[Translation]
I am going to make my presentation mostly in French and my colleagues will speak to you in English.
Thank you very much for inviting us. I am joined today by my colleagues Joanne Monette, Director General, Planning and Operations, Parliamentary Precinct Branch and Ezio DiMillo, Acting Director General, Major Crown Projects, meaning everything to do with the construction.
Once more, thank you for inviting us to speak with you today on the implementation of the long-term vision and plan, or LTVP, a multi-year plan for rehabilitating and modernizing the parliamentary precinct. I am happy to be here to answer your questions, but before I do, please allow me to begin with a brief presentation on where we are at the moment.
I think that you have received our document. We have included some photographs and we provide information on the stage that some of our projects have reached. We show the overview on page 2.
Canada's Parliament buildings are in a state of advanced deterioration that presents health and safety risks to parliamentarians, staff and the public. For example, two weeks after being emptied in December 2010, the West Block experienced a flood so severe that would have shut it down indefinitely. And just this past February, water leakage in the Centre Block caused the failure of one of two transformers providing power to Parliament Hill. We are regularly faced with major issues because of the buildings' advanced age.
The LTVP is designed to address this deterioration, as well as the accommodation needs of a Parliament that has grown considerably since the buildings were constructed in the 19th and early 20th centuries. To be precise, in 1856 and 1920.
The current LTVP strategy was approved by cabinet in 2007 and again in 2010. It prioritizes the rehabilitation of the West, Centre and East blocks, and is based on rolling five-year programs of work. So we are working in five-year programs, with priority given to the three main buildings on Parliament Hill itself.
This approach offers the government maximum control of the plan by enabling it to set the long-term direction, while establishing clear priorities at five-year intervals and within pre-approved funding envelopes. Individual projects within each program of work are subject to Treasury Board approval. These short and manageable cycles allow us to respond to shifting priorities and permit greater accuracy in determining the requirements of the partners—meaning yourselves—and in developing project costs and schedules.
Slide 3 shows why rehabilitation is required now. The need to rehabilitate and modernize the Parliament buildings has been a long-standing concern, recognized on many occasions, including by the auditor general. Independent technical assessments from 1999, 2006 and 2009 consistently conclude that the condition of the buildings is deteriorating, particularly the Centre Block, which is projected to reach a critical risk of total failure by 2019. I will explain what that means later. But there is a possibility of structural, mechanical and/or electrical failures, which could render the building uninhabitable and require it to be shut down.
Other major issues at this time include the presence of hazardous materials and the need for seismic upgrades to comply with national building codes. The implementation of the LTVP will address these matters; it will ensure the safety and security of parliamentarians and the public, and will provide Parliament with the level of accommodation needed to carry out its duties.
Slide 4 shows an example of the restoration required. The restoration of heritage buildings is a complex, labour-intensive, time-consuming and costly endeavour, but a necessary one, especially in the case of the Parliament buildings. The buildings need to be fully rehabilitated from the inside out. Their exterior masonry is to be repaired and restored, while their internal systems are to be replaced.
Slide 5 describes how, over the years, the department has worked with the Senate, the House of Commons and the Library of Parliament to yield some remarkable achievements. We have completed 15 major relocation projects. All major projects continue to track on schedule and within their approved budgets. In her 2010 report, I remind you—as I did the last time I was here—that the Auditor General recognized the efforts of Public Works and Government Services. She stated that, and I quote:
Public Works had in place generally sound project management practices…The department also developed a costing estimates methodology that takes into account the risks rehabilitation projects are facing…
The words “generally sound practices” are an auditor's way of saying that things are going well.
Similar conclusions were made just this past September by an independent firm that concluded that the department exercised sound project management practices for the six major crown projects it assessed, including the West Block, the Wellington Building and the Sir John A. Macdonald Building.
In 2012, the new Auditor General stated that, and I quote:
Public Works and Government Services Canada adequately planned for and assessed the benefits, costs and risks of its contractor use at the branch or departmental level.
So that was in regard to our use of advisers and consultants for the various projects.
In planning for a major rehabilitation of the Parliament buildings in the United Kingdom, the deputy speaker of the House of Lords recently consulted our team and our parliamentary partners on the work underway here in Canada to see what lessons have been learned so far. The deputy speaker of the House of Lords is from England, of course.
Slide 6 shows the projects that have been completed to date. In the spring of 2006, PWGSC completed the major rehabilitation of the Library of Parliament. The 130-year-old building—the oldest on the Hill—received a complete overhaul of its exterior and interior systems. This work was later recognized with numerous awards for our outstanding efforts in conserving this very important building.
Slide 7 shows the savings we have achieved. As I have already mentioned, between 2006 and 2010, the department completed 15 major relocation projects to support the major rehabilitation now underway. Those projects realized substantial time savings and came in at nearly $35 million under budget.
Let me mention some of the key relocation projects. Slide 8 shows the key relocation projects that have been completed. A new food production facility was constructed in Ottawa's east end. The building exceeded the planned sustainability target of LEED silver and instead achieved LEED gold. It was completed six months ahead of schedule and $6.3 million under budget.
The former Canadian Museum of Contemporary Photography was converted into four state-of-the-art committee rooms for the House of Commons using funds from Canada's economic action plan. The project was completed on budget in 16 months. It enabled us to advance the completion of the West Block project from 2020 to 2017.
The La Promenade building, the wonderful building we are in today—if I may blow its horn for a moment—was renovated and fit up for 62 MPs' offices and three committee rooms, including this one. The project was completed on time and $6.4 million under budget. I can assure you that, when we plan for these committee rooms, we imagine from the outset where we are going to be sitting when they are complete. That is what I am doing today.
Slide 9 shows our current work on some very prominent buildings. The work is very visible. The East Block north tower project, for example, is currently underway and on track for completion in 2013. The project will restore the tower and address structural issues with its foundation.
Slide 10 shows the work being done on security measures along Wellington Street. We are working closely with the RCMP on this project. Several security enhancements are being made throughout the precinct to ensure the security and safety of parliamentarians and visitors alike.
This includes the installation of retractable bollards at four vehicular entry points, as well as fixed ones at pedestrian gates. This project is on track for completion in 2013.
By the way, I must thank you for your patience during this project.
The former Bank of Montreal, now named the Sir John A. Macdonald Building across from the West Block, is being rehabilitated to provide permanent space for the House of Commons to replace the former room 200 in the West Block.
The project also includes the construction of an addition to the west of the building that will house support and loading facilities. Work at this time includes seismic upgrades needed to meet today's codes. The project is presently tracking ahead of schedule. Everything should be complete in 2015.
If you go to page 12, you will see that the rehabilitation of the Wellington Building is well underway. It is also on track. It is to be completed in 2016. When complete, it will house 69 parliamentary office units and 10 committee rooms.
Slide 13 shows the West Block. We have a model with us, as well as some photographs. As you are aware, the West Block project is well underway. When complete, the revitalized building will house an interim House of Commons chamber, a number of parliamentary offices and a host of functions from the Centre Block during its rehabilitation. The project will also permanently expand the usable space of the building by 50%.
I remind you that the roof is permanent and that, when the chamber goes back to the Centre Block in a number of years, we will be able to remove the current enclosure around the chamber, the one you can see in the model, and build new floors so that we can increase the number of offices and meeting rooms once again. So we have some flexibility in the way the project will develop. Completion is still scheduled for 2017.
I also want to remind you that decisions regarding the partners' requirements, or specific design elements in the precinct, are not made alone and unilaterally by Public Works. Matters such as these are consulted on with independent experts and carefully vetted by stakeholders at all levels, including the administrations of the Senate, the Library of Parliament, the House of Commons, the Federal Heritage Buildings Review Office and the National Capital Commission.
The department is committed to restoring and preserving Canada's Parliament buildings according to all applicable codes and regulations, and to demonstrating accountability and fiscal responsibility in doing so.
The implementation of these projects and the overall LTVP is guided by a strong oversight and accountability regime that includes a third-party review framework covering areas such as contracting and costing. All major construction contracts are awarded through a transparent and competitive two-stage process that is overseen by independent fairness monitors.
On page 14, you will see that we too understand that concerns for the costs associated with an undertaking of this size are to be expected, especially in a time of fiscal restraint. I am ready to answer your questions on this. Given the complexity of these projects, it is also understandable that there be questions about what these costs include and how they were calculated.
The final slide, slide 14, shows the current project approvals for the major projects currently underway in the precinct, as well as completed project and leases for the West Block rehabilitation program. All major projects continue to track on or ahead of schedule and within budget.
At this time, I am happy to answer your questions. I will call on my colleagues if the need arises.
Thank you very much for your patience, Mr. Chair.
:
Thank you very much for your question.
As you just mentioned, the 2010 Auditor General's report had two aspects. One of the elements was the governance, the other was the work done by Public Worlds and Government Services Canada. In terms of the work done by Public Works and Government Services Canada, I remind you that no recommendations were made. There were congratulations on the various methods that we had put in place to control costs, on the lessons we have learned, and on the management of the buildings and the environment.
In terms of the governance, Public Works and Government Services Canada took action following the report. We acknowledged the report's recommendation on governance, and we looked at other types of governance in other countries. We went to England and Australia to see them. We even checked with governments like those in Ontario and Quebec to find out about systems in place there. In some cases, they had systems like here, with a senate and an elected chamber. In other places, there was only one chamber.
We examined those reports thoroughly. The part of the work that was supposed to be done by Public Works and Government Services Canada was done. Now we have to sit down with representatives of the Senate and the House of Commons to determine the next steps in the examination of the governance.
Having said that, Mr. Chair, I must add that the current relationship between the House of Commons, Public Works and Government Services Canada, the Library of Parliament and the Senate is excellent, which was not always the case. In the past, perhaps there were differences, likely because of different objectives. But today everyone understands that the global financial situation is difficult.
I can tell you that, over the last two years, the relationship has improved a great deal, as I told you earlier. Management systems have been put into place. We now have joint committees of the House of Commons, Public Works and Government Services Canada and the Senate. Projects are developed and then sent to review committees. Some projects go before the Board of Internal Economy or the Committee on Internal Economy, Budgets and Administration depending on whether the projects are for the House of Commons or the Senate. On our side, we look for the normal approvals from the House of Commons, from the Treasury Board and from various offices. In a word, the current situation is going very well.
The issues we faced, say, two, three or five years ago have disappeared now. When issues arise now, basically, the clerks of each of the two chambers and I sit down and solve the problems. We find solutions. We are always looking for savings.
:
Thank you for the question.
If we continue with the Olympic Games analogy, we do not have just one project on the go, we have several. If you walk along Wellington Street, you will see all the scaffolding. Several projects are happening.
There are a number of reasons why we need several years for the West Block project. First, we took out the hazardous materials and gutted the interior. That needed a lot of time. We have approved methodologies, but gutting buildings like that takes a lot of time. Additionally, in spite of all the lessons we have learned, when some walls are opened up, we realize that there is more work to be done than we thought. We built it into our contingencies, but the demolition takes an extremely long time.
There is something else that takes a lot of time—rehabilitating the masonry. Earlier, we showed you some photographs. The masonry must be removed stone by stone in almost 50% of the building. That means we need experienced masons. We take photographs of the wall, we take out the cement, we remove the stone and, from time to time, we can see that the structure is beginning to fall apart. It all has to be scraped clean and—because it is a historic building—the stones have to be numbered so that they can be put back in the same place. We redo the interior wall, we redo the exterior wall, and, if some stones have rotted, we cut new ones from the large blocks we have already bought. Then we put the new stones in place to be uniform. We put it back in the same state and the same original position. That is the historical option. That is how historic buildings have to be renovated. It takes time. We do the exterior masonry work first; then we do the interior masonry work.
There is another reason we need more time. We are also going to have to rehabilitate the brickwork in the interior court. Then we will have to start building. Some things can be done together, other things cannot. We have to make sure that the interior masonry has been completed before we can start building the roof and the columns. It takes time, expert workers and specific skills because it is a huge building.
In fact, we do not see the period from 2011 to 2017 as being so long after all.