June 28, 1984

LIB

Charles Lapointe (Minister of Supply and Services)

Liberal

Hon. Charles Lapointe (Minister of Supply and Services):

Mr. Speaker, instead of talking nonsense, the Hon. Member would be well advised to find out exactly how contracts are managed in Canada. The Department of Supply and Services awards 360,000 contracts annually. If the Hon. Member had had the courtesy to give me notice of her question, I would have had the requisite information, which I would then have made available to the Hon. Member. However, I will now have to check before I can give further details. As far as Canadian content is concerned, Mr. Speaker, it is one of the criteria that is always considered when we evaluate contracts. However, we always try to get the best products for the best value, so that Canadian taxpayers will get their money's worth.

Topic:   ORAL QUESTION PERIOD
Subtopic:   AWARDING OF CANADA DAY FIREWORKS CONTRACT
Permalink

TEST SAMPLING OF FIREWORKS

PC

Jennifer Cossitt

Progressive Conservative

Mrs. Jennifer Cossitt (Leeds-Grenville):

Mr. Speaker, I ask the Minister if he will also conduct an immediate investigation into all the reasons why the majority of the contract was awarded to Ampleman. On April 17 his departmental officials were advised that a random sampling of the Ampleman product showed that the shells were only partially filled with pyrotechnic composition. The remainder contained rice hulls, bits of paper, and other stuffing which fill the shells at no cost. In other words, officials at Supply and Services, with full knowledge of this information which, in effect, constitutes possible fraud, award the contract to Ampleman, resulting in lost Canadian jobs. The Canadian taxpayer is paying for fireworks displays, not rice krispies.

Topic:   ORAL QUESTION PERIOD
Subtopic:   TEST SAMPLING OF FIREWORKS
Permalink
LIB

Charles Lapointe (Minister of Supply and Services)

Liberal

Hon. Charles Lapointe (Minister of Supply and Services):

Mr. Speaker, I am sure the Hon. Member is very fond of rice

June 28, 1984

Oral Questions

krispies, but I think she should be more careful about referring to the possibility of fraud. I think she is using very tendentious terms. As I said in my first reply, I shall make the necessary inquiries and as soon as I have the information, I shall pass it on to the Hon. Member.

Topic:   ORAL QUESTION PERIOD
Subtopic:   TEST SAMPLING OF FIREWORKS
Permalink

INDUSTRY

PC

William C. Scott

Progressive Conservative

Mr. W. C. Scott (Victoria-Haliburton):

Mr. Speaker, my question is for the congenial Minister of Regional Industrial Expansion. Yesterday he announced his plans for a great new Shop Canadian program which will ask Canadians to compare products and buy Canadian where possible. The day before yesterday the Minister received a telex from Wabco Limited of Stoney Creek, Ontario. In it, I believe Wabco Limited asked for a review of the recently awarded contract given to New York Airbrake for 50 per cent of the brakes for wheat cars bought by the Canadian Wheat Board. What does the Minister intend to do about this request in light of the fact that the Canadian content of the New York Airbrake parts does not even approach that of Wabco's, and the price differential on this order was only 3.5 per cent?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AWARDING OF BRAKES CONTRACT FOR CANADIAN WHEAT BOARD RAILCARS
Permalink
LIB

Edward C. Lumley (Minister of Regional Industrial Expansion)

Liberal

Hon. Ed Lumley (Minister of Regional Industrial Expansion):

Mr. Speaker, when I received the telex I undertook to inquire why the decision was made to buy the vehicle with the component parts as indicated. I have not yet had a response.

Topic:   ORAL QUESTION PERIOD
Subtopic:   INDUSTRY
Sub-subtopic:   AWARDING OF BRAKES CONTRACT FOR CANADIAN WHEAT BOARD RAILCARS
Permalink

EFFECT OF AWARDING CONTRACT TO UNITED STATES COMPANY

PC

William C. Scott

Progressive Conservative

Mr. W. C. Scott (Victoria-Haliburton):

Mr. Speaker, my supplementary question was to be for the Minister of Employment and Immigration, because I am told he as well received a telex from Wabco. However, I shall direct my question to the Minister of Regional Industrial Expansion again. Considering the fact that awarding 50 per cent of a contract to a firm based in the United States will cause the loss of 150 jobs immediately, and more in the future, what does the Minister propose to do in response to the telex he received? I trust the Minister of Regional Industrial Expansion will speak to the Minister of Employment and Immigration about this. Surely the Minister of Employment cannot stand by, nor can the Department of Regional Industrial Expansion, and see that number of Canadian jobs disappear?

Topic:   ORAL QUESTION PERIOD
Subtopic:   EFFECT OF AWARDING CONTRACT TO UNITED STATES COMPANY
Permalink
LIB

Edward C. Lumley (Minister of Regional Industrial Expansion)

Liberal

Hon. Ed Lumley (Minister of Regional Industrial Expansion):

Mr. Speaker, I will make representation to my colleague as requested by the Hon. Member. But first I must get the facts to find out whether the Canadian company was competitive. I made it very clear in the announcement yesterday that in the "Think Canadian" campaign we were not saying "buy Canadian at any price". One of the most important aspects to

create jobs in this country is that we have to be competitive in quality, price, service, and all the other facts that dictate why consumers buy, whether they are industrial purchasers or individuals.

Topic:   ORAL QUESTION PERIOD
Subtopic:   EFFECT OF AWARDING CONTRACT TO UNITED STATES COMPANY
Permalink

HOUSING

NDP

Ian Deans (N.D.P. House Leader)

New Democratic Party

Mr. Ian Deans (Hamilton Mountain):

Mr. Speaker, I was looking for the Minister of Finance, but if he is not available I will direct my question to the Minister of State for Finance. It is now clear that mortgage interest rates simply cannot be tied to the normal interest rate flow. As a result of the increases that have taken place in mortgage interest rates since February, 100,000 Canadians are in a position where they cannot enter the housing market as purchasers. Will the Minister of Finance take into consideration that it is quite well within the area of responsibility of the Government of Canada to establish a separate and independent mortgage providing agency? Will he move now to eliminate the tie between normal interest rates which fluctuate daily, weekly, monthly, normally going up, and mortgage interest rates, in order that Canadian families can afford to buy homes?

Topic:   ORAL QUESTION PERIOD
Subtopic:   HOUSING
Sub-subtopic:   INCREASE IN MORTGAGE INTEREST RATES-MORTGAGE PROVISION AGENCY ADVOCATED
Permalink
LIB

Marc Lalonde (Minister of Finance)

Liberal

Hon. Marc Lalonde (Minister of Finance):

Mr. Speaker, I have already indicated that there is a plan available at the present providing for tax assisted home ownership. That was provided under the last Budget. Canadians who want to buy homes can use the establishment of a registered home ownership scheme whereby they will get substantial benefit if they want to get a tax advantage coming from this particular development.

The Hon. Member knows that we have also passed a mortgage rate protection plan which is going to ensure that if interest rates rise by more than 2 per cent from the time a mortgage is taken out to the time it is renewed, there will be protection over that 2 per cent increase for the same length of time as the first mortgage was taken. We have already taken these steps, and if additional steps are going to be needed, they would be announced in due time.

Topic:   ORAL QUESTION PERIOD
Subtopic:   HOUSING
Sub-subtopic:   INCREASE IN MORTGAGE INTEREST RATES-MORTGAGE PROVISION AGENCY ADVOCATED
Permalink
NDP

Ian Deans (N.D.P. House Leader)

New Democratic Party

Mr. Deans:

Mr. Speaker, the Minister knows full well that the mortgage insurance plan offered by the Government was criticized severely by the Canadian Real Estate Association and by the Canadian Consumers' Association. In both cases they said they could not recommend the plan to anyone.

Topic:   ORAL QUESTION PERIOD
Subtopic:   HOUSING
Sub-subtopic:   INCREASE IN MORTGAGE INTEREST RATES-MORTGAGE PROVISION AGENCY ADVOCATED
Permalink

MORTGAGE PROTECTION PLAN

NDP

Ian Deans (N.D.P. House Leader)

New Democratic Party

Mr. Ian Deans (Hamilton Mountain):

Mr. Speaker, my supplementary question is for the Minister of Finance. Given that he knows people who already own a home and already have a mortgage cannot take advantage of the Registered Home Ownership Plan provisions-there is no point in it for them-and given that they are going to be affected now by the

June 28, 1984

escalating interest rates, to the detriment not only of those home owners but also of the people who would normally build the homes that would be purchased in Canada, will the Government not now recognize that mortgage protection is necessary and that a mortgage plan must be introduced in Canada, independent of all other funding arrangements for other purchasing?

Topic:   ORAL QUESTION PERIOD
Subtopic:   MORTGAGE PROTECTION PLAN
Permalink
LIB

Marc Lalonde (Minister of Finance)

Liberal

Hon. Marc Lalonde (Minister of Finance):

Mr. Speaker, the beauty of being in the New Democratic Party is that you can propose all kinds of expenditures and never have to account for the financing of them. There they are proposing another scheme that would mean significant expenditures for the federal Government. I remind my friend that we already have a $30 billion deficit in this country, and that every NDP member who rises wants the Government to spend more and more. I would be able to take the representations from that Party more seriously if New Democrats would be a little more responsible, indicate how they would finance all their activities, and indicate what kind of a Budget they would present. But thank God they will never have such a problem, the problem of presenting a Budget for this country.

Topic:   ORAL QUESTION PERIOD
Subtopic:   MORTGAGE PROTECTION PLAN
Permalink

INCOME TAX ACT

PC

Ramon John Hnatyshyn (Official Opposition House Leader; Progressive Conservative Party House Leader)

Progressive Conservative

Hon. Ray Hnatyshyn (Saskatoon West):

Mr. Speaker, my question is for the Minister of Finance, who has seriously misled the House and the country with respect to the so-called provisions of the Income Tax Bill which, as he knows, have not yet been tabled on the floor of the House of Commons. How can the Minister ask this Parliament and its Members, when we have been calling for the introduction of this legislation consistently from the time of the last Budget, when the Minister did not even have the draft legislation ready until the end of May and when it was finally, because of this Party, brought before the committee for a preliminary look to deal with this legislation at this point? Will the Minister not admit that the reason this legislation has not now been passed by this Parliament is because of the incompetence of the Minister of Finance, the incompetence of this Government, and the incompetence of the House Leader of the Liberal Party?

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCOME TAX ACT
Sub-subtopic:   PASSAGE OF AMENDING LEGISLATION
Permalink
LIB

Marc Lalonde (Minister of Finance)

Liberal

Hon. Marc Lalonde (Minister of Finance):

Mr. Speaker, I want to congratulate the Hon. Member for his efforts at-

Topic:   ORAL QUESTION PERIOD
Subtopic:   INCOME TAX ACT
Sub-subtopic:   PASSAGE OF AMENDING LEGISLATION
Permalink

June 28, 1984