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Feds override military spending controls: report

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http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060808/military_spending_controls_060808/20060808?hub=TopStories

The Conservative government has given itself the right to dole out $8 billion worth of military contracts to the West, Quebec and Atlantic Canada, reports The Globe and Mail.


The Harper government is using an extraordinary "national security" clause as part of the continuing purchase of new planes and helicopters, says The Globe.


By using this clause, the spending will be exempt from the Agreement on Internal Trade with the provinces. The agreement, which came into effect in 1995, prohibits the federal government from steering contract work to specific parts of the country.


Ottawa will now be able to impose regional quotas on the economic benefits of the contracts, a federal official told The Globe.


Before the agreement was signed -- in 1994 -- decisions on contracts were often criticized by the provinces and regions, who claimed they were awarded based on regional political considerations.


Liberal MP Ujjal Dosanjh told the newspaper this could lead to "the worst kind of pork-barrelling by this government, behind closed doors, without accountability to anyone in this country."


Ottawa said in July it wants to buy 16 Chinook helicopters for $2.7 billion and four C-17 Globemaster cargo air for $3.4 billion from Boeing Co. With 20 years of maintenance, the total cost would be $8 billion.


The Public Works Department said in a news release that market research suggests Boeing appeared to be the only company that could meet the government's requirements for these aircraft. However, it has allowed firms to bid on the contracts.


According to the report in Tuesday's Globe, Industry Minister Maxime Bernier has already travelled to the U.S. to meet with officials from Boeing.


Defence Minister Gordon O'Connor also announced in July plans to buy 17 tactical aircraft to replace Canada's fleet of Hercules airplanes, at a cost of $4.9 billion.
 
Quagmire said:
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20060808/military_spending_controls_060808/20060808?hub=TopStories


Liberal MP Ujjal Dosanjh told the newspaper this could lead to "the worst kind of pork-barrelling by this government, behind closed doors, without accountability to anyone in this country."

Good point Ujjal, I don't think Ontario and Quebec have ever been granted contracts without thinking of the west first.
 
It says the agreement was signed in 1994 so that would have made it the Liberals in power at the time.
 
If I remember my contracting course, a regional industrial benefits committee at Public Works or Industry Canada distributes the goodies, keeping it arms-length from the government of the day. However, it does not seem to have had much of an effect. Allegations still abound about interference in the process, particularly from former Liberal politicians and political staffers. The Maritime Helicopter project is one example where rumours still persist, which I hesitate to repeat given the ongoing legal battle.

 
I'm glad they did this. Maybe we'll get the equipment we need faster.
 
Quagmire said:
Ottawa will now be able to impose regional quotas on the economic benefits of the contracts, a federal official told The Globe.

So if I am reading this correct. They can say that company X will be X% done by whatever date is reasonable. So it doenst take 15 years to built 20 trucks.
 
You know, the Liberal Party of Canada lecturing anyone about porkbarrel politics right now is just a little rich.

The whole reason national security was invoked in this purchase was to avoid the whole mess of regional spin-offs/economic development/whats in it for my fifedom crap that has stretched out the "real" procurement process to the point where it takes 15-20 years to buy some substandard piece of crap.

Frankly, this way can't be any worse than the Liberal's way.  Let's judge the results- if the Conservatives drop the ball and waste money during this procurement- fine.  Criticize away.  But I got me a feeling that the whole reason that this is an issue is that a whole bunch of bureaucrats, lobbyists and other fellow travellers who normally make entire careers of dragging out procurements got sidelined.  And they aren't very happy.  IMHO.
 
SeaKingTacco said:
You know, the Liberal Party of Canada lecturing anyone about porkbarrel politics right now is just a little rich.

The whole reason national security was invoked in this purchase was to avoid the whole mess of regional spin-offs/economic development/whats in it for my fifedom crap that has stretched out the "real" procurement process to the point where it takes 15-20 years to buy some substandard piece of crap.

Frankly, this way can't be any worse than the Liberal's way.  Let's judge the results- if the Conservatives drop the ball and waste money during this procurement- fine.  Criticize away.  But I got me a feeling that the whole reason that this is an issue is that a whole bunch of bureaucrats, lobbyists and other fellow travellers who normally make entire careers of dragging out procurements got sidelined.  And they aren't very happy.  IMHO.

Your not the only one who has got that feeling.  As if the Liberals have a leg to stand on WRT to pork-barrelling, I mean talk about the pot calling the kettle black.  If we get the equipment we need in a timely manner, and the equipment actually WORKS the way it supposed to, then who cares how we obtain/manufacture the goods.  Not this guy.
 
SeaKingTacco - Wow. That summed up my first posting here at NDHQ. I watched as a project went from a good idea, backed up with forward thinking doctrine, into a gong-show computer hardware purchase (with sub-standard parts) designed for the CF of yesterday.

I suspect your theory is correct: the PMO wants to get the ball rolling on the purchases, and wants to cut out the red-tape within DND itself. Afterall, I can't think any other department with a Treasury Board pre-approval process that takes longer than the Treasury Board process itself!

 
Hmmm, wasn't the Honourable Ujjal Dosanjh the same fellow that was implicated in making offers to another MP to cross the floor to bolster the ranks of the then Liberal minority government? Now he, or any Liberal, has the gall to accuse the current government of not being above board? Leaves me dumbfounded.

He's also on record complaining about the current TFA mission, but it was his former Liberal government who made the committment in the first place.

They all just twist in the wind looking for some way to play the "us and them" game. Never does what's best seem to factor into government decisions.
 
Latest from Industry Minister:
http://www.theglobeandmail.com/servlet/story/LAC.20060811.DEFENCE11/TPStory/National

The free hand of the market will decide the regional distribution of benefits flowing from $8-billion in military purchases, the federal Industry Minister said yesterday.

"I didn't enter politics to engage in patronage," Maxime Bernier said in an interview. "It was made clear at cabinet that this government will not engage in patronage."

Mr. Bernier, a former businessman and member of a conservative think tank in Montreal, said he will not intervene in favour of any company or region for contracts flowing from the military purchases.

He said that quotas in favour of the West, Quebec and the Atlantic will be in the 10-per-cent range, and that they would have been met regardless of federal intervention...

Mr. Bernier acknowledged that there is heavy lobbying surrounding the distribution of the benefits, but he said he "will not intervene" and intends to leave the process in the hands of the bureaucracy and the private sector...

Mark
Ottawa
 
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