Standing Committee on Public Accounts: October 24, 2023

Auditor General’s Report 3: Rehabilitation of Parliament’s Centre Block

Date: October 24, 2023, 11:00 am to 1:00 pm

Location: Witnesses to appear in-person, West Block, room 225-A

General items: Opening statement

By: Arianne Reza, Acting Deputy Minister
Public Services and Procurement Canada
Standing Committee on Public Accounts
Office of the Auditor General Report on Rehabilitation of Parliament’s Centre Block

October 24, 2023

Word count: approximately 650

Opening

Thank you, Mr. Chair, and good afternoon.

I am pleased to appear before the Committee to discuss the Auditor General’s report on the Rehabilitation of Parliament’s Centre Block.

Before I begin, I would like to acknowledge that we are gathered today on the traditional, unceded territory of the Algonquin Anishinaabeg Nation.

Here with me today are:

• Rob Wright, Assistant Deputy Minister responsible for the overall restoration and modernization of Canada’s Parliamentary Precinct
• Ms. Jennifer Garrett, Director General leading the Centre Block Rehabilitation Project

The restoration and modernization of the Centre Block is the largest and most complex heritage rehabilitation project ever undertaken in Canada.

Public Services and Procurement Canada (PSPC) is carrying out the work on the iconic Centre Block and the broader Parliamentary Precinct hand-in-hand with Parliament.

Office of the Auditor General report positive observations

Given the scale and complexity of this project, I am encouraged by the positive observations made by the Auditor General.

The Auditor General recognized our use of flexible management approaches and reported that the department has effectively managed the scope, schedule, and costs of the rehabilitation work, keeping the project on schedule and within budget.

The report also highlighted the department’s efforts to collaborate with stakeholders, including Indigenous partners and experts, to rehabilitate Centre Block on behalf of Parliament and all Canadians.

Office of the Auditor General report findings and recommendations

Mr. Chair, when it comes to the governance of the rehabilitation program, Parliament is responsible for determining and making decisions on requirements. PSPC is responsible for the planning, design and construction work, including the budget and time needed to deliver on those requirements.

This complex project is about balancing budget and schedule constraints with sustainability, heritage, accessibility, and inclusivity alongside the need for modern, safe and secure facilities to support the operations of Parliament.

Achieving this balance is not easy. Success requires timely and sometimes difficult decisions to be made.

The Auditor General acknowledged that, while considerable efforts have been made to strengthen governance and decision making, some challenges remain.

The Auditor General’s report includes 3 recommendations:

• that, to support timely decision-making, the Minister of Public Services and Procurement table a program update to the Speakers of the Senate and House of Commons at least twice a year
• that a Gender Based Analysis Plus (GBA Plus) assessment be undertaken to ensure the Centre Block is inclusive and reflects the diversity of Canada’s peoples
• that the department publish Long Term Vision and Plan (LTVP) annual reports within the same calendar year

Mr. Chair, the department agrees with these recommendations and we are positioned to take action on all 3 within this calendar year.

With regard to the Auditor General’s recommendation to further improve governance and decision making, the Minister of Public Services and Procurement has delivered the first instalment of semi-annual updates to both speakers.

The update includes key parliamentary decisions required to support the on-time and on-budget delivery of not just the Centre Block, but all major projects being delivered under the LTVP.

To the recommendation that a GBA Plus assessment be undertaken, the department will update its GBA Plus assessment for the LTVP by 2024, with a more detailed focus on the Centre Block.

And to the recommendation regarding timely and clear reporting, the department will publish the 2022 to 2023 LTVP annual report before the end of this calendar year.

Closing

Mr. Chair, the department is working hard to ensure the project remains on track, and that the results reflect the diverse needs of Parliamentarians and all Canadians.

PSPC is appreciative of the work of the Auditor General in recognizing these efforts.

Once restored and modernized, the Centre Block will serve the needs of a modern parliamentary democracy and it will be more secure, sustainable and accessible to all Canadians—enabling more Canadians to engage in our country’s parliamentary tradition and democratic process.

Thank you.

Fact sheet: Auditor General Report 3–Rehabilitation of Parliament’s Centre Block

Recommendation 3.26

PSPC should conduct a gender-based analysis plus (GBA Plus) assessment for the Centre Block Rehabilitation Program following federal government best practices in order to guide decision making, monitoring, and program review to ensure that the public spaces are inclusive and represent the diversity of all Canada’s peoples.

Public Services and Procurement Canada response

Agreed. To implement this recommendation, PSPC, working with Parliament, will conduct a renewed GBA Plus for the LTVP by 2024, with a more detailed focus on the Centre Block Rehabilitation Program. PSPC will also continue engaging a broad range of stakeholders and partners, including Indigenous communities and organizations, to ensure that the Centre Block Rehabilitation Program represents the diversity of Canada and is a step forward in the path of Indigenous reconciliation. In the spirit of implementing this recommendation on a go‑forward basis, GBA Plus conducted in the future for the LTVP will also include a specific focus on upcoming major projects, such as the block 2 redevelopment, East Block and Confederation Building.

Key messages, current status and next steps

• The audit acknowledges that PSPC has satisfied its policy requirements to complete gender based analysis assessments for the LTVP
  • however, given the scope and scale of the Centre Block Rehabilitation, PSPC is fully committed to undertake dedicated review of the Centre Block and Canada’s Parliament Welcome Centre
• We are making good progress to renew the GBA Plus assessment for the LTVP by 2024, with a detailed focus on the Centre Block, as well as other major projects going forward, such as the block 2 redevelopment
• This work is underway and is targeted to be complete in fall 2023, including engagement with the parliamentary administrations

Recommendation 3.35

To support timely decision making from the parliamentary partners, PSPC should submit a progress update on the Centre Block Rehabilitation Program to the speaker of the House of Commons and the speaker of the Senate of Canada at the same time and at least twice a year. The update should outline:

• key risks and mitigation measures to manage the program
• significant changes or adjustments, with an assessment of their impacts on the scope, costs, and overall schedule
• key decisions required to be made by the parliamentary partners with an expected timeline

Public Services and Procurement Canada response

Agreed. In support of further strengthening governance and decision making to maintain the on‑schedule and on‑budget performance of the Centre Block Rehabilitation Program, starting in 2023, PSPC will, as recommended, provide a semi-annual update to Parliament that will highlight emerging risks, significant changes and key decisions required. To support timely and effective decision making on the broader LTVP, the progress updates will also include similar information on other major projects.

Key messages, current status and next steps

• This recommendation builds on observations made in this audit, as well as a 2010 audit, that found governance in the Precinct to be fragmented between Parliament and the government, which often results in delays to decision-making
• This recommendation has the potential to partially mitigate this risk by providing Parliament with a status of scope, cost, and schedule; key risk and planned mitigations; and most importantly any key decisions that are required from Parliament to maintain project momentum
• The first of these semi-annual updates was submitted in October 2023

Recommendation 3.51

To provide timely information to all Canadians, PSPC should publish its LTVP annual reports within the calendar year.

Public Services and Procurement Canada response

Starting in 2023, PSPC will, as recommended, ensure that the LTVP annual reports, which have been posted publicly since 2016, are published within the same calendar year as their fiscal-year reporting period.

Key messages, current status and next steps

• PSPC is well positioned to ensure that the LTVP annual reports is published within the calendar year, beginning with the 2022 to 2023 annual report
• PSPC has taken steps to align the report timelines with the department’s financial reconciliation exercises, and processes for translation and coding for web-publishing

Management action plan: Auditor General Report 3–Rehabilitation of Parliament's Centre Block

Table 1: Auditor General of Canada, fall 2023

Office of the Auditor General recommendation	Departmental response	Description of final expected outcome/result	Expected final completion date	Key interim milestones (description/dates)	Responsible organization/point of contact	Indicator of achievement
Report reference number 3.26
Recommendation number 1: Public Services and Procurement Canada (PSPC) should conduct a gender-based analysis plus (GBA Plus) assessment for the Centre Block Rehabilitation Program following federal government best practices in order to guide decision making, monitoring, and program review to ensure that the public spaces are inclusive and represent the diversity of all Canada’s peoples.	Agree. To implement this recommendation, PSPC, working with Parliament, will conduct a renewed GBA Plus for the Long Term Vision and Plan (LTVP) by 2024, with a more detailed focus on the Centre Block Rehabilitation Program. PSPC will also continue engaging a broad range of stakeholders and partners, including Indigenous communities and organizations, to ensure that the Centre Block Rehabilitation Program represents the diversity of Canada and is a step in the path of Indigenous reconciliation. In the spirit of implementing this recommendation on a go-forward basis, GBA Plus conducted in the future for the LTVP will also include a specific focus on upcoming major projects, such as the block 2 redevelopment, East Block and Confederation Building.	PSPC will develop a GBA Plus analysis for the updated LTVP that will include specific considerations for major projects, including ongoing work on the Centre Block Rehabilitation Program.	Fall/winter 2023	Key interim milestone A: Launch analysis Target date of completion: Spring 2023 Key interim milestone B: Engage parliamentary partners in development of analysis Target date of completion: Fall/winter 2023	Name: Rob Wright Position: Assistant Deputy Minister, Science and Parliamentary Infrastructure Telephone number: 613-986-6723	For committee use only
Report reference number 3.35
Recommendation number 2: To support timely decision making from the parliamentary partners, PSPC should submit a progress update on the Centre Block Rehabilitation Program to the Speaker of the House of Commons and the Speaker of the Senate of Canada at the same time and at least twice a year. The update should outline key risks and mitigation measures to manage the program significant changes or adjustments, with an assessment of their impacts on the scope, costs, and overall schedule key decisions required to be made by the parliamentary partners with an expected timeline	Agreed. In support of further strengthening governance and decision making to maintain the on-schedule and on-budget performance of the Centre Block Rehabilitation Program, starting in 2023, PSPC will, as recommended, provide a semi-annual update to Parliament that will highlight emerging risks, significant changes and key decisions required. To support timely and effective decision making on the broader LTVP, the progress updates will also include similar information on other major projects.	PSPC to develop a semi-annual report to the speaker of the Senate and speaker of the House of Commons, outlining: key risks and mitigation measures to manage the program significant changes or adjustments with an assessment of the impacts on the scope, costs, and overall schedule key decisions required to be made by parliamentary partners with an expected timeline	Fall 2023, and semi-annually thereafter	Not applicable	Name: Rob Wright Position: Assistant Deputy Minister, Science and Parliamentary Infrastructure Telephone number: 613-986-6723	For committee use only
Report reference number 3.51
Recommendation number 3: To provide timely information to all Canadians, PSPC should publish its LTVP annual reports within the calendar year.	Agreed. Starting in 2023, PSPC will, as recommended, ensure that the LTVP annual reports, which have been posted publicly since 2016, are published within the same calendar year as their fiscal-year reporting period.	PSPC will publish its annual report for the LTVP before the end of December following the fiscal-year end on which it is reporting.	December 2023, annually thereafter	Key interim milestone A: Finalize financial reconciliation exercise for reporting fiscal year Target date of completion: September 2023, annually thereafter	Name: Rob Wright Position: Assistant Deputy Minister, Science and Parliamentary Infrastructure Telephone number: 613-986-6723	For committee use only

Centre Block Rehabilitation Program

Issue

PSPC is implementing the LTVP–a multi-decade strategy to restore and modernize the Parliamentary Precinct. The core of the Parliamentary Precinct includes the grounds and buildings on Parliament Hill and the 3 city blocks directly facing it. A key element of the LTVP is the rehabilitation of Centre Block, Canada’s main Parliament Building.

Key facts

• The Centre Block Rehabilitation Program remains on track to complete main construction in the 2030 to 2031 timeframe and within the estimated $4.5 to 5 billion budget
• $5.5 million has been awarded to Indigenous businesses through the Centre Block Rehabilitation Program
• The main excavation work for the new Parliament Welcome Centre is completed and the interior demolition and removal of hazardous materials is over 95% completed
• Restoration of the over 20,000 heritage assets has begun with significant progress being made on such assets as stained glass, lighting fixtures, the carillon bells, and heritage wood

Key messages

• PSPC is proud to lead the restoration and modernization of the national treasures in the Parliamentary Precinct on behalf of Canadians
  • once complete, the restored Centre Block and new Parliament Welcome Centre will vastly improve parliamentary operations, and be a model for sustainability, and an inclusive and accessible space for all Canadians
• The project continues to advance within estimated costs and schedule
  • the design concept for the Centre Block and Parliament Welcome Centre has been finalized and major construction activities are well underway

If pressed on the Auditor General’s Report 3–Rehabilitation of Parliament’s Centre Block

• In March 2023, the Auditor General of Canada published an audit on the Centre Block Rehabilitation Program and I was encouraged by her positive observations on the management of this historic project
• The audit found that PSPC has successfully managed cost and scope of the project so far and kept work within targeted timelines despite challenges brought on by the pandemic
  • it also recognizes our effort to collaborate with stakeholders, including Parliamentarians, Indigenous partners and experts
• PSPC accepted all the recommendations, which build on the department’s existing efforts, and we are positioned to take action on all 3 recommendations within the calendar year

Background

The Centre Block rehabilitation program has 2 core elements:

• the Centre Block: Modernizing Parliamentary operations while conserving high heritage features of the buildings, such as the Chambers, Committee Rooms, and offices, as well as provide significant building upgrades such as seismic, structural, mechanical/electrical, security and information technology modernization; sustainability and accessibility
• Canada’s new Parliament Welcome Centre: A new secure front door to Parliament that will link the West, Centre and East Blocks into a single integrated facility; provide new and expanded space to accommodate support services to parliamentary and visitor operations

To ensure a world class design, PSPC has collaborated with the Royal Architectural Institute of Canada to assemble an independent design review panel of eminent Canadian architects and design professionals as well as a former architect of the Capitol (United States) in Washington which is providing feedback on the design.

The Auditor General of Canada undertook a performance audit of the Centre Block Rehabilitation Program, and published the report in March 2023. This is a follow-up to 2010 audit in which Auditor General observed complex governance and fragmented decision-making, and recommended that accountabilities be consolidated under Parliament, which has not occurred.

The 2023 audit found that PSPC was efficiently managing the cost, schedule and scope of the Centre Block rehabilitation program. The Auditor General made 3 recommendations, in response to which PSPC committed to:

• in support of further strengthening governance and decision making to maintain the on schedule and on budget performance of the Centre Block Rehabilitation Program, starting in 2023, providing a semi-annual update to Parliament that will highlight emerging risks, significant changes and key decisions required. To support timely and effective decision making on the broader LTVP, the progress updates will also include similar information on other major projects
  • (status: the first of these semi-annual updates was submitted in September 2023)
• working with Parliament, conducting a renewed GBA Plus for the LTVP by 2024, with a more detailed focus on the Centre Block Rehabilitation Program
  • (status: we are making good progress to renew the GBA Plus for the LTVP by 2024; the analysis is underway and we will be engaging parliamentary partners this fall)
• starting in 2023, ensuring that the LTVP annual reports, which have been posted publicly since 2016, are published within the same calendar year as their fiscal-year reporting period
  • (status: PSPC is well positioned to ensure that the LTVP annual reports are published within the calendar year, beginning with publishing the 2022 to 2023 annual report before the end of the 2023 calendar year)