That, given that the Auditor General found that ArriveCAN contractor, GCStrategies Inc., was paid $64 million from the Liberal government, and in many cases, there was no proof that any work was completed, the House call on the government to:
(a) get taxpayers their money back, within 100 days of the adoption of this motion; and
(b) impose a lifetime contracting ban on GCStrategies Inc., any of its subsidiaries, its founders Kristian Firth and Darren Anthony, and any other entities with which those individuals are affiliated.
He said: Mr. Speaker, it is a pleasure to rise and address this important matter for Canadians, following the report by Canada's Auditor General.
Before I get into the substantive portion of my remarks and making a case for the imperative of getting Canadians their money back and having a lifetime ban for the contractors involved and the principals of the contracting firm in question, I want to inform the Chair that I will be splitting my time with the hon. member for .
It is a privilege to split my time with this member. We often talk about His Majesty's loyal opposition being a government in waiting, and interestingly, there was an exchange recently between the right hon. , who is new to this place, and the member for , who is an experienced parliamentarian. The Prime Minister, perhaps in jest but certainly exposing his lack of familiarity with members of the official opposition, said that the member for Edmonton West did not understand how things worked in this place and did not know the difference between a budget and estimates. I want to offer a bit of history to the Prime Minister, because it is really important the Prime Minister understands who is holding him to account.
The member for has an office complement that is the same size as those of all members in this House. Ministers, of course, get much larger offices. They get politically exempt staff, and they get access to full departments.
The member for has a couple people who work in his office, just as the rest of us do. I do not know how many people work at the Department of Finance, but there are a lot; there are thousands of them. In 2018, a budget was tabled in the House, and the member for Edmonton West, on his own, in doing his due diligence reviewing the budget, found that the minister of finance and the ministry made an error of about $150 million. The hon. member was able to correct the homework of the government, the minister, their staff and the entire ministry when they laid that budget on the table.
When we bring things before this House, it is because we have done our due diligence and because we are going to do what we have always done, which is punch above our weight. As the Liberals have the weight of the entire public service and have all the extra resources that come with serving in government, there are incredible responsibilities to get things right, to make sure they get value for taxpayers and to make sure that when mistakes are made, they are corrected, and that when value is not received, it is corrected.
What we saw in the Auditor General's reports this week confirms what Canada's Conservatives had raised the alarm bell about in the previous Parliament. On a range of issues the Auditor General looked at, she found that there were massive cost overruns and in fact negligence by the Liberal government, specifically in the use of the contractor GC Strategies, which was the preferred contractor in what is now known as the arrive scam scandal. This was the app the government originally pegged at costing $80,000. It ultimately cost many orders of magnitude more than that, in excess of $64 million. Value for money just was not there.
For context and for new members to this place, it is important to note that when the official opposition initially raised concerns about the ArriveCAN app, the Liberals said that the app worked great, that it worked as intended and that they received value for money and had no regrets. They paraded people through committee over and over again with that refrain, but it turns out that simply was not the case.
The then leader of the opposition, Mr. Poilievre, called for an Auditor General investigation, and there was a vote in the House. The Liberals and the cabinet, which is the executive responsible for this project, this massive boondoggle, voted against having the Auditor General take a look at it. Why would they not want the investigation if they were so proud of the project and it had worked as intended? Of course, they knew that it was a corrupt process, and they did not want it to come to light, but we did our work in holding the government to account, checking its homework, and we found the errors. We found the grift that had occurred.
It is not just about the nearly $100 million in contracts that GC Strategies was awarded, as a company owned by Mr. Kristian Firth and Mr. Darren Anthony; it is about the procurement processes that were not followed. Let us take for example the imperative of security clearances. The contracts this company was awarded required security clearances. I use the term “company” loosely as these were a couple of guys working in their basement, getting multi-million dollar IT contracts from the Government of Canada, but they were not IT experts. Some of the departments they worked for included public safety, CBSA and national defence. The Auditor General found that in 50% of contracts requiring security clearances, departments cannot prove that these workers, subcontractors for GC Strategies, had the security clearance, and in over 20% of contracts, workers were actively on the job without a valid security clearance. The Liberal government is not one that takes security seriously if this is what it deems an acceptable procurement practice.
Anyone who has ever had a project done at home, if they get a deck built at their house and they put a deposit down and the work is complete and satisfactory, they pay the contractor and thank them for their hard work. What is going to be shocking for Canadians is what we saw here; in 46% of the contracts, there was no proof of work delivered, but the government paid in 100% of the cases. It is unacceptable, and we know it is because no household would do it, no small business would do it and certainly the Government of Canada should not have done it.
What we are asking for is reasonable, but it is also the minimum expectation that Canadians have of us, as Parliament: Within 100 days of the passage of this motion, the government would get Canadians their money back and not simply let it stand that the company involved in this fraud not be allowed to bid on government contracts for seven years; rather, the company, its principals and subsidiaries would have a lifetime ban from doing work for the Government of Canada on behalf of Canadians. This is what Canadians expect of us.
We will hear the rise of all kinds of partisan hackles over the course of today, but this is a great opportunity. We are going to hear that it is a new Liberal government. If it is, then it is time for the Liberals to let us smell that new-car smell, that new-government smell; rise above the partisanship, the instinct to oppose this for the sake of opposing it; and vote for this common-sense motion.
Let us get Canadians their money back, get accountability by banning these contractors. Let us show Canadians that when we tax them a dollar, it is going to go as far as it can, and if someone takes advantage of the Government of Canada and Canadians, we will not let it stand.
:
Mr. Speaker, I am very pleased to rise on this issue. It has consumed my life in the operations committee for several years. Before I start, though, I would like to seek the House's permission, as this is my first time speaking in a speech, to comment on the last election.
I want to thank my constituents in Edmonton West for sending me here for the fourth time. I certainly appreciate the support, and I pledge to continue to serve the good people of Edmonton West, or as I call it, “Edmonton West Edmonton Mall”. I want to thank my wife, Sasha, for her continued support. This is the fourth election. She has been through probably 15 elections with me, four for myself. I thank her for her continued support. I realize that she does it so that she can get me out of the house and out of her hair, but I thank her very much.
I want to thank my son Parker, who was my campaign manager. He did a phenomenal job. It was his first time as campaign manager and his third time helping me in the campaign. He did such a great job that we had our second-best results ever. I thank Parker. I would also like to thank my other son, Jensen, for his continued support. I thank my office staff, Oula, Linda, Margaret and Mick, for their continued support to the constituents, as well as my financial agent, Dennis, who actually, unlike the government, knows how to put together a budget, apparently.
I thank the many volunteers. There are too many to mention, but there are some special ones I want to thank: Barb, Judy, Graham, Daime, Brandon, Donovan, Gilles, Jeff, Yolanda, Cheryl and Isabelita, as well as the kids from Parkland Immanuel Christian School who came out in force and door knocked with us, especially Tristan and Braiden, as well as Cheryl, who helped out, and all the door knockers who helped us hit 48,000 doors last election. We have a lot of new communities in my riding, as 28% of the riding is new, so I want to let those people know that we will look forward to serving them.
On the issue at hand, GC Strategies and the arrive scam, I have been here for 10 years now. I have never seen the country so consumed with a scandal. We have had plenty from the government. Of course, we had the SNC-Lavalin scandal, in which the former prime minister interfered with the justice department. We saw the former prime minister and his cabinet interfere in the WE Charity scandal, trying to funnel $900 million to their friends and family members.
We had the green slush fund, in which the current oversaw $400 million being grifted by Liberal insiders and, of course, the Edmonton-based “other Randy” scandal.
Of all these bigger scandals, we have to wonder why Canadians were so consumed by ArriveCAN. I think that, even though ArriveCAN was not as large financially, it is because so many Canadians had to deal with the broken ArriveCAN app. Millions had to endure the problems with ArriveCAN at the borders, coming in at the airports, dealing with an app that did not work, dealing with an app that sometimes would not work with certain Wi-Fi networks, enduring missed flights and long waits at the airport, enduring this horrible app. They thought it was a simple app that only cost $80,000, but then they found out that this app, which sent them into long lines and sometimes sent them into quarantine by mistake, actually ended up costing over $60 million.
I mentioned how it actually accidentally sent people into quarantine. An app upgrade came out and actually sent 10,000 people, by mistake, into quarantine. We found out later that the government said that it did not actually test the upgrade before issuing it. Can we imagine? The app cost $60 million and somehow the government forgot. It did not have the resources to check if the update worked, but that is okay. Again, what do we expect from an app that only cost $80 million, we think? I say “we think” because even the Auditor General cannot figure out how much the app cost as the bookkeeping from the government was so poorly done.
Literally, the departments have tens of thousands of people working in their accounting departments. The AG has a very large force, and they could not figure out how much this cost. Of course, we know the root cause of the problem. The root cause is Liberal incompetence. The cause, of course, is the Liberals' almost stalker-like affection for handing out Canadian taxpayers' money to high-priced management consultants, much like McKinsey.
McKinsey, if anyone has not realized, is probably one of the worst corporations in the world. It helped supercharge the opioid crisis. It represents some of the most despotic regimes in the world. If McKinsey were a human being, it would be a Bond villain, yet the government violated procurement rules to shove money into McKinsey's pockets. Even when government bureaucrats came forward and said, “We have the bodies available to do this work”, the government broke rules to give money to McKinsey.
It was the same with ArriveCAN and GC Strategies. GC Strategies received close to $100 million from the Liberal government since it formed in 2015. The company had two employees working in someone's basement, doing no IT work, doing no other work except for getting government business and then contracting it out to someone else. The two employees had no programming skills; the only skill they seemed to have was how to work with the Liberal government to fleece money from Canadians. They basically won contracts and then subcontracted them out to others, taking a 15% to 30% cut along the way.
In what world does a company with just two people get so much money and do no work? It is a Liberal world, apparently. GC Strategies even managed to win contracts and then subcontract them out to Microsoft. Microsoft is a pretty large company, yet Microsoft was not able to win the contracts from the government, but GC Strategies did and subcontracted them out.
What happened when the outrageous conduct came to light? The Liberals, instead of fixing it or saying that there was an error and that they would look after it, were gaslighting Canadians. They insisted that the ArriveCAN app saved thousands of lives. Eight different ministers, including the former prime minister and the parliamentary secretary, stood in the House and said that ArriveCAN saved up to 10,000 lives. Then they accused the opposition of being anti-vax and anti-science if they did not believe in the ArriveCAN app. I guess the Auditor General must be anti-science as well, because she came out with two damning reports on the government and its conduct in dealing with GC strategies.
Procurement has gotten so bad with the government that it actually forced bureaucrats and officials to attest in writing to following government procurement rules before they award a contract. I would have thought it would be inferred, as a condition of employment, that someone is not going to break the law or break rules when awarding contracts, but not with the Liberals. They actually forced them to put it in writing.
Let us talk about GC Strategies and the issues we are trying to get money back for. Here are some of the issues. The company created and used fraudulent documents to ensure subcontractors' resumes met criteria for contracts. That is fraud. There were subcontracted individuals, but their work and payments were funded through other companies using the same general contract. That is fraud. Without knowledge or consent of individuals, GC Strategies used their identities to bill the government. The company used contractors with no security clearance, despite attesting they actually had security clearance.
It cost $60 million for ArriveCAN. We know that the government has the ability to get the money back. We know the issue is serious enough that the RCMP actually raided the home of one of the owners to seize documents. The government needs to stop coddling its friends, high-priced management consultants. It needs to start getting value for money. It can start by clawing back the fraudulently stolen money from GC Strategies that was taken from Canadian taxpayers. It is time to put our taxpayers, not Liberal insiders, first.
:
Mr. Speaker, we agree that the observations contained in the report on the contract for professional services awarded to GC Strategies are unacceptable. I would like to thank the Auditor General of Canada and her team for their hard work.
Based on audits and verifications conducted between 2023 and 2025, Public Services and Procurement Canada is changing and modernizing how it awards contracts for professional services where required. The objective is to adopt measures aimed at reducing market risks, set goals and define the tasks needed to make an informed decision with regard to a tailored solution when we call on private companies and, lastly, improve management practices when it comes to contracts already under way.
We totally agree with the Auditor General of Canada when she says that we do not need more rules; rather, we need to make sure that our public servants properly apply the ones already in place. That is why the monitoring framework surrounding contracting practices has been enhanced.
We also need to make sure that we are working with suppliers with unimpeachable integrity. In 2024, the Auditor General of Canada made recommendations in the report on ArriveCAN. Since then, the government has done its homework. I am pleased to inform the House that seven out of the eight recommendations have been implemented: require more accurate financial records in order to correctly allocate expenses to projects; fully document interactions with suppliers and prohibit them from participating both in the drafting of the call for tenders and in the bidding process; require that all contracts and task authorizations comply with all applicable policies and guidelines; ensure that the required experience and qualifications are clearly defined from the outset; clarify requirements and work activities and ensure that deliverables are clearly defined.
Our new government is determined to provide a better framework for federal procurement practices. From now on, public servants will have to justify their needs and follow the strictest standards when they are seeking professional services to support the implementation of their programs.
The Auditor General of Canada made no new recommendations this year. In other words, she thinks we are doing our job.
I would also like to point out to members that the Government of Canada updated the ineligibility and suspension policy last year. To better respond to wrongdoing, the government recently created an office of supplier integrity and compliance, affirming its desire to do business only with companies that have the highest standards.
With respect to GC Strategies specifically, Public Services and Procurement Canada suspended the company's security status in March 2024. That would have already prevented the company from participating in all federal government contracts with security requirements.
We have done even more. GC Strategies has been suspended; it can no longer be awarded any contracts for professional services or other types of contracts by Public Services and Procurement Canada. What is more, last week, the office of supplier integrity and compliance declared GC Strategies ineligible for Government of Canada contracts for the next seven years, from June 6, 2025, to June 6, 2032. This is a severe sanction, reflecting the fact the the government is not taking this lightly and that it is acting decisively. I can also say that, even at the end of its suspension, the company is in no way assured of being able to bid on contracts issued by the Government of Canada.
Our friends across the aisle had an opportunity to adopt these measures, since the same individuals received contracts between 2010 and 2015, but they did nothing. It is the Liberal Party of Canada that is implementing these measures.
Moreover, as part of the procedures under way, the company could lose its ability to receive contracts from the Crown indefinitely if it is convicted by the courts of fraud against the Crown. In short GC Strategies will not get another penny of taxpayers money.
When it comes to reimbursement, we will first have to get a court order. If our attorneys can provide that there was indeed fraud or overbilling, we will not hesitate to demand exemplary damages.
As for ArriveCAN, specific allegations of misconduct have been filed, and the Canada Border Services Agency has launched an investigation that is still under way. As my hon. colleague from mentioned, the Royal Canadian Mounted Police was made aware of these allegations. However, the CBSA did not wait to complete its investigation before taking action. It has already taken measures to improve the management and control of its procurement processes.
It implemented a procurement improvement plan to enhance its practices and make sure that all of its purchases comply with the Government of Canada's procurement rules, support the CBSA's mandate and bring value to Canadians. The improvement plan includes several important elements. From now on, agency employees with financial authority at the national level will be required to follow four compulsory courses on procurement contracts. Employees are also required to disclose all of their interactions with prospective suppliers. In addition, the agency has established a centre of expertise to help employees fully understand their powers and their obligations. The agency now has a purchasing and contracting branch with the power to centralize all procurement activities. Thus, as part of the annual planning, budget and approval process, the agency now requires all divisions and regions to prepare detailed multi-year budget plans for their procurement and contracting activities. These plans will be meticulously studied and approved by the agency's governance committee. The agency also recently established a new recourse, standards and program integrity branch, which will control management activities and implement a culture of excellence when it comes to program and service delivery, including in areas related to procurement activities. The idea is to enhance procurement procedures at the agency and enable it to proceed with confidence and diligence in the awarding of future contracts.
Our government is intent on ensuring compliance with procurement procedures for goods and services. Offenders will be held appropriately accountable. The CBSA shares this conviction, and is in agreement with our actions. The agency's directors have already publicly indicated several times in committee and before the members of the House that they are taking the problem seriously and that they have implemented the necessary measures.
In addition to the agency's efforts to improve their procurement practices and enhance monitoring, Public Services and Procurement Canada is also taking steps to enhance every aspect of the federal procurement system. We assure the House that we will use the results of the latest Auditor General's report to further improve how the Government of Canada does business with its suppliers.
To carry out its mandate, the agency is always looking to innovate and improve its tools so that legitimate travellers, goods and services can circulate freely at our country's borders, while ensuring the safety and security of Canadians and respecting their rights and freedoms.
I will conclude my remarks on the subject by highlighting the work that Canada Border Services Agency employees do every day from coast to coast to coast. The agency has an important mandate, and its employees are well aware of it. Today more than ever, border security is a priority concern for Canadians, as it is for this government. This work is essential for protecting Canadians and contributing to our country's prosperity.
I think that all this illustrates the government's commitment to establishing and improving sound practices when it comes to contracts and learning. Our new government believes that all of the negligence and excess associated with GC Strategies and other suppliers are unacceptable. In the last Parliament, MPs and the Auditor General worked extensively to ensure that the contracts awarded to suppliers by the government are scrutinized, and that they continue to be scrutinized in the future. The government will demand accountability for any wrongdoing. It now has the means of doing so effectively, while ensuring that its public servants exercise the appropriate control measures. Canadians have the right to know that their hard-earned money is well managed. Given the new guarantees and rigorous measures implemented to hold GC Strategies accountable and to prevent any further violations on the part of other suppliers, we can now look to the future and focus on the work ahead.
:
Mr. Speaker, for those who missed the last few seconds, there is a major accountability issue. Honestly, I really wish we had a full hour to discuss this scandal, which is going from bad to worse.
I have two amazing colleagues who are no longer here in the House. One of them was my colleague from Beauport—Limoilou, who sat on the Standing Committee on Government Operations and Estimates, and the other was the member for Terrebonne, who sat on the Standing Committee on Public Accounts. I salute them for the tremendous amount of work they did. I am going to pick up where they left off as a member of the Standing Committee on Government Operations and Estimates.
I have nine minutes left, and I would like to say that I will be sharing my time with my esteemed colleague from .
I will sum things up. To begin with, of course, there are two parts to the Conservative motion. The first is to get back the money that was stolen, money that was paid for work that was not done. It should come as no surprise to anyone that the Bloc Québécois is very much in favour of that. The second is to impose a lifetime contracting ban on GC Strategies so that none of its subsidiaries can ever do anything again. That makes perfect sense because they defrauded taxpayers.
I have one small point to make before I get into more detail on the 100 days to get the money back. Is 100 days realistic? When we make goals in life, we have to think about whether they are necessary and realistic. One hundred days is unprecedented. It would be quite the feat for the government to be able to that. That being said, it is essential that we recover that money.
We obviously support the Conservatives' motion, but I would like to get to the bottom of things. In the last Parliament, it was quite shocking to see one of the co-owners at the bar trying to defend himself. Ultimately, and I say this to new members, we were a laughingstock. We were a laughingstock because we were shown how easy it is to get around our safety nets, to thwart our efforts to be diligent and to properly manage taxpayers' money. The door is wide open. The oversight is not there.
As the Auditor General reiterated, she did not say that nothing happened. She said that there were so many problems she could not count or corroborate them all, that she had not been able to review the contracts to see what work should have been done. Furthermore, the pandemic was a catch-all excuse. In life, when something as major as that happens, people do what it takes to come up with an effective plan. I am tired of hearing that word. I want to hear about remediation instead.
Today, I want to raise two points. First, we have a new government with powerful aspirations. Whether they materialize is a matter of seeing is believing. That said, we have just been informed that we have an incoming clerk of the Privy Council. I sincerely hope he will listen to all Bloc Québécois members. If there is one party in this House that truly works to ensure accountability and the sound management of public funds, it is the Bloc Québécois. I know what I am talking about. I have filled out my share of grant applications and I have helped people fill out endless reports just to get a few thousands of dollars.
I hope that Mr. Sabia hears this message, because we will be meeting with him at the Standing Committee on Government Operations, where we will have the opportunity to tell him about all the measures that should be put in place. When I hear the new government members saying that they do not want this to happen again, I feel like saying, “Let us talk about this again in a decade.” However, I am a positive person who wants to make a difference. Mr. Sabia has a good track record as an agent of change. The Prime Minister wants to make changes in Canada to make it a country worthy of its name, worthy of the wealth of a G7 country.
We need to begin by closing the loopholes, implementing meaningful accountability measures and recognizing our 350,000 public servants. They are the ones I am talking to. I know many of them. These people are telling me that the government is neglecting them, that it does not recognize their value and that it is always sending them subcontractors who get paid double what they do, when they are perfectly capable of doing the work. They are saying that the government may even be taking them for fools. People have lost confidence in the quality of services. We have people calling us every week. Yesterday, I spoke to a woman who received a letter regarding her guaranteed income supplement. She did not get that money. Six months later, she was told that it was not the right amount. I know that, for individuals, we are talking about maybe a few hundred dollars, but in the case before us today, we are talking about millions of dollars in taxpayer money.
Let us start by cleaning house. Then we can put measures in place to ensure proper oversight. Honestly, when I see the official opposition always looking to tear down and destroy what the government is trying to build and when I see the government doing everything it can to deny, hide and withhold information that Quebeckers and Canadians need to know, I can say that, every time, the Bloc Québécois is the one that manages to get to the bottom of what is happening here, to get to the bottom of the government's corruption and collusion.
I am a businesswoman. I have worked in the community sector, and I have also been a public servant. Networking, referrals, mutual support and awarding contracts among friends are all standard practice, but let us look at the context. When I am doing business, it is my money we are talking about. I am the one who negotiates with contractors and suppliers, and I do so using my own money. What happened in this case is that private sector strategies were used to award contracts paid for with taxpayers' money. That is completely unacceptable. With every action the government takes, with every measure it implements, it has to bear in mind that 40 million Canadians have contributed to the pot.
:
Mr. Speaker, this week, the Auditor General of Canada released four important reports. It is too bad that these facts are only coming to light today, after the election campaign. I think it would have been in the public interest for Canadians to have access to this information sooner. It might have changed they way they viewed this old Liberal government. After all, this is exactly what we need to fight political cynicism.
Today's Conservative motion focuses primarily on the revelations made by the Auditor General of Canada in her report on professional services contracts with GC Strategies. Her report is devastating to this government. It reflects a culture that fails to prioritize accountability.
First, it is important to review the facts. This company was awarded contracts to create the ArriveCAN app, which was developed in 2020. The total cost of this app, which two Canadian firms managed to recreate in a single weekend, was $64.5 million. This cost was clearly excessive.
I would remind the House that the update was initially supposed to cost only $80,000. What is more, GC Strategies employed only two people and did not provide any IT services. Paying over $60 million to two people with an idea so they could recruit qualified people is not what I would call efficient management of resources. I hope the Liberal government will agree with me on that.
Let us go back to the Auditor General's report on all the other contracts examined. For contracts under $40,000, the government can dispense with a call for bids. If we want things to change, we need to give that some thought. These are contracts that are deemed non-competitive. However, federal organizations are required to assess whether there would be benefits to calling for bids. Two-thirds of the $200,000 awarded to GC Strategies for this type of contract was not subject to this critical assessment. Who is accountable for that? It should be the Liberal government.
Let us go further. Thirty-three of the contracts awarded to GC Strategies required a security clearance. I want to emphasize the word “security”. For 50% of these contracts, the federal government cannot even show that the necessary authorizations were granted. For 21% of the contracts with security requirements, people worked on projects without ever getting their security clearance. That is more than one in five people.
The report mentions a contract awarded by National Defence. If there is one area where subcontractors should have their security clearances, it is that one. There is more. The Auditor General tells us that, for 33% of contracts, federal organizations were not even able to demonstrate that the people had the required experience or qualifications. They either forgot or did not bother to check.
There is also the whole issue of oversight. When people argued that federal employees had to go back to working in the office again, Ottawa agreed and started waging a battle against civil servants. However, when it comes to awarding contracts, Ottawa simply receives a time sheet and that is that. Someone looks at it one, two, three or maybe five times, and then it gets approved.
Poorly documented descriptions of the work performed? No big deal. No time sheet? No problem. In the case of one $3.3‑million contract with Innovation, Science and Economic Development Canada, the department provided time sheets for only one out of 25 contract resources. What did the government do? It put the cheque in the mail. This is our money. When GC Strategies was hired, Ottawa had no idea if the fees paid exceeded market rates. Due diligence is not the Liberals' strong suit.
That is not all. I saved the best for last. In about half of the contracts, the government had little to no evidence that the work had been performed, but the cheque was sent out anyway. Basically, the government hired people without determining whether they were qualified or had the necessary security clearances. Now it does not know if the work was actually performed. That is where things stand. Wow.
One thing that puzzles me is that, for all of the contracts that the Office of the Auditor General of Canada analyzed, the federal organizations justified their use of subcontractors by giving reasons like acquiring specialized expertise, managing unexpected increases in workload or filling in for public servants during temporary absences. Correct me if I am wrong, but would it not make sense to make better use of our public service? Why can public servants not work overtime if there is an unexpected increase in workload or if some employees are absent? If we need specialized expertise, would it not make sense to develop that expertise in-house? It is all the more odd that the government was using subcontractors, with the consequences that we have seen, at a time when it was hiring huge numbers of public servants.
That brings me to the central and possibly the most important point of this report. Since 2015, more than $18 billion has been spent on informatics services. The bill went from $1.3 billion a year to $2.8 billion a year. The thing that amazes me is that this is not the first IT project that went off the rails. There was Phoenix, the Canadian Firearms Registry and the Canada Border Services Agency assessment and revenue management system. This is not the first time public money has been wasted on IT.
In Quebec, there was SAAQclic, which cost $500 million. The government is holding a public inquiry into that. The federal government should follow its example. It may be time for Canada to set limits, considering we know that Ottawa has spent $1.5 billion every year since 2015. That is $18 billion more. The annual bill is now $2.8 billion. There must be quite a few SAAQclics in the federal government apparatus.
It is 2025. Information technology is a huge part of our lives, our remote work as parliamentarians and the lives of the people of Abitibi-Témiscamingue, Quebec and Canada. How can this government develop apps if it does not respect the public service's ability to develop in-house expertise? We live in a technological world. The government should be focused on developing in-house expertise. What has using outside consultants done for us? What real contribution do these firms make? How do they improve our constituents' lives? Instead of rewarding innovation and praising people for developing new ways of doing things internally, people who know the field and the federal machinery, people who are aware of the realities of their department, their community, and how to meet their needs, the government decides that their opinion is not important and it spends millions and billions of dollars elsewhere to obtain these products, without any oversight, as we now know.
That is not all. To put things in perspective, the spending on GC Strategies accounts for only 0.37% of the total amount of government contracts. If we take what we learned from the Auditor General in this report, what percentage of the $2.8 billion in additional spending per year was audited? Were the security clearances and contract resources approved? Were the 94% of the contracts that used time sheets audited? What experience and qualifications were required? Is the government paying its contractors without evidence showing that the deliverables were received? It may be time to take a more comprehensive look at external consultants. I would even say that it is time to follow Quebec's example and have a public inquiry.
This is not the only report in which the Governor General revealed things that would have been nice to know before giving a fresh vote of confidence to a government that claims to be new. However, its way of doing business is deeply ingrained.
The housing report in particular talks about inaction. Since time is limited, I would like to talk about indigenous people. There are very significant delays in the registration process for indigenous people. It can take almost two years. Indigenous people cannot get their Indian status verified, which means they are postponing their studies and putting off getting health care. What impact does that have on individuals and communities? That is extremely unfortunate.
I am also thinking of the skyrocketing costs of the F‑35A. I think that is how we will ultimately reach 2% for military spending. That sounds a bit cynical, but the way the Liberals have managed things is just as cynical under the circumstances.
In closing, I support this motion, and I want to say that if no work was done, then the money paid by Quebeckers must be recovered. Doing nothing is essentially declaring that taxpayers' pockets are an all-you-can-eat buffet. Enough is enough.
:
Mr. Speaker, I want to take a moment and thank, again, the incredible citizens of Calgary Midnapore, who have returned me here for my fourth term. It is an honour to be here to represent them once again.
When our citizens vote for us, when they bring us to the House, they really bring us here with one thing, and that is their trust. They trust that we, when we come to this place, which they have chosen to put us into, will do the right thing, say the right things and take the right actions. With that comes the responsibility of deciding how we will spend their hard-earned money. This is one of the greatest elements of the trust our citizens put in us when we are here.
It is, of course, very unfortunate that the Auditor General has determined, once again, in reviewing GC Strategies, that this was not the case with the government and that the government has once again disappointed the citizens who had placed their trust in it. In fact, the government went beyond disappointing its people. It betrayed the trust of the people who put it here.
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Mr. Speaker, I would also like to inform you that I will be sharing my time with the member for .
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The Liberal government betrayed the trust that was placed in it by its citizens, and not just in one way, but in several ways. This was over 31 departments, nine which had more than 1 million dollars' worth of contracts with GC Strategies.
Let us examine some of the ways this happened. In 33% of the contracts, the government could not show that the contract resources had the experience or qualifications necessary to complete the work. Now, anyone knows that, when applying for a job, the first thing to do is to give a resume, a CV. We would never go to a doctor or dentist who was not certified. We also demand that our tradespeople are certified.
By the way, I have many tradespeople in my riding who cannot find work as a result of the uncertain conditions that have been created by the government. We demand that our tradespeople have certifications, yet for anyone, everyone, who worked for GC Strategies, we cannot necessarily ensure that this was the case. We cannot ensure that they were certified to do the work they did. In 33% of the cases, we could not verify it.
In 58% of the cases, time sheets were poorly documented. Not showing our work is the first lesson that children learn in elementary school. What does that say, when people are not even willing to document and show the work that they did? How can we come to any conclusion other than the work that was paid for was not necessarily completed? Really, there is no other conclusion that we can draw other than this. It is really hard to come to another conclusion.
In addition, 82% of federal organizations could not prove that fees did not exceed market rates. Every Canadian in Canada who is shopping right now is doing price comparisons. I have no doubt about that. I was a public servant for 15 years, and when I had to purchase an item, the first thing I had to do was get three quotes. I was obligated, each and every time, to choose the lowest cost item. However, this did not happen with GC Strategies. This reeks of extortion. It reeks of collusion.
I think of a beautiful young mom in Legacy, one of my communities. When I met her at the door, she was crying because she has two sons with a genetic condition that only allows them to have a keto diet. She had fed them hamburger patties, the stacks of hamburger patties that can be bought in packages of 16 or 32 at Superstore, for four consecutive nights. She had nothing else to feed them.
The Liberal government is overcharging the public and taking advantage of this unique situation, and that is not right.
I went to see my banker two weeks ago. He told me that he is seeing two things he had not seen in his 20 years of banking. The first is that seniors are coming into his office, crying, saying, “I did everything right. I did everything by the book. I followed the rules, I invested my money, and yet I can't feed myself and can't stay in my home.” It is heartbreaking. The second thing he is seeing is lifelong Canadians cashing out their assets and moving to other countries to have a better standard of living for a lower cost. It is heartbreaking, but these are the things that are happening. I can assure members that these people are price-comparison shopping.
In addition, in 54% of contracts, it could not be proven that deliverables were received. This one blows my mind. Again, as a former public servant, we were obligated to sign. I had a conversation with the Auditor General when she presented her report, sections 32, 33 and 34. Section 33 says the employee must prove that the deliverables were received before they sign the cheque and pay the organization. How was GC Strategies even paid when we cannot prove that the deliverables were received? How is that even possible? It is mind-blowing. The least someone can expect when they pay for something is that they received something.
The Auditor General said that the rules are clear and there are no further policies that need to be made. The Liberal government need only enforce the rules and follow the rules. Yet, the government seems incapable of doing that time and time again. It is incapable of following the rules and enforcing the rules for one of two reasons: It is incompetent, and we have seen incompetence from the government time and time again; or, the second reason, the real reason, I think, it does not care. It does not care about our money, never mind following the rules.
In addition, there is following the rules, and then there is doing what is right. Buying a $9-million condo in New York City is within the rules, but it is not right. Spending $100,000 on catering, if one is the Governor General, is within the rules, but it is not right. The says he is following the rules with the Ethics Commissioner, but is he really doing what is right in not disclosing all of his assets?
GC Strategies did not follow the rules, and it did not do what was right. Kristian Firth, if he is listening right now, did something wrong. He stole from the Canadian people. He should never be allowed to have another contract again, and he should return the money to the people of Canada. However, the Liberal government let him do it. It did not see our money, the Canadian people's money, as its money. Canadians put their trust in the government, and it betrayed that trust.
Here is an opportunity for the Liberals and the government to rebuild that trust. They have to get our money back. They have to make it right for the hard-working people who send their taxes to Ottawa. The bad thing has happened, they let that bad thing happen, but this is their chance to make it right. Do the right thing and support this motion; never let GC Strategies have another contract, or its affiliates; and get Canadians' money back.
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Mr. Speaker, it is now my turn to thank the voters in my riding, the people of Louis-Saint-Laurent—Akiawenhrahk, who did me the honour of putting their trust in me almost two months ago. I had the opportunity to rise in the House and now I have the time to thank them directly for their confidence. I hope I live up to their expectations.
The people in Louis-Saint-Laurent—Akiawenhrahk and across Canada want the money they pay in taxes to be managed responsibly, carefully and efficiently. Unfortunately, to say the least, today's debate shows the ugly side of how this government that has been here for nearly 10 years has managed public funds irresponsibly.
Let us not forget the sad memory of the ArriveCAN scandal. That much-talked-about scandal that we nicknamed "arrive scam", proved to be an absolute ridiculous mismanagement of public funds. It was supposed to cost $80,000 and ended up costing $60 million. It was demonstrated that it could have been done for far less money, much more efficiently and with much better results. Who was behind such irresponsible management of public funds? It was GC Strategies. That sad company, run by incompetent people using a completely irresponsible approach, is at the heart of another dreadful scandal. The Auditor General specifically investigated what GC Strategies has done with the Canadian government over the past 10 years, and it just happens to coincide with the Liberal government's first election up until a few months ago. The Auditor General found that this company was awarded 106 contracts directly related to 31 federal government organizations managed by the then Liberal government. As I said, this occurred from 2015 to 2024, for a total of $65 million.
That is a lot of money. I would invite those who are watching at home to think about the income tax return they filed recently, the taxes they paid to the federal government and the GST they pay out of pocket every time they buy something. A total of $65 million of that money was given to GC Strategies for zero results. For all 106 contracts and 31 organizations, the Auditor General examined virtually every aspect of the sound management of public funds and found that there was very little evidence to justify spending this money. There was very little evidence of any work being done for the $65 million that Canadians gave to this company. Very little was done to check the credentials of those who were awarded the contracts. Proper security measures were not taken. Doing work for the federal government of a G7 country requires security measures, and yet, everywhere we look, we see that security protocols were not followed, particularly in some specific organizations. Time sheets, which are used to record the hours worked and calculate the pay of a person who is supposed to be doing a job, were not managed responsibly. I am not the one saying it, the Auditor General is. Furthermore, it is impossible to clearly demonstrate that the calls for tenders for these GC Strategies contracts were conducted according to the rules. In addition, 80% of the fees paid were above the market average for similar work. Obviously, there were also absenteeism issues that were poorly managed. Remember that the government hired 100,000 new public servants over a 10-year period. Despite this, the government was unable to properly track absenteeism.
This is a scathing report from the Auditor General, which proves beyond any reasonable doubt that third-party companies must follow the rules when it comes to the sound management of public funds, and that, in this case, the rules were not followed when it came to the work that was done, qualifications, security clearances, time sheets, the tendering process, generous fees and worker absenteeism. Everything was wrong. Everything was poorly done.
Let us also remember that this government promised to cap new spending at 2%. A few hours after the King's statement and the Speech from the Throne, in the first budget item that the government tabled, we learned that the Liberals were increasing spending on consultants from $19 billion to $26 billion. That is a 36% increase. This is exactly what we are talking about.
Over the past 10 years, 31 agencies were directly targeted. However, government agencies are not just left to their own devices. Somebody somewhere is responsible for them. They are called ministers. We are talking about ministerial responsibility and accountability. Four ministers were directly involved in this mismanagement: the current , the current , the current Minister of Indigenous Services and Marco Mendicino, who is currently serving as the 's chief of staff. That is no small matter. Four major players in the current government were ministers responsible for the mismanagement of $65 million in 31 Government of Canada agencies while the Liberals were in office.
The government did not take them to task for that. The Prime Minister actually promoted them. These are not small departments they are in charge of: foreign affairs, U.S. trade, indigenous services and the Prime Minister's chief of staff. One would be hard pressed to find something bigger than that. I will get to the Department of Finance later, if I have time. That is another story.
That is why we are asking for the money to be paid back. The Auditor General of Canada was extraordinarily critical in her report. I went over the issues she raised. This is how she put it in her report and in her answers to questions from the media. She said, "We found problems with almost every contract we looked at, which tells me there is no reason to believe it is limited to these two." That is a big deal. Everything she found was highly problematic. She said that, if everything she looked at was all wrong, she had no proof that the same thing was not happening elsewhere. The $65‑million problem we are dealing with right now might be indicative of even bigger problems elsewhere. That is what the Auditor General of Canada said.
Now, that is really incredible. She says that we need to go back to basics, that the policy should simply be properly applied and followed. That is incredible.
A while ago, I heard my colleague from , who never misses an opportunity to defend the indefensible, say that it was incredible and asked whether members were aware that the Liberals had taken action and had managed to do it without spending any money. That is precisely the problem. All Canadians ask of their government is that it take proper care of taxpayer money and follow the rules. That is not too much to ask. They are just asking that the rules be read and followed. The government receives taxpayer money and has to manage it properly.
For 10 years, however, the government has behaved in a totally irresponsible manner. Now they want us to believe that everything is okay because this is a new government. Yes, it is a new government, but the four ministers responsible are playing key roles in this government. It bears repeating, because there are serious consequences to that. The Minister of Foreign Affairs, the Minister responsible for Canada-U.S. Trade, the Minister of Indigenous Services and the Prime Minister's current chief of staff are four major players in this government. They call that a new government.
Canadians will not be fooled by this government's mismanagement. Canadians deserve to be reimbursed because the work that was done was botched. The rules were not followed. We are not the ones saying so. This is according to the Auditor General of Canada. If by chance those folks over there have any sense of honour after winning the popular vote, they should reimburse Canadians.
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Mr. Speaker, I will just take a bit of liberty here, if I may, to address another issue, and then I will get back to the topic at hand.
The heart of Canada's Filipino heritage community will be found in Winnipeg North, and today is a very special day as we recognize Philippine independence. In fact, there is a flag-raising ceremony that will be taking place very shortly on the lawn of Parliament Hill. The Filipino heritage community contributes in every way to all our communities throughout Canada, in every aspect of our society. I just wanted to give that extra plug, especially with the month of June being Filipino Heritage Month.
That is the positive aspect of what I would like to say. I want to try to encapsulate why we are here today debating this particular issue and talk a bit about the motivation and some disappointment. I was rather enjoying the debate we were having yesterday on Bill . We will have a vote on it later this afternoon, after question period.
I wanted to question the motivation, primarily because, over the years, I have seen that the Conservative Party tends to be more focused on the very negative aspects of politics, in terms of things like character assassination or throwing the word “scandal” or “corruption” on anything, and other things of that nature.
It is interesting that we have an opposition day, and the Conservatives have a choice. Good for them for picking whatever it is they want to pick. They picked an Auditor General's report that, in essence, had no new recommendations, other than that it references that we currently have rules in place. I will talk about that in depth. This is an opposition day where there is going to be a vote at the end of the day.
We can contrast that to yesterday, when Conservatives started being critical of the government because the tax decrease we were giving was, from their perspective, not large enough. That is something they started to comment on toward the end of the debate. I would have thought that that would have been a far better motion of public policy, given that we just came out of an election. The Conservatives would have had the opportunity to present their arguments as to how much of a tax break it should have been and why. We do not know what they will do on Bill , but it will come up later today. I hope they vote in favour of it, but they definitely implied that they would have amendments to bring to the bill.
I say that because the opposition has four days of debate, four days on which they can designate the topic. Why would the Conservatives take this particular report from the Auditor General? I suspect it is because they want to go back to their old ways. The newly elected , on April 28, with a new government, has established mandate letters that are exceptionally clear, so that all Canadians can see where the government's priorities are.
Today, because of the motion we are debating, I would suggest to Canadians that the Conservatives continue to be focused on anything that has any whiff whatsoever of any form of potential scandal or corruption, and then they try to tie it to the new administration. We see that in their remarks already today where they try to deny that there is a new administration.
Some hon. members: Oh, oh!
Hon. Kevin Lamoureux: No, seriously, let us think about this.
Mr. Speaker, let me give members some food to chew on here with the history of GC Strategies. Mr. Firth is the gentleman the Conservative Party called to the bar. After calling him to the bar, it was like a courtroom inside here, and they declared him guilty. There are some people in the Conservative ranks who would have liked to see him go to jail right away. I remember one member said there used to be a jail in Centre Block. So much for any sort of due process.
That is the Conservatives' priority. Pierre Poilievre made it very clear. Canadians might be concerned about Trump, tariffs and trade, but not Pierre Poilievre. He is concerned with trying to make the look bad while the Prime Minister is out and about and meeting with first ministers, and very successfully, I might add. He has addressed the issue the Conservatives brought up today. There is a new Prime Minister, a new agenda and a new administration that are moving forward, and they are stuck in the past.
The opposition day motion talks about wanting to get money back. I would like to think there is not one member of Parliament in this House or in previous administrations who would want taxpayer dollars to be abused in any fashion. I was glad to convey to members that there is a process that needs to be followed. When it comes to the recovery of funds, where we can demonstrate fraud or overbilling, we pursue it. We are already pursuing GC Strategies, in particular, in court. That is happening. One would not think that, but that is the reality of the situation.
We can combine that with the Auditor's General's report. What does that report say? We agree with the Auditor General when she states that we do not need more rules. We need to ensure that the rules and framework in place are followed by public servants.
Let us go back to the former administration. When this was brought to its attention, what did the minister at the time do? It was to order an internal investigation. Did the former administration ever say no to the Auditor General? Not at all. We supported the recommendations that were brought forward by the Auditor General. The 2024 report had eight recommendations in it, and seven of them have already been implemented. The last one is well under way. That was under the former administration. We are not talking about the current administration, which is different. I see members are already praying on the other side.
I appreciate that we have a who has an incredible history. I like to highlight that as the former governor of the Bank of Canada, the former governor of the Bank of England and an economist, not only does he understand the situation Canada is in today with the United States, but he has made a commitment to building the strongest economy in the G7. That is where his focus is, contrary to Pierre Poilievre's focus.
The voters were correct on April 28. Who knows were Mr. Poilievre's mind would be today if he were sitting in the 's chair? Canadians saw through that. That is why we received 8.5 million votes. No prime minister or political party has received more votes than the current Prime Minister did in the last election. However, members opposite want to change the channel. They do not want to talk about what was being debated in the election; rather, they want to talk about GC Strategies and Mr. Firth. Let us talk a little more about GC Strategies, then.
There is a company called Coredal, and in that particular company, members will be surprised to know, two individuals were directors, Mr. Firth being one of them. I noted earlier that Mr. Firth, under that company, actually received contracts under Stephen Harper. Members will not believe this: Pierre Poilievre was actually sitting at the table too. He was sitting around caucus when contracts were being given out to Mr. Firth. There is no reference to that, of course, in the Conservatives' motion.
An hon. member: It's not in the AG report.
Hon. Kevin Lamoureux: Well, Mr. Speaker, this is all about GC Strategies. When I raised that point, one of the members of the Conservative Party said that Mr. Firth was not a part of GC Strategies at the time. Members might be surprised to know that GC Strategies also received contributions.
An hon. member: That is not true.
Hon. Kevin Lamoureux: Mr. Speaker, GC Strategies was in place in 2015. I will remind my colleague opposite that Stephen Harper was the prime minister for most of 2015. I think it is worth the member looking at it again before he makes that claim from across the way.
What we see with GC Strategies is that the number of contracts did increase. Let us put it in the perspective of time. When it was getting these massive contracts, the world was going through a worldwide pandemic. Governments around the world were spending billions and billions of dollars. Canada was not alone, and yes, GC Strategies did receive many contracts for a great deal of tax dollars. I do not question that, but trying to give false impressions is what the Conservatives are very good at.
At the end of the day, what we will find is that when it was brought to the minister in a tangible way, a minister from the former administration actually took action.
An hon. member: Was it ours?
Hon. Kevin Lamoureux: “Was it ours?” is a good heckle, Mr. Speaker, referring to Stephen Harper. The contracts during the pandemic were under Justin Trudeau, just for clarification for the member opposite. Harper's were well prior to the pandemic, but the point is that countries around the world were investing, and standing behind and trying to protect their citizenry with all sorts of measures, including border controls.
I can remember hearing under the former administration, sitting over here, the Conservatives saying we needed to do more for the CBSA and watch individuals who were coming into Canada. They said we were not doing enough and that we were late on it. They sure dropped that a couple of years after that point.
The political idea behind ArriveCAN was to protect the health and general well-being of the people in Canada. That was the original objective behind it. We have an incredible civil service. I would ultimately argue it is second to no other civil service in the world. In fact, we will find that other countries often look to Canada's civil service, as it is as close to being independent of politicians as one can get compared to any other country in the world, and it does fine work.
I am not going to draw any conclusions in terms of ultimate behaviour, but I suspect, just as in any other working environment, that at times we might get some bad apples. There might have been some things that were overlooked, and it became very clear that this did take place. That is something we all take very seriously.
There are procurements, and contracts are issued out. Tell me about a government in Canada, whether federal, provincial, the current administration, which is very new, the previous administration or the Harper administration, that did not have contracts and procurements. If people want to talk about a real scandal, I would recommend they take a look at the CSEC scandal. That was a real scandal under the Harper regime. Members can do a Google search to find it. The bottom line is that if people want to look at a political scandal, they should look at the Harper and Pierre Poilievre scandal that took place shortly after they were put in government. Trust me, I have a lot of information on that scandal, which involved hundreds of millions of dollars. Google it. People will find it. It is an interesting read.
What we are talking about here is billions of dollars being spent during a pandemic. Whether it was the former administration or the current 's administration, we want accountability for every tax dollar out there. I believe the Prime Minister understands the importance of transparency and accountability, and I believe that Canadians respect that fact because of the type of work he was doing prior to becoming an elected politician. I am grateful that he did make the decision to run, because I believe he is the right person at the right time in Canada's history to bring Canada together and build one strong Canadian economy. That is what I believe we should be debating, actually. After all, that is what was talked about at the doors.
I will look to my colleagues and ask them this: When they were knocking at the door, did anyone bring up ArriveCAN? I can honestly say that not one person out of the approximately 100,000 people I currently represent today brought up the issue of ArriveCAN when I was knocking on thousands of doors. The most common issues brought up at the door were, in fact, Donald Trump, tariffs, trade and genuine concern about the economy. That was the number one issue, and that is what the is dealing with today.
While the is dealing with that issue, we have before us Pierre Poilievre's idea of what Canadians are most concerned about: a report that was brought forward by the Auditor General. Two things really stood out, in my mind, and I will reference one: We do not need more rules; we need to ensure that the rules and framework in place are followed by public servants. There are two aspects of that statement. One is that we do not need more rules. The second is that we need to ensure they are being followed by public servants. I believe that the sense of professionalism within our civil service agrees with that statement.
There is no doubt that the 's Office and the civil servants dealing with procurement processes have been made fully aware of the report, and I do not think there is any disagreement. I am pretty sure there is not. In fact, we have a Prime Minister who has even taken action to expand the role of the minister who is going to be charged with these responsibilities. We are anticipating that there will be significant procurements. After all, we just heard the major announcement that military expenditures are going up, to 2%.
I believe I am running out of time. I do not know if the opposition would give me leave to continue on. I do have a few more thoughts. Otherwise, I—
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Mr. Speaker, I wish to state at the outset that it is always a pleasure to rise on behalf of the great residents of Brantford—Brant South—Six Nations. I also want to telegraph that I will be splitting my time with my colleague, the member for .
Today we are debating our Conservative motion that, given that the Auditor General found that the ArriveCAN contractor, GC Strategies, was paid $64 million and that in many cases there is no proof that any work was completed, the House calls on the government to, one, get taxpayers their money back within 100 days of the adoption of this motion; and two, impose a lifetime contracting ban on GC Strategies, on its subsidiaries, more importantly on its founders and principal partners, Kristian Firth and Darren Anthony, and on any other entities with which those individuals are affiliated.
The simple message is that Canadians want their taxpayer money back. I know that the member for claims that no one in his riding spoke about ArriveCAN, but I am sure they talked about accountability, transparency and proper prudence in terms of the government's exercising prudence over taxpayer money. He will not talk about that, but that is exactly what the motion is about.
If this is a déjà vu moment, and it feels like a déjà vu moment for me, it is because approximately 15 months ago I stood before your predecessor, Mr. Speaker, who was in the chair, and I gave a speech on a similar motion. It was not worded in the same fashion, but the intent was there to give the government 100 days to inform the House as to what steps it would take to get taxpayers their money back.
That was a result of the Auditor General's releasing a number of damning reports. It is important to note at this point that the Liberal government, the same so-called new government with the same old players who are now saying, through the , that they totally accept the findings of the Auditor General, was the one that opposed the Auditor General's looking into the ArriveCAN scandal, what we call the arrive scam scandal, right from the earliest opportunity.
The messaging is very clear in this. The ongoing Liberal arrive scam saga continues. It is the bad Liberal gift that just keeps on giving. Currently, the Auditor General has released a scathing audit on the top arrive scam contractor, GC Strategies. The two-person, basement-dwelling company, not a brick-and-mortar one, now under RCMP investigation for fraud, received a jaw-dropping $64 million from the Liberals since they took office.
This was not the first time, as I indicated, that the Auditor General had released a report on GC Strategies. The app was designed to cost Canadians $80,000; that is what the same old Liberal government parroted in the House on numerous occasions. In her first report, the Auditor General made it clear that the cost estimate was well beyond $80,000, and in fact was approaching $60 million, but she could not be accurate. Why is that? It is because the paperwork and the shoddy accounting practices of the CBSA were such that she could not examine all pertinent documents.
The Liberals defended the cost of the app in the House numerous times, and quite proudly, but now erroneously have stated that it saved thousands of lives. The truth remains that it was an app that was poorly designed, notwithstanding its price tag, that always broke down and that created countless misery and heartache for Canadians. I would dare say that not one Canadian was saved by the Liberal bureaucratic and administrative boondoggle.
The government's very limited defence involves the plea that the app was developed in the midst of an unprecedented pandemic, that time was of the essence. We heard that numerous times. However, the unique circumstances and demands of the moment scarcely offer a fig leaf to cover what the Auditor General laid bare in that report.
Karen Hogan said, “Overall, this audit shows a glaring disregard for basic management and contracting practices throughout ArriveCAN’s development and implementation.” She further said, “I don't believe that an emergency is a reason that all the rules are thrown out the window.” She proudly concluded that the government paid way too much for that particular app.
The issue is such that the Liberal government has a responsibility, has the legal ability and, according to a government department official responsible for contracting and outsourcing, has the power to get taxpayers their money back. The official testified before a committee that when the government is frauded, they “have the ability to recover the funds from the suppliers, and it's in [their] regular practice to do so.”
This should telegraph to all of my Liberal colleagues that they should stand in support of this ability to ensure taxpayers get their money back. I have since looked at a number of news articles, notwithstanding the member for 's comments that no one is talking about it. Certainly, ripped from the headlines are a number of interesting stories.
First, by Lorrie Goldstein, the heading is, “Ignoring contracting rules costs taxpayers billions: auditor general”. The article reads:
Federal auditor general Karen Hogan on Tuesday reported widespread incompetence in the awarding of government contracts by the public service, resulting in billions of dollars of taxpayers’ money being wasted.
What’s even more alarming is that everyone in the system knows it and no one is doing anything about it.
Given that, what is the point of having an auditor general if every time she exposes incompetence and waste, the government pays lip service to implementing her recommendations and then goes back to doing the same things that led to the issue being investigated by the auditor general in the first place?
In her latest report, this concern arises from Hogan’s deep dive into federal contracts awarded to...GCStrategies.... That was supposed to cost $80,000.
I could literally speak for an hour on this. I have been involved in it for literally three years.
The article continues with some of the key findings:
— in 58% of the contracts examined that were awarded without tendering, federal departments failed to assess whether doing so would have resulted in lower costs to taxpayers.
— in more than 80% of the contracts examined that were awarded without competition or with only one valid bid, government departments failed to verify that the fees paid did not exceed market rates.
— in almost 50% of the contracts examined, federal departments couldn’t show the work was delivered, even though payments were made.
— in 33% of the contracts examined, federal departments couldn’t show the firms contracted were capable of completing the work.
— in 21% of the contracts examined, federal departments lacked documentation showing...security clearances for contractors working on government networks containing sensitive information.
Alarmingly, those department agencies where security clearances were not obtained included National Defence, Global Affairs and the Department of Justice, three of the most important ministries that have an obligation to secure sensitive data.
In essence, the Auditor General concluded that, ultimately, no recommendations were being made, because they need to follow the basic rules, which have been allowed to be not followed for literally the last 10 years, and that, simply, Canadians did not receive value for their money. In essence, I am asking every member to rise, to stand up for their constituents and ensure accountability is here.
:
Mr. Speaker, this is a hypothetical, and a ridiculous hypothetical, but ridiculous hypotheticals are required to demonstrate what has actually gone on in government procurement. For example, someone hires me for $100 to paint the fence. I hire someone else for $50 to paint the fence. I collect $50 for doing, you guessed it, nothing. If this happens over and over again to the tune of tens of millions of dollars, we get kind of a sense of the procurement system that has been operating under the government.
We are talking about GC Strategies today, but it is important for members and people at home to understand that there are hundreds of companies that do staff augmentation work in the IT space alone. We had these two guys working out of their basement, and they had a great business model. They got contracts, then hired someone else to do the work, and they collected a massive fee in the middle. It is not only Kristian Firth and Darren Anthony from GC Strategies who are doing this work; there are hundreds of companies doing staff augmentation for the federal government in IT alone. This is a profoundly broken system.
First, the government makes procurement so complicated, so unwieldy, that almost nobody can understand it, and then we have people who position themselves as experts in nothing except getting contracts. In other words, they are people who have the relationships, they have the access, they know how to host the right whisky tastings for the right people, which is a real thing that happened. They know how to host the right whisky tastings, and so they know how to get government contracts. Once they get the government contracts, they go on LinkedIn and find the people who actually know how to do this work, and then they hire them.
Mr. Speaker, it is like something out of Yes Minister, but it would be rejected by that show for being too unrealistic. This is what actually happens and has happened for the last 10 years under the Liberal government. However, now the government has changed and will never do it again. The Liberals have a new government, with the same people who have nonetheless seen the errors of their ways.
When all else fails in this debate, members across the way say, “Well, yeah, but didn't we win an election? We won an election after all.” Nobody is disputing the results of the election, but I do think it is notable that in order to win the last election, the Liberals had to pretend to be something very different from what they had been for the last 10 years. Their only argument in the election was to say, “Well, Canadians want change, and we've changed too. We'll be nothing like ourselves.” They promised to be nothing like themselves, and that turned out to be a reasonably successful political strategy. However, I think very soon Canadians will discover that the Liberals are actually not nothing like themselves, that they are actually more like themselves than they pretended to be, and that we will see the continuation of these same absurdist procurement policies, things that if presented as the possible script for a television show would be rejected for being unrealistic.
We have people getting hired to hire other people, with a procurement system that is so broken and so complicated that only well-connected insider brokers can understand it. Those well-connected insider brokers receive the contracts, hire the people and collect a massive premium for doing so. This week, the Auditor General came out with a report, having looked in detail into what happened with this one particularly notorious company, GC Strategies, and found there was massive abuse.
One highlight from the committee exchanges we had with the owners of GC Strategies is that they admitted to presenting fraudulent resumés to the Government of Canada in order to get work. It is the old resumé padding that we all tell our children not to do; this is how GC Strategies was getting contracts. They explained what their normal process was. They would get a resumé that may not be compliant with the requirements of the bid, and then they adjusted the resumé to make it compliant.
Let us say the contract required that a person had five years' experience at something, but the person they were proposing to do the work actually only had five months' experience. They would change the months to years to make it compliant and then go back to the original resource, the person who would do the work, and say, “Is this okay with you? We changed the numbers here.” In one case, they forgot to consult the resource before they changed those numbers, and that is where they got caught out, because the resource called them out for it.
Before the committee, Kristian Firth admitted that it was a standard part of their process to adjust people's resumés to make them line up with the expectations of a contract and then check in to see if it was okay. Again, if this was a pitch for a Yes Minister episode, it would be rejected for being unrealistic. However, this is par for the course in the broken procurement system of the Liberals.
To cover for this, the Liberals cycle through different procurement ministers. The same people are cycled around. “Oh, it is a new minister. It is a new minister.” Almost every six months on procurement, it has been a new minister who is not responsible for anything that was previously done. Meanwhile, the previous minister goes on to remain in some influential role in the government. It is a farce and a tragedy, and Canadian taxpayers are getting abused as a result of it.
The Liberals profess to be a new government; they have changed. As I said, today is their opportunity. We have put forward a motion that says GC Strategies should be banned from ever getting government contracts and they should pay the money back. It is not that difficult; if companies abuse contracting rules, falsify resumés and do not actually do the work, then they should pay back the money they took from taxpayers.
If our friends across the way have truly changed, they should vote for this motion. It would be a great demonstration, not just if they vote for it, but if they actually follow through on it. We have had instances where they vote for motions and then do not follow through on them. This is their opportunity to vote for a motion and then act on it. We have been asking them today, are they prepared to vote in favour of this motion?
The Liberals are trying to fill this debate with a great fog of nonsense and distraction. I welcome the member for and am looking forward to receiving that gust of fog. My question for them is, will they support our motion to pay the money back? If they are the new Liberal Party, then I think they would vote for this motion to order the money back. If they are voting against this motion, then it will demonstrate, of course, that they are the same old Liberals, unchanged as they have always been.
:
Mr. Speaker, I will be sharing my time with the member for .
This is a great opportunity to introduce myself. I have heard a lot about the old government. I am new here. Members will have a great opportunity to meet me later. I believe my colleague next to me is the new member for , a Liberal who won the riding after 20 years.
The Government of Canada accepts the findings of the latest Auditor General of Canada's report related to the procurement of professional services. We take this report, and all subsequent recommendations, seriously and remain fully committed to fairness, openness and transparency in federal procurement practices. Simply put, we are committed to protecting the integrity of procurement.
While that commitment remains, our new government will do things differently. Elected with a mandate to deliver change, we will take a new approach to governing, one that includes a laser focus on fiscal discipline. We are well aware of the past issues around the procurement of professional services, in particular, those that were uncovered through previous audits and investigations. Again, in this most recent report. The Auditor General has been clear that the right procurement rules are in place, but federal organizations have not consistently followed procurement policies when awarding and managing contracts. This, we wholeheartedly agree, is unacceptable.
While the Auditor General did not make any new recommendations for the government, the report reinforces the previously identified issues in procurement practices, underlining the importance of clearly understanding and correctly applying existing policies. I can say that the government has already acted on past recommendations and continues to take strong steps in improving oversight and the management of federal procurement.
Public Services and Procurement Canada and the Treasury Board of Canada Secretariat are working closely with government departments and agencies to address the gaps identified in previous audits. This includes improving data collection, increasing transparency in procurement decisions, clarifying roles and responsibilities and strengthening oversight and accountability in procurement activities. We are making these changes to strengthen the federal procurement process, improve the way the government does business with suppliers and achieve the best value for Canadian taxpayers.
The findings of this report are very much in line with previous reports from the Auditor General relating to similar matters. Previous reports provided the government with important recommendations to improve the oversight and integrity of federal procurement, particularly in professional services. We are taking these lessons, and I assure everyone that we are working hard to apply them.
Over the past year, PSPC has taken concrete actions to strengthen oversight on all professional services contracts falling under its authority. In collaboration with the Treasury Board of Canada Secretariat, the department has acted swiftly to implement several measures, including improving evaluation requirements to ensure resources are appropriately qualified for the job, requiring suppliers to be more transparent about the prices and subcontractors they use, improving our own documentation when awarding contracts and authorizing tasks, and better specifying and documenting what needs to be done, as well as which projects and tasks contractors are working on.
By streamlining and simplifying our mandatory procurement mechanisms, we are transforming and modernizing how the government procures professional services. This includes reducing risk in our buying processes, improving how we manage contracts and doing more to promote solution-based procurement approaches that would ensure we are always getting the best value for Canadians. The Auditor General had no additional recommendations for the government regarding this file, but asked that we continue to implement the measures we have introduced to respond to previous recommendations. We will ensure that happens. We will actively engage with client departments and agencies to ensure these new measures are implemented quickly and efficiently.
We are also taking strong action to ensure that we do not do business with suppliers of concern. Earlier this month, the office of supplier integrity and compliance deemed GC Strategies as ineligible from entering into contracts or real property agreements with the Government of Canada for seven years. PSPC had previously suspended the security status of GC Strategies in March 2024, which precluded it from participating in federal procurements with security requirements. PSPC had also suspended GC Strategies from all professional services, contracts and contract vehicles administered by the department. When it comes to recovering funds in cases where we identified fraudulent behaviour or overbilling, I can assure the House, as my colleague has mentioned, that we are pursuing GC Strategies in court.
As I noted earlier, we remain committed to protecting the integrity of procurement and to expecting public servants and departments to operate with the highest standards of integrity when procuring professional services to support their program delivery.
Our government will continue to strengthen procurement practices when needed. We know that our work is not finished and that there will be more to be done. We take to heart the Auditor General's advisement to continue applying recommendations made in previous audits. That is exactly what we are doing.
Again, I want to thank the Auditor General and her team for undertaking this review and for their findings and previous recommendations. This report affirms that we have the right policies and rules in place, but they need to be well understood and applied properly. We are thankful for the Auditor General's work, which will help us as we continue to review our processes and find ways to strengthen the integrity of government procurement.
I wanted to note something very important. There were numerous reports, as well as scrutiny, on this matter in the last Parliament, but bad actors are being held to account. It is now time for the Conservatives to stop playing games and get down to the business of governing. Canadians elected our new government to move forward on a bold agenda, such as tackling crime, securing the border and making life more affordable.
Let us put the games behind us to focus on what Canadians sent us here to do.
:
Mr. Speaker, I am proud to rise today, just a few hours before we will vote to implement measures to make life more affordable for Quebeckers and Canadians.
The people of Trois-Rivières, along with people in the ridings of all my colleagues on both sides of the House, will be watching carefully to see what we do today. These measures will help put more money in Canadians' pockets. We hope that our opposition colleagues will vote with us.
As we said all morning, the Government of Canada accepts the findings of the Auditor General of Canada's latest report on the procurement of professional services. We take this report and all subsequent recommendations seriously. We remain fully committed to the fairness, openness and transparency in federal procurement practices. Simply put, we are committed to protecting the integrity of procurement.
In the last Parliament, parliamentarians, the Auditor General, multiple parliamentary committees and others undertook extensive work to examine and hold to account those who were found to have acted inappropriately. With new safeguards in place and serious action being taken to hold GC Strategies accountable, it is time to turn the page on the political games of the last Parliament. Let me be clear. Our new government believes that misconduct of any kind is unacceptable.
This is, in fact, a new government, with a new direction, a new leader and almost 40% new MPs. It received a strong mandate for change from Canadians. We will take a new approach to governing, one that includes a laser focus on fiscal discipline. We will also modernize procurement processes.
We are well aware of the issues around the procurement of professional services, in particular, that were uncovered through previous audits and investigations and again in the latest report.
The Auditor General made it clear that the right procurement rules are in place, but that federal organizations did not consistently follow procurement policies when awarding and managing contracts. We wholeheartedly agree that this is unacceptable.
It is important to note that the Auditor General did not make any new recommendations to the government. However, the report reinforces the previously identified issues in procurement practices, underlining the importance of clearly understanding and correctly applying existing policies. I can say that the government has already acted on past recommendations and continues to take strong steps in improving oversight and the management of federal procurement.
Public Services and Procurement Canada and the Treasury Board of Canada Secretariat are working closely with government departments and agencies to address the gaps identified in previous audits. This includes improving data collection, increasing transparency in procurement decisions, clarifying roles and responsibilities and strengthening oversight and accountability in procurement activities. We are making these changes to strengthen the federal procurement process, improve the way the government does business with suppliers and achieve the best value for Canadian taxpayers.
The findings of this report are very much in line with previous reports from the Auditor General relating to similar matters. Previous reports provided the government with important recommendations to improve the oversight and integrity of federal procurement, particularly in professional services. We are taking these lessons, and I can assure the House that we are working hard to apply them.
Over the past year, PSPC has taken concrete actions to strengthen oversight on all professional services contracts falling under its authority. In collaboration with the Treasury Board of Canada Secretariat, the department has acted swiftly to implement several measures, including improving evaluation requirements to ensure resources are appropriately qualified for the job, requiring suppliers to be more transparent about the prices and subcontractors they use, improving our own documentation when awarding contracts and authorizing tasks, and better specifying and documenting what needs to be done, as well as which projects and tasks contractors are working on.
This includes reducing risk in our buying processes, improving how we manage contracts and doing more to promote solution-based procurement approaches that would ensure we are always getting the best value for Canadians. The Auditor General had no additional recommendations for the government regarding this file.
The changes we have made predate the Auditor General's last report. In November 2023, following the revelation of the improper contract negotiations with GC Strategies, PSPC wrote to the government departments and agencies to inform them that it would be replacing all master-level user arrangements with client departments, agencies and Crown corporations. These arrangements set out conditions for access to select professional services methods of supply maintained by PSPC. As part of this process, PSPC and client departments have established new arrangements, which stipulate the use of new contract provisions to increase costing and subcontractor transparency. These new arrangements were circulated to the departments on January 31, 2024, and they are now in force. A more recent measure that just came into effect this month is the implementation of part 18 of the Budget Implementation Act, 2005. This gives the exclusive authority over federal procurement.
That is not the end. On the contrary, departments and agencies will continue to exercise the authority to conduct their own procurement. However, the Minister of Government Transformation, Public Works and Procurement can now revoke a department or agency's delegation if there is reason to believe that procurement rules are not being followed. More broadly, as circumstances dictate, the minister can mandate standard procurement processes across all federal departments and agencies.
Once again, I want to thank the Auditor General and her team for undertaking this review and for their findings and previous recommendations. This report affirms that we have the right policies and rules in place, but they need to be well understood and applied properly. In her report, the Auditor General found that federal procurement policies promote fairness, transparency and value for Canadians when they are followed. That is what the Auditor General said. The important thing is not to create more rules and red tape, but to ensure that all departments and agencies follow the rules that are in place. We will use evidence-based approaches to improve processes and ensure that the existing procurement rules are followed and properly documented each and every time.
Finally, let me be clear: This new government expects public servants and departments to operate with the highest standards and to always be mindful of optimizing the use of public resources for Canadians. We will learn from these reports and audits, and we will not hesitate to take bold, decisive action to ensure the best value for Canadian taxpayers in all government contracts.
:
Mr. Speaker, as this is my first time rising in this place for a speech on a particular subject, I would like to thank the people of Barrie South—Innisfil for electing me for a fourth term. I take their support with great humility and responsibility as well. I certainly appreciate the support.
I am going to be splitting my time with the member for .
It is almost as if we were watching the movie Men in Black with Will Smith and Tommy Lee Jones. There were times when they had a pen-like device; they would actually press a button, and it would flash a white light. Everybody who saw that light forgot what had gone on in the past. It is almost as if the Liberal Party were using that light to make everybody, not just in this place but across the country, forget what has gone on in the past.
As we relate to the GC Strategies situation today, a lot has gone on in the past. Words that end in “bility” seem to have been lost in this place, such as “responsibility”, accepting responsibility. "Accountability” is another word that has been lost in this place. Certainly ability has been lost in this place as well as among the Liberal government.
In the private sector, the people responsible for the situation would be fired. They would be publicly shamed and never hired within industry again. That is how egregious the GC Strategies situation has become. Again, the Liberals have avoided all accountability and all responsibility for actions by labelling themselves as a new government, when in reality, not only are the ministers responsible for the failure still around, but many of them have been promoted into different positions.
During the campaign, I would go around talking to people. We would talk about the Liberals and the history of the last 10 years. I would say to them that even if new wax is put on a car, it is still a 10-year-old car. That is where the Liberal government was. It still has dents and engine problems. It has lots of problems, and a new wax was not going to change anything. The government is not a new government. We can shift people around. We can change titles and pretend that it is not the same Liberal government that has been driving our country into the ground over the last 10 years, but it is.
This would not be tolerated in the private sector, so why are we tolerating it in this place? All we are asking is for the government to take accountability, support the motion to claw back the fraudulent spending and ensure that Canadians, hard-working taxpayers, are able to get their money back. Is that a hard ask? It is not, especially in a situation as egregious as this.
Let us go back and look at what happened with GC Strategies, which is, again, reaffirmed in the Auditor General's report from the other day. I happened to be in the lock-up. I listened to the Auditor General. Having gone through all of this in the previous Parliament, I was shocked once again by just how deep the rot goes and how systemic a problem this is within the current government. There are no signs that it is going to change.
In 82% of the contracts that were received, the government failed to verify that the fees paid did not exceed market rates. This deliberately allowed room for the government to overpay for contracts and waste taxpayer dollars. The government chose, 82% of the time, not to verify whether it was overpaying. It was overpaying on these contracts yet still awarded GC Strategies $92.7 million in contracts, with $64.5 million being paid out, and yet there is nothing to show for it. There is nothing to show for the corruption or the fraud that occurred.
The project was supposed to cost only $80,000, and yet it ballooned to $64.5 million, 80,000% over budget. Even the Auditor General says that she does not know what the true cost would be because she does not have access to certain record-keeping, etc. This is also not considering the cost to investigate, spend time, and have taxpayer dollars investigate it and uncover the depth of the scam instead of working to improve this country.
I think of the thing that really bothered me. As the most recent chair of the ethics committee, where we were studying foreign interference, the impact it was having on our country and the fact that many parts of our institutions and some political parties as well had been infiltrated by foreign interference, there were a lot of things that disturbed me. The security lapses that occurred were probably one of the things that really disturbed me throughout the whole saga.
A sample of the contracts, and this was reaffirmed again the other day by the Auditor General, showed that 33 out of the 35 contracts required security clearance, with 50% of those contracts not able to show that all contract resources, including the subcontractors, had the appropriate security clearance prior to collecting the award. Obviously, we have heard about the implications of foreign interference and the fact that there are regimes that are trying to infiltrate and are successfully infiltrating our institutions, such as Parliament and other areas.
The government could not even guarantee that the security clearances were not having an impact on what was going on, and in knowing the damaging facts and the evidence that would come in light of the Auditor General's report, the Liberals were quick to issue a seven-year ban on government contracts to GC Strategies. It was not lost on me and should not be lost on members that this seven-year ban happened on the Friday before the Auditor General's scathing report came out on Tuesday morning.
Whether that speaks to the government's having a heads-up and trying to get ahead of the story is certainly in question, but the ban was not issued out of the goodness of its heart but rather to overcompensate for its prior lack of accountability, responsibility, variability and traceability in their work on and with GC Strategies. There are those words with “bility” again.
Why not, and this is a fair question, issue a lifetime ban on the company? Why not issue a specific ban on Kristian Firth and Darren Anthony to ensure that the people involved do not reincorporate under a different name and continue with their grift on the government? They can, in effect, change the name, start another company, and even after these seven years, or perhaps within it, they can come back to the government and start issuing contracts again.
This sets a tone. Obviously, the GC Strategies scandal has set the standard and tolerance for this kind of behaviour, signalling that the government can be taken advantage of and exploited at the expense of the taxpayer. It has completely undermined Canadians' ability to place their trust in their own government, old government or new government, and the government certainly needs to make an example out of GC strategies, signalling a new message that this level of fraud and incompetence will not be tolerated.
My concern going forward, quite frankly, and I spoke about this in August 2022, is what we just saw with the main estimates, where we are seeing $26 billion in additional increases for contractor costs. My concern is that the kleptocracy is going to continue within the current government. If someone is a friend, a family member or a lobbyist who is connected with the government, they are going to benefit to a great degree, and without mechanisms of accountability and transparency, and our ability to provide oversight as an official opposition and as all opposition members in this place, it is going to be awfully difficult for us to keep track not only of where the $26 billion is going to go but also what has happened in the past, the history of the past.
As we have seen with GC Strategies, the government has shown itself not to be transparent and not to be accountable at times when it needs to be. This is not a new government; this is an old government with new wax on the car.
:
Mr. Speaker, it is an honour to rise in this place on behalf of the great people of not just southwest Saskatchewan but also west central Saskatchewan. With the redistribution of the ridings for the past federal election, I have taken on some significant area to the north of what the old riding used to be. It is an honour to be able to represent people from that new area. I want to thank my constituents for trusting me to be their representative here in the House for a third time.
While I was on the campaign trail, I was door knocking in the town of Biggar. “New York is big, but this is Biggar" is a saying in that town. It is a great community. I knocked on this one door, and a mom answered. She was a single mom with a couple of young kids, and she was working as an EA in the local school there. As the conversation went on, she talked about how unaffordable life has become, about the struggles of a single mom and the plight she was in with her former partner not doing a good job of making his spousal and child support payments, as well as the lack of enforcement around that. The reason that matters is that while we have this story about this young lady in Biggar and the struggles she is going through in life, on the other hand, we need to look at what has been happening with the government, which is the same as the last government and not the new government it says it is.
Look at the track record of so many ministers. We can look at the scandals, the waste and what has gone on over the last 10 years. What happened with GC Strategies is just another glaring example of the type of cronyism, the type of fraud, that has really been committed against the taxpayer. This young mom, in the situation she is in, sees this and wonders, “What on earth is going on? I can't even get ahead.”
In the Auditor General report here, it says that not only did Kristian Firth get all this money that he should not have been getting; he also got to help write some of the contracts. He got to help write some of the conditions for the deals. There was a $25-million deal that he helped write, and then he got the deal, and of course it was heavily slanted in favour of GC Strategies. What a shocker. We see that, and then we hear about the plight of this young lady.
I know that all of us on the campaign trail would have heard similar stories from people who are struggling with the cost of living, people who are struggling after 10 years of bad Liberal policy, and what that has done to them and their communities and their ability to afford housing, to afford groceries, to afford a vehicle, to get out of high school, to get out of college, to get out of university and enter the workforce, and how those opportunities are not there, thanks to Liberal mismanagement of basically everything. After the last campaign, those are the kinds of stories that people elected us here to be able to tell.
The Auditor General's report and the issues it talks about are the reason why we have a motion today calling on the government to make sure that GC Strategies repays the money, that that money is recovered. I just want to highlight a couple of other things from the Auditor General's report. Right at the very beginning, it reads:
Federal organizations are required to monitor the work performed by contractors. However, we noted that federal organizations frequently disregarded government policies in this area. This included not having records showing which contracted resources performed the work, what work was completed, and whether the people doing the work had the required experience and qualifications. In addition, in 82% of examined non‑competitive contracts and competitive contracts that received only 1 valid bid, federal organizations failed to verify that the fees paid did not exceed market rates.
On top of that, let us take a look at some of the notes in the report as well. Underneath the rubric of “Federal organizations did not follow procurement policies when awarding contracts”, it reads, “Procurement methods were not consistently justified”, “Security requirements were not enforced”, “There were weaknesses in contract monitoring”, “Information on suppliers' performance and rates was not collected and shared”, “Support for contract prices frequently lacked justification” and “Federal organizations made payments without evidence showing that all deliverables were received”.
Most people at home are probably wondering what on earth GC Strategies did. Well, it did basically nothing, except to take a lot of money for the ArriveCAN app. For a lot of people, if we tell them about the ArriveCAN app, it instantly triggers a reaction. It brings them back to a time of government overreach: people being forced into quarantine who should not have been, people not being allowed to leave or enter Canada and all kinds of issues like that. That is what people remember about ArriveCAN. GC Strategies is the company that was awarded a big contract. It was supposed to only cost about $80,000 for this app but ended up costing over $64 million. We do not even know the total cost of it, because the Auditor General could not get access to all of the information on it. That is what we are dealing with here today with our opposition day motion. We are demanding that the government get that money back.
I also want to bring people back to when we called Kristian Firth to the bar here. He was admonished by this House. However, there was a very telling element to that. One of the last questions that was asked of Mr. Firth before he was done was whether he felt any shame. His answer was that he did not. Then he just hopped up and walked out, and that was the end of it. He felt no shame. He took all this money, robbed the taxpayer and away he went.
I read out some of the things in the Auditor General report: the support for contract pricing, the lack of justification, that federal organizations had made payments without showing deliverables, the weaknesses in contract monitoring and the security requirements not being enforced. Why does that matter? There are a lot of reasons why that matters, but what it goes to is government responsibility.
Are ministers following up with their departments? Do they even know what their departments are doing? What this shows is a complete lack of leadership in the government among its ministers. What happened to those ministers? Most of them were re-elected and put back into cabinet. In a lot of cases, they were promoted to even higher portfolios, with more responsibility. They failed upwards. That is what was given to them by the . One would have thought that after Justin Trudeau stepped down as prime minister, and the supposed new government came in with a new leader, there would be some changes in the front bench of the Liberal government over there. There have not been.
They are the people who are ultimately responsible for this, because the buck stops with the ministers. The ministers need to know what is happening in their file and their department. There is no ministerial responsibility left, thanks to 10 years of the Liberal government. GC Strategies is just one of many examples of why people are so sick and tired of the government corruption coming from there.
I want to take us back to 2019, when I was first elected. One of the first subjects I stood up in this House to speak on was the Joe Peschisolido report; he was another former Liberal who was in breach of ethics. We also had the SNC-Lavalin scandal. We are all pretty familiar with what happened under that situation. Then we had the green slush fund, which seized this place up for a number of months prior to the election, talking about Liberal scandal again, and so many other scandals woven in between all of that.
We have new members from the government standing up to give their first speeches today. What are they giving their first speeches on? They are speaking on our motion on Liberal government scandal. It must be a little demoralizing over there, knowing they have to get up and talk about the scandals, the waste, the corruption and the fraud that has gone on and has permeated throughout the government for 10 years. That is what their first speech will be about.
As an opposition member, when I was first elected in 2019, to me it was no wonder we were talking about Liberal corruption and scandal. It was no shock, watching how Justin Trudeau ran this country. Therefore, when we look at the motion here today, it would seem that the very least the government could do is demand that the money that was stolen from Canadian taxpayers by GC Strategies, under false pretenses, be recouped and repaid. I hope the government takes it seriously. We have been hearing Liberals say, “Oh, we're going to take them to court," but then, "Well, maybe we're not taking it to court.” We do not know what is actually going to happen there.
The government needs to take this seriously. I hope this motion passes and that we see the taxpayers made whole, not just for the amount but maybe even for the interest that has accrued. Canadian taxpayers need to be made whole. I hope the government takes that seriously.
:
Mr. Speaker, this is not my first rodeo, so to speak, in this place, so it is great to have this slot with all the members here. I know my Conservative colleagues in particular enjoy when I get up for debate. They will be champing at the bit to ask questions afterward. I am not our hon. colleague from , so they have a fresh opportunity to engage with this side, although we do love our hon. colleague from Winnipeg North.
It is a pleasure to join this opposition day debate. Any member who knows me in this House knows that I enjoy the opportunity to litigate the text of motions and the ideas that the opposition puts forward in this place, and I intend to do that this afternoon, even if it is after question period and Statements by Members. I have had the opportunity to review the principal elements of this motion, and I look forward to speaking to those points and to some ancillary points that will be important for all members to think about in the days ahead regarding the way this government is advancing its agenda.
I want to start, from the hop, by talking about the fact that we are in week three of Parliament and this government is moving on significant issues of importance, including having one Canadian economy, defence spending up to 2% of our NATO target, working to make sure big projects get done and engagement on the international stage with the G7. This Parliament and this government are working, and I look forward to my opposition colleagues joining the efforts of what this government is trying to get accomplished. It is clear from public opinion and clear from the election results on April 28 that Canadians like what they are seeing from this , his government and the leadership regarding what we are trying to get accomplished with this new government, moving forward.
The Conservative motion speaks to a company called GC Strategies. This was a two-person firm, an IT contractor. Canadians who have been watching the debate and the way that members have engaged may not recognize that the government, from day one of the Auditor General's report, has wanted to work to implement the what is in the reports.
There was an absolute failure of procurement at the civil service level. It is important to separate those two things, because when we hear the way Conservative members in this place raise this issue, and we agree that it is an important issue to be raised, we hear the suggestion in their language that Liberal ministers themselves were involved in this. No, this was a failure of procurement at the civil service level.
I know there are some new members to this House, particularly on the other side. It is important to separate our Westminster tradition into the elected element of government versus the civil servants who do the work on behalf of government. Yes, there is ministerial accountability, and the ministers of the former Liberal government have engaged and worked to move forward, but at the end of the day, there is a separation. I would caution Conservative colleagues, when they stand in this place, to separate the difference, because they make clips of these things and send them home to their constituents, and Canadians who are not watching closely would be led to believe from the comments of the members on the opposite side that ministers themselves were absolutely involved with what we on the government side suggest was a failure of procurement.
That is a difference. That is about our level of engagement. It is a responsibility of every parliamentarian in this House to show a level of nuance, not to clip things, send them home and suggest that Liberal members or ministers are corrupt. That is dangerous language. That is not the way we should move forward.
After we go to members' statements, I look forward to continuing to litigate this argument because it is important. I look forward to talking about the ways the government is addressing the concerns the opposition is raising and how we will have a process to get the money back for taxpayers.