Evidence of meeting #7 for Government Operations and Estimates in the 41st Parliament, 2nd session. (The original version is on Parliament’s site, as are the minutes.) The winning word was services.
A video is available from Parliament.
NDP
Denis Blanchette NDP Louis-Hébert, QC
What you just described to me represents more than one-quarter of the budget.
November 28th, 2013 / 4:55 p.m.
Deputy Minister, Deputy Receiver General for Canada, Department of Public Works and Government Services
Yes, absolutely. The fluctuations can have that kind of impact.
NDP
Denis Blanchette NDP Louis-Hébert, QC
I am going to move on to another subject.
Mr. Cannan opened the door for me earlier when he mentioned shipyards. The Auditor General congratulated you on the process and said it was going well on the whole. In your presentation, you said you increasingly consult proactively in dealing with the private sector.
You also discussed inflation with Mr. O'Connor. A major point was overlooked with respect to the purchase of military ships. Inflation in the military ship-building industry is much higher than what you and I experience in everyday life. Of course, the government will eventually have to make a choice regarding the number of boats it wants to have built and so on. My question will not concern that because that is the government's responsibility.
Instead the question I am going to ask you concerns the process. It will be extremely expensive. What are you going to do to ensure you do not overlook such important details again?
Deputy Minister, Deputy Receiver General for Canada, Department of Public Works and Government Services
I hope I correctly understand the nature of your question.
The Auditor General acknowledged in his report that a budget is a useful mechanism for establishing thresholds. A budget promotes a certain discipline, a rigour in determining what needs are necessary in order to build the ships planned and how they will be constructed. We are now entering the design phase for certain ships. We consulted our American, British and other colleagues who have experience in building ships of this size. They all told us we had to ensure that all essential components were designed first so that we could get a clearer idea of construction costs and methods. That is why we are doing it. That is in a way what the Auditor General told us.
There is also the issue of inflation. It should not be forgotten that the price of materials fluctuates. I worked at Fisheries and Oceans, and I remember that the price of steel was astronomical at one point and then fell two years later and subsequently fluctuated. It is important for us that the design be as complete as possible so the shipyards can give us an accurate idea of the cost to build those ships.
NDP
The Chair NDP Pierre-Luc Dusseault
Thank you.
Mr. Blanchette, your time is up.
I would like to thank the representatives of the Department of Public Works and Government Services for coming today to make a presentation and to answer our questions. I wish you a good evening to conclude your fundraising activity for the holidays. We look forward to seeing you again.
I will suspend the sitting for a few minutes, and then the committee will reconvene.
[Proceedings continue in camera]