June 26, 1980

BIDS ON FRIGATE PROGRAM

PC

Elmer MacIntosh MacKay

Progressive Conservative

Hon. Elmer M. MacKay (Central Nova):

Madam Speaker, on June 13 the Minister of National Defence may have contradicted, by press release, his pledge of fairness in dealing made in committee. I should like to ask him whether he considers he has contradicted his pledge of fairness by arbitrarily excluding two of five consortia from making a second bid on the S3.2 billion frigate program.

Can the minister clarify this situation, particularly in view of the almost defenceless position of our navy which was so graphically illustrated in the recent exercise in the Bay of Biscay, and the obvious need to strengthen our navy as soon as possible?

Topic:   ORAL QUESTION PERIOD
Subtopic:   BIDS ON FRIGATE PROGRAM
Permalink
LIB

J. Gilles Lamontagne (Minister of National Defence)

Liberal

Hon. J. Gilles Lamontagne (Minister of National Defence):

Apparently, Madam Speaker, today is my day. In reply to the hon. member, may I suggest that he direct his question to the Minister of Supply and Services whose officials are dealing with the main parties involved in the frigate program.

Topic:   ORAL QUESTION PERIOD
Subtopic:   BIDS ON FRIGATE PROGRAM
Permalink
PC

Elmer MacIntosh MacKay

Progressive Conservative

Mr. MacKay:

Madam Speaker, I thank the minister for his answer and I will ask him this question; or perhaps the Minister of Supply and Services might care to answer it.

As I understand it, this vital program is approximately 18 months behind schedule. Since it appears that the government has broken its own rules as stated in the "Request for proposals" which indicated that proposals received after 1200 EST on November 30, 1978, would be rejected, is there any indication that legal action will be taken by those who have been discriminated against? Further, can the minister explain or justify this extra delay in a program which seems to have slipped another 18 months today?

Topic:   ORAL QUESTION PERIOD
Subtopic:   BIDS ON FRIGATE PROGRAM
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?

Hon. J.-J. Blais@Minister of Supply and Services

Madam Speaker, I should like to say that there has been no discrimination. Both corporations had sent in tenders which have been turned down in the normal way, because their respective tenders did not meet the requirements of the call for tenders. We have asked the other three corporations who had submitted tenders to "correct", so to speak, their tenders to meet the Canadian content requirement in the three tenders and the Canadian capacity in a new technology, and 1 am sure the hon. member supports this policy put forward by this side of the House.

Topic:   ORAL QUESTION PERIOD
Subtopic:   BIDS ON FRIGATE PROGRAM
Permalink

INDUSTRY

NDP

Pauline Jewett

New Democratic Party

Miss Pauline Jewett (New Westminster-Coquitlam):

Madam Speaker, I have a question for the Minister of Industry, Trade and Commerce concerning capital assistance grants and loans currently being given to Valleyfield Chemical Products Corporation, a wholly-owned subsidiary of Space Research Corporation.

Was the Department of Industry, Trade and Commerce not aware of the RCMP investigation into Space Research Corporation's activities in illegally shipping arms to South Africa at the time it made its $5.3 million loan and its $3 million grant to SRC's Valleyfield operation? Can the minister tell us, further, whether the loan is still outstanding and whether the grant has been terminated?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
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LIB

Herbert Eser (Herb) Gray (Minister of Industry, Trade and Commerce)

Liberal

Hon. Herb Gray (Minister of Industry, Trade and Commerce):

Madam Speaker, I will get the information for the hon. lady and inform her as soon as possible.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
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NDP

Pauline Jewett

New Democratic Party

Miss Jewett:

Madam Speaker, I have been giving notice of this question in one way or another for the last week, and I am shocked that the minister is not aware of the grants and loans

June 26, 1980

which have been given to SRC by his own department. I take it, then, he also has no knowledge of the-

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink
LIB

Jeanne Sauvé (Speaker of the House of Commons)

Liberal

Madam Speaker:

Order. Ask the question, please.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink
NDP

Pauline Jewett

New Democratic Party

Miss Jewett:

I am asking it.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink
?

Some hon. Members:

Oh!

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink
NDP

Pauline Jewett

New Democratic Party

Miss Jewett:

I take it, then, that the minister has no knowledge of the $1 million grant which was also given by the Department of Regional Economic Expansion.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink
LIB

Herbert Eser (Herb) Gray (Minister of Industry, Trade and Commerce)

Liberal

Mr. Gray:

No, I do not, Madam Speaker.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   TERMS OF LOAN TO VALLEYFIELD CHEMICAL PRODUCTS CORPORATION-INVESTIGATION OF SPACE RESEARCH CORPORATION
Permalink

NATIONAL DEFENCE

PC

Charles Joseph Clark (Leader of the Official Opposition)

Progressive Conservative

Right Hon. Joe Clark (Leader of the Opposition):

Madam Speaker, my question is for the Minister of National Defence and it flows from the answers he gave to my hon. friend from Victoria.

Will the Minister of National Defence tell us the exact circumstances under which Admiral Falls was named as a special adviser on defence matters to the Prime Minister of Canada? Will he tell the House of Commons the terms of reference, or are we to believe-as the minister's earlier answer suggested-that the Minister of National Defence did not know that Admiral Falls had been appointed by the Prime Minister as a special adviser on defence?

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   SPECIAL ADVISER ON DEFENCE-REASON ADMIRAL FALLS APPOINTED
Permalink
LIB

J. Gilles Lamontagne (Minister of National Defence)

Liberal

Hon. J. Gilles Lamontagne (Minister of National Defence):

Madam Speaker, if 1 am well informed, the appointment of Admiral Falls as chairman of the NATO military committee was suggested when the Liberal government was in power and later during the nine months of Progressive Conservative administration. At that time no decision whatsoever was taken by the Progressive Conservatives, including no decision against that move. We approved Admiral Falls' appointment when we were expected to staff that position on June 1.

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   SPECIAL ADVISER ON DEFENCE-REASON ADMIRAL FALLS APPOINTED
Permalink
PC

Charles Joseph Clark (Leader of the Official Opposition)

Progressive Conservative

Mr. Clark:

Madam Speaker, what is painfully evident here is that the Prime Minister of Canada has nominated a serving military officer, Admiral Falls as a special adviser on defence to the Prime Minister, and he has not told the Minister of National Defence. That is what is evident here. We have been putting questions to the minister asking why that appointment was made. He has been answering in relation to the appointment to NATO, not to the Prime Minister's office, and my question is why-

Oral Questions

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   SPECIAL ADVISER ON DEFENCE-REASON ADMIRAL FALLS APPOINTED
Permalink
LIB

Jeanne Sauvé (Speaker of the House of Commons)

Liberal

Madam Speaker:

Order, please. I am sorry, but I have to ask the right hon. Leader of the Opposition to put his question, too.

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   SPECIAL ADVISER ON DEFENCE-REASON ADMIRAL FALLS APPOINTED
Permalink
PC

Charles Joseph Clark (Leader of the Official Opposition)

Progressive Conservative

Mr. Clark:

You will understand, Madam Speaker, how startled we are to find this minister did not know about the appointment.

Topic:   ORAL QUESTION PERIOD
Subtopic:   NATIONAL DEFENCE
Sub-subtopic:   SPECIAL ADVISER ON DEFENCE-REASON ADMIRAL FALLS APPOINTED
Permalink

June 26, 1980