Evidence of meeting #37 for National Defence in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was boeing.
A recording is available from Parliament.
Minister of Public Works and Government Services
Precisely. I even extended the period of notice to twice its normal length. I did this to make sure that all the companies had the time that they needed to notify us that they thought they had apparatus or equipment that was compatible with the needs of the Canadian Forces.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
You awarded the contract, but now you are telling me that you did not impose any conditions on Boeing. You cannot tell us how the spinoffs will be shared. Did Boeing not regularly report to your department regarding the contract awarding process?
Minister of Public Works and Government Services
I repeat that Mr. Bernier's department is in charge of this, not my department. Moreover, it is wrong to say that there were no conditions. The condition was that they would reinvest in Canada.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Mr. Bernier is not in charge of monitoring the contract.
Minister of Public Works and Government Services
Mr. Crête, let me answer. There are conditions. For every dollar received, $1 must be invested in Canada's aerospace industry. This seems to escape you. My department is not in charge of following up on regional spinoffs. This responsibility belongs to Mr. Bernier's department, and Mr. Bernier, I believe, will soon appear before this committee.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Will Mr. Bernier have to answer for the way in which the Boeing contract will be shared across Canada?
Minister of Public Works and Government Services
In fact, Mr. Bernier and his department are in charge of monitoring the regional spinoffs of these contracts.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
If I understand correctly, your department has no data whatsoever regarding this issue.
Minister of Public Works and Government Services
No, because it has nothing to do with procurement. This is a condition of the contract that applies to a specific long-standing policy, Mr. Crête. Others have applied it badly, but it has existed for many years.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Do you think that you are being responsible in concluding a $3.4 billion contract with a company without knowing how it will apportion the regional spinoffs, and without even asking them?
Minister of Public Works and Government Services
We are very responsible in requiring foreign equipment providers to reinvest dollar for dollar in Canadian industry. Not only are we responsible, but I think that this is desirable and that it is good from the taxpayers' point of view. In fact, people are still talking to me about it. They are telling me that they hope that this time it will be for real, because in the past, nothing ever came of it. But we will see to it! Moreover, Mr. Bernier can give you further information.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Do you think that it is sufficient to ask the company to reinvest anywhere in Canada, without knowing how it will spread its investments across the regions of Canada?
Minister of Public Works and Government Services
I find that it is sufficient to require that they reinvest in Canada. Canada's aerospace industry has centres of excellence in many regions of Canada, and the suppliers will find what they need. We will be paying between $13 billion and $17 billion during the coming years. These enormous sums will come back to Canada, Mr. Crête.
If I were you, I would wait until I have finished reading this book before passing a judgment. You have opened only the first page.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Mr. Minister, I think that this question is relevant right now, because if we destabilize financial structures all over Canada, there will be no time for rectifying the situation afterward.
We are not dealing with a private company or with competition among private companies. We are talking about a private company that will use $3.4 billion of government money. It will be alone in deciding how the funds will be shared in Canada without any regard for existing structures. It will set its own priorities according to the needs of its plants and its contracts. It has been common knowledge for a long time that they are all outside of Quebec.
Are you aware of the fact that Bombardier is in competition with Boeing? If you were a businessman, would you be inclined to deal with your competitors?
Minister of Public Works and Government Services
First and foremost, we wanted to purchase the aircraft at the best possible price for taxpayers, and we did just that.
Regional spinoffs are important, there will be spinoffs all over Canada. I repeat that it is wrong to say that there are no conditions, because there are conditions. The company will have to invest an amount equal to what it has received in Canadian industry.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Let us come back to my question about Bombardier. Do you think that Boeing will naturally be inclined to enter into technology transfer contracts with a competitor?
Minister of Public Works and Government Services
I cannot comment on competition that may exist between Boeing and other equipment manufacturers in Canada.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
I am not asking you to make a specific comment. Would a businessman usually give technology transfer contracts to one of his competitors if he is not compelled to do so?
Minister of Public Works and Government Services
That depends. Some competitors sign partnership agreements for certain products. You are asking me a very hypothetical question. I would prefer not to answer it, because I am not familiar with the competitive or non-competitive relationship between the two companies you mentioned.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
I can't believe this, this is beyond me. You're telling me that you have no idea about the type of benefits that this contract will have for all of the regions in Canada!
And yet, we were told that you had taken it upon yourself personally to obtain the maximum number of benefits. Did you in fact take such action in order to get the most benefits for Quebec?
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
That was written in the newspapers, but I wanted to check whether or not it was true that you have taken such initiatives.
Minister of Public Works and Government Services
I do not know who said that—maybe it was Le Courrier de Sorel—but I think that you should not always believe what you read in the papers.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
I don't know what was written in the Le Courrier de Sorel, I don't know it. It must be a good newspaper, like all the other weeklies in Canada, moreover.
But you did not answer my question. Did you take any steps to ensure that benefits would be distributed equitably?
