Debates of May 21st, 2002

The Environment

[Alexa McDonough, NDP, Halifax, NS]

Mr. Speaker, in Europe, the Prime Minister tried to sell his watered-down version of the Kyoto accord. This cabinet is divided. Their position is not a united one. The Minister of the Environment is meeting with his provincial colleagues today. The minister is trying to sell these exported energy credits in order to back out of our commitments.

Is it the Prime Minister's position that Kyoto will not be ratified without the energy export credits?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, the premier of Manitoba and the premier of Saskatchewan are asking that we obtain the approval of other countries for us to be given clean energy export credits.

We are working in co-operation with Canada's two New Democratic governments, which want us to use this system in order to reduce our obligations under the Kyoto accord.

[Alexa McDonough, NDP, Halifax, NS]

Mr. Speaker, the Prime Minister has mentioned Manitoba and Saskatchewan because those NDP governments are leading the way in reducing greenhouse gas emissions. With their ethanol strategy, they are providing solid solutions to help Canada meet Kyoto targets.

Even backbench Liberals have called for decisive action on renewable fuels, but we still do not have a national ethanol strategy. The Saskatchewan government has introduced legislation to mandate standards for ethanol. When will the federal government follow the Saskatchewan lead and do the same?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, we started in 1995. The NDP government of Saskatchewan is seven years late. We did it in Ontario, for example, many years ago when we helped the private sector to develop ethanol using agricultural products. It was started long before the bill that was passed in Saskatchewan.

Government Contracts

[Joe Clark, Progressive Conservative, Calgary Centre, AB]

Mr. Speaker, my question is for the Prime Minister. We know about Groupaction. We know about Polygone. We know about Groupe Everest and we know about Columbia. We know that Lafleur Communications received $31.9 million in contracts under the sponsorship program despite not being approved for that program. Even Via Rail has now called in the auditor general to look at its role in the sponsorship program.

Did Lafleur, now owned by Groupaction, receive untendered contracts from Via Rail specifically or from other departments, agencies or crown corporations?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, I said that the auditor general, at the request of the minister, is looking into the sponsorship program. She will report when her work is done. If there are some questions to be asked of crown corporations, we will ask the crown corporations.

The leader of the Conservative Party can communicate with these organizations and ask them for the documentation that they could give to him.

We have nothing to hide. We want all the facts to be known by the public.

[Joe Clark, Progressive Conservative, Calgary Centre, AB]

Mr. Speaker, Claude Gauthier and Transelec were awarded a CIDA contract in Mali just after Mr. Gauthier paid $525,000 to buy land at an inflated price from the Grand-Mère golf club in which the Prime Minister then had a financial interest.

CIDA had refused to pay Transelec for cost overruns. Now mysteriously it has changed its mind. That may mean another $1.3 million for the man who helped bail out the Grand-Mère golf club.

Why did CIDA change its position? Was Michel Beliveau, who now works for the Prime Minister, involved in those discussions?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, there was a contract that was won by a firm 30% below the other bidders. He got the contract from the government of Mali. He did some work for it. There is some discussion at this time between the contractor and the Mali government about extra work that was asked of them. That dispute is going on between the authorities at this time.

Everything is above board and it is about somebody who won a contract 30% below the second bidder.

[John Reynolds, Canadian Alliance, West Vancouver—Sunshine Coast, BC]

Mr. Speaker, there is a clear pattern here and it begins on the Prime Minister's doorstep.

A company does not qualify for taxpayers' money, but Liberals put political pressure on public servants to make the money flow. Now we learn that a former Liberal Party Quebec president and the former minister responsible for CIDA put the heat on departmental officials multiple times to approve the extra $1.3 million.

For the minister responsible for CIDA, why is the government pressuring the public service to get money for the Prime Minister's Liberal friends?

[Susan Whelan, Liberal, Minister for International Cooperation]

Mr. Speaker, clearly no decisions have been made for any additional payments. Very clearly, our contract is with the government of Mali and Transelec must resolve its dispute with the government of Mali. If they were to put forward a claim, then that would be done through a third party. Very clearly CIDA has made no decisions, has not retracted any decisions to make any additional payments.

[John Reynolds, Canadian Alliance, West Vancouver—Sunshine Coast, BC]

Mr. Speaker, it gets worse. Mr. Beliveau, the unregistered lobbyist who received another $1.3 for Transelec, now works in the Prime Minister's own riding office. Somehow everything seems to be connected to the Prime Minister.

The government abuses power and it abuses taxpayer money.

The Prime Minister can hide behind the fact that the auditor general is looking into this or looking into that but when will we get a full public inquiry into this whole issue to clear the air?

[Susan Whelan, Liberal, Minister for International Cooperation]

Mr. Speaker, I will be very clear. The contract and the money we have paid was paid through the government of Mali. The government of Mali entered into a contract with Transelec. If there is an outstanding claim, Transelec must resolve that with Energie du Mali which is the government agency that has the contract. If it finds there is a valid claim, then we will go through a third party to see whether or not there should be any additional payment.

Right now we have made no additional payment, have retracted no additional payment and have no intention of making an additional payment.

[Ghislain Lebel, Bloc, Chambly, QC]

Mr. Speaker, after learning that the federal government paid 25 times more than the Quebec government to advertise in L'Almanach du peuple , we are now finding out that the federal government paid $1,288,000 for the Salon national du grand air, while the Quebec government paid $25,000, or 50 times less, for the same event.

How does the minister justify this 50:1 ratio?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, if the hon. member wants me to make a list and compare federal and Quebec sponsorship initiatives, I am prepared to do so.

The Canadian government sponsored the jazz festival to the tune of $400,000, while Quebec provided two and a half times that amount, or $1 million. The Canadian government gave $550,000 to the Just for Laughs Festival, while the Quebec government paid two and a half times that, or $1 million.

If the hon. member wants to make comparisons, I can go on. Last year's federal sponsorship of the Grand Prix de Trois-Rivières totalled $150,000, compared to $246,000 for Quebec's. If this is the criterion he wants to apply, the hon. member is mistaken.

[Ghislain Lebel, Bloc, Chambly, QC]

Mr. Speaker, commissions to Groupaction alone have cost us $114,000, or four times more than Quebec's contribution to the same event. The minister can expect to be invited to Jean Brault's cottage very soon.

How can the minister justify this?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, I am prepared to continue reading the excellent list provided to me by departmental officials.

In the case of Montreal's Tour de l'île, our sponsorship was $50,000, compared to $229,772.80 for Quebec. Did the Government of Canada get a deal?

Let me give another example. The Canadian government's sponsorship for Quebec City's Festival d'été international was $25,000, compared to $579,900 for the Quebec government.

[Gerry Ritz, Canadian Alliance, Battlefords—Lloydminster, SK]

Mr. Speaker, the minister of public works has announced that he will be selecting new communication agencies this June. It sounds like a little more damage control is going on.

The minister is doing his darndest to deflect blame onto his previously hand-picked agencies for the gross mismanagement of the sponsorship advertising programs. However, Groupaction, one of the outfits, points out that it “provided adequate services that correspond to the communication and political objectives of the government of Canada”

Will the minister stand up today and admit that the whole darned fiasco begins and ends with the questionable ethics practised by his department?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, the firms were not hand-picked as the hon. member alleges. They were picked pursuant to treasury board rules in an open competition. Nine firms qualified and they were awarded contracts in 2001. They were put on a standing offer. I can name them for the House: Armada, Bristol Group, Communication Coffin, Compass Communications Inc., Gosselin Relations publiques, Groupaction, Groupe Everest, Lafleur and TNC.

[Gerry Ritz, Canadian Alliance, Battlefords—Lloydminster, SK]

Mr. Speaker, in response to a question earlier from the member for Calgary Southwest, the Prime Minister said that changes would be made so that the errors of the past would not be repeated. However, nine years went by and nobody over there said a word.

The minister's new five point plan that he has just implemented really puts the onus on the contractors to lower themselves to the standard the government asks them to go.

Will the minister admit that the whole problem begins and ends with the corrupt practices of the government?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, the hon. member is not correct when he says that the onus to adhere to the rules is placed on the contractor. Some provisions of the new rules apply to contractors such as the ones where they cannot double dip. They cannot collect from the agency and collect from the government at the same time.

There are other rules. For instance, we said that we would open it up completely by ensuring that companies with only 50% Canadian ownership as opposed to 100% with measures such as these and a whole series of others are government sponsored and related. In fact, there are some for both. Both sides must agree to those far stricter rules which were put in place both in February and more--

[The Speaker]

Order. The hon. member for Longueuil.

[Caroline St-Hilaire, Bloc, Longueuil, QC]

Mr. Speaker, if the investigation into sponsorships were to be limited just to the efforts of the auditor general and the RCMP, one whole aspect of this entire business would be ignored, that being the political one.

Will the minister of public works admit that the auditor general's investigation is not enough and that only an independent public inquiry will shed light on the entire sponsorship program?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, the opinion of a member of this House that the investigation by the auditor general, who represents this House, is not enough to satisfy this House about the operation of the sponsorship program, is not one I share. I for one have confidence in the auditor general. I am sure that she will do a good job.

[Caroline St-Hilaire, Bloc, Longueuil, QC]

Mr. Speaker, after Micheline Charest, of CINAR, Ms. Deslauriers of Groupaction, and Mr. Béliveau of Transelec, does the Prime Minister not think that an independent public inquiry is urgently necessary because many people close to him and to his entire party clearly seem to be mixed up in this affair?

[Don Boudria, Liberal, Minister of Public Works and Government Services]

Mr. Speaker, as I indicated, the various contractors now on file were selected on the basis of a call for tenders in 2001.

I have instituted a new call for tender system. We will put out a call for tenders around June 15, to take effect starting in October, in order to have even more companies participating in government sponsorships. This will be a public call for tenders available on the MERX site, and therefore available to everyone.