Public Services and Procurement Canada (PSPC) has faced challenges in its efforts to sell or lease surplus office space due to government mandates requiring increased in-office workdays for public servants. A ministerial transition document for Minister Joël Lightbound highlighted recent obstacles hindering the department’s plan to offload half of its office portfolio by 2034.
The federal budget of April 2024 outlined intentions to reduce the federal office footprint, projecting significant savings of $3.9 billion over the next decade and $900 million annually thereafter. However, the government now anticipates disposing of only about one-third of its office space in the ten-year span, resulting in approximately $2.45 billion in operations and maintenance savings during the initial period.
Factors impacting the original plan include the rise in employees requiring office space, updated rules on surplus asset transfers, and revised directives mandating the number of days public servants must spend in the office. Currently, federal public servants are obligated to be present in the office for at least three days per week, with executives required to be in for four days weekly, compared to the previous expectation of two to three days before September 2024.
Michele LaRose, spokesperson for PSPC, disclosed that the department’s analysis of office space needs was revised post-2024 budget release to accommodate an increased workplace presence requirement and a higher full-time employee count of 306,000. LaRose emphasized that shifts in hybrid work policies and public service expansion directly influence the required office space.
While the initial goal of a 50% reduction in federal office space remains ambitious, PSPC continues exploring innovative strategies and interdepartmental collaborations to attain this objective. Initiatives include shared office spaces among federal entities, reviewing space allocation and funding models for optimal utilization, and expediting surplus asset disposal.
An audit report by Auditor General Karen Hogan underscored the federal government’s sluggish pace in downsizing office space despite longstanding plans since 2019. The report highlighted departmental hesitancy in reducing footprints and warned that delaying the disposal of unsuitable properties could escalate maintenance and operational costs.
Hogan urged PSPC and federal tenants to accelerate efforts in increasing housing stock sustainably, accessibly, and affordably. The briefing document stressed the importance of garnering support across the public service to achieve reduction targets, recognizing that future government priorities or policy changes could impact PSPC’s goal attainment.
Ontario Premier Doug Ford’s recent announcement mandating full-time office returns for thousands of Ontario civil servants by January prompted calls for similar actions from the federal government and municipalities in Ontario. The City of Ottawa’s decision to have employees return to the office five days a week starting in the new year contrasts with the federal government and its worker unions, which have not signaled immediate changes to remote work policies.
Alain Belle-Isle from the Treasury Board of Canada Secretariat affirmed that the directive on employees’ workplace presence remains unchanged, without confirming ongoing discussions on policy updates.
