44th Parl. 1st Sess.
February 27, 2024 10:00AM
- Feb/27/24 11:32:21 a.m.
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Mr. Speaker, nearly two weeks ago, the Auditor General released a scathing report regarding the government's handling of the ArriveCAN app. The Auditor General said that the management of the app was one of the worst examples she has seen in her career.
Now we are learning that the ArriveCAN file is just the tip of the iceberg. The purpose of the app was for people to register travel with the CBSA in the context of COVID‑19. The app was supposed to cost $80,000. Another company said it would have cost about $250,000 to develop. We are talking about an app that cost only $12 million in France for a population of 70 million people. I could name other examples where this app cost far less in other countries. Unfortunately, in Canada, it cost nearly $60 million.
I mentioned the tip of the iceberg. The fact is, the Auditor General and her team could not even put an exact figure on the cost of the app. That is where the problem starts. That is the crux of the problem. It has to do with a procurement process that was completely disregarded. The Auditor General and the procurement ombud have come forward with some pretty serious allegations that Public Services and Procurement Canada and other departments simply did not follow what is supposed to be an exemplary procurement process worthy of a G7 country.
Here are a few examples. The average daily cost for this app was about $1,090, whereas it is usually around $675 for IT positions.
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- Feb/27/24 11:34:07 a.m.
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We already know that the companies that billed their services to the government billed nearly double what it should normally cost. Here are other examples.
In roughly 76% of applicable contracts, the human resources detailed in the winning bid did not do any work. In other words, huge contracts were signed that included resources who, at the end of the day, never did any work. We have an entire department that is supposed to do its job when it comes to the procurement process and is supposed to have processes that work and are followed. In both cases, that work was not done.
Here is another example: 18% of the invoices submitted by contractors that were audited by the Auditor General were not supported by adequate documentation to determine whether they were related to ArriveCAN. That is why, from the outset, I said that they did not even know how much ArriveCAN cost. It is inherently problematic. There is such a lack of documentation that one might think we were in a third world country. Having audited procurement processes in developing countries myself, I think that they have better procurement processes than we do. It is shameful.
There is a second level to this. Serious misconduct is suspected. In her report, the Auditor General indicated that she noted situations in which Canada Border Services Agency employees who were part of the ArriveCAN project had been invited to dinners and other activities by suppliers. There is no evidence that the perks that these public servants received were reported to their superior as they should have been.
That is something that we do as parliamentarians. If we receive a gift, we report it. We are closely scrutinized, and that is how it should be. Obviously, the top priority of public servants is to serve the public. Public servants know that, when they accept their position, they must serve the public to the best of their abilities. As a result, they must report any appearance of a conflict of interest. That is essential when a person enters the public service.
There has been a lot of talk about GC Strategies. Let us not forget that GC Strategies was known as Coredal Systems Consulting back in the Conservatives' day, and it too received contracts. However, we have also heard about another company called Dalian. According to what we learned this morning, the owner of Dalian—another company that received millions of dollars for the ArriveCAN app—has bank accounts in tax havens. No surprise there. Receiving that much money but providing little or no service certainly raises questions about misconduct. That is where things stand now. We must let the RCMP do their job.
We also know that the owners of GC Strategies have numbered companies. I just wanted to share that. Numbered companies allow for a lot of leeway. Again, we will let law enforcement agencies investigate that. There are some serious questions about misconduct here.
One thing is certain, companies like Dalian and GC Strategies had contracts under the Conservatives. Whether we are talking about GC Strategies or Coredal Systems Consulting, these companies had contracts. However, there is another thing. The contracts with these consultants, these two companies in particular, simply skyrocketed starting in 2017. The increase started in 2016 or 2017. Companies such as Dalian received hundreds of contracts from the federal government. Where did the federal government, the Liberal government, lose complete control of its public service, its public servants, its departments? Was it a lack of leadership? Was it recklessness? That is what we are trying to understand in this story. Again, ArriveCAN is just the tip of the iceberg.
The number of contracts awarded on a non-competitive basis has also skyrocketed. Under this government, the problem is systemic. Expertise is being lost. On the one hand, we have the Conservatives. During their reign, they eliminated positions, cut public services, reduced the number of public servants and hobbled public servants' and departments' internal expertise. On the other, we have a Liberal government and its slew of middle managers. Many of those jobs were cut. They may no longer have the internal expertise, but they want to do development. They are zooming around all over the place trying to do development. They end up relying on external consultants like Dalian and GC Strategies to do the work that the government should be doing. The number of these contracts is growing by leaps and bounds.
We are not just talking about competitive procurement here. We are talking about the awarding of a huge number of non-competitive contracts. In 2023 alone, 27% of contracts were awarded non-competitively. Do members know in which department that happened? It was at Public Services and Procurement Canada, the department that is supposed to set the example and that is supposed to have processes and ensure that they are followed.
Such was not the case since 27% of the contracts awarded by Public Services and Procurement Canada were awarded non-competitively. How then can we guarantee that the government is providing proper services for every dollar spent? Let us remember that we are talking about taxpayers' money. Perhaps some people are so far up their ivory tower that they forget that they are managing taxpayers' money. What is more, when contracts are awarded non-competitively, there is no guarantee that they will be effective or managed properly. We see that Public Services and Procurement Canada did not even follow up on those contracts, and it is not the only one. The CBSA also has a lot to account for. I have given examples of poorly monitored procurement and talked about how serious misconduct is suspected. Basically ArriveCAN is just the tip of the iceberg.
The Bloc Québécois will support this motion. However, as my colleague from Beauport—Limoilou said, this motion may not go far enough. Our leader was the first to call for a public inquiry. The Canada Border Services Agency may be the worst, but we do not need to look far to see that quite a few problems exist elsewhere. Perhaps it should be put under administrative supervision. In any case, a lot more needs to be done to get to the bottom of this, because there really is a widespread problem. We saw it with the spending on McKinsey. Ultimately, McKinsey was not necessarily the problem. The Liberal government may have lost full control of the departments, leading it to become dependent on consulting firms to the point where it has now lost all control. Part of the blame lies with the Conservative government's irresponsible actions, including cuts to the public service, which created a need for outside expertise.
To conclude, Quebeckers can see that they will have an irresponsible government if the Conservatives come to power. They also see that the Liberals are an irresponsible government that is incapable of managing its departments. Fortunately, we have other options in Quebec. We have the best option, which is to leave and govern ourselves, because, strangely enough, we do not hear of many cases like ArriveCAN in Quebec. In fact, Quebec's app cost a fairly reasonable amount, about $10 million, which is not the case for Canada's app. I would like to end on that note and on the fact that, in Quebec, we are far better at managing our own affairs. If we have to choose between the plague and cholera, we prefer our country, by far.
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- Feb/27/24 11:42:07 a.m.
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Mr. Speaker, I really enjoyed my colleague's speech. At the Standing Committee on Public Accounts, she provided a very good summary of what we heard from the Auditor General of Canada. I think she would agree that this work is very important and that the work of the Office of the Auditor General absolutely has to remain independent.
My colleague pointed out that the Conservatives made deep cuts to the public service and that there is a lack of expertise. Does she agree that we should increase the size of the public service, with all that that might entail, or is there room for consultants? I believe my colleague herself has worked with consultants in her distinguished career.
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- Feb/27/24 11:43:02 a.m.
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Mr. Speaker, I thank my colleague for the question. This gives me a chance to say that the Liberals have already considerably increased the size of the public service. Although they increased the size of the public service, they ended up with essentially operational positions responsible for managing the consultants.
All the expenses to get expertise have gone up. Often the work is duplicated. Sometimes consultants are hired to do the work that an entire team could do internally. We see inefficiencies everywhere. The problem is more widespread. We need to consolidate the public service and finally provide better services to the public.
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- Feb/27/24 11:43:43 a.m.
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Mr. Speaker, I have a question for my colleague from the Bloc Québécois. In her speech, our Liberal colleague talked about the contract awarded to GC Strategies, a company formed in 2015. We have heard that this company had a number of contracts with the Government of Canada before that. However, the company did not exist before 2015. What does that mean?
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- Feb/27/24 11:44:28 a.m.
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Mr. Speaker, I thank my hon. colleague for throwing me such a softball, so to speak, since it is really quite simple.
The two people who founded GC Strategies had already founded a company called Coredal Systems Consulting. That company has had contracts with the Canadian government since 2007, so under the Conservatives. In 2015, they dissolved Coredal and transitioned that company into GC Strategies. That information is very easy to find on the open government website. It was a typical name change that just happened to coincide with a change in government.
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- Feb/27/24 11:45:04 a.m.
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Mr. Speaker, we know that what is happening with ArriveCAN and at CBSA is just the tip of the iceberg.
At the government operations committee, I put forward a motion to expand the study to include the big six highly paid consulting firms. When I put forward that motion, members should have seen the room. Everybody in the corporate control parties ran to their phones, saying to hold on. They were checking in with their friends at the big corporations, including, I am sure, the managing directors at Deloitte, who are both former cabinet ministers from the Liberal Party and from the Conservative Party.
The Conservatives delayed the vote on the motion not once, not for two meetings, but for three meetings. They finally got confirmation and a go-ahead from their corporate-controlled headquarters at Deloitte that they could support the motion. We knew that the Conservatives would never allow that study to happen and to be expanded.
Does the Bloc agree that we need a full investigation that goes well beyond what is going on at CBSA and with the ArriveCAN app and that we need to look at all the outsourcing, especially since it has gone up 546% over the last eight years and has doubled under the Conservatives? We need to get to the bottom of it, and fix this problem.
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- Feb/27/24 11:46:23 a.m.
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Mr. Speaker, yes, we do agree because we want to get to the bottom of the matter.
A committee could look at everything that has been done with large companies, but the members would drown in the sea of hundreds of thousands of pages of contracts that we do not necessarily have the training to understand. We need to call for a public inquiry. We need outside people who are trained to do this kind of work to come in and get to the bottom of the story.
As I mentioned, and as my colleague said, ArriveCAN is just the tip of the iceberg. We do not know where taxpayers' money is going, and that is shameful.
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- Feb/27/24 11:47:01 a.m.
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Mr. Speaker, it is an honour to rise, and I will be sharing my time with the member for Courtenay—Alberni.
The question of how public money is spent or misspent is a fundamental question of an obligation for parliamentarians, because the Canadian people do not need to pay attention to everything that happens in Parliament. However, they need to know that there is accountability and that we respect their hard-working money being spent properly and through the right channels.
I have many years of experience in the House dealing with all the smut and corruption files that have come along. I was elected in my first year as the Liberal government was telling us that Jean Chrétien's golf balls were going to keep the country together. Fortunately, the Canadian people did not believe that. That was the first scandal I witnessed. I have lost track of all the scandals.
We can take misspending and put it into various categories. There are simply the tawdry ones, like with Bev Oda, who seemed to rack up as many bills as possible every time she travelled until people finally became fed up. There was the issue with Mike Duffy and Nigel Wright, where Mike Duffy was claiming all kinds of outrageous claims because he was a bagman and raised money for the Conservatives. We were presented with this bizarre case that it was okay to offer a secret bribe, but it was a problem to receive the bribe.
Those scandals did not just belong to the Conservatives. There was Mac Harb, a Liberal, who had this amazing grifter scheme. He was not eligible for travel, so he bought this dodgy little broken down cottage just 100 kilometres outside of Ottawa because if he lived 100 kilometres outside of Ottawa, he could hit up the taxpayer for all kinds of travel, even though, I was told, there was not even running water at that cottage. Mac Harb had to pay back $231,000.
People deserve to be outraged by that abuse, and it raised questions in the Senate of where the accountability is to make sure that the people who are there are doing their jobs. I remember Tony Clement and the $50 million that was taken out of border funds so that he could buy sunken boats and build a fake lake in Muskoka. That was an abusive process. It was not criminal; it was an abusive process.
There was the issue with Arthur Porter, which was one of the more concerning scandals I have witnessed over the years. Stephen Harper appointed him as head of the Canadian Security Intelligence Service and made him a privy councillor. We then, of course, found out he was involved in what CBC said was “the biggest fraud investigation in Canadian history”, and he ended up dying in Panama in a jail.
Those are elements of criminality, “griftership”, tawdriness and of people just misusing the public funds.
The ArriveCAN thing needs to be put in perspective of the time, and then analyze it from there. When we were hit with the pandemic, we were dealing with a completely unknown crisis that none of us had faced, and there was certainly a need to get a response out the door quickly.
Who did the best job at that? It was our public servants. They basically spent that Easter weekend in 2020 creating a program to get the CERB dollars out to people who were not able to work and to keep them going. It was the Public Service who did good, amazing work during that time.
However, there were a number of scandals that came up during that period, and ArriveCAN fits into that because it is a question of the lack of oversight and accountability. Certainly, Canadians deserve to know how a contract worth $59.5 million, divided up through 32 companies, for a program that did not work was allowed to go ahead. We ask ourselves how that was possible.
I would like to share with my colleagues some of the recommendations that came out of the Standing Committee on Access to Information, Privacy and Ethics, which looked into some of the other elements. We looked at Baylis Medical, at Palantir and at the Kielberger brothers. At the time, again, the government wanted to get a youth program out. There was $500 million to $940 million set aside for the Kielberger operation without competition and without very clear oversight. What the committee found was that the incredible access Marc and Craig Kielberger had into the inner workings of government gave them an advantage no one else had.
I would encourage any of my colleagues to read the Ethics Commissioner report on the former finance minister, Bill Morneau. It makes for a pretty shocking reading that these guys had an all-access pass into the corridors of the Liberal government and were not even registered to lobby. That certainly was a major factor in bringing down Mr. Morneau.
I want to raise this because if we have these scandals, we need to learn from them. We need to learn how money was misspent. We need to learn why there was no oversight, so that this is not repeated. Otherwise we become a laughingstock of repetition of failure from insiders, from misuse of public funds and from contracting out.
With respect to the contracting out that was to be done with the WE group, I am going to read what the all-party committee said. This is not my opinion but that of all of the political parties that participated. It reported this back to Parliament:
The Committee was unable to find any due diligence reports that actually tested the credibility of the claims made by the WE Charity. This group had never undertaken a project close to this magnitude and it remains unclear whether they had the means to ensure that students across the country could be put to work with credible results.
It was going to be given $500 million initially, and there were no due diligence reports that we could find anywhere. Then we found out that the money was going to be funnelled to a shell company initially set up to deal with some of its incredible real estate holdings. How is it possible that the Government of Canada would transfer between $500 million and $940 million to a shell company? Who was taking the enormous risk then? It was the Canadian people. I am going to read from the all-party committee report again:
The Committee is of the view that the decision of the Liberal government of Canada to sign a contract worth over $500 million with a shell company “WE Charity Foundation” is deeply troubling. The WE group stated they used the shell company to limit their liability. In reality, this procedure had the potential to put a huge investment of taxpayers funds at risk because the deal was with a shell company with no assets.
How does a G7 country sign on to something that concerning?
I am raising this because of the whole thing about ArriveCAN and the Auditor General's not being able to find anything on how the money was spent. One of the most disturbing factors is that after 10 months of study, we had to report to Parliament that we had no idea how the finances of the supposed children's charity worked. We could not tell the Canadian people who controlled its multitude of corporations. We did not even know all the companies that it controlled. We could not tell the difference between its so-called charity work and its for-profit work, or tell what its ownership structure was, yet the government, without doing due diligence, was going to sign over between $500 million and $940 million.
The report states:
The Committee notes that over the 10 months of its study, it was unable to get a clear picture of the financial structure of the WE group. We were unable to ascertain a clear division between how monies flowed through the charitable wing and their for-profit operations. We were also denied information on the ownership structure of their multitude of side companies. If the government of Canada is to sign future contracts or contribution agreements with WE Charity, its affiliates or subsidiaries, such clarifications must be required.
I raise that because we are looking at a very similar thing that happened with ArriveCAN. Where was the oversight?
This is the other question I am going to end on. We spent 10 months trying to get the CFO of WE to testify, just to tell us what was happening. We were told not only that he was on medical leave but also that he had a brain aneurism that, if we asked him questions, might cause his death. Certainly nobody in Parliament was going to wish that someone die under the pressure, but the WE group could not come up with anybody else who could explain its very complex financial structure.
On May 15, 2021, we received a letter from Mr. Li saying that he was too sick, had not been doing any work and was completely uninvolved, yet we found that in that period, in the state of California, there was a registration renewal in November 2020 on which he signed off as CFO. There was a New York state filing on which he signed off as CFO, an Internal Revenue Service report in 2020 and a Washington State report. All of these were signed off on by Victor Li, yet our committee was told that he was so fragile and sick that he could not even read documents. We were not in a position to do a criminal investigation, but we had to report back to Parliament that there had been a major failure of fundamental accountability.
Has the government learned lessons from what happened with the WE brothers, or do we have to repeat these tawdry, dumbed-down abuses of public funds because the accountability mechanisms that should have been there were ignored and the Canadian taxpayer is on the hook? I will be here all week.
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- Feb/27/24 11:57:09 a.m.
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Mr. Speaker, for me there are a couple of issues, and I will very quickly break it down. There is the procurement process, but there is also, from my perspective and what I think my constituents would be saying to me, the question of how one company gets into a position in which it could do what GC Strategies actually was able to do.
Part of it is that we have to look at the origins of the company, which had actually been around for many years; it was under a new name, of course, as it had been under Coredal. I wonder whether the member could provide his thoughts on that aspect. To what degree should we be looking at how a company could surface and get into a situation like we find ourselves in today?
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- Feb/27/24 11:58:06 a.m.
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Mr. Speaker, that is an excellent question. I think the member should be asking the minister in charge of the file how the heck that happened.
The issue is that the government is giving out enormous sums of money to groups like McKinsey, which has a very dodgy record on everything from opioids to articles in the United States saying that this is the company that destroyed the American middle class. Nonetheless, we give them millions of dollars even though we have a trained civil service that is dedicated and can do the job.
I cannot imagine that ArriveCAN would have gotten off the ground as far as it did if we had mechanisms in place. However, I want to be fair. I do not have a problem that the government tried to get ArriveCAN, and I do not have a problem that it tried to bring in people to get it done, because we were in unprecedented circumstances. My problem is where the heck was the oversight once it began to realize that this thing was not going to work?
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- Feb/27/24 11:59:01 a.m.
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Mr. Speaker, I really appreciated my colleague's speech. Of the many speeches he has given in the House, that is the one I liked the most. I will even accept his criticism of previous governments, because Canadians want to see transparency in the way their dollars are spent, including with every government that sits in the House.
However, I would ask the member about what happened during the pandemic and all the contracts that were given out. The government was dealing with a lot of its insider friends, and more or less said, “Let's not let a good crisis go to waste. Let's set up corporations to get a whole bunch of money out the door.” Hundreds of billions of dollars were spent by the government in unaccountable ways. We have only scratched the surface here, and every time we land on something, it takes two years to actually show some transparency, because of committee obfuscation, delays, etc.
I ask the member whether he would actually step up and tell his party, in light of another $50-million scandal, which is five times what the Jean Chrétien scandal was that brought down his government, that he would consider withdrawing his support for the obviously corrupt government.
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- Feb/27/24 12:00:11 p.m.
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Mr. Speaker, if I were to go back to Timmins—James Bay and say, “Hey, guess what, the Liberals screwed up again, and this time it is ArriveCan, so we are not going to go ahead with national dental care and we are not going to go ahead with pharmacare”, I would get laughed out of the room.
My focus is that we are going to force the government to deliver on things that are absolutely making it twist in the wind, thanks to a few percentage points over the Liberals in the polls right now, as they never would have come to the table on national pharmacare.
On these scandals, the Canadian public expects us to go beyond synthetic outrage to say, “What happened?” and “How was that money spent?”. As I said earlier, I was part of the investigation into Baylis Medical. I did not find anything that was problematic. If I had, I would have said so, but I did not. However, with the WE group we found major problems. We found major problems with ArriveCan. As my colleague, the member for Courtenay—Alberni, said, we need to scratch the surface on all contracting now, because there is an amazing amount of taxpayers' money that is being misspent through this process.
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- Feb/27/24 12:01:20 p.m.
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Mr. Speaker, I think we all agree, at least within the opposition parties, that this is a real mess.
As we have said, we will unequivocally support the Conservative motion.
That said, I would like to ask my colleague if he would agree that the Conservative leader has been rather quiet about the fact that, while he was parliamentary secretary to the transportation minister, his department awarded $6.5 million to the owners of GC Strategies.
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- Feb/27/24 12:01:48 p.m.
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Mr. Speaker, that is a good question.
I have a lot of questions about the Conservative leader's positions. For example, to me, his decision to vote against supporting Ukraine was unacceptable.
The leader of the Conservative Party claims to be the leader of accountability, except when it comes to connections to lobbyists. With the Conservatives, it is an open bar for lobbyists.
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- Feb/27/24 12:02:29 p.m.
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Mr. Speaker, it is an honour and a privilege to rise in support of this motion today.
I am going to speak to the broader issue of outsourcing and what New Democrats have been trying to do from the beginning in terms of revealing and bringing an end to the rampant outsourcing to highly paid, external, for-profit consulting firms that are making money hand over fist. Earlier I talked about how, under the former Conservative government, we saw the number of highly paid consultants double. Under the Liberal government it has gone up 546% to the big corporations, to the six highly paid consultant firms.
What we want to do is stop these profits and the economic leakage happening in our country, and bring that work back to the public service. We saw the Conservatives with their Phoenix pay system that was supposed to save taxpayers $80 million. It has cost us over $3.5 billion. Talk about a failure. I find it laughable when Conservatives are up in the polls and they want to force an election. They want us to go from one corporate-controlled party to another. That is not good enough. What we need to do is actually fix the problem.
There is waste worth billions of dollars. It hurts the public service. It also hurts the morale in the public service when it sees a company like GC Strategies, which is two guys who do not have an office or staff but probably have two bar stools at a local bar dedicated to them, getting $59 million in government contracts. What we learned at government operations committee is that they get a commission between 15% and 30%; let us call it 20%. These two guys made $11 million just in commissions. Neither of them is an IT specialist. They are headhunters. This is easily a job that should be brought in-house and not done by external consultants.
We know that ArriveCAN is just the tip of the iceberg. We heard the parliamentary secretary say that this is deeply concerning. It is not just deeply concerning; it is absolutely outrageous, and it needs to end.
I want to compare the over $21 billion in outsourcing, and by the way, the Liberal government wants to make us feel good by cutting 15% of outsourcing. It has gone up 546%, but the Liberals are going to cut it by 15%. Does that gives everybody at home a lot of comfort? I do not think so. Let us think about what the $21 billion in outsourcing could have done for building hospitals or schools, or providing a pharmacare plan that is going to cost $10 billion or a guaranteed livable income for seniors and people living on disability, the most marginalized people in our society.
With ArriveCAN, we saw what was an $80,000 app skyrocket out of control. As my colleague, the member for Timmins—James Bay cited, money needed to be spent in terms of the emergency response to COVID. We absolutely support that, but not the outrageous runaway train. We put forward motions and ideas. We tried to actually look at the outsourcing procurement problem. We put forward a motion at the government operations committee to ask the Auditor General to look not just at ArriveCAN but also at all outsourcing and buy-and-sell decisions by the Government of Canada.
Initially the Conservatives were hesitant to support my motion, but they did. Then they took the motion and brought it to the House on an opposition day to call on the Auditor General to look at ArriveCAN. However, we need to go bigger than that. I supported that and am glad I could work with the Conservatives on it.
Let us face it: The Conservatives gutted the public service. This is when outsourcing started. Michael Wernick, the former Privy Council chair, showed up at the government operations committee. He cited that it was cuts in leadership and training that led to the start of the outsourcing that happened under the former Conservative government. Those were critical, huge cuts. They were very costly, as we can see now as the government goes to outside consultants to provide that leadership. I will talk a little about that.
We put a question on the Order Paper to look at the government's spending on outsourcing consultants. One instance we found was that Natural Resources Canada spent over $600,000 to advise the government on how to cut outside consultants. It used an outside consultant to give it advice to cut outside consultants. One cannot make this stuff up; it is that outrageous. This is what we are seeing.
Let us talk about the history of outside consulting and the need to invest in public servants. We saw the previous Conservative government privatize the Phoenix pay system that was brought in. It was supposed to save $80 million a year. It has actually cost us $3.5 billion. The ArriveCAN scandal pales in comparison to what has happened with the Phoenix pay system.
What we keep seeing are continued sole-sourcing structures of outsourcing, which ensure that companies like GC Strategies are the only ones that can properly bid. We heard at committee about GC Strategies actually altering résumés to help companies qualify and get task authorizations. These are security clearances that are pretty critical and important to the safety of our country. We are also concerned about how they misused indigenous set-asides. They hired a company on an indigenous set-aside that was not indigenous. The owners of that company were embarrassed when they found out, because they believe in reconciliation. They believe that money that is dedicated for indigenous procurement should go to indigenous companies.
We want to get to the bottom of this. We talked about outsourcing doubling under the previous Conservative government. It has more than quadrupled under the current government. We are literally seeing the corporate-controlled parties let the foxes run the henhouse. Today we see the Liberals and Conservatives fighting over who hired whom, who started the whole mess with consulting, who spent more on the same consultants. It is a big problem.
What we need to do is to stop the layering of commissions. We need to take action and solve this problem. There should not be a layering of commissions. We learned that GC Strategies got a contract and then subbed it out to another contractor, who subbed it out again. We saw cases in which Dalian and Coradix, another two-person outfit that was making millions of dollars, subbed out to GC Strategies, which then subbed out to somebody else. They took commissions along the way. We heard from the deputy minister that there is no limit on commissions. We could see that commissions could be 60% to 70% of a bid. This is an economic leakage that is out of control, and it is a self-perpetuating cycle in terms of outsourcing that reduces public service capacity.
I want to say that that layering is like the biggest pyramid scheme I have ever seen. Someone gets a contract, subs it out and takes a cut. Then they sub it out to the next person. They are all friends. These companies with two staff and no offices are something that seems to be coming up, and that was just with CBSA. We need to look beyond. We wanted to look at Deloitte, for example. It went from receiving $11 million in contracts in 2015 to $275 million. We wanted to look at PricewaterhouseCoopers, which went from $20 million to $115 million. This is just since 2015.
I put forward a motion to expand the outsourcing study to include the big six. Madam Speaker, you should have seen the room when I put forward that motion. Everybody ran to their phones. The corporate-controlled parties were checking in with their head offices, making sure it was okay to support this motion, and they delayed it.
They delayed the vote on it, and then the Conservatives decided to delay it one more time. It took three meetings before they supported it. The reason they supported it was that they knew that it would never see the floor. We are close to the anniversary of expanding that motion, and we have not gotten to the bigger study. I find it kind of odd, given that a former Liberal cabinet minister, Pierre Pettigrew, is a managing director at Deloitte, and a former leadership contender in the Conservative Party, Peter MacKay, is a managing director at Deloitte. No kidding that they do not want to study it and put it under the microscope, and they do not want the Auditor General taking a look and doing a deep dive. These big corporations are just like the smaller ones, like GC Strategies. They get the bid, sub it out and take a cut. They are not doing a lot of the work.
We want to fix this. We will keep fighting for that. We want to put a cap on commissions. We want integrity in procurement, and that includes making sure that all bids are competitive, instead of this sole-sourced business. We want to end and prevent the misconduct that is taking place. We want to stop our public dollars from turning into private profits. In terms of looking at indigenous set-asides, they actually need to go to businesses that are indigenous-owned and indigenous-operated and delivering services.
The New Democrats are here to actually bring solutions and try to fix this problem, so that we can get the support to Canadians who are struggling right now.
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- Feb/27/24 12:12:28 p.m.
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Madam Speaker, we do keep records of who voted for what during budget deliberations, so I would ask this member how he can go back to his riding, when he voted eight times to ensure that GC Strategies got tens of millions of dollars. He talks about the corporate parties. He literally is propping up the Liberal government to ensure the ad scam continues. GC Strategies is still getting money because of his vote. It is actually quite embarrassing.
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- Feb/27/24 12:12:55 p.m.
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Madam Speaker, what is embarrassing is that I just outlined that the Conservatives are making sure that we are not putting their former—
An hon. member: Oh, oh!
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- Feb/27/24 12:13:04 p.m.
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I will remind the hon. member that he had an opportunity to ask a question. He should not be talking when he is trying to get the answer. If he has other questions and comments, he needs to wait until the appropriate time.
The hon. member for Courtenay—Alberni.
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- Feb/27/24 12:13:16 p.m.
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Madam Speaker, as I was going to say, what is embarrassing is that the Conservatives continue to protect their friends at Deloitte, including their former leadership candidate, Peter MacKay, and, just like the Liberals, they do not want to talk about it. They are both corporate-controlled parties.
They are trying to mislead us again. Those votes were about allocating $4.6 billion for COVID rapid tests and vaccines. They were about millions of dollars for a national child care program and funding for affordable homes and women's shelters.
It is no surprise that the Conservatives voted against those things, because that is what Conservatives do. They cut and gut the services people rely on.
We will not take any lessons from the Conservatives, who gave over $7 million in contracts to the former owners of GC Strategies. They also created the Phoenix disaster, which was supposed to save taxpayers $80 million but cost us $3.5 billion.
We have been fighting since the beginning to get to the bottom of the ArriveCAN scandal and to reduce the use of wealthy private consultants. We will not stop, and not just on ArriveCAN and not just on CBSA.
We need to look at the whole of government. We need an investigation into all of the outsourcing, something that is being blocked by the Conservatives, a Conservative-led committee, a Conservative chair who will not allow this motion to come back so that we can look at the whole picture. They do not want to look there.
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