Good afternoon, Mr. Chair and committee members, and thank you for the opportunity to speak with you today. I have with me Liette Dumas-Sluyter, acting assistant commissioner of corporate services; Pushkar Godbole, director general of technical services and facilities; and John Sargent, the chief executive officer of CORCAN.
It's our pleasure to appear before you to respond to any questions you may have about CORCAN farm closures and food procurement this afternoon. As you are aware, the Correctional Service of Canada will be closing six federal CORCAN farms by March 31, 2011, as a result of the Government of Canada's strategic review. This review requires all existing government programs to be reviewed on a four-year cycle to ensure that programs are effective and efficient.
In 2008, the Correctional Service of Canada assessed its programs and services to ensure that funding is focused in the areas where they are most needed and to identify better ways that we can deliver services and programs. This process has given the Correctional Service of Canada the opportunity to further align its budget, programs, and priorities with the new vision for federal corrections in Canada. The service is committed to both providing correctional programs to offenders and assisting them to develop employability skills that will facilitate their obtaining and keeping a job in the community.
In order for us to be successful in this aspect, our employability skills development opportunities for offenders must reflect labour market demands of today and the future. This is something CSC does not take lightly. With the help of local business and government departments, we are working towards the development of alternative employment training that will help offenders with the successful reintegration into society.
The experience and skills obtained from working in the farms have been valuable; however, the decision to close the remaining farms was based on the fact that offenders were not gaining the maximum employability skills through agriculture. This becomes evident as over the last five years less than 1% of all offenders released into the community found work in the agricultural sector.
While offenders participating in the farming program did gain employability skills such as responsibility, team work, accountability, punctuality, and farming skills, relatively few offenders found work in agriculture once released into society. Therefore, CSC is looking at developing alternative training that will help meet the needs and realities of today's labour market and improve opportunities afforded to the inmates in the six minimum security penitentiaries across the country. This in turn will reflect a better integration of correctional programs, education, and vocational skills development.
These opportunities will be closely aligned to CSC's transformation agenda and will foster further employment skills development. CORCAN will continue to operate the other business lines, which include manufacturing, services, construction, and textiles. In addition, plans are currently being developed to produce new work opportunities and training to offenders that will include providing offenders with labour market-driven training and employment, formal vocational training programs that will provide offenders with marketable third-party certification, as well as several other opportunities that are being actively pursued with both government and the private sector.
As for other areas of CSC operations impacted by the farm closures, I can say that the service will use all available human resource tools and processes to ensure that all affected CSC staff are offered appropriate employment elsewhere.
I can tell you that no final decision has yet been made on future use of the land that was used for farming, but for the time being, the commissioner is open to discussions about leasing portions of the land to local farmers, provided the security of the facilities are not jeopardized.
As farms supply a range of produce, meat, eggs, and milk to federal institutions, once they close down, CSC will purchase these items through existing contracting authorities and mechanisms, including the government tendering system. The service does not anticipate a significant impact to the annual cost of food procurement due to the closing of the CORCAN farms. In general, we have found that some CORCAN products such as beef, pork, and chicken were more expensive on average than from local Canadian vendors, whereas other CORCAN products such as eggs and milk were less expensive.
Our financial records indicate that during the fiscal year 2008-09, CSC purchased a total value of approximately $4 million for inmate food from the CORCAN farms out of a total of approximately $27 million spent for inmate food that year.
CORCAN farms previously operated in three of our five regions. In Atlantic Canada and Ontario, meat products, milk products, and eggs are purchased from CORCAN. As of April 2009, the prairie region ceased purchasing meat products from CORCAN as the meat production operations in the prairie regions were discontinued. In the Quebec region, eggs and milk products are purchased from Ontario CORCAN operations. In the Pacific region, food products have been purchased using regular government procurement processes.
CSC is also currently examining the use of national and regional contracts for certain food commodities to realize economies of scale in the procurement of food commodities. In fiscal year 2010-11, Public Works and Government Services Canada intends to introduce a new national commodity strategy that outlines how the Canadian government will purchase food and beverage commodities over a multi-year period. The goal of this new strategy is to provide a more consistent procurement process for all government departments and an increased value to Canadians as best pricing for commodities should be obtained. Pricing will be obtained from the vendors on a more frequent basis in order to take advantage of market fluctuations in cost of commodities.
As for the farm equipment and livestock, CSC is obligated to seek fair value for all disposed assets. Any assets not required by CSC will be offered to other government departments. Some farm-specific equipment has already been sold to Agriculture Canada and the Canadian Food Inspection Agency. Any remaining assets will be disposed of in accordance with government policy.
Although farm closures will introduce new challenges, I'm confident that CSC will continue to fulfill its mandate and to ensure that we deliver good public safety results to Canadians.
Thank you, and we welcome your questions today.