Last week, in a news release, the provincial government announced the Crown corporation that manages provincial buildings and properties would become part of the Ministry of Labour and Citizens' Services. Speaking with the Times Colonist's Lindsay Kines, the minister responsible Mike de Jong explained the continued downsizing by noting the British Columbia Buildings Corporation, aspects of which have already been privatized, "was competing with the private sector for work by managing projects outside government, such as the Whistler library, Whistler municipal hall and the Ridge Meadows Medical Centre. 'That's not something we think it needs to do, and not something that we necessarily want it to do,' de Jong said." But not everyone thinks that's a good idea.

In an email sent to Public Eye, one government insider - who asked not to be named but is familiar with the corporation's operations - identified a number of problems with the Campbell administration's decision to get out of the property management business. Those problems, the insider writes, include increased long-term real estate costs and reduced levels of building maintenance. Also noted: "lay-offs are pending" at the company now responsible for that maintenance. The following is a copy of that email, in which the writer responds to Minister de Jong's statement.

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Well its true. Guilty as charged. BCBC brought in the lowest bid, completed the projects and saved the taxpayer a pile of money. It seems Minister De Jong is more concerned about the profits of private developers than saving money for the taxpayer. Many believe the highly connected developers who got beat out for these projects never forgot or forgave, and BCBC has been doomed since the Liberal government was elected.

For five years, under direction of the Liberal government, BCBC has been quietly selling off hundreds of provincial properties including prime assets such as 4000 Seymour, Victoria, 865 Hornby St. Vancouver, Woodlands Hospital site, the Vancouver Island Technology Park, and government buildings across the province amongst others. While these sales may have reduced the massive Liberal deficit, valuable long term assets are gone forever. And in many cases, the same properties are leased back long term by the govt. at pre-negotiated, favorable rates. Short term gain (reduce the deficit!) for long term pain (higher future real estate costs). Who benefits? The major real estate trusts, developers and corporations. Who loses? The taxpayer and the public. The justification is that government should not be in competition with the private sector by providing office space. But the end results are higher occupancy costs, lower building standards, fewer provincial assets and a significant loss of control (ownership). Bottom line: in the long term, and especially in the case of public facilities, it simply makes more sense to own than to rent.

Since 2001, BCBC employees have been reduced from approx. 870 FTEs to around 260 today. The privatization of its property management division (320 employees) has not shown any great savings. A recent customer survey cited by former CEO Beales at a BCBC employee Town Meeting indicated the level of cleanliness at govt. buildings had declined, and buildings are not as well managed as before. The new property management company (WSI) receives a bonus for reducing operations and maintenance costs by a certain percentage. Less maintenance means minor complaints and repairs often are not attended to, and can result in long term dissatisfaction and major expense. As WSI's contract is for a limited period, their concerns in managing provincial real estate assets are understandably limited to the length of their contract. As WSI has to reduce costs and still squeeze out a profit, personnel are even more thinly spread. And WSI lay-offs are pending...

BCBC has been wrung out, squeezed dry of all its easily disposed of assets, and is now being flung on the scrapheap. Another cutback to government, the cost of which will be seen in the future.