Is $127K to relocate a Liberal staffer too much for the public purse?

[Prime Minister Justin Trudeau walks from Parliament Hill to a news conference in Ottawa on Sept. 21, 2016. REUTERS/Chris Wattie]

The Trudeau government is catching some flack for $1.1 million spent to move about four dozen political staffers, including one in the Prime Minister’s Office for nearly $127,000, to Ottawa after the Liberal majority win last October.

Details of the expenses have just come to light this week in response to Opposition grilling on the order paper. Conservative MP Karen Vecchio complained in the House of Commons the “outrageous staff expenditures” fly in the face of growing unemployment and Canadians struggling to make ends meet.

In response, Prime Minister Justin Trudeau pointed out his party has followed the rules set by the previous Conservative government in relocation assistance.

“We did not create those rules; we are simply following them,” Trudeau told a news conference Tuesday in New York where he was attending a conference of leaders at the United Nations.

“If we move someone from Vancouver to Ottawa, it’s a full-export pack — it’s the same service provided if they moved to Australia,” noted Brian Jones, executive vice-president of Brytor International Moving Inc., which has been in business for more than 50 years.

“In a corporate move, the employer doesn’t want the employee to be paid to change the light bulb so to speak. That employee has to be focused on their job, not the move,” Jones told Yahoo Canada News. Brytor also does domestic moves and counts about 3,500 to 4,000 clients annually.

According to the Liberals’ disclosure:

  • One staffer in the Prime Minister’s Office racked up close to $127,000 for moving services.

  • The office of Innovation Minister Navdeep Bains spent more than $150,000 to move two people.

  • Global Affairs Minister Stéphane Dion racked up more than $146,000 for nine staffers.

  • Justice Minister Jody Wilson-Raybould accounted for $114,000 to relocate six staffers.

Vancouver to Ottawa clocks in at $25K

The government is going by the National Joint Directive on Relocation which is very specific on what is covered in a move — car rental, travelling expenses, interim accommodations and meals, storage in transit, shipment of pets, boats and trailers,,as well as mortgage interest differentials and property management fees.

Considering a long move, say from Vancouver to Ottawa for a typical family of four, Jones says that could average about $20,000 to $25,000 — based on his company’s many years of doing such moves.

“Let’s assume a family of four in a house of about 3,500 square feet, fully furnished, with two cars. For door-to-door service, packing of contents, wrapping of furniture and unpacking, that’s not unreasonable,” he explained.

Once you go over the $70,000 mark for a domestic move, which Jones says is “on the high side,” you might be looking at a lot of other costs, such as the selling and purchasing of an old home and a new home, the need for storage in case the new place isn’t ready and the cost of purchasing appliances, which may have been sold with the old home, etc.

“When you consider a family move, there are things that may be added to the cost — perhaps a member is special needs or the family needs to be in a rented property for some time before they can move into their new place,” Jones said.

Jones also points out that there are tax considerations. There are some things a person can write off and many others a person can not and that may be factored into the cost of the Liberal staffers’ moves.

“When it comes to a corporate relocation, it can surprisingly become a high-ticket item,” he said.

Checking out the revenue agency’s guidelines, transportation and storage costs (including insurance) and travel expenses (meals, accommodation) as well as temporary living expenses for up to 15 days are all tax deductible. There are a host of incidental costs that can be included, such as utility hookups and disconnections, property taxes and utility expenses.

But other costs can’t be deducted: expenses for work done to make your old residence more saleable, losses from the sale of the home, travel expenses while house-hunting, mail-forwarding costs and mortgage default insurance.

“When it comes to a corporate move, the employer doesn’t want the worker dealing with things going wrong so the company is [willing to pay for a smooth move],” Jones said.

“Of course, when it comes to the public purse, the question is: how far should we support someone’s relocation?”