Debates of Feb. 18th, 2003

Ethics

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

Mr. Speaker, the government has a Venetian blind trust, which a minister can open or shut, so long as the ethics counsellor agrees. The guidelines say a minister can go back to his business “only in exceptional circumstances where an extraordinary corporate event is likely to materially affect the assets”.

I have two questions for the Prime Minister. How many times did the former minister of finance claim that exceptional circumstances warranted a meeting with his private shipping line? How did the contract with the Indonesian company constitute an extraordinary corporate event?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, I am not involved in the management of these companies. The minister of finance of the day followed all the rules and ensured that he was not in a conflict of interest. When there was that meeting, he ensured, as the rules state, that Mr. Wilson was present to listen to the discussions that occurred between the managers of the trust who wanted to inform him of this so-called important decision to be made.

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

Mr. Speaker, these rules of course were changed when this government came to office.

Was the former minister of finance, the member for LaSalle—Émard, the only minister covered by these changed guidelines, which allow updates on assets covered by a blind trust? If not, will the Prime Minister publish a list this week of the other ministers, past, present or in Denmark, who made use of this extraordinary provision?

However, if the member for LaSalle—Émard was the only one to use the loophole, was he the person who asked that the rules be changed in the first place, and why did the Prime Minister agree to those changes?

[Jean Chrétien, Liberal, Prime Minister]

Mr. Speaker, every member of cabinet has an obligation to report conflict of interest to Mr. Wilson, file the application and have the proper arrangements. However it is not for me to talk about it publicly, what happens between an individual in there. It is a private matter.

Government Loans

[James Rajotte, Canadian Alliance, Edmonton Southwest, AB]

Mr. Speaker, the Minister for International Trade told this House yesterday that over 90% of EDC's clients are small and medium sized enterprises. That is misleading. The fact is that loan guarantees to clients of Bombardier and Nortel are designed to assist those two companies.

Again I would like to ask the minister this. Why is over 50% of EDC's loan portfolio directed to help Nortel and Bombardier?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I would like to inform the Alliance that the EDC is there to help Canadian exporters and it so happens that Nortel and Bombardier are two extraordinary and outstanding exporters from Canada.

EDC helps many thousands of small and medium sized enterprises. They have made money every year since EDC was created in 1944, but for one year. We have a pretty good deal with EDC.

[James Rajotte, Canadian Alliance, Edmonton Southwest, AB]

Mr. Speaker, if these two companies are so extraordinary in and of themselves, why do they need $11 billion of taxpayer funded money to help them?

I asked another specific question yesterday which the minister did not answer. Will the government and that minister make EDC more accountable to Canadians and publish a complete list of loans and loan guarantees, including the amounts received by each individual company? Yes or no.

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, the deal EDC negotiated, which was at arm's length from the government, was to cover bonds for third parties that actually do business with EDC. Thousands of jobs in Canada depend on exports. Every country in the world has an export credit agency like ours but we pretty much have the best one on the planet. Thousands of workers depend on EDC to continue financing Canadian exporters.

Gasoline Prices

[Paul Crête, Bloc, Kamouraska—Rivière-Du-Loup—Témiscouata—Les Basques, QC]

Mr. Speaker, since January, the profit margin of oil companies at the refining level has increased from 6¢ to 12¢ per litre, thus demonstrating that the lack of competition between oil companies is a significant factor in the skyrocketing increase in the price of a litre of gas at the pump. Profits at the refining level have increased 100% in one month, and this is definitely no coincidence.

Will the Minister of Industry put an end to his complicity with the oil companies by saying that there is no collusion between these companies, and will he do what the public expects him to do, which is to use his authority to demand that the Competition Bureau, which is accountable to the minister, look into this?

[Allan Rock, Liberal, Minister of Industry]

Mr. Speaker, the Competition Bureau is constantly monitoring the situation with oil companies. I should also point out that the monitoring or regulating of retail prices is a provincial jurisdiction.

[Paul Crête, Bloc, Kamouraska—Rivière-Du-Loup—Témiscouata—Les Basques, QC]

Mr. Speaker, how much longer is the government going to laugh at gasoline consumers by refusing to call on the Competition Bureau to investigate the obvious collusion between oil companies, which have agree among themselves to set the price of a litre of gas as they see fit?

Will the government stop laughing at people through the Minister of Industry?

[Allan Rock, Liberal, Minister of Industry]

Mr. Speaker, I understand that the Standing Committee on Industry will be examining this issue. I am very pleased to know that the committee will be looking into this situation.

As for the Competition Bureau, it is constantly monitoring markets. However, at some point, the hon. member will have to recognize that what he is really proposing is that retail prices be regulated, which is a provincial jurisdiction. This is why I suggest he contact his head office.

National Defence

[Deborah Grey, Canadian Alliance, Edmonton North, AB]

Mr. Speaker, this weekend we witnessed a fantastic rescue operation by our Cormorant search and rescue helicopters. They deserve a hand but the government certainly does not.

We need that same capability and more in any replacement of our Sea Kings.

For 10 years now the government has dithered, thinking about the lowest price being the law. We cannot afford to barter away the safety of our troops.

Why does the government insist on ordering and procuring Sea King replacements based on bottom bid over best value?

[John McCallum, Liberal, Minister of National Defence]

Mr. Speaker, I am sure all members in the House will join the hon. member across the aisle in congratulating the members of the Canadian Forces for their magnificent rescue operations which we have seen in the last few weeks. They truly have been superb.

In terms of the member's question, some time ago I explained to the House that we were re-bundling the contract so we would get the helicopter with less risk and more quickly. That process is on track.

[Deborah Grey, Canadian Alliance, Edmonton North, AB]

It is true, Mr. Speaker, there is nothing like a re-bundled helicopter.

In 1993 the Prime Minister said that he would take his pen and write zero for the EH-101. It is 10 years later and that is exactly what we have; zero.

It has been a dangerous decade for our shipborne helicopter program. Why has the Prime Minister put his pride and prejudice and his personal retirement ahead of the safety of our military?

[John McCallum, Liberal, Minister of National Defence]

Mr. Speaker, as I have explained many times in the House, it is deep in the psychology and the psyche of the military that safety always comes first and that we never sacrifice safety for schedule.

As I also have explained in the House, with the re-bundling of the helicopter contract the process is underway. We are guaranteed to have lower risk and the helicopter delivered faster than would otherwise be the case. That is where the matter stands and I think it is in a very satisfactory state of affairs.

Supply Management

[Marcel Gagnon, Bloc, Champlain, QC]

Mr. Speaker, the Minister for International Trade has always maintained that the agricultural supply management system would be protected during WTO negotiations. Yet the gradual phasing out of marketing agencies is on the WTO's negotiating agenda.

How can the Minister for International Trade explain that, despite his assurances to us in the past, supply management is nevertheless on the WTO's negotiating agenda?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I will clarify this if I may. The matter of supply per se is not negotiable, or not under negotiation. The document Mr. Harbinson has submitted is about negotiating lower duties.

Of course, supply management depends on very high duties, so if these were to be lowered there would be a problem with supply management. So what is being negotiated is not supply management; this is not negotiable.

I have a very clear mandate from the Government of Canada: there is no question of negotiating supply management within the framework of the WTO at this time.

[Marcel Gagnon, Bloc, Champlain, QC]

Mr. Speaker, yet the Minister for International Trade has already said “We are working in close conjunction with the dairy industry”, while the President of the UPA has been quoted as saying, “We can feel the rug being pulled out from under us”. This contradicts the Minister's fine words of reassurance.

Can the minister guarantee that he is not, as is often the case, in the process of confronting us with a done deal?

[Pierre Pettigrew, Liberal, Minister for International Trade]

Mr. Speaker, I do not exactly know why the member is saying that it I often confront people with done deals.

What I can say is that I have a very clear mandate. We have always defended our dairy producers. We have supported them since the supply management system was started by a Liberal government. A Liberal government set up this system, and my mandate is to support it at the World Trade Organization, in conjunction with my colleague the Minister of Agriculture. We will succeed in doing so.

Coast Guard

[John M. Cummins, Canadian Alliance, Delta—South Richmond, BC]

Mr. Speaker, coast guard staff have been advised that their vessel traffic control centre in Vancouver will be closed.

The centre controls ship movements in Vancouver harbour, everything from large supertankers to container ships to commercial fishing vessels. Vessel traffic control will be downloaded to the Vancouver Harbour Authority.

How will this closure better protect the environment from the aftermath of a collision or grounding? How will it improve national security and marine safety?

[Robert Thibault, Liberal, Minister of Fisheries and Oceans]

Mr. Speaker, there is no intention of compromising security or compromising the environment. Quite to the contrary, the government has taken measures to improve environmental protection and to improve security.

We made an announcement a few short weeks ago that we would have an automatic identification system for all ships within hundreds of miles of our coast, and we will continue to improve our system.

[John M. Cummins, Canadian Alliance, Delta—South Richmond, BC]

Mr. Speaker, the waters of Vancouver are the busiest in Canada. Ferries and cruise ships with hundreds of passengers share the waterways with large tankers, container ships and countless smaller vessels.

A single, seamless vessel traffic control system from the entrance of Juan de Fuca to a berth in Vancouver harbour is the best choice.

Why does the minister believe that closing the coast guard's vessel traffic control centre in Vancouver will improve vessel traffic management and national security?

[Robert Thibault, Liberal, Minister of Fisheries and Oceans]

Mr. Speaker, the function of safety is a function of the equipment and training of the personnel who run it. I am very proud of the work we do.

We continue to seek to improve by using better technology and by using modern methods. This system is under review. We have no announcements to make, but the hon. member should stick around. We will improve our system as we have in the past, and we will continue to do so.

Haiti

[Bernard Patry, Liberal, Pierrefonds—Dollard, QC]

Mr. Speaker, my question is for the Secretary of State for Latin America and Africa and the Francophonie.

Given the fact that the political news reminds us daily of the harsh reality of the situation in Haiti, can the secretary of state tell us what Canada's concerns are in this regard?