A House of Commons committee will look into the Liberal government’s recent purchase of a $9-million condo in Manhattan for its consul general to New York.
The government operations and estimates committee unanimously agreed July 24 to hold several meetings next month to investigate the purchase.
Opposition MPs have questioned the price tag while Canada grapples with a housing crisis. The government has defended the purchase as less expensive than refurbishing current digs.
Global Affairs Canada has long provided residences to heads of missions such as ambassadors, high commissioners and consuls general.
The official residence in Manhattan will be used for diplomatic activities including networking receptions, official briefings and hospitality events such as discussions with business and political leaders, the department says.
The Opposition Conservatives are trying to portray the purchase as just another example of Liberal spending run amok.
“We have seen the complete lack of spending controls on major procurements,” said Conservative MP Kelly Block, who initiated the investigation.
“And every step along the way this government has tried to cover up these consequences of their failed governance.”
The committee directed Global Affairs Canada to provide a list of properties, including addresses and prices, that were viewed or considered for purchase as the consul general’s residence.
It also seeks any third-party assessments made for the value of the condo, which is located inside Steinway Tower, a building known as the world’s thinnest skyscraper, steps away from Central Park.
The committee also agreed to call several witnesses including consul general and former journalist Tom Clark, the deputy minister of Global Affairs, representatives from the Procurement Department and Treasury Board, and a panel of New York City real estate agents.
If necessary, it will call Foreign Affairs Minister Mélanie Joly to testify at the hearings, slated to begin Aug. 19.
Clark didn’t immediately respond to a request for comment.
Global Affairs acknowledged it was behind the condo purchase following suggestions in New York real estate circles the unit was for King Charles.
The deed shows it was listed for more than US$6.6 million and sold last month to “His Majesty the King in right of Canada.”
That prompted some local media to report that a royal purchase had been made, including the New York Post which ran a story headlined “King Charles buys luxe NYC condo on Billionaires’ Row.”
A Global Affairs spokeswoman has said the purchase will ultimately save Canadian taxpayers $2 million, because the previous residence — purchased in 1961 and last refurbished in 1982 — would have required “high renovation costs.”
The department recently said the former residence “is being readied for sale, and is expected to cover the purchase price of the new unit.”
Opposition parties have criticized the outlay for the new condo as many Canadians try to find affordable housing.
It’s a lot of money to spend, said Bloc Québécois MP Julie Vignola, who equated the $9-million price to a lifetime of work for the average Canadian.
New Democrat MP Rachel Blaney said the government is spending too much money on diplomatic housing, accusing the Liberals of picking up bad spending habits from the previous Conservative government.
“We look forward to bringing this back to the committee to make sure the rules are changed to make life more affordable for Canadians, not just a few political appointees,” Blaney said in a statement.
The Conservatives under prime minister Stephen Harper sold off several official residences abroad as part of a three-year plan to cut millions in spending by the foreign ministry.
The Tories promise to fire Clark if they form the next government.
“We want all of this information on this $9-million expense that taxpayers are footing for the luxury condo for Justin Trudeau’s buddy, Tom Clark, living on billionaire row in New York City,” Conservative MP Michael Barrett said during the committee July 24.
“And I hope Mr.Clark enjoys it until the day after the next election.”
