Madam Speaker, let me begin by describing the principles of the Department of Public Works and Government Services' procurement process. It will make it obvious that the member for Roberval's motion is unsubstantiated. It will also make it clear that as the federal government's main contracting arm and the largest purchasing organization in Canada, the Department of Public Works and Government Services is committed to-I want to say this with all clarity-an open, fair and competitive procurement process that respects its commitments under international and national trade agreements.
The department annually issues 80,000 contracts worth almost $8 billion through a procurement process that is transparent, fair and open. The fairness and integrity of the process is rarely challenged.
In its day to day operations, openness, fairness and competition are the guiding principles for how the department does business with suppliers and contractors. Its approach is a very practical and visible example of the government's commitment to governing with integrity.
One might ask how this is done. First, the department competes contracts. In other words, bids are invited on a competitive basis and contracts are let on a competitive basis. It does not allocate them on a share basis to particular regions. Second, the department provides fair access to government business through open and competitive bidding opportunities. Third, its procurement policies ensure equal and fair access to competitive bidding opportunities for potential suppliers from all regions of Canada.
I have a few words about contracting statistics and why they are not a reliable indicator of economic benefit. The contracting statistics produced by the Department of Public Works and Government Services reflect the billing address of suppliers. However, it is clear that a supplier's address does not necessarily reflect economic activity.
For example, large national oil firms are likely to process all federal sales through an Ottawa mailing address but we all know there is no oil production or refining here in Ottawa. There are many examples of this nature which is why it is futile to examine contracting statistics as a means of evaluating economic benefits.
It is accurate to say that procurement is probably the most scrutinized activity of government. It is scrutinized not only by Parliament but also by Treasury Board, the Auditor General of Canada, the Canadian International Trade Tribunal, disappointed suppliers, the news media and taxpayers.
I assure the House that the Department of Public Works and Government Services' procurement system operates with the highest level of integrity. I emphasize that within the department, great efforts are always made to ensure that the procurement system is a transparent one and that we are accountable for our decisions. Important illustrations of this are open bidding, our supplier promotion program and the bid challenge mechanism offered by the Canadian International Trade Tribunal.
Open bidding is the key to helping Canadian firms do business with the Government of Canada. Open bidding opens up the purchasing needs of federal departments and agencies to suppliers that then decide for which requirements they want to compete. I emphasize that the decision on whether to compete or not rests with suppliers.
At the heart of open bidding is the open bidding service, often referred to as OBS, an electronic bulletin board that publicly advertises bidding opportunities for suppliers. The OBS is accessible with a personal computer and modem from anywhere in Canada. Users can log on a DOS or Windows basis and via the Internet. This information is also available in paper format in a publication called "Government Business Opportunities" for those suppliers without computers.
Equal access to business opportunities is one of the guiding principles of Department of Public Works and Government Services' open bidding system. The system is open to all Canadian firms, large or small, 24 hours a day and it operates in both official languages. The department is continually striving to improve the service. In fact, it views the open bidding service very much as a work in progress, one that has come a long way since it was introduced in 1989.
Today more than 27,000 subscribers use the OBS to obtain consistent, timely information on federal government and other public procurement opportunities. A recent OBS subscriber survey shows that 90 per cent of subscribers rate the service as good or very good which tells me that the people using the system like it.
The OBS is just one of the ways in which we are working to make the procurement system as accessible, fair and effective as possible for all Canadian businesses.
I should also emphasize that promoting competition, providing greater access to business and ensuring fairness in public sector procurement opportunities are the principles at the heart of this country's agreement on internal trade which has been signed by all provinces, including Quebec, and the two territories.
The key part of the agreement on internal trade deals with improvements to government procurement. These improvements commit all 10 provinces and the two territories not to discriminate on the basis of province of origin or nature of business.
I trust that I have been able to make clear that the notion of a regional fair share of federal procurement is a misguided one. That is not the way we operate. That said, we recognize the important role that procurement plays in creating jobs and growth here in Canada. Wherever feasible, within the confines of agreements such as the World Trade Organization agreement and NAFTA, regional benefits are given a high priority when evaluating bids for major government projects.
Assisting Canadian suppliers large and small to do business with the federal government is a key activity in the Department of Public Works and Government Services. The main tool used to accomplish this is the supplier promotion program. Each year this program holds seminars in all parts of Canada giving participants practical pointers on marketing to the government and putting them in touch with key departmental contacts. Last year 170 seminars were held throughout the country.
In addition, the supplier promotion program has fax sheets available, written in plain, clear language on a variety of topics including the open bidding service, free trade and much more. A booklet called "Your Guide to doing Business with PWGSC" is also available. The booklet provides basic information on doing business with the department. Today this wealth of information and a list of upcoming seminars is available 24 hours a day, seven days a week to anyone with Internet access.
Let me return again to the principle of integrity. As well as being a cornerstone of how the government operates, integrity in procurement is also a reflection of the international marketplace. Our international trade obligations require that our government procurement practices and transactions be fair and be seen to be fair. There must be equal access to information about procurement opportunities, clear rules on how the process is conducted and there must be an independent appeal mechanism for suppliers seeking redress.
The Canadian International Trade Tribunal, known as CITT, is Canada's third party appeal mechanism established to hear complaints from suppliers who believe that they have not been treated fairly during any stage of the procurement process for federal government requirements.
The CITT has the right to issue subpoenas and to make awards to suppliers in cases where a supplier's complaint is validated by the CITT. It is interesting to note that of the 80,000 contracts the Department of Public Works and Government Services awarded in 1995-96, the CITT only received complaints on 37 of these procurements and of these, only three were upheld as valid complaints by the tribunal. I think that is a pretty darn good record. On that note, I end.