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
Indeed. This is a 17 billion-dollar-program spread over 20 years. That amounts to an average of close to $1 billion more a year.
Conservative
Steven Blaney Conservative Lévis—Bellechasse, QC
If possible, I would appreciate seeing a projection for the next five years.
Minister of Public Works and Government Services
Very well, we will provide you with that.
Conservative
Steven Blaney Conservative Lévis—Bellechasse, QC
You indicated that you were able to shorten the process from 15 to 7 years. You talked about improvements. Are you simply shortening the process to save money, or are you also ensuring that the equipment be available as soon as possible?
Minister of Public Works and Government Services
That is correct. We have to use common sense when making such purchases. In some cases, it will take a bit longer. Nevertheless, according to my understanding of what happened in the past—and the question should also be put to the Minister of Defence—over a number of years, the list of criteria adopted by the people searching for military assets had become very long. As a result, when my officials and the people from Treasury Board sat down for discussions, in some cases, there were hundreds of criteria.
In light of that, especially in an industry where there are only a few suppliers for certain assets, the more criteria there are, the higher the risk of excluding all potential suppliers. You then have to start anew and redraw the aircraft. This creates a vicious circle, and the army does not get its equipment.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Thank you, Mr. Minister.
In the contract with Boeing, there must be one or more clauses that specify how the spinoffs will be split. I would like you to indicate how that will be done. To whom does Boeing have to report the economic spinoffs?
Minister of Public Works and Government Services
That is a question for Mr. Bernier, that falls under the responsibility of Industry Canada.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
How did the Minister of Industry contribute to preparing the terms and conditions of the contract? Was the company asked to provide a breakdown by Canadian region?
Minister of Public Works and Government Services
Who would have made such a request? I do not understand your question.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
In that contract that you negotiated with the company, there is a clause allowing them to invest economic spinoffs.
Minister of Public Works and Government Services
It does not allow them to, it is a requirement.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
The Minister of Industry will receive that. There must have been discussions between you or your officials and Department of Industry representatives regarding the breakdown.
Does that clause state how the breakdown will be done throughout Canada?
Minister of Public Works and Government Services
You would have to ask Mr. Bernier that question. That deals with negotiations between his department and Boeing. You have to understand that this is one component. Our department was responsible for purchasing the aircraft.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Mr. Minister, you are telling me that some of the contract's clauses include a mechanism. Now, the contract is within your jurisdiction. You have signed it.
Could you or Mr. Williston tell us what mechanism was provided for so that Boeing reinvest those spinoffs? How does it work?
Minister of Public Works and Government Services
As I explained to you earlier, the company has to submit its proposed contracts to comply with the dollar-for-dollar principle.
Minister of Public Works and Government Services
It submits them to Industry Canada for approval. For example, if we were talking about the opening of a Subway restaurant in your riding, you would benefit from it.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
I do hope that the Subway restaurant is not part of the contract's expected spinoffs.
Minister of Public Works and Government Services
It will not be assessed on a dollar-for-dollar basis. The same would apply to a fountain in Mr. Coderre's riding.
Bloc
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Will your department take part in assessing the Boeing contract, to check whether the process was effective and profitable, not so much in terms of equipment quality as in spinoffs? If not, will you only rely on Industry Canada's assessment?
Minister of Public Works and Government Services
That is the responsibility of Industry Canada. Ask Mr. Bernier that question. His department will ensure follow-up so that Boeing meets its contractual obligations to reinvest in Canada one dollar for every dollar received.
Paul Crête Bloc Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC
Can Mr. Williston tell us how that will be forwarded to the Department of Industry?
Minister of Public Works and Government Services
That is not Mr. Williston's responsibility, it is Industry Canada's.
