House of Commons Hansard #198 of the 37th Parliament, 1st Session. (The original version is on Parliament's site.) The word of the day was chairman.

Topics

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11:20 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, I want first to congratulate the minister on his appointment and also on his endurance this evening. A daunting challenge lies ahead for him. There are three at bat and two have struck out.

Of concern is the 69% of Canadians who truly believe their government to be mismanaged, to have corruption in it, to have ethical problems, and they are looking for an ethical home run, but they doubt they are going to get it.

I would like the minister to tell us what he has done that is an improvement over what the last minister did, and let me repeat, the last minister, not the first of the three ministers. Could he tell us what he has done to change this perception, real or imagined, in this short time?

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11:25 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I would note just for the record that in the market research to which the hon. gentleman has referred, the 69% figure referred to no particular government or political party but indeed to the federal political system. Quite frankly, I think it was a message to all of us that we have to be very sensitive to the concerns among Canadians about the administration of public business.

We can perhaps talk about some of the initiatives that can and should be taken, but one specific step that I would note for the hon. gentleman is that on Monday last, when I had been in office for less than one day, I did take the step of applying a moratorium to any new approvals under the sponsorship program. My concern was to satisfy myself that the criteria of the program were proper and appropriate in the circumstances and that the projects in process would meet those criteria.

That freeze remains in effect. I have been examining the questions over the course of the last week. I hope to remove the freeze in the next number of days but not until I am satisfied that the information before me indicates a situation which respects the public trust. That is an incremental step that I took immediately upon coming into office.

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11:25 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, one reason the public seemingly lost confidence, and it goes along with a statement that the minister made earlier to my colleague from Battlefords--Lloydminster, was that the management style of public works was clearly inadequate prior to the year 2000.

Many would say that there have been seriously inadequate management and ethical challenges in several key areas since the year 2000, at a time when the government clearly was been bogged down for 27 years procuring a replacement for the Sea Kings. Yes, 27 years ago the Liberal government started replacement proceedings for the then 12 year old Sea Kings. That was in 1975. A political procurement nightmare still continues and it is still at the bottom of the action list of things to do today.

In response to the member for Saint John, the minister said that he had not been briefed on the maritime helicopter project yet. Nine days is not a very long time but I would think, for a project that is the largest single government procurement in history, that the minister would find the time to be briefed on the file in his first nine days.

My question for the minister is this. When will he be briefed on this file? When will he crack the file on this major procurement project?

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11:25 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I am sure the issue of this procurement is one that will preoccupy me and the Minister of National Defence in a major way in the weeks ahead. It is obviously a large acquisition by the Government of Canada.

At the moment certain steps have been taken and are ongoing. There was a prequalification letter published in draft form in the early part of this year with respect to the latest specifications for the basic vehicle for the maritime helicopter purchase. There was a feedback period that went until the middle of March for industry to respond to the draft letter. Its input is now being reviewed and assessed. There is an ongoing dialogue with the industry. The objective is to ensure that when the procurement actually does occur, it will be absolutely above reproach, it will be fair, open and transparent and it will not subject to challenge.

One can imagine that this is a complex process. These are highly complicated machines. It is not like the simple acquisition of the ordinary family car. We have a lot things to take into account to ensure that the process is fair and that taxpayers receive the best value available. To facilitate that along the way, we have used and will continue to use independent fairness monitors to ensure we are handling it properly.

I want to assure the hon. gentleman that this will be a major preoccupation. I take his point seriously, that this is an important issue and it is one that I have no intention of treating lightly.

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11:30 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, I would like to know the minister's opinion on this. Earlier this evening one of the Liberal members made the comment that in procurement not only was the original capital cost of the procurement a concern nor should be looked at solely as the major concern, but also attention should be paid to the long term maintenance or carrying costs of an item. The example given was energy saving devices that cost more initially to procure but obviously operate on a less continuing cost.

I would like to know if the minister will be carrying that same thought forward when he is reviewing the maritime helicopter project, not just look at the helicopter project based on their performance, range, mission capability and safety but also on the follow up cost savings that would be inherent by having common helicopter frames, power and parts supply that would be a common product.

The new search and rescue helicopters are one particular airframe. Would it not be a sensible way to view that commonality of two airframes when viewing the tremendous purchase costs of the maritime helicopter project? Will he be entertaining those considerations too?

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11:30 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, there are a whole range of factors to take into account in comparing one bid against another. When we are dealing with something as huge and complex as a helicopter contract, it is a challenge but it is extremely important to ensure we are comparing apples to apples and oranges to oranges and coming out at the end of the day with the wise use of taxpayer dollars.

Our procurement process ensures that the companies will be bid exactly what the military needs and therefore will allow the government to seek the lowest price from among compliant bidders. Assuming that all other factors are equal in comparing one bid against another bid, then obviously the conclusive factor would be one of price, but it is a very complicated thing.

It probably cannot at the end of the day be reduced to a single decision making factor. There are a variety of things that need to be taken into account, but broadly speaking, if everything else is equal, then price would be the determining factor.

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11:35 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, perhaps the minister could answer a question. If the procurement is going to be above reproach, then why are we breaking fundamental treasury board guidelines in the procurement process for the maritime helicopter project? Why are we not looking at best value rather than just lowest price? This is a basic treasury board guideline.

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11:35 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I am trying to ensure that I clearly understand what the hon. gentleman is arguing. I would reserve the opportunity to come back to him on another occasion to discuss this in further and better detail.

Clearly there is an implication in that last question that somehow the contracting strategy with respect to this helicopter does not in some way respect the treasury board contracting policy with respect to best value. I believe our strategy is consistent with the contracting policy which states, and I will quote this phrase:

--the objective of government procurement contracting is to acquire goods and services and to carry out construction in a manner that enhances access, competition and fairness and results in best value or, if appropriate, the optimal balance of overall benefits to the Crown and the Canadian people. Inherent in procuring best value is the consideration of all relevant costs over the useful life of the acquisition, not solely the initial or basic contractual cost.

The best value and the lowest price are not necessarily mutually inconsistent, as I said, when we are dealing with something as complex as this transaction.

I would like to better understand exactly the point the hon. gentleman is making. Perhaps we are talking about the same thing and just using different phrases or perhaps we are on fundamentally different pages, but I clearly want to understand his point. I certainly would entertain the opportunity to carry on the dialogue with him because I treat the point seriously.

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11:35 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, to be more specific I am referring to treasury board guidelines 9.1 and 9.2, which state:

In such instances, detailed analysis of materials and components in terms of their function and price may be needed before the contracting process. This should clarify the requirement which should, in turn, result in best value.

This is to ensure that a purchase of major equipment is not treated as simply purchasing office supplies or whatever. Something sophisticated like a high tech naval helicopter should be procured on the best value.

The question really is: Why is the government not following its own procurement rules by deciding to purchase a new naval helicopter much in the same way it would purchase office supplies, in other words strictly on the lowest tender?

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11:35 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, the hon. gentleman has referred to two specific treasury board guidelines. Let me make this undertaking to him. I will review those guidelines and get back to him at a later date and as rapidly as I can to satisfy him that the appropriate treasury board procedures are being respected.

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11:35 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, I will move on to a question that has been raised on the purchase of Challenger jets. The question I would like to ask the minister is this. Could the minister confirm the statement of the former defence minister that it was cabinet that made the decision to purchase these Challenger jets?

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11:40 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, to the best of my knowledge that is correct.

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11:40 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, I would like to ask the minister if the reports are true that the newly purchased Challenger jets were actually cancelled Chinese airline jets, in other words left over from the Chinese order when it was cut from four jets to two? Were these jets originally part of an order from China? Is it possible that these aircraft originally were intended for another country?

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11:40 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I have no knowledge at all of the allegation the hon. member is making. I have no information before me that would indicate that the allegation is at all true.

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11:40 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, perhaps to clarify and make clear, obviously with technical craft of this nature the lead time from an initial PPRA, or preliminary project review and approval, would be a span of time until a project actually is reviewed and approved for purchase from cabinet.

Could the minister inform us on what date this requirement for Challenger aircraft was taken as a preliminary project review to cabinet to be reviewed before it was taken out to the industry for quotations let alone before it was ordered? Could the minister provide us with the date that this preliminary project review was undertaken and taken to cabinet for quotations?

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11:40 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, as the hon. member probably knows the purchase was an off the shelf purchase. It was reviewed appropriately by ministers. I do not have before me tonight the exact date that those transactions would have taken place. I will see if I can find him further information.

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11:40 p.m.

Canadian Alliance

Peter Goldring Canadian Alliance Edmonton Centre-East, AB

Madam Chairman, most people would understand that a technical product like a jet airliner would hardly be off the shelf. There are no parking lots filled with jet airliners sitting there waiting for people to pick them up.

More likely, and in this particular case, the product is on order from the manufacturer and has been in manufacturing for some months now. My first question to the minister is: At what point was this project initiated and taken to cabinet? My second question is: When was the decision made by cabinet to purchase the $100 million Challenger aircraft?

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11:40 p.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I am just seeing if I can find for the hon. member the specific date in my materials. I can advise him that the date upon which the contract was issued was March 28, 2002.

In response to an earlier point that the hon. member made with respect to Chinese matters, I have asked my officials if they have any knowledge of that reference. To the best of their knowledge or information no.

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11:45 p.m.

Mississauga South Ontario

Liberal

Paul Szabo LiberalParliamentary Secretary to the Minister of Public Works and Government Services

Madam Chairman, the House is still sitting. We have been debating in committee of the whole the 2002-03 estimates of the Department of Public Works and Government Services.

The minister led off this debate and this opportunity for all hon. members from all parties to ask questions on any aspect of this particular department's operations. Although the estimates themselves are substantively the budgets and the projected expenditures for a department, clearly the questioning lies in the area of policy, direction, priorities and planning. The Minister of Public Works and Government Services has done an excellent job of providing factual and forthright information to all hon. members.

I want to remind the House that the Department of Public Works and Government Services is a large department. It has a unique role in that it provides goods and services to about 140 other federal departments and agencies. It is a centralized purchasing, asset disposition, service acquisition, supplier, and manager of a number of things. In 2001 the department awarded some 60,000 contracts in the business of the Government of Canada worth $10.5 billion. It also is responsible for providing things like office accommodation for over 187,000 public servants.

Running a government is a big business. It takes an important department like public works and government services to ensure that the services are provided in a businesslike, professional and timely manner in order for our excellent public servants to do their jobs, and parliamentarians as well, in more than 2,500 locations across the country. We have a real estate portfolio worth about $6.8 billion.

The department manages the Government of Canada's accounts and financial operations and provides translation and interpretation services. It is heading up a significant e-commerce initiative. The department is also developing an international program to strengthen Canada's presence and image worldwide and to promote a healthy environment within a framework of the department's sustainable development strategy.

The department is responsible for Communications Canada. This has had a great deal of discussion tonight and I do not have to explain the nature of the activities, but Canadians may be familiar with the 1-800-O-Canada toll free line. This is managed and provided by Public Works and Government Services Canada through Communications Canada. In 2001 there were 1.2 million calls from Canadians to get information about their government. This is a very important service.

Communications Canada does a number of other things, such as communicating and engaging citizens and letting them know how the Government of Canada is there to serve them, and providing them with their informational needs so that they can continue to enjoy the benefits and services that all Canadians want to have.

Suffice it to say the Department of Public Works and Government Services is a large department. All hon. members will understand what an enormous challenge it is for any minister to manage a department of that size and with that diversity. Members from all parties have come to me voluntarily to let me know that they were delighted with the minister's performance to date. They were telling me that their sense of appeasement is driven by the fact that the minister has been decisive in his actions. He has shown great respect for the House by virtue of his forthright and constructive answers to all hon. members. Members appreciate that, want that and need that to be able to do their job. I really believe it is important.

Tonight we have effectively had a five hour question period. The mood and the tone in this place tonight has been much different than we are accustomed to during regular question period when the rest of our colleagues are here. I wish Canadians could see members working tonight, working in committee and working in their constituency offices.

Unfortunately, when we come to question period it is a time when the press is here. There is a lot of enticement and tradition of heckling. In fact, constituents probably tell every member of parliament that they act like a bunch of children. If they could only see members of parliament outside of that 45 minutes, debating in the House and working in committee. I think we want to have the respect for our positions.

It concerns me that tonight, notwithstanding the forum and the good faith that has been shown, words have been used which I do not believe should be used in this place, such as, kickback, cronyism, corruption and throwbacks to your Liberal friends.

We have a publicly funded political system. It is transparent and Canadians should know that under the political system all donations over $200 made by Canadians, whether they be individuals or corporations, are a matter of public record. To the extent that anybody contributes to any political party it is transparent. We have this transparent process so ordinary Canadians can have the tools and the resources necessary for them to seek elected office as members of parliament. That is an important support that we get.

To suggest that anybody who has given to a political party and happens to also do business automatically means that there is a cause and effect. That is crossing the line a little bit. If kickbacks are a reality, that is an illegal act. Members have a responsibility and a duty to report that to the authorities.

I believe members understand that. Those are the facts. We should be careful about the rhetoric that we use. All political parties that I know of in this place have a debt. It is not as if parties are somehow raising moneys far in excess. It is an expensive process to support the democratic parliamentary process in Canada.

I wanted to make the point that in this place we should always remember to have the respect for all hon. members. We should also practice and understand the premise that all honourable members are honest in this place. An important point that has not been reflected on is the presumption of innocence. Under the laws of Canada a person is presumed innocent until proven guilty.

We must be careful not to jeopardize either an investigation or to ascribe or attribute to any company that does business with the Government of Canada in a way which might be detrimental to that company. Those companies deserve their day in court. The investigations will show the facts. We must be careful in these matters. We are all pleased to know that we have a minister who is taking all these matters seriously.

He has indicated to all hon. members that in the event that we find administrative errors they will be corrected. Canadians should know that. He has also said in the House on many occasions that if there were overpayments they would be recovered. If there are any allegations or evidence of wrongdoing they will be referred to the proper authorities for investigation and, if necessary, prosecution.

Those are important principles that I want to ensure that the members of the House remember when we deal with these matters and try to address the corrective measures that are necessary to ensure that our parliament and particularly the Department of Public Works and Government Services has the tools and the support necessary to ensure that we are doing the job with the best value for the taxpayer's dollar and that we can say that with pride and that we can support our excellent public servants.

Tonight the issue of Quebec has come up on a couple of occasions. All hon. members will know that the suggestion was made that somehow the sponsorship program was directed and focused exclusively toward Quebec and that the numbers bear it out.

First, the fact is that the sponsorship program was not set up as a nationwide program to be distributed on a per capita basis, region by region by region. It was a program set up with a specific budget and it was to be operated on the basis of applications received from the regions.

I would like to give the House an indication of what happened in the fiscal year 2001-02. In the eastern region of Canada, in the maritimes, et cetera, 56 contracts were received, 7 were declined and 47 were approved. Ninety per cent of the applications in the east were approved.

In Ontario, 106 applications were received, 50 were declined and 54 were approved. About 54% of the sponsorship applications were approved and that was for about 17% of the total value of the sponsorship program.

Interestingly enough, in the west 87 applications were received for sponsorship moneys, 26 were declined, 2 were cancelled and 59 were approved. That was a 75% approval of applications from the west for sponsorship dollars representing about 6% of the total sponsorship amounts.

Quebec is a different situation. Let me by way of background remind members about what happened prior to 1993 under another government. We know the antidotal examples. In Quebec the post office did not fly the Canadian flag. There was no evidence of Canada in Quebec post offices. The word Canada was not even on the post boxes in Quebec. We did not have Canadian flags on the government buildings in Quebec. During that period leading up to the 1995 referendum the culture in Quebec had excluded a visibility of Canada and how Canada had provided the services to all Canadians regardless of region.

The sponsorship program responded to the visibility requirements but specifically to the applications. Even the premier of Quebec at the time made a reference to the Canadian flag as being pieces of red rag. The respect for our flag was under question because it did not have a presence and applications were made by Quebecers. Of the 548 applications received from the province of Quebec, 228 were declined. About 60% of the approved applications came from the province of Quebec but they were generated by Quebecers because they wanted to have Canadian presence in their province which had not been there since the early eighties.

Canadians will remember how the referendum of 1995 jolted them right to the core. They wanted action. This was unacceptable.

Let us not be too hard on the fact that Quebecers wanted to demonstrate that they were part of Canada. They made 60% of the applications and they received 50% of the money because that was what was important for Canada.

Madam Chairman, I want to give some time to the hon. member for Pictou--Antigonish--Guysborough if he is still available. I know he wanted to participate and in the spirit of co-operation, I am going to shorten my comments.

I want the minister to have an opportunity to give us some final thoughts from his perspective about the difficult job, the challenges that all ministers have managing some of the departments that have tremendous breadth, tremendous responsibilities.

It should be understood that ministers do not sign every cheque and every contract. Nor do they go to every meeting or know everybody personally in their department, all those 14,000 people. It is an onerous responsibility being a minister and doing that job. It is very important for Canadians to understand that ministers are here to provide guidance and direction. The minister has provided that guidance and direction and Canadians should be proud of the minister.

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Midnight

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, obviously I appreciate those remarks. In the spirit of the evening or at least the lateness of the hour, I will shorten my reply in order to allow the rebuttal from the member for Pictou--Antigonish--Guysborough.

The key to properly administering a department like the Department of Public Works and Government Services is the ability of the minister to rely upon a strong and professional public service staff.

Over the last number of weeks and months there has been a tremendous focus upon the difficulties that have affected one particular program in one branch of the portfolio for which I am now responsible. I want to make the point again that corrective action with respect to that matter began to be taken two years ago.

It was the internal processes of the department itself that revealed the difficulties. There have been very dedicated public servants within that department working very hard to uncover the problems and to apply the appropriate remedies to make sure that a valuable and very useful program can accomplish the objectives it was intended for without running into the administrative or other problems that have been identified here.

It has been difficult for many members of the public service to cope with all of the challenges they have had to face in the last number of months. However, I believe they are up to the challenge. They intend to apply the best of ethical standards. They want ultimately what all members of the House want, which is a program that can contribute to the growth and the cohesion and the inclusiveness of our country and at the same time that can withstand the tests of transparency, openness, accountability and value for money.

That is the kind of program I want to achieve. That is the kind of department I want to be associated with. I look forward to working with my officials and with all members of the House to achieve that in the best interests of all Canadians.

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Midnight

Canadian Alliance

Gerry Ritz Canadian Alliance Battlefords—Lloydminster, SK

Madam Chairman, in the spirit of the work that was done here tonight, as the parliamentary secretary talked about, as parliamentarians we are here doing a job for our electorate and they expect us to be here. However, we have a tremendous amount of staff who have hung in here with us tonight, the pages, the clerks, the Speakers, the security guards. They deserve a round of applause. We could not do it without them.

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Midnight

Some hon. members

Hear, hear.

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Midnight

Canadian Alliance

Gerry Ritz Canadian Alliance Battlefords—Lloydminster, SK

Going back to the auditor general's report, on page 5, point 22, she said that the government ran a competitive process in March 1997 to identify 10 firms that were pre-qualified as suppliers and selected Groupaction from that list for the second and third contracts. I am wondering who was the first choice. Who was number one?

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12:05 a.m.

Liberal

Ralph Goodale Liberal Wascana, SK

Madam Chairman, I found the paragraph in the report. If members will just bear with us for a minute, we think we can answer the question.

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12:05 a.m.

Canadian Alliance

Gerry Ritz Canadian Alliance Battlefords—Lloydminster, SK

Madam Chairman, the minister could table it to save time.