Evidence of meeting #3 for Fisheries and Oceans in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was companies.
Conservative
John Cummins Conservative Delta—Richmond East, BC
What you actually charge in each of those components is what the bid is all about. Is that right?
Conservative
John Cummins Conservative Delta—Richmond East, BC
That's how the bid is determined, then, on who can provide the lowest cost to the fishermen.
Conservative
John Cummins Conservative Delta—Richmond East, BC
Has there ever been an instance where one of the four competing companies has found itself simply out of the loop, not operating in any of the regions because their bids were too high?
President, Biorex Inc.
Between the four existing companies, there are new players. Two were in the bidding process earlier and then there were three companies and a new one came in. There were some companies that provided service years ago that are not there today. There are some changes in every bidding process.
Conservative
John Cummins Conservative Delta—Richmond East, BC
I think you see the purpose in my questioning. It is to determine whether or not the bidding process is providing the service at the most reasonable cost. You're suggesting yes, that's the case, because in fact new companies do come in and participate in the bidding process, and companies that have been around for a while are no longer in business so that you have turnover in the service that you would expect in a competitive bidding process. Is that what you're saying?
President, Biorex Inc.
I would say that the best proof that the bidding process is working is what I said earlier about the price going down in the last ten years. I think that's the best proof that the bidding process is working. Biorex is always the best bidder and we always have the contract, so somebody might look at that and say, where's the competition here?
Conservative
John Cummins Conservative Delta—Richmond East, BC
It's the price and the fact that there are new entrants trying for the contracts and there are older companies that have fallen beside the....
President, Biorex Inc.
There have been in each bidding process, about every three years, newcomers, people who lose, and people who win.
President, Biorex Inc.
We lost two bids in Newfoundland. We won for some years in the Maritimes, lost the contract, bid again, and lost. We lost in the Quebec region in two bidding processes. The only region where we were always the winner was the gulf region.
Conservative
John Cummins Conservative Delta—Richmond East, BC
Well, that's good. Thank you very much. I appreciate that.
Conservative
The Chair Conservative Gerald Keddy
Mr. Cummins, we do have time for a few more questions.
Mr. Manning and Mr. Blais.
Mr. Blais, very quickly.
Bloc
Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC
If the Department's solution is implemented, will that mean that fishermen would have to pay 100% of the cost?
President, Biorex Inc.
As far as I can see, that's how the government is trying to get the industry to accept this transfer of cost, that is to say by telling them that it will be their own program. If that is really the case, I fail to understand FOC's vision. Obviously, one aspect of the reform cannot go without the other.
Bloc
Raynald Blais Bloc Gaspésie—Îles-de-la-Madeleine, QC
So, this is as dangerous for conservation as it is for economic reasons. In fact, one might easily image that fishermen, who will have to pay 100% of the cost, would see that cost increase over time.
President, Biorex Inc.
I believe that, if the government transfers the cost of coordinating the program to industry, it will be practically impossible for the cost to fishermen to be lower than it is now. It would be impossible.
Conservative
Conservative
Fabian Manning Conservative Avalon, NL
Regarding Mr. Stoffer's question earlier, I have copies of letters here that were sent to the Honourable Geoff Regan, November 15, 2005, from Seawatch Inc. in Newfoundland, basically along the same lines as those Mr. Gagnon has put forward.
I would like to ask two quick questions, Mr. Gagnon, if I could. You allowed earlier that there were two companies in the world that were allowed to choose their own observers. There are about 100 programs in the world. Can you tell us where those two countries or companies are located?