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Decentralized Democracy

House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
  • May/19/22 6:49:08 p.m.
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Madam Chair, Andrew Kendrick, who testified on May 13 at the Standing Committee on Government Operations and Estimates, mentioned that the major shipyards always transferred the risk to the smaller suppliers, the contractors, and that the costs associated with the risks were assumed by them. If they needed to boost the price, they just had to increase the bill and the government paid. Why are the contracts written that way? Why is it always the taxpayers who pay for the cost overruns or the risks, which most often are passed on to the smaller players?
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  • May/19/22 6:49:58 p.m.
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Madam Chair, the cost of everything is skyrocketing right now. None of the contracts involve fixed costs. A number of witnesses told the committee that many businesses in many countries had fixed costs. The witnesses suggested signing fixed-cost contracts. Does the minister agree?
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  • May/19/22 7:17:16 p.m.
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Madam Chair, our government is committed to renewing and strengthening its economic relationship with indigenous entrepreneurs and communities by providing increased economic opportunities to first nations, Inuit and Métis businesses through the federal procurement process. Our government announced the implementation of a mandatory requirement for federal departments and agencies to ensure that a minimum of 5% of the total value of contracts is held by indigenous businesses. This requirement includes public reporting and will be phased in over three years, beginning this year, with a number of federal departments that are ready to immediately begin this work, with full implementation expected by 2024. From March 2020 to March 2022, Public Services and Procurement Canada, as a common service provider, has awarded $1.3 billion through 1,744 contracts to indigenous suppliers. Can the minister tell the House more about the efforts to achieve this mandatory target, and what she is hearing from indigenous business leaders and partners?
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  • May/19/22 7:23:52 p.m.
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Madam Chair, it would appear that businesses do not entirely agree with what the minister. That is their right. Many in government and in the private sector have pointed out how difficult it is to do business with the government, particularly when it comes to francophone SMEs. In the past year, what proportion of government tenders and contracts were written in both official languages?
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  • May/19/22 7:24:25 p.m.
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Madam Chair, if anyone wants translation into French, then we would provide that. If the member is asking about specific contracts that currently exist in two different languages, I am happy to have my team follow up with her and provide her with those exact details. I do not have that number off the top of my head.
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  • May/19/22 7:26:22 p.m.
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Madam Chair, there is not actually any competition when there is only Cisco and resellers of Cisco products. Competition would involve companies that sell something other than Cisco products. How many contracts have been offered to companies that sell something other than Cisco products?
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  • May/19/22 7:27:48 p.m.
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Madam Chair, when we are procuring these contracts, this is the amount we have set aside. We do not know yet who is going to be the successful bidder in that. When we are looking for successful bidders, we are always looking for those that are the most competitive, have the best value and are going to meet the needs that we have in order to ensure that we are getting the product that is going to best serve Canadians.
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  • May/19/22 7:47:39 p.m.
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Madam Chair, I would like to ask the minister whether the federal contractors program requires organizations bidding on federal contracts to enter into an agreement to implement employment equity? Is this policy being followed?
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  • May/19/22 7:48:03 p.m.
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Madam Chair, is disaggregated data being collected, and have contracts been awarded to organizations that fail to meet their obligations on employment equity?
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  • May/19/22 8:04:23 p.m.
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Madam Chair, we do have sufficient contracts to ensure moving forward we have a supply of vaccines and those contracts also provide provisions so that, as new formulas arise, we get access to those formulas. In addition to this, as I mentioned earlier, 1.7 million doses for the therapeutics, which is extremely important. Shipments of more than 30,000 Paxlovid treatments have come in, and we expect many more in order to ensure that Canadians have access to that important treatment.
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  • May/19/22 8:09:35 p.m.
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Madam Chair, as I have said before, we continue to monitor these contracts, and we will share the specifics and details once the contracts are signed and commitments have been made.
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  • May/19/22 8:12:30 p.m.
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Madam Chair, as I have said, executive bonuses that are paid out are paid in accordance with the contracts. We will honour the terms of the contracts. With respect to the previous point on Phoenix, the work has resulted from what we inherited, and that work remains ongoing to correct the system.
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  • May/19/22 8:17:06 p.m.
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Madam Chair, we have provisions in our contracts now that do not permit forced labour to be used, and if it is used we can terminate the contract.
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  • May/19/22 8:17:24 p.m.
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Madam Chair, we will continue to work to enforce the terms of our contracts to ensure that there is no forced labour and that the obligations of the contract are fulfilled.
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  • May/19/22 8:17:38 p.m.
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Madam Chair, Panasonic has received $32 million in contracts from the Liberal government despite sourcing materials from factories using Uighur labour. Panasonic has refused to alter its practice. Will the Liberal government immediately stop buying from companies using forced labour?
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  • May/19/22 8:17:56 p.m.
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Madam Chair, I am pleased to talk about the progress we have made with forced labour. PSPC has now put in a code of conduct that has to be signed. There are provisions in the contracts that say if there is forced labour, we have the opportunity to terminate the contract. We are going to continue to move forward in this regard because we are absolutely against forced labour and—
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  • May/19/22 8:18:42 p.m.
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Madam Chair, I have been very clear that in the contracts we will not procure goods that use forced labour. If the member has evidence that forced labour is being used, he should share that information and we will look at it. We are not going to procure goods that use forced labour and we take the allegations very seriously.
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  • May/19/22 8:19:04 p.m.
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Madam Chair, I have been sharing it this evening and the minister has refused to rule out buying from these companies. The Australian Strategic Policy Institute has identified dozens of companies that have knowingly used forced labour goods in their supply chains. These companies, according to the government's own Buyandsell website, have received hundreds of millions in contracts from the Liberal government. If my office, with one person, can find all of this information, why can PSPC, with all of its resources, not find the same information and stop sending Canadian taxpayer dollars to buy services made with forced labour?
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  • May/19/22 8:39:09 p.m.
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Madam Chair, again, I will reiterate: when we hear of allegations, we take those allegations very seriously. We have terms in the contract that allow us to terminate the contracts. We act on allegations that we hear.
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