Mr. Speaker, I am pleased again to be able to speak on Bill C-22 at third reading. I will not hide from you that the Bloc Quebecois is against this bill, especially the part that allows the government to pay the compensation it sees fit to those who signed the contract for privatizing Pearson Airport, without releasing full information on the circumstances which led from the decision to privatize the airport to the signing of the contract.
The Prime Minister promised us a clear, open, rigorous process to get to the bottom of this failed transaction and to fully elucidate the involvement of political staff or former political staff and lobbyists in this affair. Remember the summary report prepared by Mr. Nixon. He said that political staff and lobbyists had an uncommon role in negotiating this transaction, but it stops there.
Some even say that this could be one of the biggest contracting frauds ever on Canadian territory. The conditions under which this contract was awarded are suspect and we are being kept in the dark about them. Bill C-22 even leaves open the possibility or gives the government complete latitude to compensate those who might have lost when this process of privatization was halted.
Why not get right to the bottom of this question? It could prove useful to deal with similar cases in the future, because we must not lose sight of the fact that in many cases, the political staff and the lobbyists who were involved in this transaction and in the whole Pearson Airport privatization process are the same ones who are now working on other files, whether to promote the interests of the companies they represent or simply as professional lobbyists.
As we have said over and over and will continue to repeat for the next three years if necessary, we from the Bloc Quebecois are under the impression this is one of the worse cases of patronage in the history of this country. I am starting to wonder, and even if I never managed to get an answer since Bill C-22 has been under consideration, I put the question to the Liberal government: Is it because it realized that the interests of friends, former friends or great friends of the party were at stake that, on the strength of a simple report, the Liberal government now refuses, or so it seems, to answer to an extensive and in-depth commission of inquiry into the whole process, a process which according to Mr. Nixon's summary report, was mind-boggling, full of inappropriateness, oddities and things never heard of in this sort of transaction?
This was a contract to privatize one of Canada's most profitable airports. So, all the considerations, the entire process which have led to this contract being drafted should be brought out in the open. The players should also come out in the open. Let me remind you, Madam Speaker, the names of a few of the friends of the Conservative Party and the Liberal Party who were involved in this process, this privatization attempt. It is always a pleasure for me to name names because, so far, the government has refused to clarify the involvement of these people, when we know full well that they are very closely tied to the Liberal Party of Canada and perhaps, in fact certainly, to the party fund as well.
As you know, the Liberal Party of Canada, like all major Canadian establishment parties, is not subject to any legislation on political party financing or rather on the financing of political parties by the people, unlike the Bloc Quebecois. So it is quite normal that a contract of this nature or a process leading to the privatization of the biggest Canadian airport would bring up the names of people, organizations or business owners who contribute large amounts of money to political party funds. Something like that could not happen with the Bloc Quebecois because our hands are not tied by corporate, anonymous and impersonal contributions. We are disciplined in this respect and only accept contributions from real Quebec citizens. I think it is good for us and for democracy.
It is probably because they realized that friends of the Liberal Party of Canada were involved in this deal that they refuse to shed light on it. I repeat, as it can never be repeated often enough: the list of the people involved may help us understand not only why the Liberal government refuses to disclose all the facts but why its bill gives it all the latitude needed to bribe those directly or indirectly linked to the failed Pearson Airport privatization process.
You remember Senator Leo Kolber. He was the one who organized the cosy $1,000-a-plate dinner where the guest of honour was the Prime Minister. Guests could shake hands with the Prime Minister in the midst of the election campaign and talk to him about their little problems, perhaps in connection with the Pearson Airport privatization or to the money they would lose if the privatization deal was cancelled. In short, Senator Leo Kolber was a stakeholder in this event and especially in the whole Pearson Airport privatization process.
There was also Mr. Bronfman, who did not hesitate either to attend this $1,000-a-plate dinner to shake hands with the future Prime Minister. Herb Metcalfe was also present. He is a lobbyist and former organizer for Mr. Jean Chrétien before he became Prime Minister. He is close to the Prime Minister and was very involved in the whole process to privatize Pearson Airport.
Ray Hession was also present. He is a former deputy minister of Industry and senior civil servant with Supply and Services, under the Liberal government of Pierre Elliott Trudeau. Mr. Hession was also involved in the process to privatize Pearson Airport.
There were others too, including some Conservatives. The current government is Liberal. I think it is worth repeating that we have serious doubts about the purpose of Bill C-22, given the names of the key players, the contributors who finance the Liberal Party of Canada, and also the inclusion of a clause designed to compensate those who may have suffered a prejudice when the Prime Minister decided to cancel the privatization process.
In addition to the fact that this government refuses to shed light on the role of these players, who are known to be very close to the Liberal Party of Canada, there is also the fact that the contract for the privatization of Pearson Airport is full of very unusual clauses.
That document is something else. Let me give you some examples which are still mind-boggling at the conclusion of the review process of Bill C-22.
The contract was for a 37-year period expiring on October 31, 2030, with an option to extend that period for an additional 20 years. Why is that? It is because the Ontario legislation provides that, on leases longer than 50 years, a provincial tax applies to any transfer of property.
Normally, if the duration of the lease had not been split, those involved in the transaction would have had to pay around ten million dollars to the Ontario revenue ministry. Just imagine, with the federal government's complicity, individuals were making deals and the terms of their contracts were such that they could avoid paying legitimate taxes to the Ontario government. That is rather amazing.
When in this country's history have we ever seen the federal government paving the way for a party to avoid provincial taxation? This is quite extraordinary.
Rent is calculated on the basis of gross revenue. According to the contract, Pearson Development Corporation was to turn over 30.5 per cent of its gross revenues for the previous year to the government, up to a maximum of $125 million in gross revenues. For any amount in excess of $125 million in gross revenues, Pearson Development Corporation was required to pay the government 45.5 per cent of its gross revenues from the leasing operations.
Calculating gross revenue is an extremely technical process, but very important nonetheless because this type of clause is rarely found in contracts, even in those far less important than the one to privatize Pearson. For the purposes of this calculation, gross revenue includes all revenues generated through the operation of terminals 1 and 2 at Pearson, excluding ten significant deductions, which reduce the buyer's rental, accommodation and contracting costs.
The deductions amount to the taxes collected from consumers and passengers which are pocketed by Pearson Development Corporation on the government's behalf. Extraordinary sources of revenues are discounted for the purposes of calculating gross revenue. This is unusual when determining basic rent in a transaction such as this.
When we look at revenues which, although not unusual, are infrequent and are not generated through the normal operation of the terminals, including access sales, we see that these too were not included in the calculation of gross revenue on which rent will be based.
The same holds true for investment revenue. The contract contains a number of bizarre provisions. Unless these are closely scrutinized and unless those individuals associated with the privatization process, the principal players in this deal, are called upon to testify -I named a few of these players a moment ago, but there are many others -until such time as we can ask them questions, we will not know the whole story as far as this deal is concerned. There are many incongruous aspects to the Pearson privatization contract.
Many questions also arise about the rebates and refunds awarded by Pearson Development Corporation in the case of airport equipment. Here again, we find some strange provisions. There is also something odd about the way the government will recover the costs associated with the occupation of airport space.
I will not give you a complete list of all the incongruities since time will not allow it. During the course of this debate, we have been able to bring to light a number of the contract's incongruous provisions which make this deal unparalleled in Canadian financial history.
We could have also talked about severance pay for Transport Canada employees. That situation is also disgusting. If you look at the facts, even dispassionately -passionately it is worse- if you think that the government of Canada had offered separation allowances to 160 of its own employees despite the fact they were guaranteed employment for two years with Pearson Development Corporation-
Separation allowances totalling $5.5 million would have been paid to 160 federal employees while allowed to keep their jobs. That is revolting! It is totally unacceptable, particularly in view of the unemployment levels and the housing situation, when people are asking for social housing and getting none. I am bringing up social housing because I just attended a meeting on the subject and once again, the government has refused to at least consider alternatives so that the neediest -some 1.2 million households nationwide- can find decent housing and not have to spend in the neighbourhood of 50 per cent of their income on rent.
You can imagine how I feel about a government that does not want to listen to the complaints or the cries of despair of the most ill-favoured members of our society, that does not want to pay any attention whatsoever to the social housing situation in Canada and is pursuing the very policy it had been denouncing in no uncertain terms since 1992. I am speaking on behalf of all their spokespersons when I contrast this with the government allowing employees guaranteed to keep their jobs for the next years at least to be paid $5.5 million in compensation. I am at a loss to know how social justice works in this government.
The latitude the government is giving itself as well as the almost impudent fashion it presents the capacity the government has to compensate friends of the system without specifying any amounts -it could be in the millions- can also be contrasted with the brick wall we are facing when we want to raise issues like social housing and unemployment insurance cuts with the government. However hard I try to stay cool in face of such injustice and double standard, my blood boils. Friends of the party -the very rich friends of the Liberal Party of Canada and contributors to the party fund- get to be treated one way while those who have no voice, no power and no lobbyists representing them on the Hill, in ministers' offices or in the office of the Prime Minister are treated differently.
I think there are enough grounds -and I still cannot see why the government is so obstinate- for making an effort to bring to light the whole story regarding the privatization process at Pearson, with all the dealings involved and all the financial inconsistencies. I think this deserves an answer from the government. If it is not true that the friends of the system had their palms greased and stand to benefit even more under Bill C-22, then let us get to the bottom of this business and get all the facts.
We want to believe you but not on the basis of a superficial analysis commissioned by the Prime Minister, which probably has some value-I am referring to the Nixon Report-but not as much as a thorough, serious review of all the elements surrounding this deal and of what it could involve in the future.
I think we will be able to continue this debate beyond Bill C-22 after the lobbyists bill is tabled. We should find out the general provisions tomorrow. Let us not forget, however, that many of the Pearson players, as I pointed out at the beginning of my speech, are professional lobbyists. These people will continue to haunt the halls of this building and try to persuade the government to go back on its decisions, sometimes perhaps with bad intentions.
I am not saying that all lobbyists have bad intentions. On the contrary. I know lobbyists who express their clients' views in a quiet manner, but I also know other lobbyists whose integrity can sometimes be questioned, especially when they are much too close to this government and when they represent interests contributing to the election fund of the Liberal Party of Canada.
For all these reasons, the Bloc Quebecois will vote against Bill C-22. We are still demanding a commission of inquiry to uncover all the facts on this deal, and it is not true that such an investigation would cost millions of dollars and take a year and a half. I think that the House of Commons has all it needs to conduct such an investigation and that, if we act in good faith, we should be able to proceed rather quickly by having the principal players in the failed Pearson Airport privatization deal testify.
I also think it is worthwhile for transparency's sake that the people of Quebec and Canada find out how the government deals with such important issues and how much influence lobbyists exert, often in an underhand way. Lobbyists often cast a shadow over government decisions, especially when they may represent the interests of the Liberal Party in some respects.
I hope the government will respond favourably to our request. It would be a good example of what it claims it wants to achieve during this mandate, that is, acting with honesty and transparency and serving the people of Quebec and Canada well. I think it would be a good start. If members on the other side of the House share our sense of democracy, they should agree to the Bloc Quebecois's request.