Evidence of meeting #51 for Finance in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was measure.

A video is available from Parliament.

On the agenda

Members speaking

Before the committee

François-Philippe Champagne  Minister of Finance and National Revenue
Lefebvre  Richmond—Arthabaska—des-Sources, CPC
Genest-Grégoire  Assistant Professor, Department of Taxation, Université de Sherbrooke, As an Individual
Au  Associate Professor of Finance, As an Individual
Jarvis  Ontario Director, Canadian Taxpayers Federation
Gagnon  Quebec Director, Canadian Taxpayers Federation

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Do I look uncomfortable at my age? No. I am 56 and I have been a member of Parliament for 12 years. I've been testifying before committees for at least a decade. I don't think I'm uncomfortable.

Jean-Denis Garon Bloc Mirabel, QC

It would be inappropriate to accuse you of ageism against yourself, Minister.

Can you guarantee that all your capital expenses will comply with CPA Canada's rules?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I can tell you that our rules—

Jean-Denis Garon Bloc Mirabel, QC

As for CPA Canada, is it a yes or a no?

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I'm telling you that we established a framework. What we're about to present will be based on the framework provided.

Jean-Denis Garon Bloc Mirabel, QC

So, the answer is that you made up your own rules so that you wouldn't need to follow CPA Canada's rules.

It's thoroughness, Minister. You're a thorough fellow.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I'm talking about transparency. Listen, you may have your opinion.

Jean-Denis Garon Bloc Mirabel, QC

No, no, this isn't an opinion.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

The International Monetary Fund has its opinion. The OECD has its opinion. You have yours. That's your right.

Jean-Denis Garon Bloc Mirabel, QC

I would like to ask you this. Will you comply with CPA Canada's rules, Minister?

The Chair Liberal Karina Gould

Thank you, Mr. Garon.

Thank you, Minister.

Mr. Lefebvre now has the floor for five minutes.

Eric Lefebvre Richmond—Arthabaska—des-Sources, CPC

Thank you, Madam Chair.

First, I would like to say a few words by way of introduction. I want to thank the committee members for their trust. They appointed me vice‑chair of the Standing Committee on Finance. I'm pleased to take on these new responsibilities.

I want to take a moment to thank you, Minister, for writing to me the day after my little misadventure. I would also like to thank my colleagues for their kind words.

That said, Minister, as you know and as I always say, we are the eyes, ears and voice of our constituents in our respective constituencies. Last June, I asked you some questions. People also asked me many questions over the summer. This is part of the Standing Committee on Finance's mandate. These are important questions.

Minister, people in our area and throughout Quebec want to know more about Maritime Launch Services and the company's lease of a parcel of land for $13,500. That land is now being leased to the federal government for $20 million a year for 10 years, for a total of $200 million. People are asking me to ask you, Minister, who signed this contract.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

First, Mr. Lefebvre, I'm pleased to see you back here with us in good health. As you know, setting side the parliamentary sparring, there are men and women here to serve the public. I know that you're one of them. I was happy to tell you that in a heartfelt way.

3:55 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Thank you.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

There's our work—I'll answer your question in a moment—but there's also the human side of things. Thank you for everything that you do. It's wonderful to see you back with us in good health.

You can tell people in your area that Canada is playing an important role in the space sector. You know, the space industry is booming in this country, with—

3:55 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Minister, I apologize for interrupting you. You can understand that I have only five minutes.

The question that people are asking me has nothing to do with aerospace. They're not thinking about that. Who signed the contract? That's what people want to know.

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I'm trying to address this. I know that people in your area are also interested in the space industry. If you don't want to say “aerospace”, I'll say “space”. Canada is positioning itself as one of the few countries that can launch a spacecraft into geostationary orbit from the far end of the pole—

3:55 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Minister, please, I'm telling you, two million people are asking questions. I've received messages. You aren't saying what people want to hear. They want to know who negotiated the contract and who read it.

Your former chief of staff had 24 meetings with representatives from Maritime Launch Services. Did you have a chance to speak with him over the summer so that he could tell you who negotiated this contract and who signed it?

4 p.m.

Liberal

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

As I was trying to explain to you, I think that people in your area also want to understand the issue at stake here. The issue at stake is ensuring that Canada maintains a leading position in the space sector. It's a booming industry, particularly in Quebec. I know that people in your area are interested. I know quite a few people in your area who are interested in this industry.

4 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Minister, I would urge you to see for yourself how people will respond to what you're telling us. The people aren't there, Minister.

We're talking about a piece of land that was leased to a private company for $13,500. A former provincial Liberal premier sits on the board of directors of this company. The company, in turn, is leasing the land to the federal government for $20 million.

Minister, this is Canadian taxpayers' money being taken and squandered. People work hard to send us that money every Thursday, Minister.

How can you explain this $200 million contract when the land was leased for $13,500 a year?

4 p.m.

Liberal

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

I agree with one part of your question. People work hard. They know that I'm the guardian of the public purse. That's what I strive to be. You know, in the last budget, we managed to identify $60 billion in cuts. So people know that we're aware of this.

That said, I'm trying to put this into context. Canada will play a major role in the space sector. This has economic benefits across Quebec and the country. I think that it's important to understand the context. You're asking a specific question. I'm also explaining the context of Canada's goal to play a leading role in the space sector.

4 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Thank you, Minister.

Bill C‑31 requires competitive process principles for defence contracts, but then gives the minister a number of grounds for waiving this requirement. These grounds include urgent operational needs, national security, economic security and sensitive technology.

What independent mechanism will prevent these exceptions from becoming the norm?

4 p.m.

Liberal

François-Philippe Champagne Liberal Saint-Maurice—Champlain, QC

Mr. Lefebvre, I know that you're well aware of the world that we live in. When it comes to national security, I think that the minister obviously needs the necessary authority to act quickly to provide the Canadian Forces with the type of equipment needed. I hope that you don't think otherwise.

The nature of conflicts has changed rapidly. We need to modernize our framework. I don't think that this is the best example that you could have found today. National security lies at the heart—

4 p.m.

Liberal

The Chair Liberal Karina Gould

Thank you, Minister. This concludes the member's speaking time.

Mr. Lefebvre, I should have said at the start that, on behalf of the committee, we're delighted to see you here in fine form and in good health. I would also like to congratulate you on your new position.

4 p.m.

Richmond—Arthabaska—des-Sources, CPC

Eric Lefebvre

Thank you.