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Thursday, June 7, 2001 CANADA VOLUME 137 S NUMBER 074 S 1st SESSION S 37th PARLIAMENT OFFICIAL REPORT (HANSARD) Thursday, June 7, 2001 Speaker: The Honourable Peter Milliken CONTENTS (Table of Contents appears at back of this issue.) All parliamentary publications are available on the ``Parliamentary Internet Parlementaire'' at the following address: http://www.parl.gc.ca 4751 HOUSE OF COMMONS Thursday, June 7, 2001 The House met at 10 a.m. Veterans Affairs presented to the House on Tuesday, March 20, be concurred in. _______________ It is with mixed emotions that I rise today to speak to this motion Prayers as it concerns an issue very much in the minds of all Canadians. _______________ The procurement process to replace the Sea King helicopters is one that we have followed for some time but that has only recently seized the attention of the House of Commons. ROUTINE PROCEEDINGS It was last May 18 that my colleague, the hon. member for Compton—Stanstead, raised the prospect of this government using D (1005) the contract for political means. At that time, and then an opposi- [Translation] tion member, my colleague, suggested that the government had a secret agenda, an agenda that involved a specific company. The INTERPARLIAMENTARY DELEGATIONS government said that my colleague’s claims were laughable. The government said that there was no plan to place one competitor Mr. Bernard Patry (Pierrefonds—Dollard, Lib.): Mr. Speak- above another. er, pursuant to Standing Order 34, I have the honour to table in the House, in both official languages, the report of the Canadian Only three months ago the government introduced a procure- section of the Parliamentary Assembly of the Francophonie, as ment process that was biased in favour of one company only. The well as the related financial report. process introduced called for the lowest price compliant bid to win the day, not taking into account whatsoever fleet commonality or, The report concerns the meeting of political committee held at more important, better value. This was when the treasury board’s Port-Louis, Republic of Mauritius, from May 10 to 12, 2001. own guidelines specifically urged all government departments to abide by a best value criteria when launching a procurement * * * process. [English] D (1010 ) COMMITTEES OF THE HOUSE I have been told that in the strict legal interpretation of Treasury SCRUTINY OF REGULATIONS Board guidelines 9.1.1 and 9.1.2, no laws have been broken. However I must ask a question. Why did the government choose to Mr. Werner Schmidt (Kelowna, Canadian Alliance): Mr. avoid the generally accepted practices that have guided our mili- Speaker, it is my pleasure to present to the House pursuant to tary purchases in the past? Standing Order 123(1), in both official languages, the second report of the Standing Joint Committee on Scrutiny of Regulations No matter whether it was a Liberal or Conservative government concerning the revocation of section 58 of the Fresh Fruit and in the past, it never followed those types of guidelines. We have Vegetable Regulations, C.R.C. 1978, c.285. The text of the relevant been told that it was to expand the number of Canadian bidders. Yet section of the regulations is contained in this report. in retrospect it is clear that only one wholly owned Canadian company is in serious competition for any of the related contracts. NATIONAL DEFENCE AND VETERANS AFFAIRS That takes me to the second problem I have with this contract, Mrs. Elsie Wayne (Saint John, PC): Mr. Speaker, I move that which is the fact that the government chose to split the contract into the first report of the Standing Committee on National Defence and two parts, one for the basic vehicle and another for the critical 4752 COMMONS DEBATES June 7, 2001 Routine Proceedings mission systems. If I wanted to play politics with this one, like D (1015 ) some of my colleagues are, I would vote for that because it would create some jobs in the province of New Brunswick. What makes this issue so important to us all is that the helicopters currently in use are so dangerous. Some of the pilots When I was taken out to dinner by the company I said that I have already lost their lives, just outside my city. Some of the would only have a bowl of soup because no one buys me with parents of the pilots came to see me. They asked me to take up their dinner. No one buys me with anything. To this date, no one does. I cause and force the government’s hand in this regard. guarantee that. The Sea Kings have given yeoman service to this country for I want to also say right here and now that when it comes to the almost 40 years, and they have earned their retirement. I have great men and women who wear uniforms, we should take the politics compassion for the men and women in uniform who must use the out of it. We should give them the tools to do their jobs. Sea Kings on a daily basis. I am not an engineer. I do not have a full appreciation of the The Minister of National Defence has repeatedly said that unsafe technical difficulties that might come to pass as a result of buying helicopters will not fly, but cannot explain why our choppers go two independent products. However we all know the reason this is down in places like Hawaii, East Timor, and even on the coast of being done. It is for political reasons because in 1993 the govern- Nova Scotia. If we cannot predict when a Sea King is safe, how ment of the day cancelled the EH-101 and wasted $800 million. then do we know which ones to fly? How can the minister make this guarantee? From what we have been told, this is the first such split contract of its kind since the House of Commons has been in place. The At the end of the day, I believe the Minister of National Defence assistant deputy minister responsible said that this was the first of and the Minister of Public Works and Government Services will its kind, which seems to me to be a very risky proposition. We must have a lot to answer for in this process. I believe the Canadian give our Canadian Armed Forces the best equipment to do their people are sick and tired of the government playing politics when it jobs, not only because it is the right thing to do but because we give should be watching the backs of our Canadian forces personnel and them complicated tasks that always put them in harm’s way. doing what is right for them. I am unsure of the ethical or moral reasons that we would put in When I was mayor of Saint John I did a number of major capital place a procurement process that would buy the cheapest helicopter purchases, so I can speak with some experience when I say that this but not necessarily the best. I have for some time asked the contract process is wrong. It is unfair and places bidders at a government to reconsider the procurement process. One potential significant disadvantage. Whenever we have the public challenges bidder, E.H. Industries Ltd., has gone to the length of filing a to a procurement process, as we have seen with the maritime complaint with both the Canadian International Trade Tribunal and helicopter program, we know that something is amiss. the Federal Court of Appeal on this matter. The company believes that by facing this competition on the lowest price alone, it is at a significant disadvantage. I am pleased, therefore, that in the next sitting of our parliament the other place will undertake a committee of the whole to review this entire process. I applaud our colleagues in the other place for The House will recall that it was E.H. Industries that manufac- their diligence to duty and their courage. It is my hope that in the tured the EH-101 purchased by the previous government. I am sure consideration of the Sea King and the challenges we face in the House will recall that in the election of 1993, as I have stated, replacing them, we look in the mirror and recognize we have a duty the issue of EH-101 featured prominently in all debates. The House larger than just helping out some of our friends. will certainly recall that the Prime Minister held his pen up high and said that he would purchase no new helicopters. Zero helicop- ters is what was said. Page 30 of the procurement study also refers to the fact that the Government of Canada should convene a national round table on shipbuilding in Canada with a view to establishing a national It seems very strange that the only red book promise that has shipbuilding policy. We brought that report in asking for a national been kept by this government was the one promise that related to shipbuilding policy in June 2000. We said there should be a naval these helicopters. The GST, free trade and a range of other shipyard in Canada where we would build all our navy ships. We promises were quickly forgotten. should not be buying used submarines in London, England, only to find out they cannot float, then pay $800 million to try to get them to float. That is an insult to our men and women in uniform. I hope the government is not choosing to instigate a procurement process that would prejudice E.H.
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