The Department of National Defence, of course, is not in the real estate business. Still, its latest transaction is a little unfortunate.
In 2002 — just at the end of decades of neglect by Liberal and Progressive Conservative governments — DND decided it could live without 373 hectares of land at CFB Shearwater in Nova Scotia. So it sold the chunk of land for $1.5 million to the Canada Lands Company, the federal Crown corporation which “optimizes the financial and community value of strategic Government of Canada properties.” Well, CLC optimized all right.
Turns out that, now that Liberal and Conservative governments are giving DND some cash again, the air force has decided it needs that 373 hectares back again.
And so today it announced that it had bought that land back from CLC. Total purchase price: $7.9 million.
The good news is that both DND and the CLC have the same shareholder: The Canadian taxpayer.
Maybe your focus should e on the ridiculously low sale price in 2002. Of course this would leave DND with less money to waste on buying armoured vehicles or helocopters to keep ihe body count down in Kandahar
I'm sure some financial type can tell us why these transactions need to be handled this way instead of simple transfers between various arms of the Government. I understand the need to value assets accordingly, but are we just keeping more bureaucrats employed here?
Keep in mind that the selling department also received a small percentage from Canada Lands – so DND will get a comission on the sale to DND from CLC.
CLC, on the other hand, will continue as patronage boondoggle, with highly paid staff and directors settign their own compensation. Ncie work if you can get it…