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House Hansard - 75

44th Parl. 1st Sess.
May 19, 2022 10:00AM
  • May/19/22 7:03:48 p.m.
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Madam Chair, I am thankful for being invited to rise in the committee of the whole to speak to the main estimates for Public Services and Procurement. As a direct service provider, my department works to serve Canadians in support of the government's missions. My department is the government's central purchasing agent. It manages real property, acts as a treasurer and accountant, is responsible for pay and pension administration, advises on matters of integrity, and acts as the linguistic authority. It has a wide-ranging mandate that touches so many aspects of daily and long-term government operations. To deliver on this mandate, we have requested more than $4.6 billion in the 2022-23 main estimates for PSPC. As the central purchasing agent for our government, one of the department's most critical roles of late has been to support Canada's response to the ongoing pandemic, and we intend to keep that support going. I can tell members that our aggressive procurement approach over more than two years has ensured that Canada has a secure supply of vaccines and personal protective equipment. In fact, Canada is a world leader on this front. We have contracts in place with several vaccine suppliers and we have access to supplies of future formulations that will protect us against variants. I can also say that thanks to our long-term contracts with Medicom and 3M, tens of millions of N95 respirators are being produced right here at home every single month. It is because of the ground work that we laid at the beginning of the pandemic that Canada is in good standing to see it through to the end. As Canadians are keenly aware, the pandemic is not over yet and there is still more to do. For example, we are working to ensure that we have enough supply of rapid tests and therapeutics, as they remain in high demand across the globe. So far, Canada has produced more than 600 million rapid tests, and we have contracts in place for nine different therapeutic treatments, giving us access to 1.7 million treatment courses. I can assure the House that the department will continue to deliver for Canadians as we work to finish the fight against COVID. As members well know, the pandemic is not the only crisis we are dealing with. Every day, we learn more about the horrors unfolding in Ukraine following Russia's unprovoked and unjustifiable attack. We know that it is essential for all democratic nations to stand united in our support of the Ukrainian people and Ukrainian sovereignty. That is precisely what our government is doing. PSPC continues to provide logistical and other support to ensure that Canada's support and assistance are received by those who need them. On the domestic front, defence procurement and defence contract management are important parts of my mandate, and I am honoured to be leading on this front during this crucial time as Canada's defence policy evolves in a rapidly changing world. We continue to make progress on our defence procurements. That includes our government's work to procure 88 advanced fighter jets to replace our aging fleet of fighters. The purchase of new jets represents the most significant investment in the Royal Canadian Air Force in more than 30 years. Since day one, our government has been focused on steering a process that is truly competitive. That is what we have done because we know that it is the right way to get the best value for Canadians and to make sure our defence needs are properly met. Following a rigorous evaluation of the proposals, the government has entered into the finalization phase of the process with the United States government and Lockheed Martin. This is an important milestone in the procurement process, and I can report that we are on track to reaching an agreement later this year, with the delivery of aircraft potentially as early as 2025. We also continue to work with our partners to renew the fleets of the Canadian Coast Guard and the Royal Canadian Navy. Despite the immense pressures on global supply chains, we are making progress on shipbuilding and revitalizing the industry in Canada. There is no doubt that the government's purchasing power is an important lever and we are using it to drive economic prosperity, but we must make sure that prosperity is inclusive for all Canadians. That is why we have recently launched a supplier diversity action plan, which includes pilot projects to increase the participation of under-represented groups in federal procurement. An example of this is our Black business procurement pilot project, which has led our government to awarding a series of contracts. We received important feedback from the community about the process so we can improve it going forward. Our goal here is to help remove barriers to full participation in procurement for all suppliers. We also continue to walk the path of reconciliation by leading in the implementation of a requirement to ensure that a minimum of 5% of the value of federal contracts is held by businesses that are led by and employ first nations, Inuit and Métis people. With our purchasing power comes other responsibilities, such as doing our part to tackle forced labour around the world. I know that all members would agree that we must do everything we can to eradicate this abhorrent practice. That is why our government has updated the federal code of conduct for procurement to clearly outline Canada's expectations for suppliers when it comes to human and labour rights. As of November 2021, all of our goods-related contracts now contain anti-forced labour clauses. That means the government can terminate contracts when there is credible information that goods have been produced in whole or in part by forced labour or human trafficking. The department has done other important work, including major projects in the national capital region. That includes replacing the Alexandra Bridge and implementing a long-term, integrated, interprovincial crossing plan. It is an endeavour led by the National Capital Commission, which is part of my portfolio. Of course, we are also working on the renovation and rehabilitation of the Parliamentary Precinct. Just outside of these doors, we are working to modernize and preserve the heart of Canada's democracy and to keep it a place that can be enjoyed by all Canadians. Our work in this area expands beyond Parliament Hill and its historic buildings. On Monday, I had the pleasure of announcing the winner of the design competition for the city block that faces Parliament on Confederation Boulevard known as “Block Two”. Renewing the Parliamentary Precinct is an enormous undertaking that will result in an integrated parliamentary campus while moving us toward carbon neutrality and climate resiliency. Of course, greening all of our operations across government will support Canada's commitments to fighting climate change. Our energy services acquisition program is an excellent example of progress my department has made when it comes to greening government. Under the program, we are modernizing the district energy systems that heat and cool 80 buildings in the national capital region. I am happy to report that we have already cut greenhouse gas emissions by 57% from the baseline year of 2005, and we are on track to meet our goal of net zero emissions by 2030. These many initiatives are made possible by Canada's hard-working public servants here in the national capital region and across the country. They deserve to be paid accurately and on time. I also want this committee to know that we continue our efforts to resolve the backlog of pay transactions and stabilize pay operations. At the same time, Shared Services Canada is advancing work on the next generation of human resources and pay solutions: one that is flexible, modern and integrated. Shared Services Canada is also working to provide public servants with modern tools and deliver digital services to Canadians that are secure, reliable and easy to use anywhere. While not covered in the main estimates, Shared Services Canada is an important part of my portfolio, and like PSPC, it plays a vital role in supporting government operations. Also in my portfolio is Canada Post Corporation, and I want to note for the committee and all Canadians my appreciation of postal workers. Despite hardships brought on by the pandemic over the past two years, our dedicated postal workers have continued to provide high-quality service across the country. Indeed, all public servants have stepped up since COVID-19 hit our shores to get through to the other side of the pandemic and to keep the Government of Canada running. I am so honoured and humbled to lead such a talented team, and I know that we will be able to build on our accomplishments and achieve great things for Canadians. I have touched on only a fraction of the important work happening under my portfolio of Public Services and Procurement Canada. I am happy to take the committee's questions regarding the main estimates for my department.
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  • May/19/22 7:35:46 p.m.
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Madam Chair, again, I appreciate my colleague's advocacy on this, and I assure him that our government recognizes that problematic substance use is a health issue. With respect to a procurement perspective, PSPC procures, Health Canada is the client, and provinces deliver health care to provinces and territories.
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  • May/19/22 7:36:49 p.m.
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Madam Chair, here is a quote. It is something the minister wrote in the PSPC 2022-23 departmental plan. It says: Nearly two years into the COVID-19 pandemic, protecting the health and safety of Canadians remains a priority for the Government of Canada. PSPC will continue to play a central role in our response by procuring critical supplies, including vaccines, tests and therapeutics. It has now been over six years since British Columbia declared a public health emergency. Is the health and safety of some Canadians, like people who use drugs, not a priority for the government? Why has PSPC not played a central role in responding to this crisis?
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  • May/19/22 8:10:37 p.m.
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Madam Chair, PSPC 2019-2020 achieved just 58% of their planned targets, yet the executives were paid out over $8 million in bonuses. Last year, PSPC failed to achieve over one-third of their targets, as noted in their departmental plans. Would the minister confirm she will not be approving executive bonuses for such failure?
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  • May/19/22 8:12:02 p.m.
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Madam Chair, these targets were not left by the opposition party; they were made by the minister. It was a Liberal government that enacted Phoenix, over the opposition of the OGGO committee. Two other targets missed were increasing contracts to women-owned businesses and increasing them to indigenous-owned businesses, despite their prominent roles in the departmental plans. Will PSPC be paying executive bonuses for missing these targets?
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  • May/19/22 8:13:47 p.m.
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Madam Chair, I even noted on what page in the departmental plan, signed by the minister, the target decrease was. Now, the previous minister for PSPC testified in committee that Amazon was a Canadian company. Is this why the Liberals are giving so much to Amazon and not buying from Canadian small businesses?
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  • May/19/22 8:17:56 p.m.
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Madam Chair, I am pleased to talk about the progress we have made with forced labour. PSPC has now put in a code of conduct that has to be signed. There are provisions in the contracts that say if there is forced labour, we have the opportunity to terminate the contract. We are going to continue to move forward in this regard because we are absolutely against forced labour and—
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  • May/19/22 8:19:04 p.m.
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Madam Chair, I have been sharing it this evening and the minister has refused to rule out buying from these companies. The Australian Strategic Policy Institute has identified dozens of companies that have knowingly used forced labour goods in their supply chains. These companies, according to the government's own Buyandsell website, have received hundreds of millions in contracts from the Liberal government. If my office, with one person, can find all of this information, why can PSPC, with all of its resources, not find the same information and stop sending Canadian taxpayer dollars to buy services made with forced labour?
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  • May/19/22 8:35:40 p.m.
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Madam Chair, what I would say to that is that we do not want to procure any goods used where there is a violation of human rights. That is why we have taken the measures that we have in PSPC.
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  • May/19/22 8:37:43 p.m.
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Madam Chair, Sinopharm provided a declaration to PSPC in April 2021. All deliveries were completed in December 2021.
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  • May/19/22 8:38:03 p.m.
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Madam Chair, in 2018, we implemented the policy on ethical procurement of apparel. The contract security program provides security screening for personnel and organizations to safeguard protected classified information. PSPC, when contracting, includes—
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  • May/19/22 8:39:50 p.m.
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Madam Chair, what I would say is that we have implemented a number of measures in this regard to eradicate forced labour. Four ministers have mandate commitments in their mandate letters to move forward with the eradication of forced labour. For me, in PSPC, I am going to do everything I can to prevent forced labour in the supply chains. We have made progress and we are going to continue to move forward.
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  • May/19/22 9:21:36 p.m.
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Madam Chair, DND tells PSPC what it needs, and we procure what it needs. I would just add that the national shipbuilding strategy contributes $1.54 billion annually to the economy, and it creates and maintains 18,000 jobs per year.
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  • May/19/22 9:22:02 p.m.
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Madam Chair, is the minister telling us that PSPC blindly does whatever DND tells it to, without doing any checks? Is that how her department works?
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  • May/19/22 9:48:35 p.m.
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Mr. Chair, of course I support both official languages in the public service, but this is a Treasury Board issue, not a PSPC issue.
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  • May/19/22 10:04:02 p.m.
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Mr. Chair, as I have indicated previously this evening, this is an area that is very important to me. As the government's procurement authority, PSPC is committed to ensuring that human rights and labour standards are protected and that ethical practices are maintained by suppliers and manufacturers from which we procure vital goods, such as personal protective equipment. Notably, PSPC requires bidders responding to tenders for PPE to certify that they and their first-tier subcontractors comply with a set of fundamental human and labour rights requirements and are free from forced labour discrimination and abuse, with access to fair wages and safe working conditions. This requirement builds on PSPC's policy on the ethical procurement of apparel, which since 2018 requires apparel suppliers to certify that they and their direct Canadian and foreign suppliers comply with a set of fundamental human and labour rights. In July 2020, clauses on ethical procurement and origin of work were added into the new PPE contracts and in all newly issued requests for proposals for personal protective equipment. The origin of work clause requires bidders to provide the name, address and country of the manufacturers of the item, including subcontractors. The ethical procurement clause requires bidders to certify that they and their first-tier subcontractors comply with the same human rights and labour standards as set out in the policy on ethical procurement of apparel. PSPC has made changes to strengthen its contractual framework and has also updated the code of conduct to include new expectations for suppliers and their subcontractors on human and labour rights. It also has implemented new anti-forced labour contract clauses to ensure that we can terminate contracts in the event of violations. These clauses protect the department from financial liability if imported goods are not released at the border because their importation is prohibited under the forced labour prohibition in the Customs Tariff Act. In addition, PSPC works closely with other government departments, such as Employment and Social Development Canada and the Canada Border Services Agency. At CBSA's request, ESDC labour provides support by conducting research and analysis on the risk of forced labour for specific complaints or allegations received pertaining to the forced labour import prohibition administered by the CBSA. Given the complexity and scope of the problem, addressing forced labour will take sustained effort over time. As the member mentioned, four ministers have in their mandate letters the commitment to eradicate forced labour through legislation. We look forward to doing more in this very important area.
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  • May/19/22 10:07:16 p.m.
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Mr. Chair, with regard to Nuctech, I can confirm that Public Services and Procurement Canada as a department does not have any contracts with Nuctech. That was the point that I was making earlier, that we currently do not have any contracts. As a common service provider in the past, PSPC undertook competitive procurements on behalf of the Canada Border Services Agency, and four contracts were awarded to Nuctech, the most recent being in 2019. However, since that time there have been no new contracts awarded to the company, so there have been no contracts from 2019 to the current time.
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  • May/19/22 10:33:11 p.m.
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Mr. Chair, with respect to PSPC, I can talk about initiatives that we are undertaking. In addition to the figures I gave on what we have done in our strategies with reductions in greenhouse gas emissions, we are also undertaking other efforts, which include procurement practices that prioritize reusable and recyclable products and our goal of net-zero plastic waste. We are going to continue also to work with our colleagues to introduce a new buy clean strategy and support and prioritize made-in-Canada, low-carbon products.
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  • May/19/22 10:36:57 p.m.
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Mr. Chair, we are focusing on doing what we can in procurement in order to contribute to meeting the targets that are there. This is an all-of-government approach. PSPC has a role to play. I have gone over the numbers with respect to initiatives that we are taking in order to meet our targets, and this work is significant.
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  • May/19/22 10:37:23 p.m.
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Mr. Chair, I do appreciate the role that PSPC has to play and the work that the minister is doing in it. My final question is this: How are we to trust any of these strategies and commitments, though, in light of the reality of the same commitments to expanding and building the Trans Mountain pipeline?
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