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Decentralized Democracy

House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
Context: House Hansard - 75 - May/19/22
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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Hon. Filomena Tassi
  • May/19/22 9:41:54 p.m.
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Mr. Chair, I appreciate the member's advocacy but that has not been determined yet.
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Mrs. Julie Vignola
  • May/19/22 9:42:02 p.m.
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Mr. Chair, this is not about advocacy. It is about saving very important, highly specialized, good-paying jobs not only for individuals, but also for the GDP as a whole, in both Quebec and Canada. It is important to protect these specialized jobs during crises and shortages. Quebec's aerospace industry is equivalent to Ontario's auto industry. Our GDP needs to be protected just as much. That said, according to the Defence Development Sharing Agreement between Canada and the United States of America, Canada is the United States' only industrial defence partner. It is therefore possible to require that F-35 maintenance be done here, in Canada. Will the minister demand that this maintenance be done here?
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Hon. Filomena Tassi
  • May/19/22 9:43:04 p.m.
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Mr. Chair, the negotiation process is ongoing with respect to the F-35s. We expect that a contract will be signed by the end of the year in this finalization stage. We are hopeful for that. Terms will be worked out in that contract.
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Mrs. Julie Vignola
  • May/19/22 9:43:22 p.m.
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Mr. Chair, will the terms of the contract ensure that the Defence Development Sharing Agreement is respected?
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Hon. Filomena Tassi
  • May/19/22 9:43:36 p.m.
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Mr. Chair, the terms of the contract will be respected. This is a very significant investment we are making, at $19 billion. We want to make sure that we get it right. It is important to have the details right in this contract. We are going to make every effort to ensure those details are there and respected.
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Mrs. Julie Vignola
  • May/19/22 9:43:51 p.m.
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Mr. Chair, I hope that the terms of the contract will be respected, but will this contract respect the Defence Development Sharing Agreement?
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Hon. Filomena Tassi
  • May/19/22 9:44:06 p.m.
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Mr. Chair, I believe the member is referring to the economic benefits, and as I have said, this is something we have prioritized with respect to this procurement. It is a $19-billion procurement. It is an important procurement, and we of course want to ensure that we are going to receive the economic benefits.
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Mrs. Julie Vignola
  • May/19/22 9:44:26 p.m.
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Mr. Chair, the agreement I mentioned has been around since the 1950s and, although it has been amended, is still in force. I sincerely hope the contracts will include and respect it. That said, the government estimates that the F‑35s will cost $19 billion, as the minister just said. I would like to know where that estimate comes from and if it includes a cost overrun.
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Hon. Filomena Tassi
  • May/19/22 9:45:07 p.m.
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Mr. Chair, the cost comes from the Department of Defence.
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Mrs. Julie Vignola
  • May/19/22 9:45:16 p.m.
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Mr. Chair, are those costs comparable to what other countries ordering F‑35s are paying or will be paying?
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