TORONTO, April 19, 2005 -- Independent advice is now being sought to explore new creative ways to manage government office buildings across Canada. The announcement was made today by the Honourable Scott Brison, Minister of Public Works and Government Services Canada (PWGSC). Minister Brison says he wants a thorough assessment of the most cost-effective and efficient way to accommodate public servants while promoting important policy objectives such as energy efficiency. "The status quo is not acceptable," Minister Brison said. "Key decisions need to be made about our aging inventory. We want to show respect for taxpayers dollars and get the best value for Canadians, provide better services and help contribute to our government's greening agenda." As a first step, PWGSC is seeking input from industry and other stakeholders on a draft Request for Proposal (RFP) to look at the parameters of a real estate study. After considering this input over the next 30 days, PWGSC will then issue the formal RFP and conduct a fair, open and transparent competitive process to ensure the best expertise is retained to carry out the study itself. This study will consider the future of 327 buildings now owned by the Government of Canada. Important historical landmarks such as the Parliament Buildings are excluded from the study. "This new approach is not about selling government buildings to achieve short-term savings," Minister Brison emphasized. "We will look at a broad range of options, such as sale-lease back, public-private partnerships and Real Estate Investment Trusts to determine how we can best manage our real estate holdings while saving money for taxpayers." The results of the study are expected early next year. The government will carefully consider all options before taking any action. Whatever decisions are made, the government will ensure continued federal visibility in all regions of Canada. The Minister also announced the creation of a Deputy Minister's Advisory Committee to provide PWGSC with independent expert advice on the department's plans to deliver services smarter, faster and at a reduced cost. Committee members are being drawn from the private sector, professional associations and other sources external to government. To comment on the draft RFP, or for more information, visit the Government Electronic Tendering Service (GETS): http//www.merx.com Deadline for comments: May 19, 2005. A backgrounder is attached with more information. - 30 - For further information, media may contact: Renée David Press Secretary Office of Minister Brison (819) 997-5421 Pierre Téotonio Senior Media Relations Advisor (819) 956-2310 BACKGROUNDER Draft Request for Proposal On Real Estate Study Public Works and Government Services Canada (PWGSC) manages one of the largest real estate portfolios in Canada, accommodating some 210,000 federal employees. The current office portfolio is: 52% owned; 40% leased; and 8% leased to purchase. The study will consider the future of 327 buildings used as office and common use space. They are on average 43 years old, and will require some $2 billion in investments over the next five years to preserve their value and remain operational. The real estate study will exclude the Parliament Buildings and other historical landmarks. Key decisions are being made for the future. PWGSC is therefore commissioning a study that will provide a complete and thorough assessment of a range of options with respect to its real estate portfolio. Specifically, the study's objective is to: find the most cost-effective and efficient ways to accommodate public servants improve the energy efficiency of buildings operated by the department with a view to contributing to the government's climate change action plan and greening agenda give more flexibility to serve Canadians in new areas of population growth and in smaller centres. The study will adopt a medium (5 to 15 years) to long-term (15 years and more) view. The results will help PWGSC improve the way it manages its real estate holdings and ensure that Canadians get the best possible value for their tax dollars. In addition, the study is expected to identify ways to achieve savings that can be reinvested in the priorities of Canadians, such as health care and the environment. The final report will address a number of specific questions and issues, including: The experience and lessons learned of other public and private institutions, in Canada and abroad, which have examined or adopted innovative approaches to managing real estate holdings, including the sale of some assets. Such institutions include the governments of Australia, New Zealand and Great Britain, Canadian provinces such as Quebec, Ontario and British Columbia, and organizations such as the Canadian Broadcasting Corporation, the Royal Bank and IBM. The role of factors such as the age, condition and cost of maintaining the value of PWGSC's owned real estate; the location, diversity and flexibility of the portfolio; and heritage characteristics. The need to show leadership in greening government operations. The benefits and risks associated with each type of real estate tenure, such as owning and leasing, and options such as sale-lease back, public-private partnerships and Real Estate Investment Trusts (investment vehicles that concentrate their holdings in real estate). Recommended approaches for the recapitalization of PWGSC's real estate portfolio. Measures that PWGSC should use to measure performance with respect to the supply of accommodation. Consultations are being conducted to make sure the government will have the right information to make the best decisions. As a first step, PWGSC is seeking input on the draft Request for Proposal (RFP) to solicit comments on the parameters of the study. After receiving this input and carefully reviewing all options, PWGSC will issue a formal RFP and conduct a fair, open and transparent competitive process to ensure the best expertise is retained to carry out the study. The results of the study are expected early in the New Year. PWGSC will carefully consider all options before taking any action. Whatever decisions are made, PWGSC will respect commitments to environmental excellence, maintain the presence of the federal government in all regions of Canada, protect heritage properties, and work with local governments to support community objectives. The study will include a total of 327 assets from the government real estate portfolio, as follows: Province Assets Alberta 7 British Columbia 30 Prince Edward Island 10 Manitoba 10 New Brunswick 30 Newfoundland 38 Nova Scotia 28 Ontario 112 Quebec 56 Saskatchewan 6 TOTAL 327
