Thank you, Mr. Chairman.
As you heard, my name is Michael Atkinson. I am president of the Canadian Construction Association. I'm here today not only in that capacity, but also as a member of the Coalition for Fair Construction Practices. Joining me this morning are three other members of our coalition: Mr. Gary Sturgeon, technical services engineer for the Canadian Concrete Masonry Producers Association, who will also be speaking before you today; Mr. Ed Whalen, president of Canadian Institute of Steel Construction; and Ms. Marina de Souza, managing director of the Canadian Concrete Masonry Producers Association. Since our concerns are very similar, Mr. Sturgeon and I have agreed to combine our statements and our time.
Our coalition consists of 20 members representing the steel, cement, concrete, concrete product, brick, and masonry industrial sectors. Collectively we represent hundreds of thousands of jobs and workers from every community in this country, 1.2 million in the construction industry alone. Combined, we account for billions of dollars in domestic sales, exports, and construction services in Canada every year. Again, construction alone accounts for just under 7% of Canada's gross domestic product.
Many of the heads and senior executives of the coalition members are here with us today. This large and varied group has come together to oppose the passage of this bill because it would: one, favour wood over other construction materials, which is not only discriminatory but could increase construction costs by limiting the types of materials available for use on federal projects; two, limit the design freedom of construction professionals in the selection of materials; three, potentially undermine the National Building Code of Canada; and four, possibly violate Canada's obligations under domestic and international trade agreements.
To begin, I think it's important to state that all of the members of our coalition support a healthy Canadian wood industry. Wood, steel, brick, concrete, and other construction materials, are vital to construction in Canada. Together these materials and their associated industries offer synergy. All contribute to providing Canada's sustainable social and commercial environments. Like the wood industry, coalition industries are located in small towns and communities across this country, and have been hard hit by the economic events of the past two years and continue to struggle with declining demand in both domestic and traditional export markets.
To be clear on this point, the Canadian Construction Association and the coalition oppose Bill C-429. We do not oppose the wood forestry industry. Assuredly, we would have been here today united to oppose the bill had it otherwise been written to favour any particular building material. The fact that it is wood is immaterial.
To my first point, the federal government is a significant purchaser of construction materials across this country. As such, its activities affect the national economy and can influence both the price and the availability of goods and services, including construction services, within the marketplace. Furthermore, decisions of Public Works and Government Services Canada on procurement practices often influence not only the practices of other levels of government, but also those of the private sector. Therefore, the impact of any change in federal procurement policy must be viewed through that lens.
We believe it is neither good nor acceptable public policy for our governments to promote one building material--in this case wood--by excluding alternative, viable, and competitive Canadian materials from Canadian construction markets. We strongly believe that all construction materials should operate on a level playing field and in a competitive, fair, and open economic environment.
Specific to the federal government, proposed Bill C-429 is philosophically contrary to the performance and procurement policies and methods currently followed by the Department of Public Works and Government Services Canada that actively promote and ensure openness, fairness, and transparency. If enacted, we believe that Bill C-429 would eliminate these fundamental qualities within our built environment. Bill C-429 would effectively legislate advantage, protection, and gain for the wood industry at the expense of other supplier industries to the construction industry. Ultimately, if enacted, it would assuredly not create any new jobs.
I move now to our second objection. Bill C-429 will limit and undermine the freedom of a design professional or experienced contractor to select the most appropriate construction material for its intended function and service.
Legislation that compels or influences our design professionals to specify the preferred product for use where it is not suited to the function or service has attendant risks. Consequences include an increased likelihood of non-performance, premature failure, and higher initial costs for construction or ongoing costs for repair and maintenance.
The selection of the appropriate building material must remain the purview of those qualified and licensed to practise in the area of building design and construction.
The Canadian built environment is founded on this principle. Our slogan is, “Choose the right building material for the right job”. With no artificial preference currently in place in the design and construction industry, the right material for the right job is already being selected.
With that, I would now like to turn to Mr. Sturgeon to expand on our other comments.