Mr. Speaker, I would like to take this opportunity to address a reply to my question from the Parliamentary Secretary to the Minister of National Defence. It is about how the government plans on tendering moving contracts in the future.
Currently, only the four major Canadian van lines can bid on moving projects with DND. The others are given a chance to match the lowest bid. The successful bidder receives a volume bonus. Work is then farmed out to companies across the country.
The government proposed to change this system, so that any company from any country would be allowed to bid and the lowest bidder would get all the work. That meant that DND would move toward a one bidder take all system that would create a monopoly in the moving business. It would destroy an industry of over 800 companies across this nation and put thousands of people out of work.
Now the government, thankfully, has changed its mind and is proposing another plan, where a moving company with the lowest bid will receive 40 per cent of the government's business. The next three lowest bidders will receive proportionately less as long as they match the lowest price.
The government currently works with something called GLAC, the government list of approved carriers. If you are not on that list, you are not eligible for government moving contracts. Under the new proposal, that list would be scrapped.
The hundreds of independently owned and family owned moving companies that make up the moving industry provide quality service. They are on that GLAC list. They own the warehouses and the moving vans. They have invested millions of their own dollars in infrastructure.
Last week, Randy Hoyt, president of the Hoyt's Group of Companies from Atlantic Canada, told the public accounts committee that the volume of government business available to each of the GLAC carriers has varied according to their track record. For poor quality, movers are removed from the list or suspended.
This system is serving Canadian taxpayers well and is good for government employees and independent movers. Because they were assured a share of the volume, movers have invested in facilities and trained staff at locations in Canada where service would otherwise not be available. Atlantic Canada is a case in point. There are many towns where these companies have operations and so the public gets competitive quotes when they move.
The government's new proposal will destroy this system and the benefits that go with it. It will also result in thousands of job losses.
Ontario businessman Pat Baird told the public accounts committee that he wants to bid under the proposed new system. Mr. Baird has no trucks, no warehouses, no infrastructure. He has two to three employees and has no financial investment. He made misleading statements to the committee. He told the committee that if he wins the bid, he wants to use rail lines to move government employees. He forgot that we do not have rail lines in many parts of Atlantic Canada. He said that he has a joint venture with CN Rail and CN will be building 300 to 400 new 53-foot containers made up as moving vans. He also said that CN's investment was going to be $26 million.
I have spoken to CN and according to CN it has a verbal agreement with Mr. Baird. If the bid is successful it is prepared to modify, not build new, but modify some old 48-foot containers, not build new 53-foot ones, as Mr. Baird said, at a cost of $4,000 to $5,000 each. According to CN, its commitment will only be $1.3 million maximum, not $26 million as Mr. Baird has stated.
These inaccuracies in Mr. Baird's testimony should serve as a warning. The proposed new tender process should be put on hold. I appeal to the parliamentary secretary and the minister to review this matter. It is a serious matter. All I ask is to put it on hold and look at it because of these discrepancies and inaccuracies.