Ralph Goodale

[Government Contracts, June 5th, 2002]

Mr. Speaker, one of the things that was included in the report of the auditor general was an expression of her concern that all treasury board rules and guidelines had not been respected. That is something that deeply troubles me as I am sure it troubles the President of the Treasury Board. Together we will determine exactly what transpired with respect to these allegations. If there were errors, or mistakes or wrongdoing, they will be corrected.

[Government Contracts, June 5th, 2002]

Mr. Speaker, as I indicated to the House earlier, having heard the specific statistics cited in the House yesterday, upon which these allegations are based, I have started to review the arithmetic. It would appear that the calculation is much different than that which is alleged here. However my examination of that is not yet complete. I will report to the House as soon as it is complete.

I would point out in relation to the sponsorship program, that there is a very clear 25% limit that applies, not only to any single firm but to all its affiliates and subsidiaries.

[Government Contracts, June 5th, 2002]

Mr. Speaker, let me again lay out the process. The difficulties here were discovered by an internal audit conducted by Public Works and Government Services Canada. The auditor general said that the work was excellent and of critical value. It resulted in a whole series of changes within the sponsorship program.

The auditor general reviewed three particular Groupaction files. She took the appropriate action in referring certain files to the RCMP. She is now conducting a government-wide examination with respect to advertising and sponsorships. The President of the Treasury Board is reviewing the government's framework. All appropriate actions have been launched.

[Government Contracts, June 5th, 2002]

Mr. Speaker, it should be pointed out that every one of the arm's length foundations that are referred to by the right hon. gentleman are in fact subject to independent audits by private sector auditing firms. If they are asked to co-operate with the auditor general, they will do so.

[Canadian Wheat Board, June 5th, 2002]

Mr. Speaker, first, I point out that the Canadian Wheat Board is not a crown corporation. Second, the guidelines that would apply in this case to an entity that is not a crown corporation are being re-examined by myself, as I undertook yesterday. Third, I point out that within the Canadian Wheat Board's authority not only did it participate in the events referred to, but also events that were sponsored by the hon. member for Okanagan--Coquihalla and the hon. member for Selkirk--Interlake.

[Government Contracts, June 5th, 2002]

Mr. Speaker, when contract amendments occur, they are of course dealt with by the appropriate authorities within the department to ensure that the matter is completely transparent and that all the facts and evidence are on the table. This is one of the transactions that will of course be a part of the work that the auditor general herself will be undertaking. She will get on with that work very shortly.

[Government Contracts, June 5th, 2002]

Mr. Speaker, as I indicated, with an event of this magnitude, there are contract changes that do occur over time. This whole event, because it falls within the category of sponsorship, will in fact be part of the work of the auditor general to determine that all guidelines were followed and the proper contracting procedures were applied. That is what the auditor general does.

[Government Contracts, June 5th, 2002]

Mr. Speaker, there is nothing in the material before me at the moment that would support any allegations of irregularities. However let me repeat what I said to hon. gentleman on a couple of occasions. Like him, I share a number of questions with respect to the efficacy of the agency system. That is clearly one of the things that I intend to re-examine. If we can find a better, more direct, efficient way of delivering this program, we will make those changes.

[Government Contracts, June 5th, 2002]

Mr. Speaker, the hon. gentleman will know that the Francophonie Games is a major international event. It involves some considerable complexity. The planning for it took place not just within one fiscal year but over a series of years, as one would expect with an event of this magnitude.

There were contract changes over time. The validity and the propriety of those contract changes will of course be subject to the work of the auditor general.

[Government Contracts, June 5th, 2002]

Mr. Speaker, I have indicated very clearly that I intend to examine this arithmetic that has been alleged. There are a whole range of inquiries underway by my department, with the collaboration of the treasury board, by the auditor general where that is appropriate and by the police where that is appropriate.

I am determined that all facts will be revealed. This will be transparent and accountable, and we will ensure that taxpayers get value for their money.