44th Parl. 1st Sess.
April 8, 2024 11:00AM
Madam Speaker, it is a pleasure to address the House today. Yesterday, common-sense Conservatives announced our demands for the upcoming federal budget.
We called on the government to axe the tax on farmers and food by immediately passing Bill C-234 in its original form. We called on the government to build the homes, not bureaucracy, by requiring cities to permit 15% more homebuilding each year as a condition for receiving federal infrastructure money. Finally, we called on the government to cap the spending with a dollar-for-dollar rule to bring down interest rates and inflation. We said the government must find a dollar in savings for every new dollar of spending.
These were the three common-sense Conservative demands for the budget: axing the tax on farmers and food; building homes, not bureaucracies; and instituting a dollar-for-dollar rule. Of course, Conservatives in government would go further to axe the tax, build the homes, fix the budget and stop the crime.
Under the NDP-Liberal government, we see how spending is completely out of control. Under the Prime Minister, Canada will spend $46.5 billion this year to service the debt. That is more than the federal health transfer. The government is spending more on servicing the debt than it does on the federal health transfer.
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- Apr/8/24 12:34:59 p.m.
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Madam Speaker, the member opposite was enthusiastic about hearing the rest of my speech, and I invite him to hear it now.
The Prime Minister is responsible for $46.5 billion this year in debt service costs. That is more than the federal government will transfer in health care. Astronomical amounts of money are being given to bankers and bond holders for the Prime Minister's out-of-control debt. The Prime Minister is not worth the cost, the crime or the corruption.
Today, as the member pointed out, we are not debating the budget directly. We are discussing a question of privilege that relates centrally to government spending, to how the government spends taxpayers' dollars and the lack of controls associated with that spending. The point I want to emphasize is that this arrive scam scandal is intimately linked to overarching questions about how taxpayers' dollars are spent.
The government spent $60 million, according to the available data, on the arrive scam app, but that is a drop in a much larger ocean of contracting out to government insiders. The arrive scam scandal is illustrative of this larger problem of abuse, corruption, at best extremely generous contracting out, which has led to so much waste of taxpayers' dollars. The government will try to convince people that all of its spending is necessarily associated with meeting immediate needs that Canadians face, but that is very clearly not true.
We need to understand this picture of how government procurement is being abused under the NDP-Liberal government, how costly it is for taxpayers, and what an opportunity this presents for us to do better, to save money for taxpayers and focus, instead, on the core needs of our country.
Specifically on the arrive scam scandal, we had, according to the Auditor General's report, a rigged process. We had a process in which specifications were put in place that do not appear to make any logical sense but served the result of giving this one company, with only two people, the ability to access this contract. GC Strategies got the contract for the arrive scam app and subcontracted it. That company alone, according to estimates, got some $20 million. It did not do any work, other than a very sort of perfunctory activity of going to LinkedIn and finding others who might be able to perform the work.
A simple way of understanding what GC Strategies did and did not do would be if I were hired to paint your fence, Madam Speaker, for $100. I then hired the member for Winnipeg North and paid him $50 to paint the fence. He painted your fence and got $50. You paid me $100 and I just got $50 for facilitating the deal. Maybe I went on LinkedIn to find out that the member for Winnipeg North could paint fences.
He might be looking for job opportunities like this after the next election, so this may be a relevant example.
In that process, the middleman, the person who got the contract and passed it on, did not actually do anything. They did not add any value, yet they were able to collect, big time. The nature of this scandal was that GC Strategies, this so-called staff augmentation firm, which I think is the lingo that was used, took the contract, subcontracted the work out and got a whole bunch of money in the meantime for doing nothing.
The process that allowed GC Strategies to get this contract was a rigged process. In fact, the Auditor General revealed how GC Strategies, in one case, sat down with government officials and set the terms of the contract that they would then bid on.
We heard at the Standing Committee on Public Accounts over the break that KPMG was told to go through GC Strategies by government officials. They said that if KPMG wanted to be part of this work, then they had to go through GC Strategies. The government was aware of other companies that could do this work, yet they directed those companies to go through GC Strategies. There was clearly something of a special relationship whereby members of the NDP-Liberal government were keen to see GC Strategies cashing in big time, for reasons that remain somewhat unclear.
GC Strategies is also a company that doctored résumés they were submitting to the government. This is something that we should be teaching children not to do. It is not appropriate or ethical to be doctoring your résumé in order to access an opportunity that you would not otherwise qualify for. It appears that GC Strategies was doctoring résumés systematically.
During his earlier appearance at committee, Kristian Firth said they change the résumés to make them compliant with the requirements of the contract. Then they go back to their resource and ask if it is okay. If I am applying for a government contract, and I have five months of experience when I am supposed to have five years of experience, then GC Strategies would cross out “months” and write in “years.” Then they would send it back to me and say, “We made this little change. Is that okay?” Then they would send it off to the government afterward.
Kristian Firth admitted that this was not something that they did just once. Adjusting résumés to meet the requirements of the contract and then checking if that was okay before sending them in was their process. What a wild and broken system this was.
We have rigging of the process and systematic cheating, things that young children should know are highly unethical and that seem to have been happening systematically in the government. Despite these obvious problems with GC Strategies, the Liberal-NDP government was keen to push other companies to work through GC Strategies. Then we have obfuscation in committees and accusing people of lying. These are some of the particular issues around the arrive scam scandal.
Thinking about this in the context of the budget and the overall fiscal situation, we have been digging more on the arrive scam and asking what the procurement practices are that allow this sort of thing to happen. What is happening more broadly inside of the government that allowed $60 million to be spent in this case and for nobody to seem to notice or care?
First of all, this process of contracting to people to contract other people was not just a one-off. It was not something that happened just in the case of ArriveCAN. We found that there are 635 companies that do IT staff augmentation for the federal government. There are 635 companies whose job it is to receive contracts and then contract out.
I think there are cases where contracting out is likely legitimate, although I am very skeptical of the idea that there is any value in contracting out to those who subcontract and perhaps further subcontract after that. The general contractor project management function should be able to be performed inside of government, yet we have 635 companies that do IT staff augmentation only. They act as these middlemen, these middle companies that receive contracts and contract out.
There are 635 of them in the IT space alone. That is not just a one-off. That is not just the arrive scam app. This is a larger issue with how the government treats money overall. The larger issue is systematic growth in contracting out and contracting out to those who just do this “staff augmentation” piece. We have seen how, in the midst of dramatic growth in spending on the public service, there has also been dramatic growth in spending for contracting out.
The government was spending tens of billions of dollars in contracting out. Some of it was for management consulting, and we have talked about the enormous growth in spending on McKinsey, and some of it was for those who further contract out. We are spending more inside of government and we are also spending dramatically more outside of government. We would expect those things to be inversely related in that if we are spending more growing public service then we should be contracting out less, or maybe if we are contracting out more, that should correspond to having a smaller public service. However, the government is growing the size of the public service and contracting out more at the same time.
The NDP-Liberal government clearly has a profound lack of respect for taxpayer dollars. Then it will try say that the Conservatives want to fix the budget and that the money will come from cuts. However, when we look at how broken our contracting system is and when we look at the 635 companies doing staff augmentation in the IT space and the tens of billions of dollars being spent on contracting out, pretty clearly there is a lot of room to get the budget under control. We can stop giving money to those outside companies that are abusing the taxpayer and providing no value and we can instead provide tax relief to Canadians who need it. We can instead axe the tax, build homes and cap spending. We can get out budget under control if we fix these grotesque abuses in government spending.
One key aspect of this scandal we need to ask about is where the minister was in all of this. It is right and important that we demand answers from these contractors. Canadians elect members of Parliament from which emerge a cabinet and a government, an executive branch, that are supposed to be accountable for the decisions that the government makes. They are supposed to be providing oversight and policy direction. Of course, ministers are not involved in the minutiae of every decision, but they are responsible for the culture and the policy frameworks that are established.
I asked the minister of procurement what he was doing in the midst of this arrive scam scandal. Actually, there have been a number of different ministers. I think four ministers just in the period since the pandemic have been responsible for procurement. Therefore, there have been many hands that should have had an opportunity to impact this process, yet all of those ministers, and anybody who speaks from the government, would have us believe that they were just there, that something happened in the department that they were supposed to be in charge of, but that they had no accountability or responsibility for it. That is absurd.
Ministers should take responsibility for what happens in their departments. They should establish clear expectations in terms of accountability, ethics, respect for taxpayer dollars. When costly criminal corruption is occurring under the watch of a particular minister, then the minister should have some responsibility and some response to what she or he is doing in order to address those concerning events. However, when the current Minister of Public Services and Procurement was before committee, I asked him when he was briefed and what did he do. He said that he had received a briefing and that he provided no directive in terms of action in response to this scandal. That is unbelievable.
The descriptions by public servants are that ministers receive briefs, remain apprised of or seized with what is going on, but then ostensibly do nothing and have no role in actually shaping policy outcomes, which is just unacceptable. At best, the government has been a disinterested passenger in the midst of declining respect for taxpayer dollars. That is a an overly charitable description. The government has itself shown flagrant disregard for taxpayer dollars and has been complicit in various corruption scandals over the eight long years that it has been in power.
Even in its defence, the government says that the minister had nothing to do with it. We have someone in the government whose title is “Minister for Public Services and Procurement”, yet when there is one of the biggest procurement scandals in our country's history, the government says that we cannot expect the Minister of Procurement to have anything to do with a scandal in procurement. It is just in the name.
At committee, I proposed, and it elicited points of orders and maybe it will today, that we could replace the Minister of Public Services and Procurement with a potted plant and we would have the same result. A potted plant could receive briefings, naturally. A potted plant could be apprised of events, though it would obviously not take any action in response to those events.
Ministers were in the room, received briefings, but did nothing. They would want us to believe that the role as a minister of procurement is to simply be there, to hear things, to be interested in those things and to receive updates. Again, we could save a drop in the bucket in comparison to other money that could be saved, but we could at least save a minister's salary if we replaced the current procurement minister with some such inanimate object.
I want to underline that the arrive scam scandal, as bad as it is in and of itself, is a drop in this larger ocean of government waste and corruption. Tens of billions of dollars are being spent on contracting out. There was clearly a basic incontinence associated with government spending. The money just flows out for no discernible reason. The processes are rigged. There is obfuscation and unresponsiveness at committee.
The latest is that we have seen how the indigenous procurement rules are being abused by insiders, insiders who feel they have no obligation to bring about any benefit to indigenous communities through their access to indigenous procurement. A lot more work needs to be done to understand the abuses of the indigenous procurement process that have been happening under the government. Very troubling information has come out, for instance, David Yeo saying that the point of the program is not to benefit indigenous communities, it is just to benefit him as an entrepreneur. I do not think that is the point of the policy.
We see costs, corruption and crime happening under the government. This privilege motion is one key piece of getting to the bottom of what happened, demanding answers from Kristian Firth that he was unwilling to give at committee. This would help us suss out, in detail, all the crime, corruption and the cost that we are seeing under the NDP-Liberal government.
Enough is enough. Canadians are looking for an alternative that will respect taxpayer dollars, that will restore probity in spending, that will bring it home.
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- Apr/8/24 12:54:41 p.m.
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Madam Speaker, I am not aware of some of the long-tenured, historical events about which the member is speaking. I am a relatively young member of the House, so events before a certain date are before my time.
It is pretty rich for the Liberals, after eight years in power, to always want to draw our attention to things that happened in decades past. The fact of the matter is that since 2015, the national debt has more than doubled. More than half of our national debt is the responsibility of the Prime Minister. That is why we are now spending more on debt servicing than we transfer for health care. It is outrageous, out-of-control spending under the government. The $60 million for the arrive scam scandal is important, but it is part of a larger pattern of cost, crime and corruption. I mentioned some of these numbers in my speech, such as over 600 companies just doing staff augmentation. It is out of control.
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- Apr/8/24 12:57:12 p.m.
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Madam Speaker, I was greatly amused by the member's question. I thank him for bringing joy and levity to the House. Of course, we are speaking about the predatory, unholy mixing of the elite consultant class with the state.
The member could reflect on how this procurement scandal really speaks to the negative effects on workers of big government trying to take more and more control, a government that is in bed with a few well-connected consultants, and that this kind of state capital, as opposed to a true free market system, is what is undermining the well-being of Canadians.
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- Apr/8/24 12:58:42 p.m.
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Madam Speaker, it is hard to predict the timeline, but I have a great deal of hope about the critical steps that a Conservative government would take to fix the budget, and that includes establishing a dollar-for-dollar rule. This is common sense, that if a government is going to spend a dollar on something new, it should be able to explain where that dollar is coming from.
Those NDP-Liberal coalition partners are keen to announce all kinds of new spending initiatives, but they never explain where the money is going to come from. Clearly, in all of these new spending proposals, and, in many cases, I do not think they are serious about doing them, they promise new spending that will kick in at some distant point in the future. In every case, where the money is actually spent, it is digging us further into deep debt.
Beyond that, we have this flow of wasteful spending, the middle-man consultants, the management consultants who have done so well under the government.
If we instituted a dollar-for-dollar rule, this will get us back on track to understand that if we are going to spend a dollar on something, it has to come from somewhere.
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- Apr/8/24 1:00:56 p.m.
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Madam Speaker, very clearly, under the NDP-Liberal government, contracting out is out of control. There has been a ballooning of external contracting, as well as significant growth in the public service.
Do I think it is never reasonable to contract out? No, I do not think that. I think there are cases where contracting out is legitimate. However, we have seen an excessive use of management consulting and the use of unethical companies like McKinsey. There are contracts to contract, to subcontract and so on. I think our position is a reasonable and balanced one, which is that we need to have proper accountability and spending controls.
The NDP is very disingenuous. It continually votes confidence and supply to its Liberal partners to allow them to pursue the same policies the member claims to denounce. If the member wants to actually see any kind of reform, if he wants to see us move away from the kind of excessive contracting out and the waste we have seen under the Liberal government, I would challenge him to put his money where his mouth is and to vote no confidence in the government.
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- Apr/8/24 1:03:33 p.m.
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Madam Speaker, that is an excellent question from my colleague. We are seeing democratic decline in this country and a lack of respect for our democratic institutions.
The Prime Minister recently announced that the government is spending millions of dollars to look at the link between democratic decline and climate change. If he wants to learn more about democratic decline, my suggestion is that he just buy a large mirror, though he probably already has a few of those. He can learn a lot about democratic decline if he just buys a large mirror.
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- Apr/8/24 2:09:34 p.m.
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Mr. Speaker, the Prime Minister used to say that no relationship was more important to him than Canada's relationship with indigenous peoples, and yet the NDP-Liberal government has been using indigenous contracting to funnel money to well-connected government insiders in ways that produce no actual benefit for indigenous communities. This is a gross betrayal of taxpayers and indigenous peoples.
David Yeo is the arrive scam contractor whose company made $8 million while, according to his own LinkedIn page, he was simultaneously a government employee. We still do not know what he actually did for the money. Yeo's two-person company benefited from an indigenous contracting set aside, even though no indigenous communities saw any of the money.
Indigenous leaders have warned that the Liberal approach to contracting is encouraging shell companies and other modes of obfuscation to gain an advantage in procurement processes, all to the detriment of legitimate indigenous peoples of Canada, communities and businesses.
It is time to end the corruption, to respect taxpayers and to insist that indigenous contracting policies actually benefit indigenous peoples, not well-connected NDP-Liberal insiders.
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Mr. Speaker, I would like to present one petition to the House in support of Bill C-257, an excellent private member's bill that would protect Canadians from political discrimination.
It is a bill that I put forward in the House. The petitioners want to see the House pass it as quickly as possible.
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