National Defence Committee on Feb. 20th, 2007

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

But you have signed the contract.

[Michael Fortier]

The contract includes an obligation and a mechanism.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

What I'm interested in is the mechanism.

[Michael Fortier]

Company officials have to present Industry Canada with the contracts they believe are eligible.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

And that—

[Michael Fortier]

Industry Canada either endorses or rejects them. It could be because it is not related to the defence industry, or is an old contract that was recycled.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Very well.

What will and will not be eligible?

[Michael Fortier]

I suggest you ask Mr. Bernier. It has to be related to the aerospace industry. He knows all the criteria, he will give them to you.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Is that included in the contract that you signed?

[Michael Fortier]

No, that is a parallel policy for regional spinoffs. There is a clause in the contract that provides for such an obligation, but the policy comes under Industry Canada.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

If I understood correctly, the clause basically states that Boeing will provide Industry Canada with information that will allow it to decide.

Is that how it works?

[Michael Fortier]

Not like that, but—

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

So how does it work then?

[Michael Fortier]

It's something like that.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

So, how does it work?

[Michael Fortier]

They have to reinvest in Canada one dollar for every dollar received.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Do they—

[Michael Fortier]

Oversight is ensured by Industry Canada.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

I wasn't trying to be aggressive.

[Michael Fortier]

No.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

I am trying to find out what kind of information the signatory will have to provide, and to whom. I would think that that is a relatively simple request. You signed the contract. If you do not have the details, one of our advisors should be able to answer that question.

[Michael Fortier]

Your question is not aggressive, and neither is my answer. Simply put, they have to provide Industry Canada with the contract that they intend on using to comply with the one-for-one rule.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

If I understand correctly, Industry Canada will decide if it complies with what is in the contract.

[Michael Fortier]

That's correct, Mr. Crête.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

All of that must surely have been written in the contract.