David Dingwall

[Canada Communication Group, May 25th, 1994]

Mr. Speaker, earlier this day I released the audit report of the Canada Communication Group.

As some hon. members may recall, I requested that an independent audit be conducted as a result of allegations made by suppliers, members of Parliament and concerned citizens on possible conflicts of interest in the contracting practices of the Canada Communication Group.

After listening to suppliers, I decided to act quickly to get the facts out in the open. That is why Deloitte and Touche were asked in March to come in and examine the Canada Communication Group's contracting practices. This impressive audit was conducted in just six weeks.

It is clear from the audit report that the Canada Communication Group's role as both a supplier and a contracting agent results in an inherent structural conflict of interest.

The auditors have recommended, and I have accepted as I have accepted all of the recommendations which have been put forward, that the Canada Communication Group procurement activities be transferred to the supply operations group within Public Works and Government Services Canada. This transfer is to be completed by August 1 of this year.

The decision to sever Canada Communication Group contracting arm from its service delivery component directly in my view addresses this finding of an inherent conflict of interest. The Canada Communication Group will continue to provide, however, a full range of services. However, the removal of the contracting activity eliminates both the potential for conflict of interest and a major irritant to suppliers across this country.

As well there are well over 150 employees at the Canada Communication Group whose lives will be affected by this decision. All affected will become employees directly of Public Works and Government Services Canada.

It must be noted that the auditors found the Canada Communication Group business practices to be consistent with its charter. Further, the auditors concluded that there was no evidence of illegal or fraudulent activities. The auditors also recommended that an advisory committee be established to look at the Canada Communication Group organizational status and its future evolution. This committee to be comprised of government and industry representatives will consult widely and extensively with all stakeholders in mapping out the future directions for the Canada Communication Group.

Officials are now finalizing the mandate of the committee and I expect to be able to name the members in the next few weeks and to have the final report from the committee some time in the very near future.

At the same time the Canada Communication Group in consultations with client departments, suppliers and central agencies is to develop and publish a policy and guidelines on conflict of interest. The advisory committee will review and approve the policy and determine how the policy is to be monitored for compliance.

I do not think that one can talk candidly about the Canada Communication Group without acknowledging its status as a special operating agency. I already noted at the Standing Committee on Government Operations that the concept of a special operating agency is an important one but should be reviewed. I am looking at the issue of special operating agencies with my colleague from the Treasury Board. We need to re-examine the purpose of special operating agencies and the type of government services which benefit most from being structured along those lines.

I fully expect that the special operating model as structured by the former government will come under further scrutiny and reviews which are now presently under way.

In closing, I want to assure all hon. members that their input on the review of future options for the Canada Communication Group will be welcomed. It is my hope and expectation that a full and frank discussion will evolve and that the Canada Communication Group and the Government of Canada will emerge even stronger as a result of this particular process.

[Canada Communication Group, May 25th, 1994]

Mr. Speaker, under the auspices of tabling of documents I would like to table for the benefit of the House the audit report of the Canada Communication Group, in both official languages, as well as the Canada Communication Group audit action plan prepared in both official languages.

[Government Contracts, May 25th, 1994]

Mr. Speaker, I think the hon. member knows quite well that the request which she has made, although on first instance may appear to be very reasonable involves a large expenditure of taxpayers' money in order to provide the necessary information.

However, as I indicated at committee and as I repeat here once again we will be happy to review with the hon. member the kinds of information which will respond to her questions and allay her fears with regard to the purchasing practices of this department.

[Government Contracts, May 25th, 1994]

Mr. Speaker, I thank the hon. member for the question. With regard to providing the answer, I think the hon. member knows, because it was asked of me at committee, the request which is being made will require the Government of Canada to absorb a very high expenditure of public funds in order to provide all of the necessary information that she has asked for.

However, as I indicated at committee and as I now state again we would be happy to provide as best we can within the fiscal

capacity of the Government of Canada all of the necessary information which I am certain will address all of the questions and all of the concerns the hon. member has.

[Polls, May 12th, 1994]

Mr. Speaker, the hon. member should know that the guidelines say very clearly that the bulk of polling information will be made available to the public. The hon. member should understand, and I know it is difficult, that the Supreme Court of Canada has ruled repeatedly that there are certain confidences that cabinet can and must preserve to protect the public interest, to protect Canada's interests.

If the hon. member is suggesting that there can never, ever be a situation where a poll should not be released to the Canadian people, that it could never, ever offend the best interests of the public, he is living in a fairy tale world.

[Polls, May 12th, 1994]

I want to thank hon. members for their support.

[Polls, May 12th, 1994]

Mr. Speaker, the hon. member obviously has not read the guidelines.

The guidelines say quite clearly-

[Polls, May 12th, 1994]

The hon. member has asked several questions but let it be said that the guidelines are very clear. We are the first cabinet ever to put guidelines in place in order to try to address this situation.

I want to quote for the hon. member Frank Graves, the chairman of the industry and government liaison committee of the Canadian Association of Market Research Organizations when he said: "On behalf of the Canadian Association of Market Research Organizations, I would like to express our approval of the general direction and principles stressed in the new policy.

We strongly support any moves to a more transparent and competitive process which will stress best overall value as the key to the selection of suppliers".

In essence that is the purpose of the guidelines, to have a competitive process, to make sure that it is open and transparent and that there is accountability. That is what the guidelines do.

[Biovac, May 12th, 1994]

Mr. Speaker, the hon. member has once again made another factual mistake with regard to the contract between BioVac and Connaught Laboratories.

If the hon. member has evidence that BioVac or Connaught has done anything incorrectly or inappropriately, she should bring it to the attention of the House. If that is the case, we will examine it. I have no information before me to suggest that.

The member knows that the contract that was let was fair, equitable for the participants and all the stakeholders. Yes, I can understand the hon. member's desire to have 100 cents on every dollar. She has to realize there is much more to her concerns than just having the contract go to one company.

[Biovac, May 12th, 1994]

Mr. Speaker, the hon. member is raising the issue once again of BioVac and Connaught Industries in terms of what the Government of Canada did on a particular contract which provided a vaccine primarily for the purposes of provincial governments across this country.

I want to say to the hon. member that we believed then as we do now that the arrangement was a very equitable one. It was in the best interest of all of the various stakeholders. With regard to the reference about a requested letter, I have no knowledge of this information and will be happy to take it under advisement.