook. A prime example is the Terrasses de la Chaudière complex in Gatineau which the government acquired in a lease to own arrangement. Public Works and Government Services recently had to take over responsibility for the complex after they determined that the private sector owners had failed to operate it to standard. The complex will now need a massive refit, something that would not have been necessary if the proper maintenance had been carried out.

Brunell points out that security standards have changed since September 11, 2001 and it’s another key concern the government isn’t mentioning. Government facilities such as National Defence, Fisheries and Oceans, the RCMP, dockyards, dams and bridges must all be secure. “What level of security will be maintained in all these locations when the responsibility for security will be provided by the lowest bidder.”

We don’t believe it is a coincidence that the government is announcing its intention to sell off its assets at this time indicates Turmel. “Many of the members who will be affected by the sale are out on strike, with more to follow soon. Not only is the sell-off questionable at best, the announcement at this time is clearly an attempt to intimidate our members with the threat of lost jobs.”

“Minister Brison is also talking about changing the way government procurement takes place,” says Turmel. “They’re proposing to change to a system whereby giant contracts will take the place of many smaller contracts. This may help multi-national corporations and a few friends of the Liberal government but it will leave smaller suppliers in communities across the country out in the cold. And, any internal savings will be needed to ensure the integrity of the process.”

“The government asking investment bankers to make recommendations about the sale of properties is like asking the fox whether or not the chickens should be released from the hen house,” concludes Turmel. “The private sector stands to reap hundreds of millions of dollars in profit from the government sale of the properties and eventually much more from the long-term leasing arrangements and the value of the land and buildings themselves. How unbiased can these recommendations be?”

The PSAC represents 6,000 members at Public Works and Government Services Canada who maintain government properties and handle government procurement.

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For information: Louise Laporte, PSAC Communications
(613) 560-4287 or (613) 558-4975

Mark Brunell, President, Government Services Union (PSAC)
(613) 560-4395