Mr. Speaker, I am pleased to speak today on Bill C-7, formerly Bill C-52 which was presented to the House back in 1993. Just a scant three years later we are looking for approval of provisions for which most in fact are probably already in place.
I do not want to dwell on this subject for an extended length of time because the bill was introduced and then became C-7 in 1994 and the changes within the bill are already in place. However, I would like to make a few points about the bill and the practices of the department in general.
I and my party have some serious reservations about particular sections of the bill which appear to give the minister unlimited discretion with respect to fees, business practices and other operations within the ministry which in itself is sort of scary. As a matter of fact, I have received quite a number of letters, faxes and calls from people who have concerns in relation to those aspects of the bill.
Clause 16 is particularly worrisome because of the broad range of powers it implies and gives to the minister. It states that "the minister may do anything for or on behalf of", and then it enters into a number of conditions. Given the history of the Liberal government when it has such a free rein, that can present a scary situation to a lot of people who are concerned about how the government spends money.
Given the government's penchant for spending money and its history of giving choice favours, if I may use that word or we can call it patronage, to friends of the government, giving a minister this kind of leeway and discretion is particularly worrisome to ourselves and indeed to many Canadians.
Clause 16(b) states that public works can do anything for "any government, body or person in Canada or elsewhere". The term "in Canada or elsewhere" is rather questionable. I thought the purpose of any government in Canada was to serve Canadians.
Why would this minister seek to have a provision that would allow the minister to do things on behalf of Canadians with people outside the country when we are talking about government operations and public works? The focus should be to deal within Canada in any area.
Why is the government giving powers to a department entering into contracts with foreign governments, companies or individuals? We have all those resources here in Canada.
One of the most worrisome parts of this bill is that the government appears to be and is getting involved in providing services that are already available in the private sector. It is our opinion that the government should not be competing with the private sector. The provisions of this bill allow it to do exactly that.
We question why the government would want to get involved in competition with the private sector which pays taxes, tries to do business in this country, provides jobs for Canadians, provides a living for the owners and tries to build a company. Instead, the private sector comes up against a government that is competing with its own tax dollars and generally far more resources than any private sector company has in this country. That is a real concern of ours.
Clause 16 also permits the minister to do what he or she pleases with whom he or she pleases. That is scary in itself. One can apply that principle to any of the functions that might occur in that department.
When we give a minister that kind of wide ranging power to do what he or she pleases with whomever he or she pleases, given the history of the Liberals' penchant for spending money, giving away very lush government contracts to friends of Liberals and appointing friends of Liberals to very well paying positions, we have to ask if this power is excessive. Should it not be curtailed more?
We have put forward amendments that would address these wide ranging powers and the freedom they give by curtailing the department's ability to compete with the private sector first. However, as history will show, when we put through common sense amendments they are defeated by the government. This is curious since the government operations committee just released a preliminary report on the contracting process entitled: "Small Business is our Business". The report flies in the face of what this bill intends to do.
One of the main findings of the report is that more contracts should be awarded to small and medium size businesses. It sounds good to me. However, here we have Bill C-7 which permits the government to enter into direct competition with those very enterprises the report states it should be doing more business with.
In our opinion, the government should have adopted the amendments put forward by the Reform Party which would have been in line with the report "Small Business is our Business". We think it should have listened and should listen to the committee and prevent the department from competing against the private sector.
Many letters have been written to many MPs in this House from private sector companies, whether they be small or medium size companies, stating their distress about the fact that the government can and is entering into competition with them using their own tax dollars to do so. Reformers believe these companies have a very legitimate concern. Why should their own government compete directly with them?
The government should have adopted some of the amendments put forward by Reformers and it should have listened to its own standing committee which dealt with this and provided a number of recommendations.
Ultimately the government should be downsizing the department and getting out of those areas that are controlled and well served by the private sector. Why should the government be involved in areas of operation that are served very well by the private sector business? However, we see the reverse when we examine Bill C-7.
The government operations committee identified a number of areas of concern with respect to the department that are not addressed in this bill. For instance, the committee was concerned that 40 per cent of the contracts, worth about $3.5 billion, given out by the government were sole source. In other words, those contracts did not go out to public tender. They were just given out with no tendering process to particular firms. Nothing in this bill addresses this situation.
As members know, sole sourcing can very easily lead to abuses within the system. This was one of the things we discussed at length in the standing committee. There were a lot of concerns from Liberal members themselves about sole sourcing of government contracts. We discussed it before the House prorogued and before the government decided to take an extra holiday in February. We were prepared to deal with it and hopefully we will now get back to dealing with it in committee. We will send more recommendations to the government in the hope that it will start to listen.
The committee recommended that Treasury Board and public works draft a code of conduct for contracting out which would lay out very strict guidelines on how contracting out would be done by the government. However, the committee report went further by stating that the reporting framework for contracting needs had to be significantly revised.
In all, there is a great deal of concern over the contracting process. What really concerned us was the amended tenders, the amendments that could be made to contracts given out by the government. In other words, someone can bid a price and after they have the contract they can go back to the government at the local level and request their tender or bid price be amended. How could any private business ever operate like this?
When I was in business, after an agreement was made to purchase something from a supplier, a price was quoted, the deal was made and we agreed to it. However, the situation here is that the government can put out a contract, someone can bid on it and win the bid and then turn around and ask for an amendment. Given that the contract is at a certain level, say $30,000 and under, the decision to amend the contract can be made locally within the region. We feel this opens up the process to all forms of abuse and we asked in committee to have it dealt with. We see nothing in the bill that deals with it. We hope that when the committee deals with it again some of the recommendations that come forward might be added into this bill as amendments.
Even though the committee's work is fairly recent, we are all well aware of some of these problems that are hounding the government's contracting procedures. I talked about the contract amendments which add on to the contracts and drive the price higher than what the original agreement was.
To talk about that for a moment, there are some astounding figures. For example, in 1990 contract amendments totalled $602 million. These are not the original prices; these are the add-ons. By 1993, in just a short three years, once the people who were submitting the bids found out how to work the loophole in the system which allowed for contracting amendments and get around the contracting process, the amendments went from $602 million in 1990 to a staggering $1.8 billion in 1993. That is totally unacceptable. No private sector operation could even dream of operating in that way.
This is another situation we feel the Liberals and the House of Commons have to deal with immediately. Reform has been talking about this situation for almost three years now. There have to be more controls to safeguard the public purse. We cannot allow the discretionary power within the department that exists. It is open to all forms of abuse.
There really are no procedures in place other than this discretion that will really safeguard the public purse. These are tax dollars we are working with. These tax dollars are given to the government by hard working Canadians who want to see their tax dollars spent in a prudent fashion. Let us never forget that the tax dollars are basically funds paid into trust by Canadians. The government should regard taxpayers' money as a sacred trust and should do everything it can so that there is no question by Canadians as to how the government spends that money.
Whereas there should be more controls to protect the public purse, Bill C-7 in fact increases the power of the department and the minister and loosens control. What on earth is this government thinking about when it puts in a bill like this and when it asks its members-let me rephrase that-when it tells its members to support a bill like this?
The department is famous for being partial in its provision of information which at best is very difficult to receive. Reformers put forward amendments which would ensure that the disclosure of information was complete and easily accessible which is not unreasonable. Our party appears to be the only one in the House concerned about how taxpayers' dollars are spent by this government. We asked that information on how the money is being spent be easily accessible. We asked for that in the form of an amendment. The Liberal government in an effort to protect its little empire, which gives it all sorts of powers to spend money and reward friends, defeated our amendment which asked for accessibility.
What kind of a message does that send to the Canadian taxpayers, who as we all know are among the highest, if not the highest taxed wage earners in the whole world? What kind of message does that send to the people who are paying taxes, that this government will not allow a party like the Reform Party, who want to be the guardians of the taxpayers' money, or for that matter any other interested and concerned people access to how the government departments spend their money? It is a very poor message indeed. We put forward the amendment for disclosure. It was defeated by the government.
When we consider that $9 billion was spent on contracting last year, we think the public has a right to know exactly how the money is being spent. However, Bill C-7 does not address this issue. It is almost laughable. For all the Liberal government's talk about transparency and openness, all the promises it made on the campaign trail and in the red book about being transparent and open, the public still has difficulty obtaining information from the department of public works.
Forget about the public having difficulty; Reform members have difficulty obtaining the information we want in order to check on how the government is spending the money. I have requested information through access to information a number of times only
to obtain about one-tenth of what I requested and even that was blanked out in many cases. What kind of a message does that send to Canadians?
All of this reminds me of a related issue, which is the privatization of Canada Communication Group I spoke about in the House the other day. Canada Communication Group falls under the control of the department of public works. In July 1995 the minister announced that it would be privatized. In some respects we do not have much of a problem with privatization if it is going to save money and increase efficiency. We thought we would wait to see how it was going to work.
The government struck a committee to advise it on a process which was to be fair, open and transparent. The committee was to advise the government on how the privatization should be implemented. The process was going to be open, fair and transparent, as the government says it would like to be some day. We and the public have yet to hear from that committee. Equally distressing, as I understand it the committee is reporting to the minister behind closed doors on an as required basis.
What happened to the fair, open and transparent process which was to be the committee's criteria? There has never been a report from the committee which has been made public. It is reporting only to the minister who at her discretion can advise Parliament as to how the privatization implementation is proceeding.
All of this is very disturbing to our party and to concerned Canadians who want a little more openness with respect to how their dollars are being spent. Once again the Liberal government promised one thing but did another. That is why we must be wary of the Liberals' promise that Bill C-7 does not confer broad powers on the minister. I would suggest that it does exactly that.
Furthermore, when the bill was before the government operations committee in November 1994, it was rammed through in typical Liberal fashion by the Liberal majority sitting on the committee. Amendments and witnesses were put forward by Reform. We submitted our lists, we submitted our amendments and the Liberals on the committee refused every one of them. So much for openness and transparency. So much for wanting to make available information on how the government operates.
One has to ask, what is the government afraid of? Why does it not want the Reform Party looking into the way it spends taxpayers' dollars? Why does it not want Canadians to have an understanding of how it spends taxpayers' dollars? Is the government trying to hide something?
We have seen contracting out. There is a company that does a lot of business with the government. SNC Lavelin is a very well known Quebec company that does a lot of business with Canada Post and other departments, including Transport Canada. It is a big company with a zillion subsidiaries and is involved in a zillion consortia.
I have been trying to find out why this company is getting so many government contracts. I know it has been getting them for years, contract after contract, untendered for the most part. It has received a number of multimillion dollar contracts from Canada Post through its subsidiaries, SLS Corp. and Clientech and others with no tendering process in place.
We can talk about the contract for the mine sweepers for the coast guard on the east coast. Fenco MacLaren, a company which bid on the work to be done for the government, outbid Halifax shipyards. I was not involved in the committee that was looking into that but I found out that Fenco MacLaren is not even a shipyard. I thought it strange that a company that does not even own a shipyard could get a huge government contract which common sense dictates must go to a shipyard. Yet Halifax shipyards which bid on the contract did not get it. Lo and behold, in looking into the research data on Fenco MacLaren what do I see? It is owned by SNC Lavelin. Well, my questions have been answered so far. We will delve into that one a little more, let the Liberal members be aware and particularly the minister who was in charge of that one.
The Liberals promise one thing and they do another. We put through common sense amendments to open up the process to what is going on and to make it more transparent and the Liberals shoot it down.
The amendments and the witnesses we proposed to the committee were refused by the Liberal members. They wanted to get out of the committee as soon as possible. They did not want a detailed examination of Bill C-7 in any way, shape or form. They rammed it through committee and let it flounder on the Order Paper for about 16 months.
The bill appears to be largely administrative but as I noted earlier, members should have some real concerns about some of the power conferred on the minister. Members should be asking why the bill permits the government to compete with the private sector. Why? If the government is so serious about creating jobs and helping small business as it claims in the flyer "Small Business is our Business", it would not allow particular clauses in the bill which allow it to compete with private sector small business to go forward.
I urge MPs who are concerned about job creation and the health of the small business sector to vote against the bill. Even Liberal members who feel this way are invited to vote against the bill as well. I know Reformers are going to be voting against the bill because we have serious concerns about the powers that are
bestowed upon the minister and her department. Reformers will certainly not be supporting the bill.