Official Hansard
Mr. Speaker, let me begin with a word about fog. Storms can be dangerous at sea, but fog can be just as deadly, and sometimes even worse. In a fog, one cannot see the shore and other ships. Let us explore Bill C-31, a second act to implement certain provisions of the budget, specifically division 16. At more than 330 pages, a bill this size is its own fog bank. Lost inside it is division 16, which would create the Defence Investment Agency and would rewrite the Defence Production Act. I navigated warships for many years, so let me help guide us through this fog. I speak for the sailors of CFB Esquimalt and CFB Halifax, two ports that I am very familiar with. I speak for the veterans on Vancouver Island, for the workers who build and repair our ships, for the families of Cowichan—Malahat—Langford and for all Canadians whose tax dollars pay for the defence of Canada. I want every ship to get home safely, and I want Canada’s defence procurement to be efficient and effective and meet the operational requirements Canada now faces. I served this country, and the defence of Canada matters to me as much as it does to every Canadian. Procurement is how that defence gets built. A ship that gets home safely depends on a system that gets the right equipment. I do not believe this bill would make that happen. I am worried that a bill like this is much like a ship lost in the fog without a radar, so let me describe that fog. Division 16 would put the Defence Investment Agency into law. It is the government’s second design for the agency, and while this bill has not yet passed, there is already a third design before this House, Bill C-40. There are two bills, one agency and three versions. In fog, the danger is not only the rocks but other ships. When too many vessels are in the same water, none of them is sure where the others are. There are two bills in this fog and three different designs of the same agency, all in less than a year. The government will say it is building on what came before, but it is not. These designs do not build on each other. They collide with each other. Under Bill C-31, the agency would stand alone and answer to a minister, with the secretary of state somewhere in the chain. Under Bill C-40, it would become a Crown corporation with a new associate minister on top, and who they answer to is unclear. Bill C-31 would keep Treasury Board rules and report to Parliament, and under Bill C-40, it would be exempt from many of those rules. Under Bill C-31, the minister could take over a company’s board. Under Bill C-40, the language would change, adding power and stripping accountability. Bill C-40 is bearing down on Bill C-31, and Bill C-31 has barely been afloat. Already, division 16 is obsolete. Who is in command? Bill C-40 would create a new associate minister, and the agency would do as the minister directs. Above that sits two ministers in the Prime Minister’s Office, and who reports to whom is lost in the fog. There would be too much power in one person’s hand over too much money, with almost no accountability beyond a single annual report. A government that keeps redesigning its own agencies has lost its rudder and is chasing its own tail. By trade, I was a navigating officer, so let me use a phrase every sailor knows: “standing into danger”. That is exactly what is happening here. The greater threat is not this bill but Bill C-40, which would offer even less accountability, and here is why. When the government makes a major procurement, it normally comes from a competition. Companies bid, and the best offer that meets operational requirements should win. That protects the taxpayer and fairness, and it provides the best equipment for Canada. A sole-source contract is the exception. There are times when a sole-source contract is required. Operational needs call for it, and I do not argue otherwise, but the sole-source decision must be answerable to Parliament. This bill would provide little accountability back to Parliament, and Bill C-40 would provide almost none. Bill C-40 would give the minister 13 grounds for sole-sourcing and no duty to report on any individual contract, with only one annual report for billions of dollars. Our allies do not do it this way. In the United Kingdom, an independent regulator oversees the pricing of single-source contracts. In the United States, a sole-source contract must be justified in writing and made public. Bill C-40 would ask Canadians to accept less. Both bills would let the minister exclude a company from competing on national security grounds without explaining why. Under Bill C-40, the agency would have to do as the new associate minister directs. It is “must”, not “may”. Both would allow up to $1 billion from the consolidated revenue fund, with nothing in either bill noting how often, by whom or what conditions. Normally, Parliament approves how that money is spent. That approval is how the people of Canada keep their hand on the wheel. These powers are without precedent and without meaningful accountability over some of the most expensive projects in Canada’s history. Lost in the fog without accountability and oversight, this ship will soon run aground. For procurement, it means an announcement that never becomes a contract. To be fair, some contracts have been signed by the DIA. Some of them were already under way before the agency existed and the agency has claimed them, and a few are the agency’s own. However, too often, a victory lap comes at only an announcement. Let us take the Canadian patrol submarine project as an example. In July, to much fanfare, the Prime Minister announced a preferred supplier, but quickly stated that if that did not work out, there was another preferred supplier on standby. This is an announcement lost in the fog, not a signed contract, not a decision and not a delivery. Take GlobalEye. In May, the government announced a preferred supplier for up to six aircraft. Saab confirmed that no contract has been signed. There is not a contract and not a commitment to buy. The government itself has stated that this aircraft does not meet the air force’s operational requirements. This is an announcement standing where a signed contract should be. Even the F-35 program is lost in a fog, paused twice by the Liberals. Now, 18 months into a six-month review, two aircraft have been delivered while political posturing causes delays, putting the defence of Canada at risk. This is unacceptable. The Liberals can announce an agency. They can name a chief executive. They can create a board, but until ink touches paper, nothing has been bought. Our members in uniform do not need another redesign of the Defence Investment Agency. They need a decision, a contract and a delivery date. I do not stand here only to criticize. Let me offer a way forward. One, the Liberals should remove division 16 from this bill. It is being replaced within months, and no sailor worth his salt would sail this way. They should put effort into the new bill and get that one right. Two, they should keep sole-sourcing for genuine operational needs, with written reasons published, and when they are classified, they should show them to members who are cleared to see them. Three, they should report to Parliament on every ministerial direction, and account for what Canada receives for every $1-billion draw. Four, they should put conflict of interest rules in the bill. All who advise or decide on these purchases must disclose their interests and step aside to avoid conflict. Five, they should publish the decision process, with who decides the criteria and the scores each bid receives, and set real timelines. Last, they should put the defence of Canada first. Industry and jobs are important, but when it comes to the defence and sovereignty of Canada, operational requirements must take priority. A government patting itself on the back and waving around announcements with no contract signed does nothing for the defence of Canada, putting our sovereignty at risk. These are six steps and none is partisan. These are the standards we should expect, regardless of who holds government. When I navigated warships, we transitioned from paper charts to electronic ones. The tools changed completely, but the principles never did: keep the ship safe and defend it from the enemy. With Bill C-31’s division 16 soon to be overtaken by Bill C-40, it is not only the tools that are changing, but the principles of accountability. The safe passage through the fog is not this bill, and it is not Bill C-40, which would offer even less accountability. The defence and sovereignty of Canada are a pillar of this country and the first duty of any government. Today, that pillar is lost in the fog, rudderless, and the government has shown no way out. If the government cannot find its way out of the fog, we stand ready to do the work. Our sailors, soldiers and aviators defend the sovereignty of Canada every day, and they deserve a government that does the same.