Ottawa set to sell off buildings to cut costs
Last Updated Tue, 21 Sep 2004 08:45:22 EDT
OTTAWA - The federal government may sell off some of its buildings to trim more than $1 billion in expenses from its Public Works department, Scott Brison plans to announce Tuesday.
The minister for public works will also announce a strategy to cut the department's $13 billion in spending on contracts for goods and services by 10 per cent.
The minister told Liberal MPs Monday night that the measures will help improve his department's image, which is at the centre of the sponsorship scandal, sources say.
Brison told a conference call that the government is now running a deficit of about $100 million a year in maintenance fees on its buildings.
Under the new plan, buildings now in use would be sold to private companies and leased back by the government.
The plan's architects argue the strategy would save money and give the government more flexibility to move jobs to different regions.
But some Liberals say they dislike the idea and said selling the buildings could upset government workers who are now poised to strike.
