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 (NCC) 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 NCC 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 NCC is committed to full transparency and reports annually on capital expenditures incurred at the official residences

If pressed on the NCC’s asset portfolio condition report:

• The NCC 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 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

If pressed on 24 Sussex:

• We continue to work closely with the NCC 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 continues to undertake projects to ensure the integrity of the site, and has completed an abatement of designated substances, as well as the removal of obsolete systems. Remaining work includes the insulation of the exterior walls and the installation of electric heat pumps to protect the building
• The estimated cost of this project is $4.3 million
• In the coming months, the NCC 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 NCC 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 NCC 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
• 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:

• The NCC works in close collaboration with the offices of each future resident of an Official Residence - including Leaders of the Official Opposition destined to live at Stornoway - to determine the timing and logistical details of their move, including required updates to the residence
• During transitions, typical moving tasks are performed to ensure the residence is clean and appropriately furnished so that occupants can feel at home and are able to execute their official duties as soon as they move in. Moving costs are not associated with the occupant’s personal belongings

If pressed on Rideau Hall:

• All NCC 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 NCC 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 NCC 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 NCC. 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 NCC’s Board of Directors on June 23, 2021, and subsequently published on the NCC’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 NCC 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.

Recent government budget investments in the NCC were not targeted towards assets in the Official Residences portfolio. Canada’s official residences remain in dire need of rehabilitation.

• 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 NCC 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