If you haven’t heard of this story, you probably stayed off social
media over the Family Day long weekend, and deserve congratulations for having
something of a life. But long story short, *cough* someone *cough* passed
documents to CTV showing that when Lt. General Andrew Leslie retired from the
Army, the Department of National Defence paid for him to move to a new home
within Ottawa, at a total cost of about $72,000. This was jumped on gleefully
by Conservatives and NDPers as an ungrateful soldier gouging the taxpayers, and
bemoaned by Liberals as an unfair attack on a decorated military veteran who
broke no rules and served his country heroically. The sharp lines are explained
by the only reason this is even a story we’re hearing about: some time after
his retirement, Leslie became an advisor to Liberal leader Justin Trudeau, and
will likely seek a Liberal nomination in 2015.
I come at this as a Liberal, obviously, but also as an Air
Force brat, whose family was moved at government expense to Summerside,
Trenton, Baden in Germany, and finally to Comox. We lived in military housing
until our move to Comox, where my parents bought a home, and where my father
would retire from the military. In the interests of full disclosure, when
returning to Canada from four years in Germany, we took the option of driving
from Trenton to Comox over five days, for which an allowance was provided. We
had dinner at Pizza Hut at least twice but had the leftovers for breakfast, thus
saving two meals. At least one hotel we stayed in had a water slide, and I did
partake in the sliding.
So, on to Leslie’s move. First attack point was that it was
a move within Ottawa. This is permitted by the rules – on retirement, you’re
allowed a final move at government expense within two years, and in can be
within the same city. We can debate whether this should be allowed, but let me
argue why it should be. When my parents bought their house in Comox (well,
Courtenay to be specific) my Dad had less than a week to look for a house, make
a choice, sign the paperwork and do the deal. My Mom didn’t even get to see it.
Dad got a brief housing leave to fly to BC from Germany to house-hunt; Mom had
to stay and make sure my sister and I didn’t burn down our PMQ. Point being,
the house you end up in at your last posting may not be ideal. Your partner may
not like it. You may not be super keen, having bought it so quickly. You may
have bought it closer to the base, but now that you’re retired it’s not an
ideal neighbourhood. So those are all reasons why a retirement move within the
city may make sense, and be something we should cover.
Now, on to the $72,000. Is that a crazy figure for a move?
It could certainly seem so at first blush. Particularly within town. But that’s
if you only factor in the costs of a moving truck and packers. The figure also
includes real estate fees, commissions, and so forth. Ask anyone who has sold a
house; those can add up. When you consider a senior general probably makes a
pretty nice salary, and if their spouse does as well, they can probably afford
a pretty nice house. With commissions being a percentage, and a million dollar
home in Ottawa not being crazy, you get to that $72,000 figure fairly easily.
Now, you ask, should commissions and real estate fees for veterans’ moves be
covered by DND? A fair debate to have. I say yes, and here’s why. How often do
you move and sell your home? Probably not very often. Maybe two or three times
in a lifetime? My family moved four times in 12 years, and that’s on the low
end of the curve for a military family. And it’s not like you have a lot of
choice in the matter – it’s your job. If you get dinged with the real estate
fees each time, you’ll quickly go broke. So I’d argue yes, that’s a fair
expense to cover for our military members.
Still, how could Leslie let the bill get so high, some ask? Well,
he didn’t. The serviceperson isn’t the person who hires the movers and gets the
quotes and pays the bills, later seeking reimbursement. All that is handled by
DND, who hires a third-party contractor who handles all the arrangements, negotiates
prices and pays service providers directly. Leslie would have had little
visibility into this. Now, are military moves in general too expensive, and in
need of cost control? Quite possibly. The Auditor General has looked into
government relocation services, and it has regularly been in the news. I think
the program should be examined, not with an eye to cutting services to military
members, but to ensuring the system is providing value for money. But that’s
not up an individual serviceperson to do, whether it’s a Lt. General like
Leslie or a Master Corporal like my father. It’s up to the Minister of National
Defence, and the Government of Canada. Until now, they’ve ignored all the
warnings about the relocation services system.
Should he not have somehow recognized this could be a
political problem down the road though, some have said, and foregone retirement
benefits he and every other retiring service member in good standing with
enough length of service are entitled to? Well, given that he likely wasn’t
contemplating a political career when he was retiring, that would take a
remarkable amount of foresight. It would also take an amount of saintliness
unknown not just in politics, but in society in general. Should a civil
servant, or a union member, forego benefits granted in their employment or bargaining
agreements because one day people with axes to grind might try to make them
look bad? Or should we perhaps not begrudge people the retirement benefits they’re
due in exchange for a career of dedicated service to their employer, whether it’s
a business or the people of Canada?
Which brings us to the politics. While the NDP and
Conservatives have trained their guns on Leslie, it’s hard not to see this a
wider attack on the retirement benefits of all military members. After all,
Leslie followed the rules of the program, a program that is available and used
by retiring veterans of all ranks. Leslie’s bill is only higher because
generals make more -- higher salary, more expensive house, higher commission. And
he didn’t hire the contractors – the department did. So unless you’re saying it’s
only bad for people that will go on to be Liberals to claim these benefits –
which seems too silly to contemplate – it’s hard not to see the attack as
against the program itself, a program which benefits all ranks. And I think,
given the sacrifices military members make in their careers, it’s a benefit
well earned.
And that’s the thing. We wouldn’t be hearing about this,
were it not for the fact that Leslie was a Liberal. I have a hard time seeing
CTV do a story, and the Conservatives and NDPers fulminating, about military
veterans that served their country being greedy by having their moving expenses
covered by the government. One also has to wonder how the documents came to
CTV. While the Conservative defence minister says it was an Access to
Information request (not yet posted on DND’s list of completed ATIP requests),
the CTV report simply said “documents obtained by CTV.” When CTV gets docs from
ATIP for a story, they so. The wording they used is what they use for documents
from sources. Which seems to imply someone else filed the ATIP, if there actually
was one. Who exactly is doing opposition research on military veterans? That
would be interesting to know.
Anyway, to conclude, and I’ll try to take the partisan hat
off as much as possible here. I think Leslie acted within regulations, and I
think he has earned the benefits he claimed. While at first blush it could seem
politically questionable, anyone who has sold a house knows the math makes
sense. I think DND should examine its broad third party relocation services to
ensure taxpayers are getting value for money. And I think we shouldn’t begrudge
our veterans the services and benefits they’ve earned in a career serving their
country, even if they later turn out to be – gasp—a politician.
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6 comments:
Well put, Jeff. My late father-in-law retired as an ADM. The feds paid his move to retirement in Vancouver. The feds also handled the arrangements for movers. My father-in-law was outraged when the movers showed up in Vancouver with every stick of firewood from his Ottawa home, neatly tagged and numbered.
I wonder what they forked out to relocate the Big Cod back to Newfoundland?
Well, if per CFAOs/QR&Os, and DCBA regs, OK. Ret'd 25 year Lt(N) here. But notwithstanding, this simply shows the system should be over hauled. General rank Officers negotiate salary and it should include move on release. Bargain and get it. But one thing I will say, I've met more then 1 General rank Officer over the course of 25 years who made me wonder how they knew when the alarm clock range, it was time to get up. I won't concede al General Rank Officers deserve anything. Sorry.
While you bring up some good points, Jeff, there's a bigger picture issue that you're not addressing.
If, indeed, CF members are moving every few years, then real estate fees are a huge expense over time. Even for a 300k house, it's 15k on top of the moving expenses.
If that's the case, they probably shouldn't be buying houses. There are a number of options like renting or using more gov't-owned housing. Left to your own devices (and excluding the low interest rates of the last few years), you wouldn't buy a house if you were only going to be in a city for 3 years. But if the gov subsidizes the transaction cost, then all of a sudden it's worthwhile.
So, I think the real solution is to not pay the fees unless the family had a reasonable expectation of being in the city for some period of time (say 5 years).
I have to admit that I also don't understand why military families have to move around so much, but that's another topic!
Surdas
Art,
If this was only a program for the general ranks, I'd argue we could better allocate those resources elsewhere. As this is a program that all ranks can utilize and benefit from, I think that's fair.
Suradassa,
You could make that argument, but let me counter with this: is it fair to tell people that choose a military career that they need to forego home ownership until they retire? That could be 40 years of renting and paying other people's mortgages, leaving them at approaching 60+ with no home, which is the major asset most Canadians take into retirement?
Given the equity that most people would likely have in their homes approaching retirement, that's a penalty of potentially hundreds of thousands of dollars for choosing a military career. That seems like too high a price for me.
Now, should we be moving them that much? Another topic as you say, but an interesting one.
Now a really smart approach might be to build a good deal of adequate housing near bases for military personnel, rent it to them for cheap and have an optional or mandatory "part of the rent goes into semi-forced savings" schtick, so when you leave you have a big chunk o' cash with which to buy a home.
But of course modern Canadian governments aren't into social housing, whether for the military or anyone else. Heaven forbid banks and developers and real estate flippers should make a bit less money.
On the more specific question--good explanation. Seems clear that the expense was taken in good faith. And as a dipper--well, someone less against the NDP than I am against the other parties, put it that way--I am nonetheless unsurprised that the NDP would jump on a perceived political opportunity like this without worrying about whether it's fair. Much like the Cons or Liberals would if they had a similar opportunity. Politics is a sad business.
@TheBrazman
If you are going to talk about hookups why doesn't somebody march over to DND and see who John Baird has hooked up with?
. forget what day this was posted on twitter
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