OTTAWA — The purchase of the new residence of Canada’s consul general in New York by Global Affairs Canada was not approved by the Treasury Board Secretariat (TBS) because it was just below the threshold that jumped to $10 million in 2022. On Tuesday, senior public servants from TBS and Public Works were called to the first of three meetings of a House of Commons committee to explain the government’s recent decision to buy a $9-million luxury condo on Manhattan’s “Billionaire’s Row.” Samantha Tattersall, a senior Treasury Board official, said her department’s approval was not required because it was under the $10-million limit.
But she said Global Affairs Canada (GAC) still had to conclude the transaction in a manner that was consistent with Treasury Board policies. She said the department expects GAC to have validated the need for an acquisition based on “appropriate due diligence, including a full life cycle analysis,” and that it was done in “a fair and open manner that’s aligned with commercial real estate practices.” Conservative MP Michael Barrett, who has criticized the move, said “that’s wild” to think that a multimillion purchase of real estate did not trigger a review of Treasury Board.
Eight government departments, including GAC, have special limits and conditions for the acquisition and disposition of property that can take place without the approval of TBS. Tattersall said there are hundreds of property transactions that can occur in any given year outside of Canada for GAC, with the higher dollar values for official residences or chanceries. She said the department is accountable for those transactions.
According to those special acquisition limits, GAC can purchase staff quarters of up to $5 million, official residences of up to $10 million and chanceries or multiple-unit facilities of up to $15 million outside of the country without the approval of Treasury Board. Tattersall encouraged MPs to direct their questions to GAC officials at a future meeting. The committee is expected to meet again on Wednesday and next week.
But what raised eyebrows at the committee was the sudden increase of those special acquisition limits. Answering Bloc Québécois MP Julie Vignola’s questions, Tattersall said the limit was last raised to $4 million back in 2006 and raised to $10 million in 2022. Tattersall said her understanding was that GAC had looked at the average price for an acquisition of an official residence in 23 different markets and that it was on that basis that the decision was made to increase the limit by $6 million for the first time in 16 years.
She said the next scheduled review of those limits will happen in 2026. The government has been criticized by the Opposition for the price tag of the new residence for Canada’s consul general in New York, retired journalist Tom Clark, with Conservative Leader Pierre Poilievre even promising to “fire” Clark if he becomes prime minister. The luxury condo was purchased for $8.
8 million in Steinway Tower, a building known as the world’s thinnest skyscraper, and comes with three bedrooms, each with their own bathroom, a “marble clad primary bath” and “macauba stone entrance floors.” Meanwhile, the government has listed its former official residence located on Park Avenue for sale for $13 million. The National Post previously reported that renovating it would have cost $2.
6 million because it needed major updates to electrical, heating and plumbing. The government has argued that it will ultimately save money by selling its former residence and buying a new one for a lesser price. Amélie Bouchard, acting chief appraiser of Canada at Public Works, told the committee that the Park Avenue residence is not only larger than the one in Steinway Tower but that it has an overall better view, and it is located in a desirable area of Manhattan.
But the Opposition is far from convinced that the new condo was a good investment and tried to portray the Liberals as out of touch. Conservative MP Larry Brock asked public servants if it was a government requirement of Clark’s position as council general in New York that he have an “elegant entry foyer with macauba stone floors” or a “stunning powder room finished in jewel onyx.” “Starving Canadians who are relying on food banks who would love to have a real property investment in New York with these types of features.
Do you see the disconnect between what the government is doing and the reality on the Canadian streets?” he asked. Tattersall said those luxurious attributes were not a Treasury Board requirement. National Post calevesque@postmedia.
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