Standing Committee on Public Accounts

HOUSE OF COMMONS CHAMBRE DES COMMUNES OTTAWA, CANADA K1A 0A6

Comité permanent des comptes publics

For immediate release

Ottawa, December 10, 2009 -

Public Works and Government Services needs to be more vigorous in exercising its authority to impose accommodation solutions on client departments, according to a report of the Standing Committee on Public Accounts presented in the House of Commons today.

In May 2006, the Office of the Auditor General released an audit on the acquisition of leased office space. The audit included an example in which the minister for the Economic Development Agency for the Regions of Quebec rejected Public Works and Government Services’ recommended choice for the relocation of the Agency’s headquarters in Montreal to Place Bonaventure, even though the accommodation was selected through competitive tender. Instead of moving to Place Bonaventure, the minister requested that the Agency remain at Place Victoria, if possible, and officials from Public Works made efforts to meet that request. The audit concluded that as a lease had already been signed with Place Bonaventure, this resulted in an additional cost of $4.6 million.

In order to investigate this issue more thoroughly, the Public Accounts Committee held six meetings with numerous witnesses, including four former ministers. The Committee was unable, however, to determine precisely who made the decision to allow the Agency to remain at Place Victoria and why. The most the Committee could conclude was that the actions of the then minister for the Agency, Claude Drouin, were inappropriate and appeared to be motivated by the prestigious nature of Place Victoria (the stock exchange tower).

The Committee was very troubled by this case because it contravened government policies, resulted in a significant financial loss to the Crown and hence Canadian taxpayers, achieved no tangible benefit, and crucial last-minute decisions were made without any documented justification or reasonable cause.