Mr. Chairman, what the hon. member has described is an important concept. Part of what we contract for in terms of the various goods and services we acquire on behalf of the Government of Canada is related to upfront capital costs, and part of course is related to operating costs over time.
Earlier this evening we had a good example of the distinction when a question was asked about the federal buildings initiative. By and large, if we install energy efficient equipment in either new buildings or retrofits the upfront capital cost will be higher. However after a while it is amortized and we make savings on lower energy bills. The way we have done this through the federal buildings initiative has been so successful it is now entirely financed by the private sector which gets paid back over time on the savings that come from energy efficiency. The upfront capital cost is higher but the ongoing operating costs are sufficiently lower that we are ahead of the game and the private sector makes a profit.
I refer to this to underscore the member's point that there are two elements: initial cost and operating cost. We should be prepared to look for the best long term value because a cost is a cost whether it is initial capital or operating costs over time. Both are important from the taxpayer's point of view.
The whole issue of procurement reform is something we take seriously. I will try to make it a priority in finding better ways to achieve value for taxpayers.