Carolyn Parrish

[Public Sector Pension Investment Board Act, April 22nd, 1999]

Madam Speaker, I always agree with my hon. colleague from Hamilton. I will bow to his wisdom on this one and let his remarks stand.

[Public Sector Pension Investment Board Act, April 22nd, 1999]

Madam Speaker, I will have to go back on my own limited experience at functioning on boards. Some boards have duly elected members from the public, such as the school board that I served on. Some have appointed members who are well respected members of the community.

Whenever a board is appointed its position has to remain neutral and fair. It has to listen to labour, to management, to the government and to the employees.

I have a lot more faith in publicly appointed boards than the member opposite seems to have. I think they are very limited. As a matter of fact I know of no boards that have been held up as gangs that are there to lean one way or the other. Publicly appointed boards serve publicly and have to account to the members they are serving.

[Public Sector Pension Investment Board Act, April 22nd, 1999]

Madam Speaker, I do not want to comment on contract disputes with Canada Post. We are here to deal with the pension plan.

The remarks I made today very definitely indicate that the bargaining unit for Canada Post will be discussing pensions and upgrading pensions. In the bargaining situation that will come up in the year 2001 those pensions will be looked at and readjusted according to the membership and according to the government.

I believe this is empowering the unions to have a say in how they would like their pensions upgraded or altered as part of the bargaining unit. I believe it is a very fair proposal, particularly for Canada Post.

[Public Sector Pension Investment Board Act, April 22nd, 1999]

Madam Speaker, I think this is a very fundamental issue when we refer to the EI plan and the pension plan.

One of the things all members of the opposition seem to forget is that during bad times the Government of Canada and Canadian taxpayers built up all the deficits in both the EI fund and the pension plan funds. The government is at the point where it has invested the money wisely and the surpluses being generated now are in fact the property of the Canadian taxpayer.

We are here to invest the money appropriately and to do what we can to keep this country healthy and a good global competitor. We cannot do that with deficits. We cannot do that by artificially pouring money into areas where it does not belong.

I have no problem with the member's question except to the point where the opposition always seem to start its questioning when we hit a surplus. It never goes back in history to when the government was topping up the deficits.

[Public Sector Pension Investment Board Act, April 22nd, 1999]

Madam Speaker, I am pleased to have the opportunity to speak today in support of Bill C-78, the Public Sector Pension Investment Board Act.

Pensions are a complicated business and this is a very complicated bill. Much of it is about putting the pension plan for federal employees, the public service, Canadian forces and the RCMP on a solid financial footing. We know how important pensions are to all Canadians, but we also know that how we provide pensions for these federal public sector employees has to be fair to all taxpayers.

Other people will be talking in more detail about the financial arrangements that are being proposed in the bill. I want to take some time today to talk about the Canada Post section of it and how the bill affects the corporation and its employees.

What the bill says is clear and fairly straightforward. By October 1, 2000 Canada Post Corporation will establish a pension plan for its employees that are now covered by the Public Service Superannuation Act, the PSSA.

The plan that Canada Post establishes has to meet the requirements of the Pension Benefits Standard Act and the Income Tax Act. Once the plan is established the PSSA will cease to cover Canada Post employees. On the day it is established the Canada Post plan has to provide the same benefits as the PSSA at the same cost to employees.

The funds now in the PSSA are there to provide the benefits that Canada Post employees have already earned and will be transferred to the new plan. I am told and I understand that the transfer of funds will be about $6 billion. The benefits for the past will be exactly what they would have been under the PSSA and they cannot be reduced in the future.

A year after the new plan is established on October 1, 2001 it will become subject to collective bargaining, except those parts of the plan that deal with the service and benefits coming from the PSSA.

There are some other features in the bill that are important to employees, opportunities to count past service and a life insurance plan that is a mirror of the one employees are leaving, and some that are important to the corporation such as the right to determine how any plan surplus will be used and the right to establish more than one plan. These are the main features.

Why is this all being done? For Canada Post this is a decision based on business because of a number of factors. First, like all other corporations under the PSSA the employer costs for the pension plan will increase. For a corporation with a commercial mandate, the bottom line impact has to be looked at very seriously.

Canada Post operates under the Canada Labour Code. Under the code all terms and conditions of employment are subject to collective bargaining. As long as it was under the PSSA, though, it could not bargain pensions which are a significant part of total compensation. There is a real opportunity here for Canada Post to assume total responsibility for all aspects of its operation and its management but, and this is very important, the legislation is good for employees too.

First, it promises the same level of pension benefits as they would have under the PSSA. The guarantees in the bill about the benefits employees have already earned are very strong. Second, it makes pensions bargainable.

Some people will wonder why Canada Post employees will be able to bargain pensions when public service employees cannot and why they should be able to affect the design and management of their pension plan when public servants under the PSSA cannot.

As the President of the Treasury Board outlined in his speech, a consultation process took place over a number of months last year. That process was intended to lead to a joint management structure for the PSSA so that employees could have shared in all the decisions around their pension plans. Those talks did not lead to a deal, but the government is still ready to talk to the unions about joint management.

For Canada Post and its employees, not being able to include pensions in bargaining is an unusual restriction for an organization that functions under the Canada Labour Code.

There may also be people who wonder why pensions are not subject to the labour code right away. Some people will say this is an exceptional treatment under the labour code, and they are right. However this is an exceptional case.

Some 50,000 employees are affected by the decision on the part of Canada Post to withdraw from the PSSA. These employees are located all across the country. The government is interested in the concerns of Canada Post and in helping the corporation to create a business environment where it can succeed.

It is also very interested in making sure employees can feel secure about their pensions. Employees can know by this legislation what their new pension will look like, what kind of benefits it will provide and how much it will cost. Employees need not have any uncertainty about these things. They are very strong guarantees.

The provisions of the bill affecting Canada Post Corporation and its employees do not look like a big part of the bill, some two or three pages, but they will help Canada Post move forward in its efforts to provide good service to all Canadians and will give it another piece of the framework for managing the people part of its business.

These same provisions give employees guarantees about pensions, a very important part of compensation, and give them the opportunity to influence how their pensions will evolve in the future.

Speaking from my very limited experience when I negotiated contracts as chairman of the Peel board back in another life in another time, the actual salary compensation was oftentimes less important than everything else negotiated in the contract. I found that people, particularly as the population of Canada is aging, were very concerned about their pensions and their pension rights. They wanted to have a say in how the money was being distributed and how it would affect their pensions.

I wholeheartedly agree with this legislation. It is giving power to the people and responsibility to the government.

[Canadian Armed Forces, April 21st, 1999]

Mr. Speaker, on behalf of the Minister of Public Works and Government Services I would like to respond to the question raised by the hon. member for Joliette concerning the transparency and fairness of the procurement process, most specifically where the Department of National Defence is concerned.

I am therefore pleased to provide the House with a general overview of the procurement policies, processes and practices of the Department of Public Works and Government Services, as well as a brief historical background of the department.

A lengthy debate on every proposed procurement of goods and services by the Canadian Armed Forces over $100 million is not needed. Nor is it very efficient. The procurement policies presently in place demonstrate precisely what the hon. member is seeking: the assurance of an open and fair process to all concerned.

The Department of Public Works and Government Services is mandated to ensure that the procurement process is one of integrity and one which is conducted in an open and transparent manner. Wherever possible competition is the preferred approach.

To ensure businesses have equal access to contract opportunities the government has put in place an electronic tendering system called MERX. Accessible through the Internet all potential suppliers are informed about procurement opportunities at the same time. MERX reduces access costs, increases competition and provides businesses with a single point of access to information on contracting opportunities.

This system is also currently being used by seven provinces and a growing number of public institutions such as municipalities, academic institutions, school boards and hospitals. It is an excellent example of the kind of co-operation we can work on with all levels of government.

In addition, in 1997 the Government of Canada launched Contracts Canada. Through this initiative hundreds of seminars were conducted annually and are conducted annually today with businesses across the country on how to do business with the crown. Furthermore, virtually all contracts processed by the department are published on the Internet, again ensuring openness and equal access at the same time.

I would also like to take this opportunity to promote the Department of Public Works and Government Services benefits driven procurement initiative. In the past the traditional approach to procurement in a complex project was for an organization to spend months, possibly years, developing a detailed requirement to present to industry. Firms were invited to present bids based on a sometimes massive document and the lowest bid usually won.

This approach had many pitfalls. That is why a new approach has been introduced to deal with the complexities and risks of major procurement projects. Basically the benefits driven procurement asks the industry to deliver certain agreed upon results rather than follow a blueprint assigned by the government. The industry is also invited to submit ideas on what sort of project should be undertaken before a formal request is issued.

What distinguishes this approach is thorough and rigorous front end planning to remove or mitigate potential problems in a procurement process. Both the front end planning and the management of the entire acquisition life cycle are based on four basic elements: a solid business case, risk analysis, clear delineation of accountabilities, and a compensation structure closely tied to the contractor's performance.

The benefits driven procurement will help support the Canadian industry, boost confidence in the public sector and confirm the public works department as a world leader in government procurement.

Federal purchasing services are provided to more than 100 federal departments and agencies by the Department of Public Works and Government Services, the Department of National Defence being its biggest client. Its mandate is to ensure the integrity of the procurement process. It is committed to open, fair, transparent and competitive procurement policies and processes. This is fundamental to our ability to deliver excellent service to our clients through the Government of Canada.

In addition, the department is determined to harness innovative ideas and make the federal procurement process even more efficient as we move into the next millennium.

The Department of Public Works and Government Services is the nation's largest purchasing agent, providing an astounding range of services to support the daily operations of government to meet the needs of all Canadians.

Every year this department buys more than $8 billion in goods and services covering 17,000 categories of service and creates more than 60,000 contract opportunities for businesses in Canada. These opportunities stimulate Canada's economy and create or maintain jobs in every sector, particularly for small and medium size businesses which are the engines of economic growth for Canada.

As I previously mentioned, the Department of National Defence is the Department of Public Works and Government Services biggest client, accounting for approximately half the department's business every year. It includes much more than weapons, ships, aircraft and military vehicles.

The public works and government services department has a long history with the Department of National Defence going back to September 1939. On the eve of the second world war Prime Minister Mackenzie King asked for the preparation of an act to create a department of supply. On the prime minister's behalf C. D. Howe, the then minister of transport, defended the move in the House of Commons by declaring that “the best guarantee that profits on war material will be kept to a minimum is to place men of skill, experience and absolute integrity” in charge of purchasing and production. This led to the war supply board which became the department of munitions and supply and then the department of defence production.

For almost 60 years the Department of National Defence has identified its needs and the Department of Public Works and Government Services has been responsible and accountable for developing and implementing procurement strategies to fulfil those needs. Canada is one of the few countries in the world where this separation exists. It is crucial to ensure the process remains fair. In the end we want Canadians to receive the best value possible for the money spent on their behalf.

To conclude, let me reiterate the government's commitment to a fair, open, transparent and competitive procurement process, a process which ensures equal access for all businesses and is managed in a way that will pass the test of public scrutiny.

[National Volunteer Week, April 20th, 1999]

Mr. Speaker, this side of the House would also like to honour and acknowledge the countless efforts of millions of Canadian volunteers. From St. John's to Vancouver, volunteers help to build and shape our communities and neighbourhoods. It is during this week we need to publicly honour and thank volunteers for their commitment, compassion and generosity.

Canada has more than 7.5 million volunteers who contribute to society in positive and significant ways. These contributions occur not only in times of crisis, but in the important day to day lives of many people. They work as health care aides, coaches, referees, tour guides, board members, mentors, researchers and search and rescue team members. It is this dedicated effort and support from volunteers of all ages and backgrounds that we as Canadians need to honour and appreciate.

Now is the time to acknowledge and pay tribute to these exceptional Canadians who donate their precious time to causes they believe in. These volunteers help to define what it truly means to be a Canadian.

[Criminal Code, March 16th, 1999]

Mr. Speaker, I would like to respond to the hon. member who has a very long history of deep concern for the less fortunate in society. As a stay at home mom many years ago I followed his career as minister of the environment and was always a big fan.

The minister responsible for Canada Mortgage and Housing Corporation shares this member's concern, particularly about the homeless.

The government recognizes the importance of affordable, adequate and suitable housing in promoting the health and well-being of all Canadians. We are working to improve the economic climate in Canada to help promote housing, affordability and accessibility.

We also recognize the value of partnerships among governments, community organizations and the private sector in addressing the problems faced by the homeless.

Because of the complexity of this issue many players must be involved in finding a solution. However, there is currently a lack of understanding and consensus on the best methods to address the needs of Canada's homeless.

Governments and service agencies have asked for better documentation and information sharing on best practices for addressing homelessness. In response, CMHC has undertaken two initiatives. First, it has identified a range of best practices in addressing homelessness from across the country and is currently documenting and evaluating ten of the better ones. Selected projects include a variety of project types, population served and regions of the country.

Second, CMHC is investing in the most effective means of passing on information on these and other best practices to those who need it most.

CMHC undertook consultations with shelter agencies and stakeholders across the country in 1998. As a result the corporation is now planning a series of small focused regional round table discussions to take place in April 1999, followed by a national round table in June. These round tables organized in partnership with local networks for service organizations have the following goals: to bring together key people involved directly with the homeless population; to explore the transfer ability of successful approaches; to provide regional and national round tables for the exchange of information and experience among decision makers; to facilitate new links for the partnership opportunities in the development of solutions.

I am afraid I am out of time. I would be pleased to share the rest of that with the hon. member for Davenport.

[Competition Act, March 12th, 1999]

Madam Speaker, it is a pleasure to speak to Bill C-393. I congratulate the member for Sarnia—Lambton for his dedication to the issue of consumer rights and for his perseverance in bringing the legislation before the House.

Parliament has made substantial changes to the way we conduct Private Members' Business. It is fair to say that it was the passion and commitment of backbench MPs, such as the member for Sarnia—Lambton displayed, that inspired parliament to make those changes.

Like many MPs, my constituents have often expressed frustration at unfair marketing practices that require them to expressly decline new services in order to avoid being charged for them. It is also important to remember that people who pay for services they do not want are often the ones who can least afford it, such as the elderly, young people, recent immigrants and those still learning English or French.

The bill regulates federal institutions, but I will show how insidious negative billing can be. For example, I have two daughters in university who are both charged full fees that include extra health care of $250 a year. Unless they line up at a specific time on a specific day in a specific location and prove they have extended health care through our family, they are automatically charged that money. If they line up they get the money back. Since many of the students are on student loans, federal government money is being sucked up by the universities on negative billing. That gets me very excited and that is why I am in favour of the legislation.

Some minority groups and business people have also come forward to argue in favour of negative option marketing. They offer good reason to allow some form of limited negative option selling to continue.

These considerations deserve to be looked at closely, but this debate also offers the opportunity to consider whether negative option selling is the best method for achieving very laudable cultural objectives. If consumers feel manipulated by negative option practices, this can create resentment toward the cultural product the practice is intended to benefit.

However, it is also clear that current negative option practices are generally unfair to consumers. As legislators we have to do a better job of protecting those interests. Bill C-393 is a very good step in that direction.

Negative option billing relies on the legal concept of implied consent. By not responding the consumer is deemed to have given his or her consent. Some might argue that consumer pressure is enough to end negative option practices. However, as Bill C-393 recognizes, most negative option selling occurs in industries where there is little or no competition. Indeed unfair negative option selling is much less likely to occur in competitive markets because of the threat of losing customers.

I would like to see us all have a pair of shoes arrive from Eaton's, for example, and then be billed a month later because we did not send the shoes back and see how long that practice would last.

Bill C-393 deals specifically with federally regulated businesses such as banks, cable and telephone companies. Those that argue “let the market do its work” are ignoring a central fact of Canadian life. In banking, local telephone service and cable television distribution, consumers are faced with limited choices. Companies in these sectors do not always have to consider consumer pressure because their customers have very few options.

Let us look at the furor in 1995, which has been recognized by other speakers, over the negative option billing by Canadian cable companies. This elicited more phone calls into my constituency office than any other issue has ever affected my riding. Thousands of consumers were outraged. Cable companies backed off at the time. Yet only a few short years later there were reports that they were doing it again, using negative option billing in regional markets.

No one on this side of the House wants the federal government to exercise undue influence over the marketplace, but we have to ask ourselves whether negative option billing further concentrates market share with the dominant players.

It may be time for the legislation. Computer technology has made it much easier for businesses such as the banks to quickly and easily offer new services and change existing ones. Industry Canada's office of consumer affairs pointed out in the 1996 discussion paper that negative option marketing had the potential to be an important tool in the financial services sector. To quote the report:

From a negative perspective these new technologies could allow industry to profit by slipping new charges and services past unsuspecting customers.

However, the report also pointed out:

—responsible service providers operating in competitive markets can enable financial institutions to offer better service more easily and with greater efficiency.

The report also gives examples where negative option marketing has worked reasonably well.

Bill C-393 takes these issues into consideration. It recognizes that there may be situations where a consumer would benefit from a negative option billing arrangement. However, for this to be the case, consumers must be able to make informed decisions and express consent.

Bill C-393 proposes certain steps for a negative option marketing practice to be legal. The bill has received the support of the Consumers' Association of Canada, the Public Interest Advocacy Centre and the Insurance Brokers Association of Canada.

There is no doubt that these measures enjoy widespread public support. Consumers feel vulnerable to negative option tactics. When this method of selling is used inappropriately it catches them off guard. They are accustomed to business relationships where no response means no purchase.

They believe they are safe in the understanding that unless they give their consent no one can take money from their account or add a charge to their monthly bill. As I have said, negative option selling is sometimes used responsibly, but in cases where it is used inappropriately consumers are being taken advantage of.

By not responding to a solicitation the consumer is deemed to have given his or her consent. How can the sender be sure that their customer received the solicitation? What if the person is away from home? What if the solicitation simply does not make it into the customer's hands? If it does make it into their hands, how is the consumer approached? Is the negative option included with other information? Is the offer made at the beginning of the document or at the end? Is it clear for everyone who reads it?

These are all good questions. The debate over Bill C-393 offers parliament and the federal government a useful opportunity to explore them.

Since the controversy over negative option billing in the cable industry little has been done to protect consumers from the misuse of this marketing practice. On that occasion and on other occasions consumers have spoken.

They have said they do not want the responsibility of having to thoroughly examine every document they receive in the mail, every business trying to sell them a new product or service.

They do not want to be forced to phone in a response or mail a reply card just to keep their own money. My daughters do not want to have to line up in the cold to get their money back.

There are times when the practice is used appropriately for worthwhile reasons. Let us deal with the misuse of negative option marketing so that consumers can make informed choices.

If consumer resistance is not effective in stopping the misuse of this practice, it is up to the members of this House to act in their interests.

Bill C-393 offers us an opportunity. The member for Sarnia—Lambton should be commended for bringing this issue before the House.

[Chris Full, March 12th, 1999]

Mr. Speaker, I would like to thank one of my constituents, Mr. Chris Full, who donated two weeks of his time to review the reconstruction of a sanatorium for children in Vladimir, Russia.

At the invitation of the Canadian Volunteer Advisors to Business he used his skills and Canadian experience to identify and correct mistakes in the design of this facility. He also produced a business plan for completion of the project as well as recommending a list of reliable Canadian suppliers for medical and diagnostic equipment.

Chris is typical of the highly skilled volunteers who donate their time to the Canadian Volunteer Advisors to Business which provided almost 23,000 days of assistance last year to developing nations, emerging market economies and Canadian aboriginal communities. Their volunteers are part of Canada's effort to stimulate development in disadvantaged economies.

Once again I want to congratulate and thank Chris Full for efforts that will improve the lives of children in Russia.