Debates of April 17th, 2013

Criminal Code

[The Speaker, Conservative, Andrew Scheer]

Order. There being no motions at report stage, the House will now proceed without debate to the putting of the question on the motion to concur in the bill at report stage.

Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Speaker, Conservative, Andrew Scheer]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Speaker, Conservative, Andrew Scheer]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Speaker, Conservative, Andrew Scheer]

In my opinion the yeas have it.

And five or more members having risen:

Pursuant to Standing Order 98, the recorded division stands deferred until Wednesday, April 24, 2013, immediately before the time provided for private members' business.

A motion to adjourn the House under Standing Order 38 deemed to have been moved.

Public Works and Government Services

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, on December 5, I put a question to the Minister of Public Works and Government Services asking if her new anti-corruption measures would address any subcontracting problems or illegalities, including those related to a half-billion dollar contract with SNC-Lavalin to manage 300-plus federal buildings. The contract involved numerous subcontractors. It may be noted that she advised that these concerns about this general contractor were brought to her attention by the media, not by her own officials.

My question was whether the new improved measures would be made retroactive to existing contracts and subcontracts and whether they are being applied and enforced by the government or by contractors. I still await an answer to those questions.

This scenario also raises the question of how well the government is delivering its own watchdog responsibilities. It is fine to strengthen the code of conduct, but if not closely monitored and stringently enforced, it has little deterrence, let alone punishment, value.

The minister reiterated that her government's contractual obligations are with only the general contractor—in other words, not with the subcontractors.

The minister also responded that following specific allegations about the bidding process, officials brought in a private forensic auditing company, PricewaterhouseCoopers. What did this cost? Are there no compliance or audit officials within Public Works and Government Services?

The audit called for increased frequency of audits of contracts and improved documentation of expenditures, including providing time sheets. These are pretty basic duties one would have expected to already be in place for a contract to spend half a billion dollars of taxpayers' money. These are pretty basic accounting and audit functions for any contract. A great concern is that these functions were not already being addressed. Are they now being better addressed in light of staff reductions?

Problems with procurement can also be found within Public Works and Government Services itself. We have the case of the two-decade long dispute over federally contracted relocation services for military, RCMP and public servants. It ended in a 15-month trial, with a finding against the government. The case centred on conflict of interest allegations about Public Works and Government Services, then under a Liberal government. The contract was awarded, cancelled, re-tendered, re-awarded to the same company, reviewed by an international trade tribunal, then by a parliamentary committee, and then the Auditor General, before finally being referred to the courts. The report of the Auditor General is scathing. The case centred around yet another public works procurement pilot case to address rising costs of relocation.

This month, the court found the federal government at fault with a $30-million cost award. The case is noteworthy, as the government is apparently yet again receiving complaints about its latest pilot relocation procurement process from potential bidders and federal employees.

I am advised that the latest reform may shortchange both the small moving companies and the families of service men and women. Concerns raised about the latest new, improved procurement process for relocation mirrors many of the exact concerns raised in the successful ongoing court action. This includes failure to fully disclose information necessary to submit a well documented bid. As noted by a former senior official, the government needs to understand that the key role of Public Works and Government Services is to protect the integrity of the bidding process.

Of concern, the judge in the Envoy case noted that the problems in the procurement process were not detected until the audit by the Auditor General. These were not findings of kickbacks, bribes, or political meddling under the code of practice. The root of the problem appeared to be the lack of scrutiny or fairness in the overall procurement process.

I ask the government this: What measures have they taken to address these failings, with the resulting monumental costs to taxpayers, beyond a revised code? What reassurance is there that the same failed processes will not be repeated in the 2014 renewal?

[Jacques Gourde, Conservative, Parliamentary Secretary to the Minister of Public Works and Government Services]

Mr. Speaker, I am pleased to respond to the member for Edmonton—Strathcona. I am delighted that she asked to have an adjournment debate on this topic.

As part of enhancing the integrity of the real property and procurement process, Public Works and Government Services Canada is constantly reviewing and strengthening its measures to improve integrity.

In 2007, as part of the Federal Accountability Act and the federal accountability action plan, Public Works and Government Services Canada added a code of conduct for procurement to its RFP documents. The department also added measures to render suppliers ineligible to bid on procurement contracts if they have been convicted of fraud or if they have paid a contingency fee to a person to whom the Lobbying Act applies.

In 2010, Public Works and Government Services Canada added an offence to its list of measures regarding integrity, thereby rendering suppliers ineligible to bid on procurement contracts if they have been convicted of corruption, collusion, bid rigging or any other anti-competitive activity.

In July 2012, Public Works and Government Services Canada implemented additional measures to strengthen the integrity of its real property and procurement operations.

As a result of these measures, the department is strengthening due diligence, reducing the risk of fraud and improving its ability to manage risk.

Allow me to summarize. We have already put in place provisions allowing us to render ineligible bidders found guilty of one of the following offences: fraud against the government under the Criminal Code of Canada; fraud under the Financial Administration Act; corruption, collusion, bid rigging or any other anti-competitive activity under the Competition Act; and the payment of contingency fees to individuals covered by the Lobbying Act.

On July 11, 2012, Public Works and Government Services Canada extended the application of integrity provisions to its real property transactions, such as leasing contracts, and added six new offences that would render suppliers ineligible to do business with the department: money laundering, involvement in organized crime, income and excise tax evasion, bribery of foreign public officials and drug trafficking.

These measures came into force when announced and apply to all future PWGSC solicitations and real property transactions, which include leasing agreements, letting of space, and acquisition and disposal of crown assets. These measures will also allow the department to terminate contracts and leases with companies or individuals that are convicted before the end of their contract or lease.

We are very proud of the efforts made by our department to ensure accountability and integrity in the way we do business.

[Linda Duncan, NDP, Edmonton Strathcona, AB]

Mr. Speaker, it is my recollection that I raised additional questions on this matter a couple of days ago. I got exactly the same response today I got two days ago. I am giving the government another chance to address my particular concerns.

The court this week held against the Government of Canada, not against the contractor. That is $30 million of taxpayers' money. What measures are there in addition to a code that by and large is supposed to hold contractors accountable, but not the subcontractors? What new measures are in place to make sure that the government is finally delivering on its watchdog function? How is the government ensuring that the process is going to become more open and transparent? We have heard huge concerns from the contractors that because the process is no longer transparent, they do not know if it will be a fair process.

[Jacques Gourde, Conservative, Lotbinière—Chutes-de-la-Chaudière, QC]

Mr. Speaker, our government has brought in accountability measures to ensure the appropriate use of taxpayers' dollars. Those measures are designed to ensure that we do not deal with fraudulent businesses.

PWGSC can refuse bids from suppliers found guilty of the following offences: fraud against the government under the Criminal Code of Canada; fraud under the Financial Administration Act; corruption, collusion, bid rigging or any other anti-competitive activity under the Competition Act; and the payment of contingency fees to individuals covered by the Lobbying Act.

In addition, PWGSC added the following to the list of offences that prevent businesses and individuals found guilty of those offences from bidding on contracts: money laundering, involvement in organized crime, tax evasion, non-payment of excise taxes, bribery of foreign public officials and, lastly, drug trafficking.

The Environment

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, after the government received yet another embarrassing grade on the environment, I asked whether the Minister of Fisheries and Oceans would do the right thing and restore funding to the Experimental Lakes Area, or ELA.

Let me begin by discussing the government's dismal record on the environment, followed by why the government should fund the ELA.

The 2008 Climate Change Performance Index ranked Canada 56th of 57 countries in terms of tackling emissions.

In 2009 and again in 2013, the Conference Board of Canada ranked Canada 15th of 17 wealthy industrial nations on environmental performance.

In 2010, Simon Fraser University and the David Suzuki Foundation ranked Canada 24th of 25 OECD nations on environmental performance.

Having received such failing grades, an accountable, responsible government would have taken meaningful action to protect our fragile environment and the health and safety of Canadians, while building a vibrant green economy.

Instead, the government gutted environmental legislation of the last 50 years through economic plans 2012 and 2013 and its draconian omnibus implementation bills, Bill C-38 and Bill C-45, severely cut the budget to Environment Canada, cancelled the National Round Table on the Environment and the Economy, and continues to muzzle government scientists.

The government's appalling environmental policies have been rightly criticized by policy makers, scientists, Canadians, the international community and repeatedly by the prestigious international science journal Nature.

The Conservative government once again had the opportunity to improve its negative performance by changing its reckless decision to close the world-renowned ELA, with 58 lakes, and considered to be one of Canada's most important aquatic research facilities. Instead, the government began dismantling the station at the end of last month. In the space of a few weeks, 11,000 Canadians signed a public petition, sent hundreds of letters of support for the ELA to government officials and held rallies across the country.

Leading scientists from around the world and across Canada support the ELA's cause. Liberal MPs held briefings for all members of Parliament and senators and put forth motions to study the value of the ELA and the potential effects of transferring the facility to a third party.

Following the presentation of two Liberal motions regarding the ELA, in both the Standing Committee on Environment and Sustainable Development and the Standing Committee on Fisheries and Oceans the issue was addressed in camera, without public explanation, and the motions are no longer before the committees.

Scientists suggest the Conservatives are trying to silence a source of inconvenient data regarding climate change with the closures of the Polar Environmental Atmospheric Research Lab, the ELA and with the Kluane Lake Research Station on the chopping block.

The government should know that, despite its denial and stonewalling, the science of climate change simply will not go away.

[Randy Kamp, Conservative, Parliamentary Secretary to the Minister of Fisheries and Oceans and for the Asia-Pacific Gateway]

Mr. Speaker, I am pleased to have the opportunity to respond to the member opposite on the Experimental Lakes Area. The government has made its decision, as we have said many times. Fisheries and Oceans Canada will no longer operate the Experimental Lakes Area.

However, DFO understands that significant work has been done at the facility. As a result, the department hopes to transfer the facility to another operator that is better suited to managing it. That would ensure the facility is available to scientists, in universities or elsewhere, who would like to conduct whole lake experiments.

At the same time, Fisheries and Oceans Canada is focusing on scientific work being conducted at other locations across the country. The department's science program in freshwater environments is diverse. The results of this diversity of freshwater research help to ensure the sustainability of our aquatic ecosystems.

Let me provide a little more detail about DFO's freshwater research. One of the priority areas for freshwater research in the department is fish habitat science. That is where departmental scientists conduct research and provide science advice related to the effects of human activities on fish habitat and the productivity of commercial, recreational and aboriginal fisheries. One such example of fish habitat science is research and advice related to the impacts of hydroelectric development.

There are hundreds of hydroelectric facilities across the country, generating electricity for Canadians. The rising demand for energy and the growing interest in renewable energy would require additional hydroelectric facilities and increased production from the existing installations. It is essential that we understand the potential effects of hydro power on fish habitat and fisheries productivity.

At Fisheries and Oceans Canada, scientific research focuses on the potential impacts of reservoir construction and management, fish passage, and modification to river flow as they may affect fisheries productivity. The results of this kind of research improve our understanding of the potential effects of hydro power and help to inform decision-making and promote the sustainable development of hydroelectric resources in Canada.

However, DFO scientists do not work in isolation. To complement the department's science program, DFO scientists collaborate with universities, other government departments, industry partners, and other science organizations. HydroNet is an excellent example. It is a collaborative national research network that aims to develop a better understanding of the effects of hydroelectric operations on aquatic ecosystems.

HydroNet is part of the Natural Sciences and Engineering Research Council of Canada's strategic network grants program and receives support from DFO. Through the network, research professionals from DFO, provincial governments, universities and industry come together to exchange ideas, expertise, data, and solutions related to sustainable hydro power and health aquatic ecosystems in Canada.This collaboration enhances scientific knowledge on the effects of hydroelectricity in support of the department's mandate and helps to leverage investments in government science.

I have described tonight some of the excellent work that Fisheries and Oceans Canada is doing to understand the effects of human activities on fish habitat and fisheries productivity. This is just one area of freshwater science where the department is conducting scientific research.

We will continue to make wise investments in priority science areas that directly support conservation and fisheries management and ensure sustainable aquatic ecosystems.

[Kirsty Duncan, Liberal, Etobicoke North, ON]

Mr. Speaker, with mere weeks to go before the field season begins, it is still unknown whether ongoing research projects at the world-renowned ELA can continue or whether the longest and most comprehensive freshwater monitoring program in Canada will be broken.

The research conduct at the ELA must continue. The research must be made public and ELA must be owned by the public. We must fight for a government that understands that scientific research is fundamental to meeting Canada's needs, that will restore science to its rightful place, that will back promises with action and money, and that will protect scientific findings from being altered, distorted or suppressed.

[Randy Kamp, Conservative, Pitt Meadows—Maple Ridge—Mission, BC]

Mr. Speaker, as I said, Fisheries and Oceans Canada is continuing to invest in science where it counts most to achieve the best results for Canadians. Just as ecosystems and priorities of Canadians evolve, so do our investments in science.

However, be assured that the department's freshwater science program is an active and diverse program. Departmental scientists and biologists conduct cutting-edge research in lakes and rivers across the country in support of the department's mandate.

While we make wise investments in government science, the department will continue to collaborate with various academic and industry partners. These important collaborations enhance scientific knowledge and increase the richness of our scientific knowledge base.

The department will continue to conduct scientific research necessary to inform decisions and policies that would meet the needs of the present without compromising the ability of future generations to meet their needs.

[The Deputy Speaker, NDP, Joe Comartin]

It being 7:14 p.m., this House stands adjourned until tomorrow at 10 a.m. pursuant to Standing Order 24(1).

(The House adjourned at 7:14 p.m.)