Evidence of meeting #93 for Health in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was actions.
A video is available from Parliament.
Director General, Procurement Support Services Sector, Department of Public Works and Government Services
It would more likely be a question for the Canada Public Health Agency.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
So we didn't use all of the 169 million doses of the vaccine.
What happened to the tens of millions of doses that we didn't use?
Deputy Auditor General, Office of the Auditor General
We completed our audit work and the report mentioned the figures we knew about at that time. At the moment, we don't have the data required to accurately tell you what happened to these doses.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
Okay.
So we purchased 169 million doses. We used 84 million. Let's assume that some of the doses had reached their expiration date before being used and that others were sent abroad.
Is that a fair assumption?
Deputy Auditor General, Office of the Auditor General
I think so. It's also likely that some had been wasted for a variety of reasons.
I think your suggestions are correct.
Bloc
Julie Vignola Bloc Beauport—Limoilou, QC
Okay.
So we paid for the wasted doses.
In the public account reports, what section would itemize these losses, or this waste.
Deputy Auditor General, Office of the Auditor General
I'll have to ask the other audit teams. I'll be able to give you an answer later.
Liberal
The Chair Liberal Sean Casey
Thank you, Ms. Vignola.
Next, we have Mr. Davies, please, for six minutes.
Don Davies NDP Vancouver Kingsway, BC
Thank you.
To Public Works, on what date did the Government of Canada decide to release Medicago of its obligations?
Director General, Department of Public Works and Government Services
The contract was terminated in June 2023.
NDP
Don Davies NDP Vancouver Kingsway, BC
Can you explain why the Government of Canada decided, or consented, to terminate the contract and release Medicago of its obligations?
Director General, Department of Public Works and Government Services
The contract was terminated by mutual consent, meaning that both parties were interested and agreeable to the termination. Medicago—
NDP
Don Davies NDP Vancouver Kingsway, BC
I'm asking why the Government of Canada did it. I understand it was mutual. I want to hear why the Government of Canada did it.
Director General, Department of Public Works and Government Services
The Government of Canada, as part of its overall supply management, and seeking to reduce logistics costs and rightsize inventories, was interested in either reducing or eliminating deliveries of Medicago doses. This occurred at the same time that Medicago was experiencing some challenges in achieving commercial-scale production.
NDP
Don Davies NDP Vancouver Kingsway, BC
Was it because the WHO determined that Medicago would not be allowed to market its vaccines, because of its connection to the tobacco industry? Did that figure into the Government of Canada's thinking?
Director General, Department of Public Works and Government Services
The reason had to do with supply management, looking at the number of doses.
NDP
Don Davies NDP Vancouver Kingsway, BC
The government initially refused to provide any details on this loss, stating that this information could not be divulged because of confidentiality agreements with the contractor. I think you referred to that a few times today.
Paragraph 22.3(h) of the Government of Canada's contract with Medicago, which was disclosed to this committee in June 2021, says, “Canada will be permitted to disclose Confidential Information of the Contractor for the purposes of government administration and operations, and in the exercise of Crown privileges. For greater clarity, this includes reporting to the Parliament of Canada”.
Can you outline why the Government of Canada did not believe that this provision would permit it to disclose the last $150 million to Parliament, when it explicitly says so?
Director General, Department of Public Works and Government Services
We make all efforts to respect the confidentiality clauses in the contracts. The suppliers of all seven advance purchase agreements have indicated how important this is for their business. Whether that clause could allow us to release additional information or not would need to be further studied, but—
NDP
Don Davies NDP Vancouver Kingsway, BC
Aren't transparency and accountability to Parliament and the taxpayers who pay this money important?
Director General, Department of Public Works and Government Services
The Government of Canada has made all efforts to be transparent with these contracts. We provided fully unredacted copies of all seven advance purchase agreements to the parliamentary Standing Committee on Public Accounts. Furthermore, unredacted copies of the contracts were provided to the Auditor General and subject to a report, and officials—
NDP
Don Davies NDP Vancouver Kingsway, BC
With respect, we forced the government to do that at the health committee as well when they were fighting us tooth and nail not to provide those contracts, but I'll move on.
In April 2022, Dr. Gaston De Serres, a medical epidemiologist at the Quebec national institute of public health, noted this:
De Serres said the problems Medicago would have had in getting a COVID-19 vaccine with close ties to the tobacco industry approved by the WHO were “quite obvious,” and that the federal government “should have known” this issue would arise before investing in it.
“They wouldn't have to work hard to know that Philip Morris was also an important shareholder,” he said.
Can you confirm whether the Minister of Public Works and Government Services was aware of Medicago's ties to big tobacco prior to signing an advance purchase agreement with the company?
Director General, Department of Public Works and Government Services
The Government of Canada was aware, but the purchase agreement with Medicago was intended to purchase doses for Canadians in response to the pandemic. World Health Organization approval was not required for that purchase and for us to get doses delivered for use by Canadians.
NDP
Don Davies NDP Vancouver Kingsway, BC
In 2004—almost 20 years ago—Canada ratified the legally binding WHO Framework Convention on Tobacco Control. This treaty states that a government should not accept, support or endorse partnerships with the tobacco industry or any entity or person working to further its interests. Given that Philip Morris International owned 21% of the Medicago shares when the Government of Canada signed its advance purchase agreement, can you explain why the government didn't believe this entity was working to further the interests of the tobacco industry?
Director General, Department of Public Works and Government Services
Early in the pandemic, there was intense global competition to secure vaccines. There were no approved vaccines worldwide, and countries were pursuing very aggressive procurement strategies to get doses as soon as possible. Because Canada didn't have strong domestic capacity, we didn't have a strong footing to procure vaccines. The goal of the government was to procure vaccines as early as possible to get them in the arms of Canadians.