Senator Loffreda: Thank you for that, Senator Gold.

We clearly need to accelerate the pace to ensure we meet our targets. I know the Treasury Board has been mandated to develop policy guidance and ensure that departments have the tools they need to implement the directive. What are these tools that the government is using to encourage and connect with Indigenous businesses so they are aware of procurement opportunities? What criteria are used to determine what constitutes an Indigenous-led business?

Hon. Tony Loffreda: Honourable senators, I rise today to mark National Philanthropy Day.

We set aside November 15 to celebrate this day that seeks to recognize the spirit of giving without expectation of reward, something that is an integral part of who Canadians are.

Thanks to the determination of Senator Mercer and his Bill S-201, we have been celebrating this day since 2012.

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In his second-reading speech, Senator Mercer invited everyone to come together to support his bill and said:

In doing so, we will be saying thank you to our neighbours, our friends and the thousands of strangers who work hard every day to make life better for someone they have not even met.

That, in essence, is the epitome of philanthropy: people helping strangers without any expectation of reward or recognition, people being good. And there is a lot of goodness in Canada, but more troubling still is that there are a lot of people in need of goodness, empathy and support.

According to Imagine Canada, the charitable sector contributes $192 billion in economic activity to Canada annually. The sector employs 2.4 million people, but even more impressive is that 13 million Canadians volunteer nearly 2 billion hours per year to worthy causes.

Honourable colleagues, charities are increasingly relied upon in doing some of the work governments are simply unable to fulfill. They need our support, but I am worried the government may soon be legislating changes to the alternative minimum tax that could hinder the sector. The changes may have unintended consequences and may discourage Canadians from donating, which could result in a drop in charitable revenues.

In 2022, for example, 30% of donations to the charitable sector came from higher-income households. This could have a huge impact on the sector and negatively affect those who benefit from philanthropic donations. These facts should be carefully considered.

Honourable senators, philanthropy helps build strong communities and active civic participation by bringing people together to serve a common goal. Canadians deserve a fair shot at living a life of dignity and quality, which is why it is important to celebrate National Philanthropy Day and honour Canada’s spirit of giving.

Thank you.

Hon. Tony Loffreda: Senator Gold, since August 2021, federal departments must ensure that a minimum of 5% of the total value of contracts are held by Indigenous businesses. I have explored this issue at the Standing Senate Committee on National Finance as part of our review of the government’s spending priorities. I have reviewed many departmental results reports, and the 5% minimum target is rarely met. For instance, Public Services and Procurement Canada, or PSPC, is struggling and hopes to increase these contracts from a projected 2.1% to 5% in just two years. That’s a big undertaking.

As our chair often reminds us, our committee shares a common denominator with the government, which is a desire for transparency, accountability, predictability and reliability for all Canadians, when we review federal spending. Two years into this directive, can you speak to us about the success of this measure?