Geoff Regan

[Questions on the Order Paper, May 1st, 2002]

Mr. Speaker, the following questions will be answered today: Nos. 128 and 129.

[Government Response to Petitions, May 1st, 2002]

Mr. Speaker, pursuant to Standing Order 36(8) I have the honour to table, in both official languages, the government's response to four petitions.

[Mountain Pine Beetle, April 30th, 2002]

Madam Speaker, Public Works and Government Services Canada accepts criticism where it is due. The department realizes there is always room for improvement and it continues to develop innovative approaches that serve the needs of its clients while protecting the interests of taxpayers. That is the key. It is committed to a fair, open and transparent procurement process.

We disagree with the auditor general's report in a number of areas. There was a suggestion that the department issued ACANs which did not meet treasury board policy and contracting rules. The department followed the approved policy of issuing ACANs where only one company is capable of performing the work.

There was a suggestion that the department engaged in contract splitting by awarding contracts to the same company for similar requirements. Contracts were awarded to meet the rapidly evolving needs of Health Canada. The department's own review shows only two contracts went to the same company for similar requirements. Both were under $25,000.

There was a suggestion that Public Works and Government Services Canada audits indicated significant over-claims. As part of effective contract management responsibilities--

[Mountain Pine Beetle, April 30th, 2002]

Madam Speaker, I am pleased to respond on behalf of the government to the hon. member for Battlefords--Lloydminster in regard to the audit note by the auditor general on the government contracting rules and regulations related to the development of the Canadian Health Network.

As the Minister of Public Works and Government Services indicated in the House on April 17, the department followed very closely the rules in regard to the Canadian Health Network contract. Furthermore, I can assure the member that the department respected the departmental policy with respect to advanced contract award notices or ACANs as they are called.

The Department of Public Works and Government Services is known in government as a common service provider. Its role is to provide essential goods and services needed by more than 140 government departments and agencies to fulfill their mandates to Canadians. It aims to provide the best value for government, taking into account public policy of the day and of course with due regard to probity, prudence and transparency.

For each procurement the department undertakes, it will make every reasonable effort to satisfy the operational needs of its clients while obtaining best value in the procurement process.

The Department of Public Works and Government Services is accountable for the integrity of the procurement process including ensuring that actions taken are in compliance with accepted government policies or legislation. These contracting objectives and principles clearly support the government's commitment to ensure best value for taxpayer dollars through a procurement process that is open, fair and accessible.

The Department of Public Works and Government Services managed more than $10.5 billion in government-wide procurement opportunities in 2001, resulting in more than 58,000 contracts for suppliers. This is an enormous volume of contracting work, yet only 75 complaints have been filed against the department with the Canadian International Trade Tribunal. What is even more revealing is that only six of those complaints have been declared valid.

Here is another impressive measure of the integrity of the department's contracting activities. In the year 2000, on a dollar value basis, 92% of Government of Canada contracts were awarded competitively; 70% through tender and 22% through the ACANs process. Only 8% of contracts were non-competitive.

In the audit note, the auditor general made a number of observations regarding, among other things, contracting matters related to the management of the Canadian Health Network, which led to the creation of a large health information tool based on Internet technology.

We disagree with the auditor general's report in a number of areas, namely the suggestion that the department has improperly used ACANs. The department followed the approved policy, issuing ACANs where only one company was capable of performing the work.

Another issue raised in the auditor general's report is the reference to the $300,000 for the development, installation and testing of a pilot telecommunications system to be completed by March 31, 1998. On this matter I would like to specify that the department did question Health Canada on how the work could be delivered in time and did receive a satisfactory answer. The department was informed that the bulk of the requirement was a capital equipment purchase to be delivered by the end of that month.

This was a competitive contract. An ACAN was posted on March 13, 1998, closing on March 20, 1998, and there was no challenge. This was documented on file but somehow was overlooked by the office of the auditor general.

The auditor general also raised the fact that PWGSC audits of contracts indicated significant overclaims. On that issue, the department did monitor the claims submitted by all contractors as part of its contract management responsibilities.

In conclusion, PWGSC is committed to a fair, open and transparent procurement process. It continually strives for excellence in its procurement practices and indeed in all its activities.

[An Act to amend the Criminal Code (cruelty to animals and firearms) and the Firearms Act, April 30th, 2002]

Mr. Speaker, I rise on a point of order. The hon. member suggested the government is not willing to vote on this and suggested we collapse the debate now. If he wishes to collapse the debate now and have a vote, we would be happy to do that.

[Question No. 130, April 30th, 2002]

Mr. Speaker, I ask that the remaining questions be allowed to stand.

[Question No. 130, April 30th, 2002]

I am informed as follows: Fisheries and Oceans, DFO: DFO does not receive any revenue from leases of infrastructure to ferry service operators.

Although there are ferry services operating at harbours included in Schedule I of the fishing and recreational harbours regulations, all of these harbours are leased to and operated by harbour authorities. Any revenues generated through operations of these harbours are therefore retained by the harbour authorities to defray the costs of harbour operation and minor repairs.

Public Works and Government Services Canada, PWGSC: PWGSC is the custodian of 66 smaller wharves distributed throughout the country but does not lease wharves and related infrastructure to ferry service operators and, consequently, we do not have any revenues related to such actions.

Transport Canada: Transport Canada leases three ferry terminals to Bay Ferries Ltd. for the provision of ferry services. These ferry terminals are located at Yarmouth, Nova Scotia, Digby, Nova Scotia, and Saint John, New Brunswick. The federal government has leased these facilities for $500 per annum since 1997, when the sites were leased to Bay Ferries Ltd. as part of the commercialization program carried out under the Canada Marine Act.

(a) 2001 = $1,500

2000 = $1,500

1999 = $1,500

1998 = $1,500

(b) Revenue from leases for Nova Scotia sites is $1,000.

(c) Nominal amount as established by commercialization process.

[Question No. 127—, April 30th, 2002]

I am informed by the Departments of Finance and Health as follows:

(a)(i) To support the September 2000 first ministers’ agreements on health renewal and early childhood development the Government of Canada provided $23.4 billion in transfers and targeted funding. The Canada health and social transfer, CHST, received an additional $21.1 billion over five years, including $2.2 billion for early childhood development initiatives.

The Government of Canada also provided $2.3 billion in targeted support: $1 billion to provinces and territories for the purchase of medical equipment, $800 million for primary health care and $500 million for information and communications technologies. CHST funding is also available to assist provinces in purchasing medical equipment and investing in new technologies as priorities outlined in the agreement on health renewal.

The fund has been available to provinces and territories since October 23, 2000, through a third party trust arrangement. All jurisdictions have now received their full allocation of the fund which expired on March 31, 2002.

(ii) In September 2000, the Government of Canada established a $1 billion medical equipment fund to assist provinces and territories to immediately purchase and install medical equipment according to the priorities of their own health systems. Such equipment could include MRIs, CT scanners, dialysis machines, and other needed equipment, such as lifting devices, to improve the overall quality of health care and the working conditions for health care personnel.

(iii) In response the to first ministers’ agreement to accelerate primary health care renewal, the Government of Canada announced the $800 million primary health care transition fund to bring about systemic, long-term reform. It will support provinces and territories in their efforts, over the next four years, to improve the delivery of primary health care by supporting transitional costs of large scale, primary health care initiatives.

The fund has several envelopes: 70% of the funding (or $560 million) is be allocated to provinces and territories on a per capita basis to assist them in reforming their primary health care systems; 30% of the funding (or $240 million) will support: national initiatives which support renewal efforts; initiatives to advance primary health care reform for aboriginal communities; initiatives to advance primary health care reform for official language minority communities; and multi-jurisdictional initiatives in which two or more provinces and/or territories are collaborating to advance primary health care renewal.

Primary health care renewal is a major endeavour and planning for renewal takes time. Requests for funds under the PHCTF will need to be based on jurisdictions’ long term renewal plans. Accordingly, the upfront planning and preparations are important. It took several months of discussion before F/P/T governments agreed on parameters of the PHCTF that provided sufficient accountability while still offering sufficient flexibility for provincial and territorial governments to manage the system.

Provincial and territorial governments are at various stages in the planning of primary health care renewal. Many of the provinces and territories have applied for proposal development funding under the PHCTF. Full provincial and territorial proposals are expected to be submitted throughout the spring and summer of 2002. Although a final accounting of expenditures for the 2001-02 fiscal year has not yet been made, total spending is expected to be about $1.3 million under the provincial/territorial per capita component of the PHCTF.

(iv) The Government of Canada provided $500 million to an independent corporation, Canada Health Infoway Inc., Infoway, in March 2001 following the signing of a memorandum of understanding, MOU, between Infoway and the Minister of Health. The mandate of Infoway is to accelerate the development and adoption of modern systems of health information and communications technologies and to define and promote standards governing shared data to ensure the compatibility of health information networks. Public annual financial statements should be available in June 2002. Infoway’s website at www.canadahealthinfoway.ca can be referred to for further information on the corporation and its activities.

(b) CHST cash payments are $3.6 billion higher in 2002-03 than in 2000-01. CHST cash is now at an all time high of $19.1 billion this year. Together with the growing tax transfer component, CHST entitlements will reach $35.6 billion this year. Provinces can allocate CHST funding among health, post-secondary education, social assistance programs, including early childhood development, according to their priorities.

The medical equipment trust expired on March 31, 2002, and any funds remaining in the trust were dispersed accordingly to provinces and territories. Under the September 2000 agreements, premiers agreed to report to their respective populations rather than the federal government on the use of such funds. The Minister of Health is working with her provincial and territorial colleagues.

[Questions on the Order Paper, April 30th, 2002]

Mr. Speaker, the following questions will be answered today: Nos. 125, 126, 127 and 130.

[Government Response to Petitions, April 30th, 2002]

Mr. Speaker, pursuant to Standing Order 36(8) I have the honour to table, in both official languages, the government's response to two petitions.