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House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
Context: House Hansard - 75 - May/19/22
Mr. Parm Bains (Steveston—Richmond East, Lib.)
  • May/19/22 9:32:17 p.m.
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Recent events have shown that we continue to live in a dangerous world where some nations are willing to flout international law by assaulting and even invading other nations without cause. It is a world where the strong will sometimes use their military advantage to take what they want by force. This is not the world that we want to live in or strive to create, but it is today's reality. Canada has been fortunate not to be the victim of such an attack in recent history, but Canada has always stood up for what is right and has defended its partners and allies across the globe. Two things are essentially required to be able to do this: brave men and women and the proper equipment. The Canadian Armed Forces is stocked with courageous Canadians ready to defend this country and its values. It is the government's responsibility to provide the adequate military equipment to these brave men and women so that when we do make this grave request of them, they will be as safe as possible and have the right tools for the job. This means everything from boots and helmets to jets and ships. Public Service and Procurement Canada, in partnership with the Department of National Defence, has been procuring a range of equipment, arms, vehicles and more for our military. These are often complex procurements with many moving parts. We have been committed to open competitions and assuring that these contracts support Canadian industries as much as possible. The workers in the shipbuilding and other defence industries are giving their best for Canada. The men and women of the Canadian Armed Forces do the same every day. The same is expected from the Canadian government. Could the minister please detail some of the important investments this government has made in the Canadian Armed Forces based on the “Strong, Secure, Engaged” defence policy in order to provide our military men and women with the best equipment and keep Canadians safe?
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Mr. Anthony Housefather (Parliamentary Secretary to the Minister of Public Services and Procurement, Lib.)
  • May/19/22 9:34:21 p.m.
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Mr. Chair, I want to take this opportunity to thank the men and women of our Armed Forces, a sentiment I know is shared by all sides in the House, for the incredible work that they do. I was pleased to join with almost everybody here to vote for a motion to increase our defence spending up to 2% of our gross domestic product. We have made progress since 2015. In 2015, we were at about 1%. We are now at 1.37%, and with the additions in the budget this year, we are going to move up to 1.5%. We still have more to do, but we know, based on the threats in the world today, we need to invest in our Armed Forces. I am so pleased that we are also creating economic benefits and good middle-class jobs here in Canada from coast to coast through substantial investments in equipping our military. Let me talk about the national shipbuilding strategy. Over the last 10 years, we have invested $21.07 billion in NSS contracts to businesses across the country. Of these, approximately $1 billion went to small businesses of less than 250 employees, and this has created approximately 18,000 jobs being created or maintained in Canada, not to mention all of the spin-off jobs that are created from companies that do business with C-SPAN, Irving and Davie. We have awarded thus far $6.52 billion to Irving; $5.26 billion to Vancouver Shipyards, which is C-SPAN; and $2.26 billion to Davie. Other shipyards have received $7.03 billion. We are also providing the most advanced military jets, the 88 fighter jets that are being ordered. At this point the contract is being negotiated with Lockheed Martin. They are the biggest investment we have made in the Air Force in a generation. We launched a transparent competition in order to procure those jets starting in December 2017.
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Mr. Parm Bains
  • May/19/22 9:36:55 p.m.
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Mr. Chair, we heard a little about the shipyards. My questions are coming from Richmond, British Columbia, so the marine sector is extremely important to us over here on the west coast. I am curious to know about some of the work that is being done at the Vancouver Shipyard, Seaspan and the economic impacts around that.
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Mr. Anthony Housefather
  • May/19/22 9:37:28 p.m.
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Mr. Chair, again, as I mentioned, we have invested $21 billion in the economy through the national shipbuilding strategy. Of that, the amount that has gone to Seaspan, with the spinoff effects in the member's riding, is $5.26 billion. That is not to talk about the indirect benefits that go to companies that are doing business with that shipyard. I appreciate the hon. member's interest in this issue, and I look forward to continuing to work with him and all of our colleagues in investing in the Canadian economy.
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Mrs. Julie Vignola (Beauport—Limoilou, BQ)
  • May/19/22 9:38:04 p.m.
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Mr. Chair, I would like to know the official cost of the Arctic and offshore patrol ships and whether it is possible to break down those costs.
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Hon. Filomena Tassi (Minister of Public Services and Procurement, Lib.)
  • May/19/22 9:38:32 p.m.
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Mr. Chair, the first two AOPS were delivered in July 2020 and July 2021, and the next three are under construction. The project budget is $4.3 billion.
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Mrs. Julie Vignola
  • May/19/22 9:38:49 p.m.
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Mr. Chair, will the budget be respected?
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Hon. Filomena Tassi
  • May/19/22 9:38:55 p.m.
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Mr. Chair, we always try to respect the budgets.
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Mrs. Julie Vignola
  • May/19/22 9:39:02 p.m.
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Mr. Chair, can the minister officially confirm that the budget will be respected?
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Hon. Filomena Tassi
  • May/19/22 9:39:13 p.m.
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Mr. Chair, as I said earlier, there are cost pressures because of COVID, but we always attempt to have those budgets respected.
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Mrs. Julie Vignola
  • May/19/22 9:39:24 p.m.
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Mr. Chair, I would like to know why the icebreaker contract was split between two shipyards. That reduces the expertise, so I would like to know why the contract was split.
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Hon. Filomena Tassi
  • May/19/22 9:39:43 p.m.
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Mr. Chair, in these contracts, we are always looking for the best value that can be provided, and this is based on the production timing as well.
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Mrs. Julie Vignola
  • May/19/22 9:40:00 p.m.
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Mr. Chair, I would like to know why, in the bidding process for the F-35 aircraft, the government has abandoned its industrial and technological benefits policy.
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Hon. Filomena Tassi
  • May/19/22 9:40:15 p.m.
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Mr. Chair, I am sorry. I had a problem with interpretation, just the last sentence.
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The Chair
  • May/19/22 9:40:20 p.m.
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I invite the hon. member to put her question again.
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Mrs. Julie Vignola
  • May/19/22 9:40:23 p.m.
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Mr. Chair, I would like to know why, in the bidding process for the F-35 aircraft, the government has abandoned its industrial and technological benefits policy.
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Hon. Filomena Tassi
  • May/19/22 9:40:40 p.m.
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Mr. Chair, if I understand the question, for the F-35s, we weighted the highest economic benefits to that project, and that was part of the selection of the final bidder.
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Mrs. Julie Vignola
  • May/19/22 9:40:56 p.m.
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Mr. Chair, even with the F-35 program, there are no guaranteed benefits for Canada's aerospace industry. The International Association of Machinists and Aerospace Workers has confirmed that we could lose the contracts our companies currently have. Canada could spend tens of billions of dollars that will go directly into Americans' pockets. Is that not a shame?
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Hon. Filomena Tassi
  • May/19/22 9:41:21 p.m.
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Mr. Chair, as I have said, the weighting in this procurement project has given the most significant weighting to economic benefits in our history, and it was a 20% weighting. That was considered in the successful selection of the final bidder.
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Mrs. Julie Vignola
  • May/19/22 9:41:44 p.m.
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Mr. Chair, of that 20%, how much of the benefits will go to Quebec, which is the backbone of the aerospace industry?
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