Question Period Note: Rehabilitation of National Capital Commission assets

The Official Residences of Canada: 2021 Asset Portfolio Condition Report was released by the National Capital Commission in 2021 and identified a requirement for an injection of $175 million over 10 years to address the deferred maintenance deficit for all six official residences.

• The Government of Canada recognize the importance of the official residences and their heritage and cultural value
  • The National Capital Commission is an independent Crown Corporation and is responsible for year-round maintenance and operations for the six official residences in Canada’s National Capital Region
  • The National Capital Commission is committed to full transparency and reports annually on capital expenditures incurred at the official residences

If pressed on the National Capital Commission’s asset portfolio condition report:

• The National Capital Commission released this report in June 2021 to remain transparent and open with the Canadian public and it remains committed to working with its partners to ensure that issues related to security, heritage preservation, sustainability, and accessibility are addressed
• Of the six main official residences, four are in “fair” condition (Rideau Hall, Harrington Lake, Stornoway, 7 Rideau Gate), and the Farm is in “poor” condition while 24 Sussex remains in “critical” condition
• As an independent Crown corporation led by its Board of Directors, the National Capital Commission plans, initiates, and implements the works and investments related to the Official Residences to ensure their continued operation and to safeguard their national heritage

If pressed on 24 Sussex:

• We continue to work closely with the National Capital Commission to develop a plan for the future of the Prime Minister’s Official Residence
• 24 Sussex is in critical condition and has been closed to protect the health and safety of residence staff, as well as to ensure the integrity of this Classified Heritage Asset
• The NCC has completed projects to ensure the integrity of the site, including an abatement of designated substances, as well as the removal of obsolete systems.
• The estimated cost of this project is $4.3 million
• In the coming months, the National Capital Commission will continue its work to ensure the integrity of other assets on the 24 Sussex site, including the building located at 10 Sussex Dr
• These projects are necessary and must be undertaken regardless of any decision taken on the future of the residence

If pressed on Harrington lake:

• The National Capital Commission completed works in December 2020 at Harrington Lake as part of a broader program to preserve, maintain, and restore all official residences under NCC management
• The National Capital Commission completed works at Harrington Lake (known in French as Lac Mousseau) with an overall cost of $5.8 million, which is less than the original budget of $6.1 million. The asset is no longer considered to be in “critical’ condition
• As an independent Crown corporation led by its Board of Directors, the NCC plans, initiates, and implements the works and investments related to the Official Residences to ensure their continued operation and to safeguard their national heritage
• While the 2018 Asset Portfolio Condition Report released by the NCC, assessed the Harrington Lake main cottage to be in “critical” condition, with the recent works the asset is now deemed to be in “Fair” condition

If pressed on Stornoway:

• Presently, Stornoway is in “fair” condition and the National Capital Commission does not have any projects planned at the residence. The NCC will work in close collaboration with the office the Leader of the Official Opposition to plan any potential future project at the residence

If pressed on Rideau Hall:

• All National Capital Commission projects that are planned or underway at an official residence are important to ensure the residence’s continued operation and to safeguard its national heritage
• The National Capital Commission works in close collaboration with the Office of the Secretary to the Governor General to ensure the effective implementation of planned projects

In 2017, the National Capital Commission commissioned in-depth building condition reports for the largest and most complex buildings in the official residences portfolio. These reports, made public in 2018, found that 58% of the assets in the official residences portfolio were considered to be in ‘poor’ to ‘critical’ condition, including half of the main residences. This analysis was refreshed in 2021 using the same methodology. The findings are laid out in the Official Residences of Canada: 2021 Asset Portfolio Condition Report, which details the current state of all six official residences and their ancillary buildings under the stewardship of the National Capital Commission. The latest findings confirm that the overall condition of the Portfolio continues to deteriorate with only 24% of the assets considered to be in “good” condition, down from 34% in 2018. The report was presented to the National Capital Commission’s Board of Directors on June 23, 2021, and subsequently published on the National Capital Commission’s website.

The report highlights the shortfall in funding required to restore and maintain the heritage buildings in this asset portfolio. Since the 2018 report, the National Capital Commission has invested approximately $26 million in capital funding on rehabilitation work. Despite these investments, the cost of addressing the portfolio’s deferred maintenance deficit has increased and it is now estimated that an injection of $17.5 million per year, over 10 years — for a total of $175 million — is needed to close the deferred maintenance gap. In addition to this sum, the report identifies a need for $26.1 million in annual funding to cover ongoing maintenance, repair and renovation costs.

• The 2021 report found that the overall condition of the Portfolio continues to deteriorate with only 24% of the assets considered to be in “good” condition, down from 34% in 2018
  • The National Capital Commission completed works at Harrington Lake (known in French as Lac Mousseau) in December 2020 with an overall cost of $5.8 million, which is less than the original budget of $6.1 million. The asset is no longer considered to be in “critical’ condition