Central Park and midtown Manhattan are shown in this aerial view on Aug. 29, 2007, in New York. A House committee has launched an investigation into the Liberal government's recent purchase of a $9-million condo in Manhattan for its consul general to New York.Mark Lennihan/The Canadian Press
The federal government says the sale of the current residence of Canada’s consul general in New York City will exceed the $9-million purchase price of a new residence that has prompted MPs to convene hearings on the subject.
The disclosure from Jean-Pierre Godbout, a spokesperson for Global Affairs Canada, comes as a committee of MPs decided Wednesday it will hold hearings on the issue.
In a statement, Mr. Godbout said Global Affairs will respond to the invitation of the government operations and estimates committee through the proper channels.
But Mr. Godbout added, “The current Official Residence for the Consulate General is being readied for sale, and is expected to exceed the purchase price of the new unit.”
He did not elaborate.
Global Affairs has said the current residence, used by current consul general Tom Clark, was purchased in 1961 and was last refurbished in 1982.
To replace it, a three-bedroom apartment was purchased earlier this summer, which Global Affairs has said will be the consul general’s official residence as well as a location for receptions, briefings and hosting discussions with business and political leaders. The department has said it opted to relocate rather than renovate the existing residence.
The New York Post reported earlier this month that the newly purchased residence on West 57th Street in Manhattan is located in an expensive area called Billionaires’ Row.
On Wednesday, the Commons committee agreed to a motion to request testimony from Mr. Clark along with the Global Affairs’ deputy minister, Treasury Board representatives and a panel of New York real estate agents.
There’s also a provision to call Foreign Affairs Minister Mélanie Joly if her testimony is deemed necessary after the appearances of other witnesses. Committee meetings on the issue are set to be held between Aug. 19 and 27.
The motion was advanced by Conservative MP Kelly Block, who said the issue is consistent with lack of spending controls by the federal government on such projects as the ArriveCan application for cross-border travellers. That project ended up costing at least $54-million.
However, Liberal MP Ron McKinnon took issue with suggestions the condo is an expense, noting it’s an asset that can be liquidated.
“It is owned by the Government of Canada. It can be sold at some point and presumably the value recaptured,” he said.
Bloc Québécois MP Julie Vignola told the committee hearing: “We agree that $9-million for a New York condo for the consul general needs to be examined,” Ms. Vignola said.
In a statement on the consul general’s residence issued earlier this month, Global Affairs spokesperson Sabrina Williams said the department decided to proceed with a move to a new, smaller, more suitable and more economical apartment because of high renovation costs for the current residence and the value of the property.
Global Affairs estimates this move will save Canadian taxpayers more than $2-million and result in lower continuing maintenance costs and property taxes, Ms. Williams said in the statement.