Thank you.

Mr. Chair and members of the committee, I am pleased to be here today on behalf of Public Works and Government Services Canada, or PWGSC, to discuss the department's 2014-15 supplementary estimates (B) and its 2013-14 departmental performance report.

With me today are Nancy Chahwan, Assistant Deputy Minister of the Parliamentary Precinct Branch, Claire Caloren, Associate Assistant Deputy Minister of the Acquisitions Branch, and Pierre-Marc Mongeau, Assistant Deputy Minister of the Real Property Branch.

With responsibilities that range from preserving the heritage buildings here on Parliament Hill to issuing every payment for the Government of Canada, PWGSC provides services that support parliamentarians, public servants, and departments and agencies in the delivery of their mandate to Canadians.

For these supplementary estimates (B), the department is requesting $136.3 million to cover accommodation requirements in Crown-owned buildings and leased space.

This request represents a continuation of annual program funding and is consistent with real property portfolio management practices in previous years.

Of this amount, $80 million will provide a stable source of funding for the fit-up of PWGSC's accommodation portfolio. This amount will supplement the departmental existing fit-up budget and allow PWGSC to implement a 20-year fit-up cycle for its accommodation inventory.

The new fit-up budget is ongoing and replaces the annual request for incremental in-year funding.

There is $56.2 million for increases in non-discretionary expenses associated with crown-owned buildings and leased space, and is allocated as follows: $31 million to provide stable funding for PWGSC's office space inventory and to replace funding that had previously been sought annually to address accommodation fluctuations, and $25.2 million to cover the cost of inflation associated with PWGSC's real property portfolio.

The inflation rate for 2014-15 is estimated at 1.6% on an operating budget of $1.6 billion.

This funding request is consistent with those of previous years and will cover the increasing cost of utilities, security, rents, and property taxes.

PWGSC is also reimbursing a net amount of $11.1 million to other government departments, mainly for reductions in their accommodation requirements.

With the aforementioned items, the net amount sought in the supplementary estimates (B) is $125.2 million, which would result in a net appropriation of $2.9 billion.

Mr. Chair, I would like to turn to PWGSC's departmental performance report.

This report highlighted that in 2013-14 the department launched the defence procurement strategy to provide the Canadian Armed Forces with the equipment it needs in a timely and cost-effective manner, while creating jobs and economic growth for Canadians.

It supported Canadian small enterprises through the build in Canada innovation program by awarding a total of 77 contracts to support the testing of innovations at the pre-commercialization stage.

Last, PWGSC continued to work on the rehabilitation of the Parliament Buildings.

The department did all of these things while achieving, in 2013-14, cumulative planned budget savings of $154.7 million, which underscores its commitment to sound financial management in all of its operations.

We have been able to find efficiencies in every sector of the organization. For example, over the last four years, PWGSC has cut its travel expenditures by half, while leveraging the use of technology.

In keeping with the government's priorities of job creation, economic growth and long-term prosperity for Canadians, the department supports the consistent delivery of high-quality services to Canadians, while providing measured value for the dollars with which it is entrusted.

Thank you, Mr. Chair and committee members.

My colleagues and I would be pleased to answer your questions.

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