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Decentralized Democracy

House Hansard - 154

44th Parl. 1st Sess.
February 6, 2023 11:00AM
  • Feb/6/23 4:20:44 p.m.
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Mr. Speaker, one of the questions my friend across the way asked was why we insist on talking about Liberal corruption. Why do the Conservatives think that Liberal corruption is an important issue to debate in this House? I want to give two principal reasons. Number one, it speaks to the character of the government. The Prime Minister has, on multiple occasions, been found to have violated ethics laws. That matters in terms of our evaluation of who is running the country and the implications it has for whose side he is on. Also, let us talk about the waste associated with Liberal corruption. Canadians are struggling. Canadians are paying higher taxes. Canadians are struggling with inflation that is being driven by government spending, so when they see this ballooning of spending on McKinsey, but also on consultants in general, when they see that, on the one hand, the public service is growing, but on the other hand there is more work being taken out of the public service with compounding increases in spending, that is very frustrating to Canadians who are struggling, who wonder why they are paying so much in taxes when the government is essentially duplicating these functions by having a bigger public service and by contracting work out. The member asked why this motion is important. It is important because the adoption of this motion by the House asks the independent Auditor General to conduct this investigation. That is the issue. The member opposite clearly does not want the Auditor General doing this work. He does not want the Auditor General getting to the bottom of this, but I think the majority of this House wants to hear from the Auditor General about Liberal corruption. That is why we think this motion is important, to bring in the Auditor General to get to the bottom of this.
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  • Feb/6/23 4:22:19 p.m.
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Mr. Speaker, this is not a time-sensitive motion. The member could have brought forward this motion tomorrow, in an opposition day, but the opposition members decided they do not want to talk about policy ideas. The only policy idea they have had was that stupid cryptocurrency thing, where the Conservative leader said cryptocurrency is the way to go to fight inflation. That is their only policy idea that I have detected. They do not want to talk about policy. They have nothing about the environment. Their focus has been strictly on character assassination since day one. The moment the leader of the Liberal Party became the leader of the Liberal Party, they were after him. We can just take a look at the S.0. 31 statements before 2015. That has been their priority. It is sad.
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  • Feb/6/23 4:23:24 p.m.
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Mr. Speaker, the parliamentary secretary always gets very worked up when he speaks. It is interesting, but we do not fully agree with him. He always says that we should talk about the relevant issues. There are several relevant issues that are being raised in the House. There are still some troubling things involving the McKinsey firm. At the time the contracts were awarded, the firm was already the subject of major ethical concerns around the world. The firm was associated with the opioid crisis and the immigration issue, as was discussed. It is relevant to bring this up in the House and discuss it. That is what democracy is all about.
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  • Feb/6/23 4:24:10 p.m.
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Mr. Speaker, I do believe that, as the member said, these are important issues. That is the reason why, I would suggest, it does not need to be done in a concurrence motion. There are many different reports that we would have concurrence motions on. There would never ever be a day of government business for the rest of the year if we just did concurrence motions on reports. There is an opposition day tomorrow, when the opposition members could have had this same debate. Instead of using an opposition day, they want to double down. Doubling down means there is less time for government bills. We have seen that the Conservatives do not like to sit late into the evening either to have debate on government bills. We have seen that. We have asked for more debate. The Conservative Party cannot have it both ways. I agree that we can have a good, healthy debate on the types of issues and concerns that the member from the Bloc has raised, but there is a time and place. I would suggest that now is not necessarily the time and place, when there are alternatives.
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  • Feb/6/23 4:25:26 p.m.
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Mr. Speaker, I arrived here today ready to debate the matter at hand. The feedback I got from my constituents was about where the $100 million-plus went that the government has wasted on one consultancy over a handful of years. This is something Canadians are seeing right now. I hope the hon. member across the way will see that addressing the way the government is spending or wasting taxpayers' funds is part of our job in the opposition here. It has risen to the level where the public is very concerned about where the government is spending all the taxpayers' money. Will the member across the way address how high this number has to go before he thinks it should be of concern to Canadian taxpayers?
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  • Feb/6/23 4:26:12 p.m.
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Mr. Speaker, I would not say a dollar figure. Let me give the member an example. Stephen Harper flies to India. He wants to have his own personal car. He spends a million Canadian tax dollars to fly a car from Canada to India, so that he would have a car to drive in. I would argue that this was an absolute, total waste of tax dollars. I raised the issue, but I did not think of going to committee and passing a report saying, let us investigate why he spent a million dollars to have a car flown from Canada to India. The point is that there is no doubt that when one spends billions of tax dollars, there are always going to be questionable dollars that are spent. There are many opportunities for us to look at ways in which we can investigate and make sure that the taxpayer's dollar is, as much as possible, not being wasted. However, I do not think this is necessarily what this issue is about. For the Conservatives, the issue is more about character assassination than it is about how much money has gone out. After all, they had given contracts to the very same company. The relationship with Jim Flaherty was a whole lot stronger than what it was with this government.
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  • Feb/6/23 4:27:39 p.m.
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Mr. Speaker, I find myself in sympathy with the parliamentary secretary, up to a point. Although the hon. parliamentary secretary did say that, somehow, the Conservatives had conned the opposition parties into letting them do this, we did not have a choice. This is what happens when, on a concurrence debate, our debate for the day is hijacked. However, this is an important issue. This is what I want to raise. Again, we do not need to just pick on McKinsey & Company. As we dig into this, it appears to me that contracting out to numerous large, global multinationals like IBM and others is a big chunk of our taxpayers' dollars that should be getting done within the civil service. I point to a very useful comment from the Professional Institute of the Public Service of Canada, our high-level union within the Government of Canada, that contracting fees and outsourcing have doubled since 2011. I have been in this place that long and the doubling of outsourcing to large private corporations bothers me. It bothers me that, as Kevin Page, our former parliamentary budget officer, described it, it is basically a discussion we should have right here in Parliament on where taxpayers' dollars get spent, on consumption or investment. The government should not be out consuming a lot of private contractors at high levels. It creates waste. The Government of Canada, internally, should be able to do most of the work. Sometimes there will be an emergency or a workplace shortage, I understand that, but in general, when I last worked as a member of a minister's staff, which was back in the 1980s, we did not rely on McKinsey & Company, nor did we rely on IBM. We had top-notch civil servants who could do all the work that the Government of Canada needed done.
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  • Feb/6/23 4:29:38 p.m.
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Mr. Speaker, I respect what the member is saying. The only thing I would add would be that, today, if we take a look at the IT industry, as an example, and the amount of expertise that is required in order to be able to advance IT, computer systems, data banks and all that kind of stuff, I cannot imagine any government in the world actually having it all insourced. There has to be outsourcing that goes in that, in terms of contracts. When I think in terms of the pandemic, the amount of outsourcing for contracts might have increased. That is why I will be much more interested in the percentage for 2015-16. I suspect that the amount of outsourcing might actually go down over the next year or two, possibly. I do not know. I do not have the background analysis because there was no background analysis done on this report. All it was was just a very simple statement.
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  • Feb/6/23 4:30:40 p.m.
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Order. It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Courtenay—Alberni, Labour; the hon. member for Calgary Centre, Carbon Pricing; the hon. member for Calgary Nose Hill, Health.
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  • Feb/6/23 4:31:01 p.m.
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Mr. Speaker, I will be sharing my time with the member for Lac‑Saint‑Jean. Today's debate is a passionate one. People clearly feel strongly about this issue. I will start off with a quote from a French author I really like: “'Bad' people are not the ones who do the most evil in this world. Rather, it is the incompetent, the negligent and the gullible. 'Bad' people would be powerless without so many 'good' people.” My question is, who are the good people, and who are the bad? Philosophically, I think only fools judge without knowing, but there are times when it is important not to appear foolish. The McKinsey saga has been quite the roller coaster ride, with surprises around every corner: contracts that were never tendered, a contract with a 2100 end date and no registry of lobbyists entry. There is so much here that arouses suspicion. Like it or not, even in good faith, there are reasons for mistrust, yet the government's actions should inspire confidence. In this case, this much doubt adds up to mistrust. It is not unusual to do business with a consultant. I myself was a consultant for 25 years. There are even valid reasons for doing so. I will outline three, or actually four, if incompetence is involved. First, when there is an immediate lack of expertise and no time to develop it in-house, one must seek that expertise externally. That transfer of expertise is valuable. Second, when facing a unique situation that will not be repeated, one might look for a band-aid, a temporary solution. That is valid. Third, when a certain level of expertise is lacking, a consultant can provide it for a limited time. That is valid. These three reasons are valid. There are no other reasons to use a consultant, except for incompetence, the fourth reason I mentioned earlier. The example of the Business Development Bank of Canada was mentioned earlier. That astounds me. A new president and CEO was appointed on August 10. She was not just anyone. She was a former Canadian ambassador to France and Monaco, who had previously worked at the Board of Trade of Metropolitan Montreal and at Sun Life. She had quite a resumé. She did what all political appointees do. She asked McKinsey what she should do. Honestly, I thought that the expertise came with the appointment. I thought that was part of the package. It turns out that it is not. I think the requirement for being president of the Business Development Bank of Canada is to be able to contact McKinsey. At least that is what it seems like. It seems that contacting McKinsey is a natural reflex for this government. However, no one elected McKinsey. We are talking about private sector people from a bona fide company who are developing public policy for the government. If McKinsey is involved it is a done deal. McKinsey has earned a reputation over the years with an admittedly excellent research system. This research system was often built on pro bono assignments on the backs of other people, which is a special kind of hoodwinkery. I wonder: What is McKinsey doing? This firm cannot know more than everyone else about everything, at all times, everywhere in the world. That would be astonishing. The only other explanation is that McKinsey is God or the Holy Spirit, pick one. One thing is certain, McKinsey has made itself indispensable to many. The opioid crisis in the United States was mentioned earlier, but I will not go there. Last fall I met with leaders of the French Senate when I was staying in Paris. They presented me their report, which I could show you, were it not so astoundingly thick. The French Senate showed that McKinsey was setting up shop with weak leaders. They work pro bono. They do not register with the lobbyist registry. In fact, they found the loophole in the rules that allows them to circumvent the spirit of the code. Then they take charge of creating public policies that advance a vision of the world, the vision of McKinsey, an unelected organization. It is ironic because, by subcontracting certain responsibilities, the government has somewhat privatized Privy Council. That is problematic because McKinsey is not accountable to Canadians, and that is not ideal. The Senate of France spent dozens of meetings questioning people. All they discovered was that automatically resorting to that organization was not a sound practice. Of course, over the years, the obsession with balancing the budget resulted in the public service losing certain strengths. That said, the three reasons mentioned earlier remain valid. However, they still came to the conclusion that there had to be transparency around contracting and that information should be published about the list of suppliers, the nature of the contracts and their cost as well as accountability regarding what happened, what they did and the outcome. That was one of the recommendations. They also recommended that there be better oversight of the use of consulting companies and that their code of ethics be enhanced. If I may say so, the ethical rules of consulting firms can sometimes be scary. In fact, a consultant's first commandment is to make sure that the contract is profitable for the consultant. The second commandment is to make sure that the contract is renewed. As for the third commandment, see number one. I will say it again: Hiring a consultant is not the issue. However, it is extremely unethical to contract out public policies to unelected officials who suggest the terms—terms which, if we are to believe what we have learned, no one was able to challenge. Whole swaths of public policy have been subcontracted to McKinsey without any accountability, for McKinsey or the government. In my mind, McKinsey is not the enemy. In some ways, I am more concerned about government management. Public enterprise fulfilled a request. However, what concerns us in the reports is the lack of transparency. Why was this done without tenders, for example? There may be good reason. We need to find out. This feels a bit like subcontracting the nation-state, and that scares me. It scares me because McKinsey, which does business all over the world with all kinds of countries, with China as with the United States, with Russia as with Ukraine, becomes, in a sense, a supranational government. Basically, McKinsey has more data than most governments on both sides, but McKinsey was not elected. We need to be very clear about that. When a government cannot even develop its own policies, there is a name for that. It is called incompetence. I think the government before us today is a tired government that cannot even be bothered to govern anymore. The Liberal government wanted a majority, but it does not have one. Personally, I would have liked to be an artist, but I am not. Maybe I should ask McKinsey what it takes to be an artist. They could help me. The Liberals need to try to rise above partisanship and act like a government. I will close by telling the House about an adage that, as an ethicist, I have lived by all these years, and it has to do with light and darkness. It goes something like this: Any action that needs darkness to succeed is probably more unethical than an action that can stand the light. In the case of McKinsey, I have realized that darkness is at play.
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  • Feb/6/23 4:40:25 p.m.
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Mr. Speaker, procurement has regulations, and there is a process when we have to let out contracts. There are wonderful opportunities there that could fairly easily be provided, especially from a parliamentarian's point of view. We have standing committees that could take a deep dive into the issue and look at ways to improve how contracts are let out and when it is good to sole-source a contract, in what situations. In emergency situations, for example, this could potentially be used in a rather quick fashion. Would the member not agree that to look at the types of issues he is raising, there would be a great deal of benefit in taking a deep dive at a standing committee to review how contracts are put together and issued out, making sure that our regulations are keeping up with the times?
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  • Feb/6/23 4:41:41 p.m.
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Mr. Speaker, the committee is already working on this. Let the committee do its job. However, I have to admit that everything we are learning worries me. I believe that it is beyond the scope of the Standing Committee on Government Operations and Estimates, which is going to examine the actual contracts. Today, I want to speak to my concerns about the very integrity of the government. Perhaps other committees will do other work, but this is a concern that I do want to present to the House because, for me, it goes beyond the issue of procurement. Procurement is one thing. There are rules. Were they followed? We shall see, but contracting out a public policy to an unelected organization concerns me.
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  • Feb/6/23 4:42:20 p.m.
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Mr. Speaker, my colleague points out a difference: For procurement there is a certain something being received, but the McKinsey situation is about advice. We have some of the best public service members in the world, and when they were questioned about this, they said they could not even find what was offered to the Canadian population by these contracts. I am wondering if the member could comment on the issue of accountability, because obviously the government gave out these contracts. What does he think we can do to help improve confidence in this situation? I am really worried that Canadians are losing trust in our institutions with each scandal that comes from the Liberal government. What can we do to regain that trust in our institutions?
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  • Feb/6/23 4:43:19 p.m.
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Mr. Speaker, my colleague hit the nail on the head. This goes beyond procurement. This is about confidence in government, in the government's integrity. That is a problem. I would actually take this one step further than my colleague. Many consulting firms do business with the Government of Canada. People have mentioned Deloitte and KPMG. These two firms sell advice. McKinsey sells influence. That is not the same thing. There should be stricter rules governing influence. I think it is currently an open bar kind of situation. Nothing is being done to find out what McKinsey does, what it has contributed, how much it cost and why it could not have been done some other way. There is zero accountability at the moment. The point is that they are selling influence, not advice.
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  • Feb/6/23 4:44:15 p.m.
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Mr. Speaker, I want to thank my colleague for the points he raised in the House. As I mentioned, back home, ordinary people are having a tough time because of the cost of living and inflation. We see that taxpayers money, Quebeckers' and Canadians' money, is being used by the Liberals to help their friends, their contacts, those who have power or hidden power. Could my colleague share his thoughts on what an injustice this scandal is to Canadians?
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  • Feb/6/23 4:45:12 p.m.
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Mr. Speaker, my colleague is touching on something interesting. When I walk around Trois-Rivières on the weekend people stop me in the street. They are aware of my experience as an ethicist and they ask me how is it that there is such a group of.... I will let my colleagues fill in the blanks. People are very worried about what is going on because of inflation and everything else. They do not know what to do and they are begging us to do something.
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  • Feb/6/23 4:45:43 p.m.
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Mr. Speaker, I was not planning to start my speech like this, but the Parliamentary Secretary to the Leader of the Government in the House of Commons leaves me no choice. I listened to his speech. He spent most of his time saying that we should not be debating the Conservative motion, that this was not the right place. He even said that this could have been done on an opposition day. I would like to point out that every time the Liberals do not want to talk about something that scares them, they say we should be debating something else. For example, during one of the last Bloc opposition days, we brought up the topic of the monarchy. All day, from the beginning of the debate to the end, the Liberal members told us that we should be talking about something else and that we were not in the House to talk about the monarchy. They listed all the topics that they felt we should be talking about. Every time a debate inconveniences or embarrasses them, instead of debating the motion, they provide us with the same response. They say that we should not be debating the motion here, that we should go somewhere else. As I said, the parliamentary secretary proposed that we address this issue on an opposition day. However, when we bring up a subject that the Liberals do not like on an opposition day, they spend the whole day saying that the subject should have been discussed elsewhere. The Liberals are telling us what we can say and what subjects we can bring up on opposition days, but on top of that, when we manage to get an opposition motion adopted, the government does not respect the vote of the House of Commons and does not implement the motion. I am thinking, for example, of the Bloc Québécois motion to increase special EI sickness benefits to 50 weeks. My lead-in to this speech is important because it shows how little respect the Liberals have for the House. They have a particular view of democracy. If they have as little respect for the House and Canadian democracy as they do for the taxpayers whose money they are spending, then this Conservative motion is extremely relevant. Rather than saying that we should debate it elsewhere, they need to show some backbone, face reality, and debate this issue for real. I will now start the real debate. I hope that we can continue to debate the actual subject rather than the relevance of the debate. That would be a good start. After all, that is what democracy is. The Globe and Mail is the one that revealed that contracts awarded to McKinsey skyrocketed under the Prime Minister's watch, going from $2.2 million under Prime Minister Harper to over $100 million under the current Prime Minister. I am therefore rising today to talk about the Conservative motion that seeks to call upon the Auditor General of Canada to open an investigation into the federal government's connections to the McKinsey consulting firm. To clarify for those watching at home, the Conservative motion asks that the committee report to the House that it is calling on the Auditor General to conduct a performance and value-for-money audit of the work done by McKinsey & Company for the federal government and Crown corporations since January 2011. That includes the Business Development Bank of Canada, or BDC. The committee also wants to examine the effectiveness of BDC's spending in general since 2021. The Bloc Québécois has asked the federal government to make public all of the required information and all of the contracts so that we can find out the nature and amounts of the contracts. For far too long now, McKinsey has held sway over Canada, over the federal government and its departments, including Immigration, Refugees and Citizenship Canada. This does not strike me as an ideal arrangement. Just look at what is happening at Roxham Road, at the files being assigned to public servants who are no longer employed there, and at the unacceptable delays. It is perfectly reasonable to wonder how McKinsey's so-called advice is helping IRCC. This is a complete fiasco. The government asks McKinsey for advice, but let us look at the results. Leaving aside the lack of transparency around the contracts, the fact that the contracts run until 2100, and the secrecy surrounding the cost, based on the current results, perhaps the government should have gone with another firm or, at the very least, asked the actual public service for help. I see this as a failure on the Liberals' part. I will refrain from using more colourful language. I will let the auditor do her job, and I hope everyone else does too. The Bloc Québécois is satisfied with this motion, because it is time to investigate McKinsey's involvement in Canadian affairs. I am not going to launch into a speech about interference in Canadian politics. As a Bloc Québécois member, I might have too much to say, and I do not have much time remaining. However, I will surely come back to this subject once or twice during our debates. In the scrum held earlier today, one of my Conservative colleagues, the member for Charlesbourg—Haute-Saint-Charles, stated: “The Auditor General has the powers and tools to get the answers to Canadians' questions”. Personally, I would really like to ask some questions. I could even put some to the Conservative Party, while I am at it. Members have spoken about Dominic Barton, the former McKinsey executive who was one of the people behind the Century Initiative, which seeks to triple Canada's population in the next 75 years. Former prime minister Brian Mulroney is one of the strongest supporters of the Century Initiative, except for the Liberals, of course. I am wondering if the Conservative Party shares this vision of following the Century Initiative's plan for 75 years. That is a valid question, and I am pleased that the Conservative motion allows us to ask this type of question. When the Conservative government was awarding contracts to McKinsey, was the firm registered as a lobbyist? These are questions that we will be able to ask and might even get answered. Let us not misunderstand each other. I am not defending the Liberals. It is just that I have other questions for my Conservative friends. After all, they have been in government too. I just want to demonstrate that Canada has a long-standing friendship with McKinsey. The House of Commons Standing Committee on Government Operations and Estimates opened an inquiry into the many contracts awarded to McKinsey since 2015, with a cumulative value of more than $100 million. The actual value is likely far higher. When an 81-year contract is awarded for $0, I have to think that it must worth a little more than that. We recently found out about that contract, which is valid until January 31, 2100. No one here will be around to see the end of that contract. I wish I could, but I have to be honest with myself. We do not know all the details of this contract right now, but the idea of having an 81-year contract does not seem to be on the up-and-up. I would not give an 81-year contract to a snow removal company, even if it were owned by my best friend. The answer is obvious. There is not a business owner in the world who would give 100-year contracts to a sub-contractor. However, that is what the government is doing with taxpayers' money. That is something else. Was the record any better when it came to managing the pandemic? Can we find out what McKinsey did and how much it cost? As I said, when the government spends taxpayers' money, it is only fair that we know whether we got value for our money. However, when a $0, 81-year contract is awarded, it is difficult to find out the truth. A surprising fact revealed this morning is that McKinsey is not on the Registry of Lobbyists. All the other major consulting firms, such as KPMG Canada, Deloitte Canada and Accenture, are on the various lobbyist registries. However, McKinsey is not, as it claims to have no lobbying activities. Meanwhile, the Prime Minister says his friend, Dominic Barton, has a surprising list of contacts. I suppose that is why McKinsey does not need lobbyists. Dominic Barton has way too many contacts, according to this Prime Minister. The Bloc Québécois is not asking for much. We just want to see all the unredacted contracts and all the documents produced for each department. We also want a public inquiry. Everyone knows that, to some degree, McKinsey was involved in several recent scandals here and abroad. Someone mentioned the opioid crisis earlier. According to what the parliamentary secretary said earlier, the government is allowed to do what it did, and the same thing was happening in the United States and in European countries, such as France. Yes, it was, and now there are inquiries being carried out in the United States and France. If I understand the parliamentary secretary correctly, if someone hires a firm and an inquiry is launched into issues with contracts awarded to that firm, the same thing should happen here. They did it over there, so let us have inquiries here too. It only makes sense. That is the way the Liberal Government of Canada thinks. This government is led by people who are clearly afraid of a public inquiry. Their reaction right now is one of fear. All I am seeing from the other side of the House is fear. If the Liberals have nothing to hide, then they have nothing to fear.
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  • Feb/6/23 4:55:51 p.m.
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Mr. Speaker, there is no fear. The member made reference to an 80-year contract, and that has been made reference to before. This is not a contract; it is a supply arrangement. There is a difference. It does not guarantee any monetary agreement, but rather a preselection of supply from hundreds of suppliers that have this arrangement. It is a long-standing practice that saves time and money. I ask if the member would at least acknowledge that. People still try to give the false impression that we have this 80-year contract that is going to cost millions of dollars every year. There is a big difference, but that feeds into the Conservative spin. When a member of the Bloc stands up and says that there is an 80-year contract, he is reinforcing something very misleading.
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  • Feb/6/23 4:56:49 p.m.
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Mr. Speaker, that is proof that we should vote for this motion. It would allow us to get to the bottom of some of the questions that we have. Is it a contract or is it an arrangement? That is a good reason to vote for this motion. The parliamentary secretary to the government House leader just illustrated the relevance of such a motion and investigation. Getting back to his question, if I tell my mechanic that this is not a contract, just an arrangement, he will laugh in my face.
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  • Feb/6/23 4:57:30 p.m.
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Mr. Speaker, the Liberal government has awarded tens of billions of dollars to consultants, including $100 million to McKinsey. At the same time, the number of public servants has risen sharply. They do not understand why this money is being given to consultants. What does the Bloc Québécois think of this Liberal waste and pork-barrelling?
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