Debates of June 2nd, 1998

Government Contracts

[Preston Manning, Reform, Leader of the Opposition]

Mr. Speaker, the largest service contract in Canadian history has been awarded to Bombardier without competitive bidding. The whole thing was hammered out behind closed doors.

Last November the official opposition sought access to documents on this deal. We filed an access to information request. We asked again in February, in March, in April, in May, and no response.

What is it that the Prime Minister is trying to hide by blocking every attempt to get full disclosure on this deal?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, there was a public announcement made by the Minister of National Defence in 1996 when the Government of Canada was trying to find a solution to make sure that the base at Moose Jaw would be in operation. There was pressure put on the government by the premier of Saskatchewan and the premier of Alberta. We made an application to NATO to make sure that the base could be used for training in Canada. There was a public announcement at that time.

It is only months later that the contract was awarded when there was no interest at all by any other company. It is a consortium of many companies, some from Edmonton, Alberta, some from Winnipeg, Manitoba. It is a contract that will create—

[The Speaker]

The hon. Leader of the Opposition.

[Preston Manning, Reform, Leader of the Opposition]

Mr. Speaker, you would think when the government was awarding the largest service contract in history and giving it to a party with close ties to the Liberal Party and with close family ties to the Prime Minister, that it would—

[Some hon. members]

Oh, oh.

[The Speaker]

We are getting fairly close, my colleagues. Be quite judicious in the choice of words. I ask the hon. Leader of the Opposition to put his question.

[Preston Manning, Reform, Calgary Southwest, AB]

Mr. Speaker, you would think with a contract with these characteristics that the government would endeavour to scrupulously follow the rules, but it did not. It bypassed the rules on competitive bidding. It bypassed the rules on public disclosure of sole source contracts. Now the Prime Minister ignores access to information requests on this deal.

What is it about this deal that the Prime Minister is endeavouring to hide?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, on March 24 the department gave a briefing to the Reform Party on this contract. It was a very important initiative of the private sector to make sure the countries that wanted to train in Canada had the proper services. I invite the Leader of the Opposition to repeat his speech in Moose Jaw, Cold Lake, Edmonton and Winnipeg where a lot of jobs would be created.

[Preston Manning, Reform, Leader of the Opposition]

Mr. Speaker, I would be happy to repeat the speech in those places where they voted more for Reform than they ever did for the government. No wonder the private sector was anxious to get this deal. This deal is one in which if profits are made, Bombardier gets to keep them, but if the losses are big enough, the public gets to pick up the tab. It is also a $2.85 billion dollar project. That is four times the budget of Prince Edward Island.

I will ask the Prime Minister again. On a deal as sensitive and as big as this, why would the government not scrupulously follow all the procurement rules?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, we followed all the rules. It was examined carefully and approved by Treasury Board. It was in the best interests of creating economic activity in western Canada. If the leader of the Reform Party has no interest in the economy of western Canada, that is fine. As far as enjoying himself in the dirt, I know that he loves it and I do not expect him to change.

[Art Hanger, Reform, Calgary Northeast, AB]

Mr. Speaker, there is another rule bender. The former commander of Canada's air command, Lieutenant-General David Huddleston took a job at Bombardier and brokered the multibillion dollar sweetheart deal with the Canadian government, this Liberal government. He took the job only seven months after leaving the air force. This is a clear violation of the conflict of interest code and the cooling off period, and the minister knows it.

Are there any rules the government did not break when it awarded Bombardier—

[The Speaker]

The hon. Minister of National Defence.

[Art Eggleton, Liberal, Minister of National Defence]

Mr. Speaker, it has been said time and time again that there were no rules broken. This was handled in the proper fashion. As for the former air chief, all of the rules with respect to conflict of interest were followed. There was no lobbying done by that individual anywhere within the period of time.

Furthermore, this decision was taken about two years ago. In fact earlier this year the Reform Party had every opportunity to look at the records. It was offered to Reform members and they refused to do that. Instead they want to get up today and smear what is a very good deal that creates a lot of jobs in western Canada and saves the base—

[The Speaker]

The hon. member for Calgary Northeast.

[Art Hanger, Reform, Calgary Northeast, AB]

Mr. Speaker, the facts speak for themselves. The conflict of interest code makes it clear that there is a cooling off period of one year and he violated it. How can the minister deny this is a conflict of interest and that it makes this sweetheart deal to Bombardier look worse than it already did?

[Art Eggleton, Liberal, Minister of National Defence]

Mr. Speaker, it would be interesting to see if the hon. member wants to repeat that outside the House because there was no violation of the conflict of interest code. All those things are watched very closely.

This is a good deal for Canadians. It saves $200 million over 20 years. There was no other consortium of companies that would likely put a project of this magnitude together. We had a time deadline in which to get this in to NATO. A decision had to be made or we would have lost Moose Jaw. We would have lost over 5,000 person years of employment in western Canada.

Liberal Government

[Michel Gauthier, Bloc, Roberval, QC]

Mr. Speaker, one year later, this government, which was supposed to be launching us into the third millennium, is stagnating—

[Some hon. members]

Oh, oh.

[The Speaker]

I appeal to you, my colleagues. We are having a tough time.

[Michel Gauthier, Bloc, Roberval, QC]

Mr. Speaker, one year later, this government, which was supposed to be launching us into the third millennium, is stagnating, marking time, bogged down, and has apparently run out of ideas.

Will the Prime Minister admit that his government is so unable to take advantage of the favourable economic context, which makes its life easier, that even its members, when questioned by journalists, cannot come up with anything significant this government has done?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, after one year, I am very happy to say that this is the first time in 30 years that Canada has had a balanced budget.

Over the past year, Canada's unemployment figures have been at an eight-year low. Over the past year, we have invested in research and development and helped young people prepare for the 21st century.

Over the past year, we have signed an internationally respected land mine treaty.

Over the past year—

[Some hon. members]

Hear, hear.

[Michel Gauthier, Bloc, Roberval, QC]

Mr. Speaker, rising to boast of the fact that there are now one and a half million children living in poverty in Canada, that 60% of unemployed workers are now ineligible for EI, and that hepatitis C victims are being ignored by this government, shows a lack of compassion that is truly scandalous.

Is the Prime Minister not proving to us that not only his entire government but he himself have run out of ideas?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, we have invested $850 million in the child tax benefit. Over the past year, we have created the millennium scholarships, which are going to help people—

[Some hon. members]

Oh, oh.