Public Service Alliance of Canada BC

The Conservative government intends to sell and then lease back nine federal buildings as a pilot project that will be expanded to include up to 40 more buildings. The initial nine buildings ­– located in Vancouver, Edmonton, Calgary, Toronto, Ottawa and Montreal – are among the most modern and well-maintained buildings the government owns. This proposed sale will rank as one of the largest sales of Canadian public assets ever.

• More about the buildings for sale in Vancouver: Sinclair Centre and 401 Burrard.

Last fall, the federal government awarded a contract to BMO Capital Markets Real Estate Group and RBC Capital Markets Real Estate Group to determine whether or not it made sense to sell the buildings. BMO and RBC recommended selling the buildings and have since handled the sale. On May 1, 2007, the nine buildings were listed for sale over a six-week period. On June 12, 2007, the bidding period closed with a 60-day review period.

The sale of the buildings is being driven by the Conservative government’s unwillingness to invest in maintaining its properties and by an ideological belief that government should not be in the business of owning and maintaining infrastructure. The government intends to sell the buildings and then lease them back for 25 years with a guaranteed 100% occupancy rate. We believe that taxpayers will pay $2 in leasing costs for every $1 gained in proceeds from the sale of the buildings.

• Email your MP - let them know this is a bad deal for Canadians.

Aside from it being simply a bad deal, the sale of these public assets – property that belongs to the people of Canada – lacks accountability to Parliament and to the people of Canada.

The government continues to refuse to release details of the study that recommended the sale of the buildings, the details of the bidding process and who they have named as their third party representative to assess the bids. Even the Standing Committee on Government Operations and Estimates Committee has been denied access to the information. Though Public Works Minister Michael Fortier appeared before the Committee at an in-camera session on May 31, 2007, the Committee was dissatisfied with his reluctance to provide them with information on the plan. As result, on June 7, 2007, the Committee passed a motion for a moratorium on proceeding with the building sell-off/lease back until the information requested by the Committee has been provided. We have been told – and we are in the process of confirming this – that a Cabinet Committee has been struck to deal with this issue and that Indian and Northern Affairs Minister Jim Prentice is a key player.

The Public Service Alliance of Canada has been assured that the sale of the nine buildings will not result in job loss for our members, however, it cannot be assumed that this assurance will be extended in the event that the proposed further 40 buildings are put on the block.

What the PSAC is Doing to Stop the Sale

The PSAC is committed to stopping the sale of the buildings. We have publicly stated our opposition to the plan: we’ve worked with another union to draw attention to the sale and provided a concrete example of what can happen when corporations purchase federal buildings; we’ve filed numberous Access to Information requests; we’ve held the first of many public events in front of the buildings for sale; we’ve Commissioned the song “I Want My Rent for Free”; we’ve produced leaflets and a more detailed backgrounder to draw public attention to the issue; and, we’ve written to the Prime Minister calling on him to appoint the Auditor General to conduct the third party review. And that’s just the beginning.

What you can do to stop the sale

We need your help to raise the issue in your workplace and in your community. You can:

• call, or fax your MP. The House of Commons has adjourned until mid-September and MPs are back in their ridings on the summer bar-b-que circuit. Public Works Minister Michael Fortier has refused to provide MPs with information about the bidding process or the long term plans of the governement. Let your MP know that you are opposed to the deal and demand that the veil of secrecy surrounding the deal be lifted.
• email your MP from our website
• participate in upcoming events at the buildings being sold. Upcoming events will be held in Montreal, Ottawa, Calgary, Edmonton, Toronto and Vancouver. Contact the Vancouver RO and get involved!
• share this information with your co-workers.
• write a letter to your local newspaper voicing your opposition to the sale.
• keep checking the PSAC website for updates.