Government Operations Committee on May 26th, 2026

[Martin Krumins]

Thank you for your question.

I'm unable to speak to the components of contracting, but with respect to grants and contributions, I can say that we are at the first phase of our implementation, in which we have now directed all departments to assess their programs. These are approximately 800 programs across the Government of Canada that represent about $90 billion in annual spending—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

In that assessment, do you plan to track the percentage of Canadian labour, Canadian materials and Canadian ownership participation that is attached to federally financed infrastructure projects? Is that something you do now? If you don't, do you plan to do that in the future?

[Martin Krumins]

With respect to how we're going to be tracking and implementing this, as I've said, there are about 700 to 800 programs across the Government of Canada. We directed all departments to undertake that assessment. That assessment was completed in the middle of February. Ministers and departments came back acknowledging that about 450 of those programs would be in scope and eligible and would be incorporating buy Canada principles into their programs.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

What are buy Canada principles? How do you define “buy Canada principles”? How can the government verify that Canadian workers are benefiting from, for example, these taxpayer-financed infrastructure projects?

[Martin Krumins]

With respect to infrastructure projects, the Department of Housing, Infrastructure and Communities has published their specific guidance and framework on how they're going to be implementing in that realm. As for all of the Government of Canada, we have encouraged departments to incorporate the definitions, thresholds and requirements, including eligibility criteria.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

You used the word “encouraged”. You don't require them to do that.

[Martin Krumins]

Well, there are several ways in which the policy can be incorporated into a program. It can be incorporated by amending the program's terms and conditions. It can be incorporated by changing the eligibility projects up front—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

You said “encouraged”, though, so this is not a requirement. “Buy Canada” is not a requirement of projects, then. Is that correct?

[Martin Krumins]

No, I'm sorry. I may have misspoken.

The policy is mandatory for all grants and contributions programs. We have asked and instructed departments to assess their programs for when they may be most appropriate, when they may be not applicable and when they may require an exception, and if—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

How many projects across the government have mandatory Canadian content requirements as opposed to voluntary ones? Do you know that answer?

[Martin Krumins]

We're not at that stage yet. The first stage—where we're at—is that we have instructed all departments to assess their programs on incorporating the principles and to identify which programs will incorporate and which programs would not be a proper candidate for the buy Canada principles.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Do you know how many foreign suppliers or foreign state-like firms, since 2017, have benefited from funding programs that would have “buy Canada” attached to them in the future?

[Martin Krumins]

With apologies, I do not have that information.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Okay. We don't know what we're trying to fix. Is that what you're telling me?

[Martin Krumins]

No, I would say in this case that we're promoting the buy Canada policy through the grants and contributions instruments.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Do you track the economic benefits arising from these projects? What's your measure?

[Martin Krumins]

Within the Treasury Board of Canada Secretariat, we don't track that centrally. These are components of program results that are reported within each department. From a central perspective, we are encouraging using four types of indicators to measure results in this program. The first would be—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

You realize that this sounds like a slogan.

[Martin Krumins]

No—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

“Buy Canada” sounds like a slogan, because you're expecting Canadians to trust you when you are not tracking outcomes. What is your measure? How can Canadians be convinced that taxpayer dollars are going to be used to help fund Canadian jobs, Canadian labour and Canadian manufacturing and that Canadians are going to benefit ahead of foreign companies? How can you trust that when you're not measuring it?

[Martin Krumins]

The guidance we have issued to departments prescribes four specific measures that we would like to see them tracking. The first is the number and value of funding agreements prioritizing Canadian materials. The second is the number and value of funding agreements prioritizing Canadian content—

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

You've already highlighted that. I want to know, do you have the capability of enforcing those things that you say you're tracking? What's the enforcement procurement mechanism that you're going to use?

[The Chair, Conservative, Kelly McCauley]

We have no time left. If it's a brief answer, go ahead. If not, we'll get back to it in the next round.

[Martin Krumins]

The plan for the Treasury Board of Canada Secretariat to monitor compliance is through the risk and compliance process. That's an annual piece driven out of the Treasury Board Secretariat.

[Leslyn Lewis, Conservative, Haldimand—Norfolk, ON]

Thank you.