Thank you, Madam Chair and members of the committee, for the opportunity to appear before you and support Bill C-227.
This bill recognizes that every government purchase has a ripple effect. Every infrastructure investment, whether intentional or unintentional, has an economic effect and creates jobs. Bill C-227 offers government the opportunity to add an intentional social value as well, leveraging greater value from existing spending.
Buy Social works with social enterprises, which are often the partner businesses in social purchasing agreements. Social enterprises are small and medium-sized businesses that have a social purpose and reinvest the majority of their profits back into their social purpose.
Let me give you a few examples of how social purchasing agreements have stimulated social impact through subcontracting work between the construction industry and social enterprises, supporting not only the successful delivery of construction contracts, but also enhancing the social impact of existing projects.
In Vancouver's Downtown Eastside, one of Canada's poorest postal codes, EMBERS Staffing Solutions is a social enterprise operated by a registered charity. Its business model is to operate a socially conscious and supportive workplace in a day-labour company. Their revenues exceed $5 million annually. This year, they will create over 1,500 jobs for persons with barriers. These are people leaving prison, people recovering from addiction issues, and others seeking day-at-a-time entry or re-entry into the labour market. They operate primarily in partnership with the construction industry, providing needed skilled and unskilled workers to support the industry's construction contract requirements. They recently opened an office in Surrey to expand their business services and social impact into that community as well.
In Winnipeg, BUILD, a social enterprise working with youth at risk, primarily aboriginal youth, helps with pre-employment and entry-level employment, often leading to full employment in the construction industry. Everyone admires and appreciates their impact once you hear the amazing stories of former gang members moving from crimes on the street to productive employment with companies such as PCL.
The Cleaning Solution employs persons with mental health challenges. A simple but creative supply-chain partnership between the construction industry and a social enterprise has the Cleaning Solution cleaning the EllisDon offices at a construction site in Vancouver.
In Toronto, the Learning Enrichment Foundation, LEF, has for many years been actively engaged in supporting social impact spending as a means to support immigrants entering the labour force. LEF is a community partner in the current Crosslinx CBA initiatives.
What's fascinating is that in 2013 Ernst & Young research found that for every dollar spent on targeted employment by Atira Property Management, a social enterprise, there was a return of $3.32 to government.
We're also pleased to see this bill under consideration while simultaneously the Ministry of Innovation, Science and Economic Development, ISEC, and the Ministry of Employment and Social Development, ESDC, are engaged in developing a comprehensive cross-ministerial social enterprise strategy for Canada. Bill C-227 is an ideal way of integrating Public Works and Government Services into a larger cross-ministerial mandate focused on community, economic, and social development.
We believe that Bill C-227 will allow government to continue to create the intended economic stimulus that is created by government spending, but by adding a social impact element, that same money can be leveraged to address the most complex social issues our communities face. Community benefits agreements and social purchasing can include skills training and apprenticeships in the trades, as mentioned, and can create youth employment, address aboriginal economic challenges, and provide paths to integrate immigrants and new Canadians into the economy and social networks.
Without added costs or red tape, government can achieve a much greater return on the taxpayers' money: economic return, employment creation, and social impact. Adding intentional social value goals onto existing government construction and repairs spending will ensure our communities the greatest possible full-value return on taxpayer spending.
Thank you very much, and I look forward to the discussion and your questions.