Evidence of meeting #47 for Government Operations and Estimates in the 39th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was banks.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Michael Fortier  Minister of Public Works and Government Services
Tim McGrath  Acting Assistant Deputy Minister, Real Property Branch, Department of Public Works and Government Services
David Marshall  Deputy Minister, Department of Public Works and Government Services

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

That is correct.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Who is going to sign?

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

The minister.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

So you are going to sign it.

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

That is correct.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Given the appearance of a conflict of interest, are you comfortable signing the contract?

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

Mr. Rodriguez, I do not agree with you; I do not think that there is any appearance of a conflict of interest. I have read what you said in the House of Commons and I am aware of the questions you asked my colleague, Mr. Moore. The deputy minister could not have been any clearer when he spoke about the process earlier. This is the way that we proceed for all contracts, Mr. Rodriguez, not just this one. The minister has no involvement in the process of awarding contracts.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

I agree with you, but I am not saying that there is an actual conflict of interest. Nevertheless, it is incumbent upon us to avoid any appearance of a conflict of interest. As you worked for Credit Suisse First Boston, a company which, in the past, has had important business relations with the company which has perhaps won the contract, there is an appearance of a conflict of interest. I am talking about the integrity of the whole process. Are you going to at least ensure that you do not participate in any way in this case?

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

As you know, after being evaluated, the contract will be approved by Treasury Board.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Are you not a member of the Treasury Board committee?

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

Yes, I'm a member of the committee.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

Are you going to vote or you are going to recuse yourself?

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

I have no reason to recuse myself, Mr. Rodriguez. As you know, and I am not being partisan, there is a time and a place for questioning a minister's activities and behaviour. However, to my mind, it is neither necessary, nor in the interests of taxpayers, for the minister to recuse himself whenever somebody plants the seeds of suspicion at a press conference or in a press release in spite of the fact that the minister is conducting himself with absolute integrity and professionalism.

As you know, Mr. Rodriguez, the Federal Accountability Act provides public servants with extremely useful tools. Now public servants who witness wrongdoing by a minister or his employees are comfortable blowing the whistle. I think that the act provides enough protection to reassure you and everybody else.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

I think we will have to agree to disagree on that. I am not questioning your integrity, Mr. Fortier. I am simply trying to protect the integrity of the process.

When you worked at the bank, you had regular, direct contact, probably on a weekly basis, with the company that could well win the contract. You were involved in deals worth tens of—and sometimes hundreds of—millions of dollars with the company. I am not saying that you are favouring this company, but it could be construed as such. In order to preserve the integrity of the system, it would be preferable for you not to be involved in the process, even at its end stage. We shall see what happens.

4:15 p.m.

Minister of Public Works and Government Services

Michael Fortier

I can only say, once again, that I do not agree with you. You have heard the deputy minister express his views on the matter unequivocally, I would say; he has explained to you how the department runs under my watch. With all due respect, I think you have been given all the information you need to put your mind at rest with regard to this issue.

4:15 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

And with all due respect, I think you should recuse yourself from the Treasury Board committee.

4:15 p.m.

Liberal

The Chair Liberal Diane Marleau

Thank you, Mr. Rodriguez.

Mr. Moore, you have the floor.

4:15 p.m.

Conservative

James Moore Conservative Port Moody—Westwood—Port Coquitlam, BC

I would like to ask my colleagues for unanimous consent. Ms. Thibault, one of our former colleagues, is here with us today. I would like to give her five minutes to ask questions. After she has finished, I understand that I would be able to use the remaining five minutes, is that correct?

4:15 p.m.

Liberal

The Chair Liberal Diane Marleau

It is up to you, I have no problem with what you are suggesting. However, you each have three and a half minutes, not five minutes. Mr. Moore is free to give some of his time to Ms. Thibault. Would you like to use it, Ms. Thibault?

4:15 p.m.

Bloc

Louise Thibault Bloc Rimouski-Neigette—Témiscouata—Les Basques, QC

Thank you very much. I will be very brief, Madam Chair.

I would like to thank Mr. Moore for his collegiality. It is a defining characteristic of this committee.

Minister, I would like to thank you and your officials for being here. When I saw the agenda I could not resist the temptation to come along, knowing that you would be following up on your recent testimony. I was not counting on asking you any questions, but I will ask you four.

Firstly, I am delighted to hear that the problems with the compensation system have been resolved. However, I wonder whether you will be able to keep the staff you assigned to resolve the problem. Departmental staff leave in the same way that hot buns fly off the shelves. We lose them because they go to work elsewhere.

My second question is as follows: will the proceeds from the sale of buildings automatically be put into the consolidated revenue fund or will you allocate some or all of the money elsewhere?

Now for my third question. Although I intend to read it, I have not yet read your report on plans and priorities; can you tell me whether it covers your responsibility with regard to heritage assets, a matter that we discussed at a previous meeting?

I will now ask my last question. You know that our regions are near and dear to my heart. With a few rare exceptions, costs are usually lower in the regions than in major urban centres. Is it therefore safe to assume that, regardless of what else happens in the context of your real estate strategy, the regions will keep their buildings—either as departmental property or as rental property—and that there will be no job reduction strategy? I am particularly thinking of the Quebec regions; that is where my interest lies.

4:20 p.m.

Minister of Public Works and Government Services

Michael Fortier

May I answer? There seems to be something of a commotion—

4:20 p.m.

Liberal

The Chair Liberal Diane Marleau

Go ahead.

4:20 p.m.

Minister of Public Works and Government Services

Michael Fortier

The rebellion has not yet—

4:20 p.m.

Liberal

Pablo Rodriguez Liberal Honoré-Mercier, QC

We are elected to—

4:20 p.m.

Minister of Public Works and Government Services

Michael Fortier

You're absolutely right, Mr. Rodriguez.

With regard to the employees affected by compensation problems, our work is not yet completed. I mentioned a six- to eight-week timeframe. Perhaps you could invite me to come back before the committee at that time. I hope that all delays will be resolved by then. I would like to thank you and Mr. Nadeau publicly. Mr. Nadeau came to see me with employees who had not been paid. It was helpful to meet with the people who were actually affected by the problem. They met with staff from my department and we stepped up our efforts.

You asked an excellent question about the consolidated revenue fund. Even if we manage to sell the nine buildings, we will still have a sizeable bill for upgrades and repairs. If the sale happens, I hope that we will be able to at least use the return on our investment to carry out repairs on the buildings that require work.