Public Accounts

The House of Commons Standing Committee on Public Accounts met to study the Auditor General’s report on the current and future use of federal office space. Appearing were Michael Mills, Associate Deputy Minister of Public Works and Government Services (PSPC); Annie Boudreau, Comptroller General of Canada; Karen Hogan, Auditor General of Canada; Nathalie Bertrand, Associate Assistant Deputy Minister at PSPC; and Samantha Tattersall, Assistant Comptroller General at the Treasury Board Secretariat (TBS).

Michael Mills acknowledged that PSPC has made little progress on its goal to reduce the federal office portfolio by 50%, projecting only a 33% reduction by 2034, partly because a funded plan was not approved until the 2024 budget. He noted that modernization projects, such as those at Place du Portage III and Les Terrasses de la Chaudière, will enable future reductions, and he agreed with the Auditor General’s recommendation to improve public reporting, with information already available online since March 2025. He recommended standardizing methodologies for measuring office utilization—using network connections, card swipes, or booking tools—to improve data accuracy across departments.

Annie Boudreau explained that TBS sets the administrative framework for real property and introduced the direction on prescribed presence in the workplace, requiring employees to work onsite three days a week and executives four days as of September 2024. She noted that the Centre for Expertise on Real Property, funded with $5 million from 2021 to 2024, played a key leadership role but that its dissolution diminished TBS’s capacity; TBS is now reviewing outstanding recommendations from a horizontal review to prioritize work, including exploring funding strategies. She disagreed with the characterization that the centre was ineffective, stating that 87% of its 119 recommendations were completed or on track before funding ended.

Karen Hogan highlighted that her report found inconsistent data collection across the public service, with federal tenants reporting data for only 31% of buildings and 64% of employees, and that a standardized approach is needed. She noted that the government’s $3.9 billion in projected savings from a 50% reduction are unlikely to materialize given the current pace, and she emphasized the need for incentives—not necessarily financial—to encourage tenants to reduce space. She ceded her opening statement time to focus on answering questions.

Nathalie Bertrand described PSPC’s work with Shared Services Canada to test technological solutions for standardizing data collection, including software on tablets to track network connections and sensors through GC-WIFI, with a final proposal expected by spring 2026. She noted that some solutions, like standardized security swipe access, are longer-term, and that PSPC is evaluating options for deployment across the portfolio.

Samantha Tattersall clarified that the decision to centralize accommodation management dates to the 1985 Nielsen report, and that TBS continues to support real property management through policy improvements and professional development. She noted that TBS has made changes to facilitate property disposal, such as reducing due diligence for transfers between departments, and that the centre of expertise did not change TBS’s core mandate but helped coordinate implementation of recommendations.

During the meeting, members questioned witnesses on the lack of financial incentives for tenants, with Mills noting that 89% of federal tenants do not pay rent for their space, which discourages downsizing. He suggested that a government-wide policy with clear standards, such as square metres per employee, could help, but enforcement would require cabinet approval. Boudreau added that the 15% spending review launched in July 2025 could include office space reductions if departments choose to cut such costs. The committee also discussed the need for a standardized definition of rural settings, with Sébastien Lemire requesting a written follow-up, and Hogan noted she was unaware that CMHC conducts its rural rental market survey only every five years. No procedural motions or votes were recorded.