Madam Speaker, the government is committed to obtaining fair market value for surplus government assets in a manner that respects taxpayer dollars and the laws of our nation.
Treasury Board disposal policy calls for the utilization of private sector disposal specialists when it is cost effective to do so. To this end, in June 1997 a competitive contract was awarded to Lancaster Aviation Inc. for surplus aerospace assets disposal. Lancaster's bid met the mandatory experience, resource and financial requirements, and it submitted the lowest responsive bid. It won the contract fair and square.
The government held this competition because it wanted a centre of expertise capable of marketing and selling a wide range of surplus DND aviation assets. It was always intended that the surplus aerospace assets disposal contract include the disposal of surplus aviation assets such as aircraft.
The contract specifically included, under the provisions of special project sales, unique project sales which may include high dollar value items. It was under this provision that surplus Challengers were reported to Lancaster Aviation, the winner of the surplus aerospace disposal contract, as available for sale.
The sale of this surplus equipment was completed to the letter of Canadian law and with the interests of Canadian taxpayers in mind, meeting both treasury board and Canadian export control regulations.
In accordance with the surplus aerospace assets disposal contract, commission rates were negotiated for the disposal of the surplus Challenger fleet. The commission paid to Lancaster Aviation for its marketing efforts was reasonable. This was the sole manner by which Lancaster was compensated for its services.
The government received fair market value for the Challenger aircraft. The eight aircraft were sold as a lot for a selling price of $30 million U.S. to DDH Aviation of Fort Worth, Texas. The sale price reflected the fact that the Challengers were not certified for civilian use and would require modifications to make them suitable for civilian use.
The government has conducted the sales of the Challenger aircraft in accordance with treasury board and Canadian export regulations. Furthermore, the commissions paid to Lancaster Aviation for its marketing efforts were reasonable and the sale price represented good value to the crown.
If the member opposite has information to the contrary I invite him to table it in the House. Otherwise I fear he is wasting the time of the House, much like the leader of his party, trying to find a scandal where none exists.