Evidence of meeting #41 for Government Operations and Estimates in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was procurement.
A video is available from Parliament.
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
They could.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Could a foreign company create a Canadian subsidiary and qualify as Canadian?
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
If they meet the other aspects of the Canadian supplier definition, yes.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Okay. If a company from a country without a trade agreement with Canada establishes a Canadian subsidiary, registers and files taxes here, maintains a Canadian address and conducts day-to-day business here, could it qualify as a Canadian supplier?
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
If they have enough employment in Canada and they drive Canadian content, they're going to qualify.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Does PSPC distinguish between Canadian-owned companies and foreign-owned companies operating in Canada?
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
That was a policy decision that was made in order not to penalize Canadian—
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
We don't, no.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Does your department track how many procurements go to foreign-owned firms qualifying as Canadian?
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
Yes, we are tracking this.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
When the policy refers to Canadian services or Canadian labour, does that mean labour performed by Canadian citizens and permanent residents or simply work performed by individuals based in Canada?
Senior Assistant Deputy Minister, Procurement Branch, Department of Public Works and Government Services
I may turn to Levent on that specific question, if you'll allow me.
Director General, Strategic Policy Sector, Department of Public Works and Government Services
It generally has to do with the people performing the work and whether they reside in Canada, so they're Canadian citizens or otherwise lawfully here, such as immigrants.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Temporary foreign workers...it includes them, then.
Director General, Strategic Policy Sector, Department of Public Works and Government Services
I wouldn't get into that myself, personally, because I don't know the exact legal construct on that.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
How does PSPC verify where the work is performed?
Director General, Strategic Policy Sector, Department of Public Works and Government Services
This is done through self-attestations, and we have the ability to audit those attestations as well. We are also developing a compliance framework.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Does the policy apply only to the prime contractor?
Director General, Strategic Policy Sector, Department of Public Works and Government Services
The policy flows from the prime contractor to the other levels as well. When we're talking about Canadian content, those would be things that are applicable throughout the supply chain.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
Your policy will apply to subcontractors as well.
Director General, Strategic Policy Sector, Department of Public Works and Government Services
It applies to subcontractors in the sense that we will be looking at where those goods are produced or where the services are rendered to determine the Canadian content.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
How many levels down the subcontracting chain does it apply?
Director General, Strategic Policy Sector, Department of Public Works and Government Services
It would depend on the circumstance, depending on the levels of the supply chain.
Conservative
Tamara Jansen Conservative Cloverdale—Langley City, BC
What percentage of value-added work can be subcontracted outside of Canada before a supplier no longer qualifies as Canadian?