Evidence of meeting #98 for International Trade in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was cbsa.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Kim Campbell  Past Chair, Canadian Association of Importers and Exporters
Corinne Pohlmann  Executive Vice-President, Advocacy, Canadian Federation of Independent Business
Candace Sider  Vice-Chair, Board of Directors, Canadian Society of Customs Brokers
Louise Upton  Partner, Deloitte
Renate Jalbert  Managing Director, Regulatory Affairs, Federal Express Canada Ltd.
Tammy Bilodeau  Vice President, Customs Brokerage and Compliance, UPS Canada
Clerk of the Committee  Ms. Sophia Nickel

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Okay. You have $182 million sitting here that you have spent already, and now there's up to $120 million for the next six years and potentially more after that. I'm just trying to simplify it here for Canadians watching. It seems like there's more than just $182 million.

4:05 p.m.

Partner, Deloitte

Louise Upton

No. The $182 million is to date. The billing that we've not fully implemented, what we call “the operate solution”, does not start until we actually get into the “go live”—once CARM is online.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Maybe I'll ask it in a different way: How much have you been paid? How much has Deloitte—

4:05 p.m.

Partner, Deloitte

Louise Upton

The $182 million.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Okay. Then the $120 million for six years is in addition to that in terms of maintenance after the fact? This is part of the existing contract.

4:05 p.m.

Partner, Deloitte

Louise Upton

It's $20 million a year, with.... The contract is quite complicated.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

You're telling me.

4:05 p.m.

Partner, Deloitte

Louise Upton

It's a very long and big contract.

There's also a sort of a declining cost. When I said $20 million a year, the $20 million a year is in and about: There's an assumption in each year post the first year that we're finding efficiencies and that there's a declining rate there as well.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

What is the maximum spend, then? How about if I ask it like that? What's the maximum amount that Deloitte can bill the government for now, and then six years later? It's $120 million—I'll answer that question for you—but up to now, how much can you bill the government for?

4:05 p.m.

Partner, Deloitte

Louise Upton

Up to $182 million: That is what we've been paid to date.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Okay.

Let's ask it a different way. On subcontractors, how many have you subcontracted to?

4:05 p.m.

Partner, Deloitte

Louise Upton

The vast majority of the work that Deloitte has delivered has been delivered by Deloitte employees. In my 30 years of doing this type of work with large transformations, there is always a version of subcontractors used for these projects.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Right. How many would there be on this project?

4:05 p.m.

Partner, Deloitte

Louise Upton

I would approximate that it's maybe 20%.

4:05 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

It's 20%. That sounds like a lot to me.

Of that 20%, can we obtain a list of those subcontractors, please? You're welcome to table that with the committee, unless you have it off the top of your head.

4:10 p.m.

Partner, Deloitte

Louise Upton

I don't have it off the top of my head, but yes—

4:10 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

As a ballpark figure, what's the number on that? You say 20%. That could mean a lot. I'm thinking it's a lot, but how many would you project it to be?

4:10 p.m.

Partner, Deloitte

Louise Upton

I wouldn't hazard a guess, because there are some that have not—

4:10 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

Would they come out of the $182 million?

4:10 p.m.

Partner, Deloitte

Louise Upton

Pardon me?

4:10 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

They would come out of the 182 million.

4:10 p.m.

Partner, Deloitte

Louise Upton

Yes, they would be a part of the total cost that has been paid to date.

4:10 p.m.

Conservative

Matt Jeneroux Conservative Edmonton Riverbend, AB

This is my last question.

Are these the employees who were listed on the government website? Mr. Gallivan said it was unusual for him to see that.

In your 30 years, is it unusual for you to see Deloitte and subcontractors listed on the Government of Canada website as employees?

4:10 p.m.

Partner, Deloitte

Louise Upton

I apologize. I'm not quite sure what you're referring to in that particular case.

4:10 p.m.

Liberal

The Chair Liberal Judy Sgro

Thank you very much.

We'll go to Mr. Sidhu, please, for six minutes.