To explain the process for the authorization of service providers, first of all I'd like to point out what the dynamic is in the marketplace. These service providers are small organizations across the country. I think we've made available to the committee a map that shows where the ones that are already recognized are, and you can see that they're located right across the country. They're small businesses. Their livelihood depends on their maintaining recognition from Measurement Canada.
Measurement Canada puts them through a qualification process that is very rigorous. It involves that the company must be an incorporated entity, a legal entity. They must have technicians who are going to do work on the government's behalf—it's not automatic that all their technicians can do the work—and these are the ones who are going to be identified as “recognized technicians”, as we call them.
They must attend training at Measurement Canada; it's typically one week of training. They undergo a theoretical evaluation, which they must pass with a minimum passing mark of 70%. They then undergo a practical evaluation on site, where we have them do the work, and we evaluate their work. Again they must have at least 70% on that evaluation. They must use equipment that has been approved; in other words, that meets the specifications of Measurement Canada and has been calibrated by Measurement Canada. They must also document and use test procedures that have been accepted by Measurement Canada.
All of that is an investment that the company makes to become authorized by Measurement Canada, a time and a money investment.
Once they're recognized, their name goes up on our website. Device owners go to our website to select and may call several of them to get the best price possible for the inspection work.
We monitor the authorized service providers. We do annual monitoring as a minimum. This involves audits of their work. It involves surprise follow-up inspections after they have done their work, because they submit data on their work continually on a weekly basis to us so that we know where they've been and what work they've done. We can select randomly where we will follow up on them; they don't know where we will go.
If we encounter problems with the way they've done their work—and our data over the past 10 to 20 years, depending whether it's on the electricity and gas or the weights and measures side, shows that compliance by authorized service providers is extremely high, 97% minimum.... When we do find a problem, we take immediate action. They must take corrective, preventive action.
And they can be suspended. If the non-conformance is severe enough, their authorization can be revoked. This is identified in the website, that they have been suspended or revoked. So again the livelihood of the business is at risk.