Evidence of meeting #32 for Public Accounts in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was contract.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Wayne Wouters  Secretary of the Treasury Board
Robert Wright  Deputy Minister, Department of Finance
Hugh MacPhie  As an Individual
Sara Beth Mintz  As an Individual

12:15 p.m.

As an Individual

Hugh MacPhie

I want to answer your questions the best that I can. However, I would ask the chair, is this question consistent with--

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

Mr. Williams, on a point of order.

12:15 p.m.

Conservative

John Williams Conservative Edmonton—St. Albert, AB

If the member had been here for the whole meeting he would know that the Deputy Minister of Finance gave all the details of all the contracts with Mr. MacPhie. Therefore, for him to badger the witness on something he's obviously not prepared on is not quite appropriate.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

All right. I could rephrase that in a precise--

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

It's fine, Mr. McCallum, you can continue with your discussion.

Whether he was here for the previous discussion is irrelevant. He has seven minutes. We're not going to allow additional time.

But I'll ask the witness to answer the question on other contracts you had. It's all related.

12:15 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

On a point of order, Chair, how much time does Mr. McCallum have in total?

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

He has seven minutes. That doesn't include the points of order.

12:15 p.m.

Conservative

Pierre Poilievre Conservative Nepean—Carleton, ON

He's already asked a whole series of questions. How can he still have seven minutes?

12:15 p.m.

Liberal

The Chair Liberal Shawn Murphy

Oh, I'm sorry. I am wrong. He has four minutes and 26 seconds.

Mr. McCallum, you have four minutes and 26 seconds.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Thank you, Mr. Chair.

I'll try to be very specific. I understand your company has been awarded eight contracts, that we know of, of which seven were sole-sourced over eleven months, from October 30, 2006, to September 30, 2007, with a total value of approximately $320,000. I will just ask you whether that is correct

12:15 p.m.

As an Individual

Hugh MacPhie

I believe, sir, there have been other contracts on top of that. But that is roughly correct, yes.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Can you explain briefly what other contracts were on top of that?

12:15 p.m.

As an Individual

Hugh MacPhie

One that I'm aware of, which I don't believe has been in the public record, is that subsequent to some work we did with Health Canada related to some communications issues within their department, we were invited back to provide some education to the civil servants. Let me be very clear on this: the minister's office had nothing to do with that particular contract. We went into Health Canada and worked very hard. We delivered what we were asked to deliver, and they were very pleased. So that would be one additional contract.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

So I guess the point I'm making is there was at least $320,000 worth of contracts since Mr. Flaherty became a minister, and none before.

I understand that you billed 820 hours, from February 14 to March 31, 2007. I'm asking you if this is correct

12:15 p.m.

As an Individual

Hugh MacPhie

I'm glad you asked the question, sir.

The number of hours MacPhie & Company worked with respect to our contract on the federal budget was in excess of the numbers we actually billed. So to be clear, the professional services that we provided to the Department of Finance were worth more than the amount for which we invoiced. And furthermore—

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

So if anything, you under-billed?

12:15 p.m.

As an Individual

Hugh MacPhie

That's correct.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

But the bill implies that you worked 18 hours a day, including weekends, for that period of time. So you're telling me that's an understatement of the amount you really worked?

12:15 p.m.

As an Individual

Hugh MacPhie

Well, no. We worked those hours and make no apologies for having worked very hard on that.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

So for 45 days you worked 18 hours a day, including weekends, and you just said it was an understatement.

12:15 p.m.

As an Individual

Hugh MacPhie

I don't know with precision, sir, the date exactly when we started work, but I believe it was more than 45 days of work.

12:15 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

Actually, that leads me to a related question.

According to e-mails, I understand that the date of your signing the contract was February 23, 2007. Was there some kind of verbal arrangement prior to that date, and on what day did you actually begin working on the contract?

12:15 p.m.

As an Individual

Hugh MacPhie

The work began in mid-January, based on the request we had from the Department of Finance to do this work. They came to us. They said “We would like you involved with Budget 2007 communications”. We were clearly very happy and thrilled to get that invitation and began working in good faith.

12:20 p.m.

Liberal

John McCallum Liberal Markham—Unionville, ON

On what day? When did you begin work?

12:20 p.m.

As an Individual

Hugh MacPhie

It was sometime in mid-January, sir.