Mr. Speaker, on May 10, I asked to the minister of public works a question about the $2 million still to be paid to Davie for repairs done at the Champlain dry docks. The work has been completed by Davie Industries.
Here are a few more details on that question. The dry dock has always belonged to the federal government. On March 31, 1998, an agreement was reached stating that once the repairs were finished, Davie Industries would manage the dry dock and use it to do some work there. Earlier, in April, I asked the minister of public works to respect the lower bid of the Davie Industries, even though the company was under the protection of the Bankruptcy and Insolvency Act. The minister of public works has allowed the repairs to the frigate HMCS Ville de Québec to take place in the dry dock, which is unofficially under the administration of Davie.
The same department of public works now refuses to pay the missing $2 million, because it claims Davie is under the protection of the Bankruptcy and Insolvency Act. The contract was for a total of $12 million.
Today, the minister's representative, the parliamentary secretary has had all the time needed to take note of the question. Indeed, there could be a default. However, could does not mean will. Under the present circumstances, it would be inconceivable that Davie not be able to use it to repair the frigate HMCS Ville de Québec and other work, when a vessel is being repaired for the department of public works, for the federal government.
I will listen carefully to the answer given by the minister's representative and I ask him to answer with a great deal of thought. It would help Davie if the $2 million were paid. It could do other work. It is not the time to withhold payments that are due to a company when it is in dire financial straits, on top of an advance of $800,000 a year, which the federal government agreed to pay for five years for the operations of the dry dock. Davie is already operating the dock. Why does the federal government not want to pay the $2 million it owes for work that has already been carried out since December? Why is it putting off paying the $800,000 that was due last April 1?