Mr. Speaker, Bill C-7 seeks to establish the Department of Public Works and Government Services and to amend and repeal certain acts. Why was this department set up? It is probably in order to improve its services, increase its efficiency and allow it to operate in the most appropriate way in the future.
However, this piece of legislation does not contain any change to deal with the very blatant flaws currently found in the system. As a new member of the committee on government operations, I was able to how centralized the procurement operation of the federal government.
Granted, they are trying to find ways to ensure that procurement is made at the lowest cost. They are also trying to ensure some openness in the procurement process. However, they forgot a very important concern: is that process to the benefit of Quebec, of Canada and of the various regions of this country and does it allow for development of those regions on a fair basis?
In committee, I was told, for example, that the figures on the actual breakdown of government procurements between the various provinces were not available.
This to me is a major flaw because, while they put forward a reform of the unemployment insurance system, while they say they will try to find ways of helping the regions hardest hit by the reform, regions with seasonal economies or with an economy dependent on natural resources, they cannot put forward real measures devised to give new impetus to these regions in diversifying their economy. One of the more concrete ways to do so would be for the government to ensure that its procurement program has some impact throughout the country and that it can efficiently assess this impact.
During the 1970s, the federal government opened a number of offices, for instance to process tax returns and other similar information, which had some kind of synergic effect in some areas, but we do not see that anymore and we cannot even get this kind of information nowadays.
Another element which we think is being somewhat overlooked in this bill is the fact that federal members of Parliament from all political stripes should be consulted and kept informed of any government contract awarded in the federal ridings they represent.
Right now, there is no systematic information mechanism to ensure that the public is made more aware of what is going on. One criticism that we can make-and I have seen this in my riding in the last few months-is the following: what process do small businesses have to follow to be eligible to join the bidding process and to be included in the computerized contractors system. It is very complicated and very hard to gain access to this network but even tougher to reach the insiders, those who know how the procurement system really works. Let me give you a very concrete example by telling you about an experience a company in my riding went through.
There was a call for tenders for the building of fibre glass shelters. Upon seeing the ad in the newspapers, a company in my riding decided, all in good faith, to request all the information it needed. After reading the documentation-and I have seen all of it-it dawned on us that it was impossible to develop a proposal based on the information made available to companies.
To make things worse, the company called to get additional information but could not get any. That came about because the project was developed with a particular company in mind, and even though the government called for tenders, it was in fact already a done deal. Under such circumstances, it is impossible to compete
because the companies are not even provided with all the information they need.
So, with this bill, the government would have had a great opportunity to act on this issue and on the creation of the department, and to provide for transparency and get rid of the old myth that government procurement is always based on patronage and also to deal with the whole issue of administrative contracts. There is still a lot of room for improvement. The government could have done a lot more to better target its action.
They could also have tried to make public servants more aware of the money they were spending. We are often told, these days, that calls for tenders are done correctly and in such a way that anyone can bid on them, but the government never tried to have a real impact on the development of small or medium size businesses in our regions. What would be more meaningful in an area with high unemployment than to inform businesses in that area and to have federal civil servants going on a tour of these businesses to make sure that they can take part in the procurement system, have the chance to know exactly how it works and submit proposals, answer calls for bids and get contracts?
We have seen this as members of Parliament for the last two years and a half. The system is often made in such a way that people with a lot of potential and capabilities and who are already part of the system get the information they need and are encouraged to perform even better. But our responsibility in government is not only to make sure the strong and the rich get what they need, but also to see to it that new types of small and medium size businesses can take off, develop as well as create and maintain jobs. The federal government has still a lot to do in that regard. I think some progress was made in recent years to make tendering more available. There remains much to do but I can see no will to do it in the bill before us.
The Bloc Quebecois' approach is based on government transparency and that of its administration. Currently, anyone trying to deal with the government or the public service is confronted with a colossal maze preventing them from getting more information.
If the example I gave earlier was an isolated case, we could say that it is an exceptional case, but there are also others. In my riding, well known businesses, medium size and large ones that have been operating for many years are having a lot of difficulty finding their way around in the government procurement process, and I believe that there is work to be done in this regard.
There is an element which, of course, cannot be solved by the bill on the public works department, but which is always present in these situations. It is the question of the political party fundraising. As you know, Quebec has a law which provides that only individuals can make donations to a political party. No bank, no union, no community association, no foundation can make donations and claim a deduction.
In the federal government, things are different. Businesses, unions, community groups, everybody can make donations to a political party. This does not necessarily mean that businesses are dishonest, but it can give rise to conflicts of interest. I believe that if we change the law governing contributions to political parties along those lines, there would be more openness and transparency in the awarding of contracts, and I believe that would be much more appropriate.
Another element the Bloc Quebecois considers as important is the establishment of a code for contracting out that would force the government to adequately monitor the use of outside contractors and to make the process transparent. The monitoring process should be acceptable for all the parties involved in this important question. The contracting out process is a current issue and it is a dynamic process which can be very profitable. On the other hand, as public organizations, we must ensure that we do this with enough visibility, allowing people to see that their money is spent properly.
I would like to come back on the consultations, on the information required by the contracting out process and on the role MPs must play. A federal member of Parliament, regardless of his or her political affiliation, is someone who has been elected and who is responsible for representing his riding as far as legislative issues are concerned. But he has more than legislative responsibilities. Administrative decisions have impacts which are very real, and one of them has to do with public procurement. There are public expenditures of this kind.
The elected representative has the power to question government on all its expenditures. However, can we do that job properly if we do not have the necessary tools to really know what the federal public administration is doing in our riding? That kind of information would be very useful and could even help in the elaboration of economic development strategies for a given region. An area that does not benefit from a lot of government investments could think of attracting some or decide to continue looking for other kinds of investments. If it does not benefit from that kind of investments, it could try to find out why not.
How could we do things otherwise? Could we have federal civil servants give business owners up-to-date information? There could be another reason. Perhaps some ridings do not get many federal contracts, not only because the necessary information is not
available, but because they do not try hard enough to get it. There is an interesting economic potential that could be developed at a very low cost.
The government is constantly seeking ways to create jobs. Well, one of the ways to do it would be to make sure that its purchasing is done fairly and appropriately in all areas of the country. So there has to be a process where everyone has a chance to compete and to be awarded a contract.
We, in the Bloc Quebecois, would also like to have a mechanism for blowing the whistle on any waste of public funds. It is not a matter of hitting people over the head. Perhaps we should follow the example of municipal governments. If you talk to a councillor or a mayor in a small municipality, you can be sure that, when money is spent on things that are not really necessary, they know it quickly because people see those things in their daily life; they see the work done at the street corner, they see everything. That is probably why municipal governments follow what goes on very closely.
At the federal level, governments may not have been as vigilant as they should have in the past, as is shown by our deficit. We can easily imagine the kind of unnecessary expenditures that are made regularly. In the fight against the deficit, if we did things right, if we followed the situation more closely, we could put less pressure on social programs and stop chasing unemployment insurance recipients. Instead of that, we could try to find the major elements that we have to work on in order to save money.
So there could be significant cuts in government spending. I think that it could imply greater accountability for public service employees. The area of government procurement may be a priority area where, in creating the department, the government could have clearly shown its desire to improve the situation in this regard. However, we do not find these elements in the bill as it stands.
There is another issue of interest to us, and it is the issue of advance payments by the government. This practice is used by public service employees and managers. These people are afraid of having their annual budget cut if they do not use all the resources allocated to them. In other words, when the end of the fiscal year is near, suddenly the money has to be spent to be sure that next year's budget will not be cut. We all have heard about that, we all have seen it in the departments. I think the government should have done something to provide for better control in this area.
Finally, the Department of Public Works is responsible for processing requisitions from other departments. Maybe there is a period during the year where the department should be particularly vigilant to see if these purchases are really necessary. Do they really need these things? Is it not at the beginning of the year that it is finally realized that the full amount budgeted is not really needed? The unnecessary purchases and horror stories we hear, which often take place at year's end, would be avoided.
The Department of Public Works must therefore be a credible watchdog over advance payments by departments. This department spends over 50 per cent of government commitments. In each department, the amount that can be authorized is minimal and responsibility rests with the department of public works. This is therefore very important because we are reviewing the act governing this department.
It is therefore very important to be sure, at this stage, that the bill contains all the means necessary to carry government purchasing into the 21st century, allows a sufficient degree of transparency and, above all, ensures that government spending benefits regional development.
For these reasons, I think that the government will have to review its bill and see whether amendments are not required.