Government Operations Committee on May 15th, 2020

[The Chair, Conservative, Tom Lukiwski]

Colleagues, I call this meeting to order.

Welcome to meeting number 12 of the Standing Committee on Government Operations and Estimates.

Before we start I'd like to announce that there will be no meeting this coming Monday, Victoria Day, May 18, but we will have a meeting next Friday, May 22, from 11 a.m. to 1 p.m. Eastern Standard Time.

As well, our whips have gotten together and they have agreed upon a schedule for the following week, that's the week of May 25. The next meeting of that week will start at 5 p.m. Eastern Time and last until 7 p.m. Eastern Time. An email was sent to all of you about that. As you know, that is a change in the calendar. Our normal meetings on Mondays are from two until four, and this will be from five to seven, so I ask you to please make sure you adjust your calendars accordingly.

On Friday, May 29 we will go back to our regular meeting time of 11 a.m., and that meeting will last from 11 a.m. to 1p.m.

The committee has already chosen witnesses for the meetings of May 22 and May 25, but I would like to take 15 minutes at the end of this meeting to discuss future witnesses and overall committee business.

For the benefit of our witnesses who will be providing testimony today, I would ask, as I have to other witnesses in the past few meetings, that if you are to speak, or at least start speaking in one official language, continue if possible and conclude your remarks in the same official language, rather than switching between English and French. If you can continue in one of the two official languages only, that would be of great assistance to our interpreters.

Similarly, during questions from committee members, if committee members start their questions in English, I would hope you could have a response and conclude your remarks in English, so there would be no switching back and forth. We've unfortunately have had some very significant technical difficulties when speakers have tried to alternate between the two official languages.

Colleagues, again as has been normal these last few meetings, we're starting a little late, so therefore I would like to suggest that once again for our rounds of questioning there be five minutes in the opening round, four minutes in the secondary round, and then two minutes for the conclusion. Hopefully in that manner we will be able to get through two complete rounds of questions before we break for committee business.

With those brief opening remarks completed, I call upon Mr. Matthews to please deliver his opening statement.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Mr. Chair, on a point of order, I thought we had agreed that if we received in writing the opening statements by either ministers or departmental officials, we could forgo the reading of those statements. Given that we are starting almost 15 minutes late and you have asked for 15 minutes at the end of the meeting, I am wondering if we could follow through on that decision or that request that was made, I believe by my colleague Mr. McCauley, to forgo the 20-minute reading of the statements we have already received and have read.

[The Chair, Conservative, Tom Lukiwski]

Mr. Clerk, we've talked about this before, but I would ask you to please make a comment on that.

[The Clerk of the Committee, Mr. Paul Cardegna]

Thank you, Mr. Chair.

One of the problems is that traditionally when this has been done, we've adopted a motion to append the speaking note to the evidence. This is for the benefit of the reader who doesn't have the benefit of receiving the document.

Unfortunately, the order adopted by the House on April 12 prohibits us from doing that. We can't consider that motion because the House has significantly limited the motions that can be considered by the committee.

The only other option I could see is that we could take the speaking notes and post them on the committee's website, at which point if the committee wants to, or if the chair instructs the witnesses, we could go straight to questions. However, the reader would not have the benefit of being able to hear the comments of the witnesses before the questioning starts.

It's at your discretion, Mr. Chair, how you wish to proceed with this, but a motion that we would normally append it to the evidence, it would appear, cannot be considered by the committee under the current context.

[Matthew Green, NDP, Hamilton Centre, ON]

Mr. Chair, I'm wondering if it's possible to defer that motion to a later date when that is more appropriate. Is it possible to receive it and have it moved at a future date and to have it added to the official record?

[The Chair, Conservative, Tom Lukiwski]

There are a couple of things on this. In response to both Mrs. Block and the clerk's comments, the clerk is quite correct, we are restricted in what motions we can entertain and even adopt or vote upon. The motion to append the remarks is not in order and would not be admissible. However, perhaps we can find a happy compromise.

Mr. Matthews, I would ask if you could keep your comments as brief as possible, and also our secondary witnesses. We like to have our members ask as many questions as possible, so even though you have been allotted 10 minutes, Mr. Matthews—I know we've asked ministers in the past to try to cut their remarks back from 10 minutes to perhaps five minutes or even less—I would ask that you attempt to do the same.

Mr. Matthews, with that, the floor is yours.

[Bill Matthews, Deputy Minister, Department of Public Works and Government Services]

Thank you, Mr. Chair.

I was doing some quick editing as the discussion was happening, so I will aim for the five minute or less approach to allow the maximum time for questions.

Mr. Chair, good morning. Thank you for having us back here today to support the committee’s continued study of the government’s response to the COVID-19 pandemic.

With me, as usual, is Ms. Arianne Reza, our assistant deputy minister of procurement. We are pleased to be here with our colleagues from the Public Health Agency of Canada. Our two organizations have been working very closely together during this crisis, with PSPC focusing on buying the personal protective equipment and medical supplies needed by health care professionals on the front lines.

At our last appearance here on April 24, we underscored the competitive, challenging environment for procurements on the global stage. That environment is one that we continue to operate in and, although it has changed to a certain extent, it continues to be challenging.

I will talk about our progress in a moment, but first let me speak to some of the challenges we continue to face.

As this committee well knows, most of the supplies in the world that we are seeking are manufactured in China. This means that we continue to receive product from unfamiliar suppliers, supply chains are strained and there are significant logistical issues that we continue to work through.

In China, on the ground, our supplies are steadily coming into our warehouse with more regularity. We are seeing the same regularity with cargo flights coming into Canada. In total, we are now up to 27 flights. As a rough order of magnitude, we are basically dealing with one flight a day. That's the essential rhythm we have hit right now, and we continue to build capacity on this front.

In the last week, we have seen a surge of materials arriving at our warehouse in China. To help with this surge, we contracted with UPS for additional temporary logistical supports on the ground in China with air cargo operations. This approach was instrumental in getting additional flights out of China during a very busy and difficult time.

Recently, we have also tried out a second airport in China. The initial flights from that second airport were successful, so it gives us an additional option going forward in using another airport in addition to Shanghai.

Mr. Chair, we have also been working with the Public Health Agency of Canada on developing an overall logistics solution to deal with large international shipments arriving by both sea and air, as well as domestic shipments arriving by vehicle. On May 4, we sent out an invitation to suppliers to submit an expression of interest to help us in this endeavour. That same day, we sent out a request for proposal for additional logistics supports at airports in China to increase our capacity in that supply chain.

Mr. Chair, when you look at the volume of supplies coming in now, you see that the vast majority have met Canadian requirements. However, as you know, we have had some issues with some products that did not meet agreed-upon standards. Notably, we received an order of approximately 11 million KN95 masks from one supplier, and about eight million of those masks did not meet the performance standards for the grade of that mask. We have since suspended all further shipments of these types of masks from that supplier. While many of these masks are fine for other uses, I want to reconfirm to this committee that none of these were distributed for medical use. As my colleagues from the Public Health Agency of Canada will tell you, only when products are deemed effective and safe are they distributed to the front lines.

Mr. Chair, I should also touch on what we're doing in domestic procurements. Since we last met, our department has finalized a long-term agreement with Medicom of Pointe-Claire, Quebec for the domestic production of 20 million N95 respirators and 24 million surgical masks a year over the next 10 years. A contract has been signed for 15 million face shields to be made by Sterling Industries out of Ontario, and we have a contract with Hewlett Packard to make over a half a million more. We have signed a new contract with Logistik Unicorp, a manufacturer out of Saint-Jean-sur-Richelieu, Quebec, and it is supplying us with more than 11 million medical gowns.

When it comes to testing for COVID-19, we have reached an agreement with a New Brunswick company, LuminUltra, to produce enough reagents, the critical chemical in testing, for about 500,000 tests per week right through March.

These are just a few recent examples.

Mr. Chair, in closing, this is a massive effort for the departments and we continue to shift resources to meet the needs of procurement for our front-line health care workers. We're mitigating the risks as best we can, learning lessons and making adjustments as we go. We are committed to continuing to work with our colleagues at the Public Health Agency of Canada and all of our partners to secure the necessary supplies.

Mr. Chair, because you wanted us to wrap up quickly, I'll leave it there. I look forward to your questions.

[The Chair, Conservative, Tom Lukiwski]

Thank you very much. I do appreciate the abbreviated version of your opening statement.

We will now go to Ms. Thornton.

Ms. Thornton, if you can, please follow the lead of Mr. Matthews and keep your remarks as brief as possible.

[Sally Thornton, Vice-President, Health Security Infrastructure Branch, Public Health Agency of Canada]

Thank you, Mr. Chair and committee members, for inviting the Public Health Agency of Canada here today.

My name is Sally Thornton. I'm the vice-president of the health security infrastructure branch at the agency. I am joined by Éric Dagenais, who recently joined us from Innovation Science and Economic Development to lend a hand with the COVID response, and Steven Guercio, the executive director of the National Microbiology Laboratory in Winnipeg.

I understand that you have invited us here today to talk specifically to Canada's national emergency strategic stockpile, or, as we call it, the NESS, and the work we've been doing to procure personal protective equipment, or PPE, and make it available to provinces and territories.

I'll give a bit of background on the NESS, which is a bit of a misnomer, to help you understand its history.

As you know, public health is a shared responsibility of multiple levels of government. There is a clear federal role, but a fundamental principle in emergency management is that provincial, territorial and local governments are reasonably prepared for the most common emergencies.

The NESS is the federal government's health emergency stockpile. It plays two important roles: It provides a surge capacity to provinces and territories when their own resources have been exhausted, and it's the sole provider of certain assets required for public health emergencies. Think, for example, of costly and rarely used vaccines or antidotes.

It was created in 1952 initially in response to a threat of nuclear attack, and it was for civil defence purposes. It has changed since that time. Acquisitions have moved from beds, hospital units and blood donations to a point where we support all the purchases for mass evacuations and for responding to national disasters, including things like kits for setting up reception centres for displaced individuals.

Since 2001, as a result of terrorist attacks, SARS and H1N1, the role has changed to focus more on chemical, biological, radiological and nuclear threats. We began to move away from beds and blankets and increased our holdings of antiviral medications, a key treatment in response to viral outbreaks. The role of the NESS in terms of procurement has also evolved, as it has the potential for outsourcing, purchasing and distributing. It's a clearing house and it really set us up well for a response in this pandemic.

Basically, the NESS was structured to prepare for low-probability high-impact events, like terrorist attacks and major national disasters, and arrange for a continued availability of pharmaceuticals, equipment and medical supplies that are rare or difficult to obtain. It's a niche role in stockpiling certain rare high-value assets.

To respond to COVID, we mobilized the procurement abilities we have in the NESS, working with our provinces and territories and very closely with Public Services and Procurement Canada and Health Canada, to procure supplies primarily for front-line health care workers. We have worked closely with a range of partners, we've ramped up our internal capacity and we've been deploying NESS equipment and supplies.

I would like to hand it over to my colleague Éric Dagenais. He can provide you an overview of our PPE procurement and distribution work in the context of the response to COVID-19.

[The Chair, Conservative, Tom Lukiwski]

Mr. Dagenais, in keeping with your predecessors' opening comments, if you could keep your comments as brief as possible, I would appreciate it.

[Éric Dagenais, Vice-President, Public Health Agency of Canada]

Okay, Mr. Chair. I will endeavour to do that.

Thank you to my colleague Sally Thornton for the overview. I'll take just a few moments to outline the Public Health Agency's role in the Government of Canada's strategy.

As COVID-19 cases began to spread outside of China, global demand for PPE and other medical supplies increased to unprecedented levels. In response to that, the Public Health Agency initiated a dialogue with provinces and territories in January, analyzed existing stockpiles and assessed anticipated pressure. In March Canada initiated a collective buying power. We went to international markets together with the provinces to source bulk procurement for PPE, medical supplies and equipment.

After that, it soon became clear that we needed to buy, transport, test and deliver more PPE than we ever had before, and that a whole-of-government approach was needed to bolster the Public Health Agency's existing expertise and efforts. This level of massive PPE procurement and distribution required innovative procurement from Public Services and Procurement Canada, and investment in Canadian domestic capacity as led by Innovation, Science and Economic Development Canada. Companies such as Bauer, Canada Goose, Irving and CAE retooled to make everything from face shields to ventilators. We are also supported by expedited regulatory approvals facilitated by our colleagues at Health Canada and by the large-scale logistical expertise from the Canadian Armed Forces.

At this moment, I want to thank Colonel Poudrier and his team, who showed up here maybe six weeks ago. They have been absolutely instrumental in our efforts on the logistics side. I very much thank Colonel Poudrier and his team. On that, I should mention that many public servants from across departments, including me, joined the Public Health Agency to support the response during this pandemic.

In terms of quality verification, you may have questions on this, so I'll talk about it a bit. The Public Health Agency has started to receive deliveries of domestic and international supplies. The intense level of global competition means that we're engaged with new suppliers and manufacturers. This is a reality that other countries are facing. As a result, as PPE arrives, and sometimes before it arrives, the Public Health Agency conducts an assessment to confirm that it meets the specifications for health care settings for COVID-19 response.

Our top priority in these efforts is the health and safety of our front-line health care workers. To that end, we undertake, along with support from Health Canada and the National Research Council, rigorous technical assessment to procure PPE that will meet the Government of Canada's technical specifications for health care settings. Upon receipt, the process for verification varies, depending on the medical device. [Technical difficulty—Editor] to verify for defects in design and construction [Technical difficulty—Editor]

[The Chair, Conservative, Tom Lukiwski]

Mr. Dagenais, could you try to keep your microphone closer to your mouth? As well, sir, please wrap up your remarks as quickly as possible.

[Éric Dagenais]

All right.

In terms of distribution, we signed a contract with Amazon [Technical difficulty—Editor]

[The Clerk]

Unfortunately, I think we lost his feed, Mr. Chair.

[The Chair, Conservative, Tom Lukiwski]

I see that. We will—

[The Clerk]

He might be back now.

[Éric Dagenais]

I am back now.

We signed a contract with Amazon, which is providing us with access to its technology interface. They're working with Canada Post and Purolator, who are both business partners of Amazon and are actually facilitating the warehousing and delivery part of this.

In conclusion, Mr. Chair, the results of the Government of Canada's strategy are showing promise. As the demand remains high for front-line health care response, Public Health Agency of Canada will continue to prioritize these efforts, rapidly distributing quality supplies as they become available. We continue to work with provinces and territories. This really is a collaborative approach.

Thank you for your time.

[The Chair, Conservative, Tom Lukiwski]

Thank you.

Now we will go to Mrs. Block for five minutes, please.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Thank you very much, Mr. Chair.

Thank you to our witnesses for joining us today.

My first questions will be for the Public Health Agency of Canada. I'll try to keep my questions short and straightforward. I do hope the answers will be the same and I can get in as many questions as possible.

Have any of the eight million-plus defective or substandard masks made it into public circulation?

[Éric Dagenais]

The eight million masks that did not meet the efficiency test are being used as face coverings. They're not being distributed to the public. So far, they are being distributed internally to Government of Canada operations as face coverings, and they are clearly marked. They're still very good surgical masks.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Okay, thank you.

The recall notice was issued on Monday, May 11. When did the department actually know that these masks were defective?

[Éric Dagenais]

The recall notice that Health Canada issued did not pertain to these masks.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Okay.

With regard to Monday's recall notice, when were the medical device establishment licences issued to the holders impacted by this recall—between what dates?

[Éric Dagenais]

Health Canada issues the medical device licences. I would have to defer to them and endeavour to get back to you.

[Kelly Block, Conservative, Carlton Trail—Eagle Creek, SK]

Do we not have Public Health Agency of Canada witnesses on today?