A House of Commons committee has summoned senior public servants to justify the government’s decision to purchase a $9 million condo for the consul general in New York. Conservative MP Michael Barrett criticized the purchase as “excessive” and “opulent,” questioning why the procurement minister was not informed. He raised concerns about the cost of living crisis facing Canadians and whether the minister was aware of the purchase.
The acting chief appraiser of Canada, Amelie Bouchard, stated that she was the highest-ranking official in the Procurement Department to approve the purchase, emphasizing her role in appraising properties. The government is selling its old Manhattan residence for $13 million, a move expected to save money, according to Global Affairs.
During the committee meeting, officials from the Procurement Department’s real property services team were present but often redirected questions to Global Affairs. The meeting did not have representation from Global Affairs, with a follow-up meeting scheduled for the next day.
Samantha Tattersall, a senior Treasury Board official, explained that her department did not review the purchase as it was under $10 million. However, she highlighted that Treasury Board policies would guide Global Affairs in their decision-making process.
The transaction limit of $10 million was raised from $4 million in 2022 after a review of foreign residence purchase prices. Documents presented to the committee indicated that Canada may profit from the sale of its old Manhattan residence, listed at $13 million.
The Park Avenue apartment, purchased in 1961 and last renovated in 1982, required significant upgrades and was not compliant with accessibility laws. Concerns about the property were raised in 2014, leading to a delayed renovation project due to the COVID-19 pandemic.
The government collaborated with a local broker to explore 21 residences ranging from $8 million to $21 million before selecting a luxury condo in Steinway Tower near Central Park. The new residence will be occupied by former journalist Tom Clark, appointed consul general in February 2023.
Global Affairs stated that the new residence will result in cost savings for Canadian taxpayers by reducing maintenance expenses and property taxes.
