The Blueprint: Canada's Conservative Podcast - October 22, 2024


Procurement disaster


Episode Stats


Length

18 minutes

Words per minute

184.27414

Word count

3,456

Sentence count

2

Harmful content

Hate speech

4

sentences flagged


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

In today's show, we bring on Garnett Genuas to talk about the problem of non-indigenous companies getting billions of dollars in government contracts, and why the government should be doing more to ensure indigenous companies get their share of government contracts.

Transcript

Transcript generated with Whisper (turbo).
Hate speech classifications generated with facebook/roberta-hate-speech-dynabench-r4-target .
00:00:00.000 hello and welcome once again to the blueprints this is canada's conservative podcast i'm your
00:00:20.440 host jamie schmiel member of parliament for halliburton court the lakes brock with new
00:00:23.860 content for you every single tuesday 1 30 p.m eastern time don't forget to like comment share
00:00:28.600 and subscribe to this program on youtube hit the bell be notified when new content is made available
00:00:33.880 on today's show we're going to be talking about indigenous procurements the problems with it
00:00:38.580 and a bunch of non-indigenous companies getting billions in government contracts so to talk
00:00:44.020 about this and much much more we bring on the person leading the charge garnett genuas the
00:00:48.880 member of parliament for sherwood park port saskatchewan thanks for coming on the show well
00:00:52.880 thank you very much for having me it's great to be back on the on the blueprint and uh jamie you've
00:00:58.000 been leading our team on indigenous issues for such a long time and you've done incredible work
00:01:02.000 there so uh it's it's great to be able to have this conversation with someone who obviously knows a
00:01:07.040 lot about the topic well i do appreciate the work you're doing as well bringing to light the fact
00:01:11.680 that there are shell companies set up that are bidding on government contracts worth millions tens
00:01:19.160 of millions and the list goes on but not actually indigenous owned which the program was set up to do
00:01:25.300 so you could at least get some indigenous companies getting some of the government contracts
00:01:29.800 because in some cases a lot of them especially if they're small don't have the capacity to to go
00:01:34.460 through that application process which can be quite onerous even for the biggest of companies
00:01:38.300 yeah so uh let me say just a few things about kind of how i got to to learning about this and then
00:01:45.360 kind of what you're doing drilling into it um most people will be by now familiar with the big
00:01:50.640 arrive scam scandal and uh you know tens of millions spent on a glitchy app that didn't work
00:01:56.740 sent lots of people into quarantine even though they they filled out all the rules that they were
00:02:00.360 they were supposed to fill out uh because of error error and aversion and and you had uh this this
00:02:06.680 kind of opened my eyes to the fact that you've got a bunch of these very small companies they're not
00:02:12.560 actually doing the work they're kind of specialized in getting government contracts and then
00:02:16.940 subcontracting them and then they get a a massive benefit in the process you know well-connected
00:02:21.340 insiders close to the ndp liberal government uh their business is getting contracts and subcontracting
00:02:27.480 right i've used this analogy before you're hiring someone to paint your fence you hire me for 100
00:02:32.940 bucks i hire someone else for 50 bucks and i don't do any of the work and i just pass along the contract
00:02:37.140 and um if that happens to you once or twice you're you're gonna want to go direct at some point
00:02:41.500 uh but the the government of canada has this this privileged special relationship with a few of
00:02:46.460 these these insider companies uh and uh and that's costing taxpayers a lot so this was was the arrive
00:02:53.660 scam scandal but but but um in in the context of that we saw that there's this company uh uh called
00:03:01.440 dalliant uh that got got part of this contract and uh that company was identified as an indigenous
00:03:06.860 company which helped them access a set aside the government's got to set aside five percent of
00:03:10.600 contracts are are supposed to go to indigenous companies uh but they're in they're a very a very 1.00
00:03:15.700 tiny company two people they're in joint venture with someone else and that joint venture allows
00:03:20.580 them to get the get the contract so we started digging into kind of okay who's actually getting
00:03:26.120 these these indigenous set aside um and there's a few different instances of possible abuse right one is
00:03:33.000 a company pretending to be indigenous that's that's that's not somebody who's just just lying just just
00:03:38.540 outright faking it another possibility is you have uh a tiny company that's qualified as indigenous 0.97
00:03:45.680 but they're subcontracting all the work to non-indigenous companies so it's that flow through
00:03:50.340 that i described the indigenous company is is part of that flow through but it's you know one or two
00:03:56.260 people that are getting the benefit and they're subcontracting all of the work to non non-indigenous 1.00
00:04:00.280 firms and then another another possibility is an abuse of a joint venture uh joint ventures uh are are
00:04:05.940 a legitimate business tool uh but uh if if an indigenous partner is helping get that contract
00:04:12.540 that indigenous partner should be benefiting from from the contract they shouldn't just be 0.63
00:04:16.000 be paid a fee to help check a box they should actually be be be part of the process so uh these
00:04:21.240 are various kinds of views and so the first step we took at committee was to request information on
00:04:25.980 this we did a we did a detailed document production order uh and in particular we said we want to see the
00:04:31.160 subcontract so in the case of of indigenous companies that get contracts we want to see who their
00:04:35.620 subcontracting to and actually found that there was a a complete lack of information being collected
00:04:40.860 in terms of the subcontracts uh we don't know if or who is enforcing uh this uh the subcontracting
00:04:47.780 rules there's a rule that it's supposed to be that if you have uh if it's happening under the
00:04:52.060 indigenous set aside that one-third of the subcontracts have to have to be um have to be
00:04:57.740 indigenous but but there's no indication of if that's being tracked or enforced so that's the that's
00:05:02.660 the story that kind of brings us to this point uh the the government operations committee started
00:05:08.420 studying this issue and we heard testimony directly from the afn uh saying that in their view most of
00:05:15.200 the companies getting these contracts are shell companies uh so there's there's some instance of
00:05:20.100 um of workarounds being used and the government's very set on trying to say they've checked a box
00:05:25.740 uh but the purpose of this program is supposed to be dispersed benefit within indigenous communities
00:05:32.980 economic development happening within yeah exactly reconciliation via the increase in economic
00:05:39.420 opportunity uh and and yet it's pretty clear from the testimony of the afn and other witnesses we've
00:05:44.980 heard as well as the lack of tracking uh that there uh there are big gaps in terms of what's actually
00:05:50.940 happening and uh and i think it's pretty performative of the government they're they're they're trying to
00:05:55.340 look like they care but they're not taking the time to measure the results well let's queue up cut one
00:06:00.320 we have a clip from committee talking about uh what you had just mentioned but going into a little bit
00:06:06.380 more specifics because um this is an issue i think is just the tip of the iceberg which you're able to
00:06:12.140 and what you have already exposed so let's play cut one this the acronym cpain which stands for
00:06:18.820 corporations posing as indigenous nations the people that we expose as fraudulent in taking up space
00:06:25.780 to which they are not entitled move freely across this continent we have discovered that there are
00:06:30.980 billions of dollars in resources that are pilfered by corporations entities and individuals who are
00:06:39.060 pretending to be indigenous when they are not hence the term pretending pretendians and pretendianism
00:06:45.140 this is a very serious issue we do not wish to suggest otherwise by using the word pretend
00:06:53.080 we use it for ease of conversation in those who must speak about this issue
00:06:59.240 yeah so when you look at it in in that context that all this money uh was kind of set aside for
00:07:08.100 indigenous owned companies but the government isn't really doing their due diligence to ensure that
00:07:12.460 their own targets are being met but we see this across the board on so many things just the respect
00:07:17.700 for taxpayer dollars to actually achieve the outcomes they're supposed to achieve are just falling through
00:07:22.680 the cracks everywhere yeah yeah i totally agree uh the approach of this government is to try to
00:07:29.180 look like they care it's uh you know virtue signaling performative allyship whatever whatever the
00:07:34.620 the the the term is that we're we're using and there isn't an interest in actually measuring and
00:07:41.960 assessing the results i think it's it's a particular conservative trait to say we we care about outcomes
00:07:47.040 what's what's the purpose of this policy supposed to be uh and uh economic supporting economic
00:07:52.960 development in indigenous communities obviously something that you've been been championing for years so
00:07:56.800 so important to us looking at the suite of policies that uh that support uh empowerment and control
00:08:04.420 through economic development it's it's uh it's so important and uh and here we see how a policy that
00:08:12.020 um that should be aiming at that uh is it is is opening itself up to so many workarounds and i
00:08:19.960 questioned patty heidu about this a few months back at committee she's the she's the liberal minister for
00:08:24.960 this and uh and she shrugged off the criticism she said well the purpose of the policy is is is just
00:08:32.800 to measure indigeneity uh and then we and then you get on the list and then and then you're you're good
00:08:38.680 to go but uh the program is not effectively measuring indigeneity and it's not um you know
00:08:45.700 these concerns about abuse they're coming from indigenous leaders themselves right so we're we're
00:08:50.060 magnifying their their concerns uh various indigenous organizations have asked the auditor
00:08:54.780 general to look into this we've passed a motion asking the procurement ombudsman to to look into
00:08:59.260 this as well and i think we'll continue to see uh things revealed about how uh the liberals they
00:09:03.900 they wanted to look like they were checking a box uh but they have not uh been paying attention
00:09:09.900 to the results and in fact uh it seems like they've been uh presiding over a system that allows
00:09:17.040 these well-connected insiders uh these these small insider companies that specialize in getting
00:09:22.160 in contracts to take advantage of the system uh to but then subcontracting it in ways that don't
00:09:28.140 provide actual benefit to indigenous communities which like if you look at the number of employees
00:09:33.680 hired during the liberal liberal's time in office when they created the indigenous services department
00:09:39.840 the the number of bureaucrats has jumped substantially but we've had a parliamentary budget report saying
00:09:45.400 that that extra money to that department and what they're spending on isn't exactly getting the
00:09:50.280 results that is intended to your point of outcomes right we've had uh auditor general's report on
00:09:55.180 housing on clean water on leasing and and all the the text is basically the same that the government
00:10:01.800 is failing on each and every one of them because to your comments exactly the outcomes are not the
00:10:08.240 main issue for the the the badge of honor for the government seems to be the amount spent not
00:10:13.160 actually helping people right yeah exactly it's uh it's it's based not on the result achieved but on
00:10:19.720 the amount spent and in this case we're talking about instances where where according to indigenous
00:10:24.720 leaders most of the money spent is going to the wrong people it's going to shell companies i just
00:10:30.100 finished uh traveling across the country uh and met with indigenous leaders and a number of stops at
00:10:36.180 thunder bay and winnipeg uh in uh in regina and uh and and one of the points that was raised uh was
00:10:43.160 ensuring that these these companies are are able to build up infrastructure in the communities and are
00:10:50.120 there for the long term right so you don't you don't have a couple ottawa insiders showing up saying
00:10:55.180 hey we can check this box we can we can help you satisfy your requirement uh we we need to be thinking
00:11:01.580 about policies that that contribute to long-term uh sustainable business development and prosperity
00:11:08.480 and uh so i i mean i i came into this issue through that kind of procurement uh lens being
00:11:15.620 on the government operations committee we do a ton of work on government scandals um and since then i've
00:11:20.280 i've done a ton of engagement with indigenous leaders and uh this issue is a major concern for them
00:11:26.280 and the issue around people pretending or trying to take advantage of uh benefits that are there for
00:11:33.420 indigenous people when they're when they're not indigenous uh it's it's a big issue and a and a broader issue
00:11:39.540 uh so i think it's something that um that reminds us of the importance of of looking at the results
00:11:47.840 measuring the outcomes uh and and not accepting uh an ndp liberal government that that is really much
00:11:54.200 more about box checking instead of results by the way jamie i just wanted to say on that on that clip
00:11:59.020 you showed notably uh partway through that meeting the liberals interrupted witness testimony by moving
00:12:05.180 a procedural motion that could have been dealt with at another time and we repeatedly tried to get the
00:12:11.080 committee to go back to hearing from the witnesses who were there uh in one case a witness who had driven
00:12:15.720 a very long distance to order to be at the committee uh so uh liberals and the ndp have shown
00:12:21.060 really profound disrespect in trying to shut down uh witnesses who have made a significant effort and
00:12:28.020 tell their stories about how their communities have been um taken advantage of in this process
00:12:32.960 uh and uh so so but the liberals and ndp are the two sides of the same coin basically right they they're
00:12:39.880 they're all about money spent totally right no the the liberals and the ndp had to have a majority
00:12:45.840 on that committee so uh they were the ones that were working together to force us to be on this
00:12:52.060 procedural issue instead of attending to the important uh opportunity to hear from the witnesses
00:12:57.020 who were in front of us the next day when we had government officials they let the government
00:13:00.020 officials testify we had questions for them of course but they let the government officials testify
00:13:03.520 uh but they disrupted testimony from indigenous leaders partway through so that was really
00:13:07.740 important really disappointing and uh and it underlines that um you know liberals are you know
00:13:14.380 they're they're always stretching their elbows patting themselves on the back on these issues
00:13:18.180 uh but uh but we need to actually listen to indigenous leaders themselves uh who are saying
00:13:24.840 uh the results are not lining up with the government's uh self-congratulatory messages so where do we go
00:13:29.980 from here i know you're you're on this the committee's on this you're you're fighting for answers what's
00:13:34.800 next yeah i mean the the the investigations the government operations committee are continuing uh
00:13:40.380 there are so many scandals right now uh that um you know there's different things happening at
00:13:47.300 different committees where uh um and we and we're looking at multiple different scandal issues of the
00:13:53.880 government operations committee um so it's it's sort of something that it's it's not kind of every
00:13:59.340 meeting we're kind of coming coming back to it um but there's a lot of interest in this study
00:14:04.000 uh there's been a lot of interest from the public in particular from indigenous leaders
00:14:08.200 uh we've heard from a lot of indigenous businesses that are are doing great work uh building their
00:14:13.820 businesses uh investing back in their communities uh who have come to us to share to share their
00:14:18.540 concerns one thing i'll say just as well and some of the feedback we're getting from these um
00:14:23.460 these great uh positive examples of indigenous businesses is that uh a lot of government procurement
00:14:30.040 is very opaque and inaccessible so if you're if you've started a business and you're offering
00:14:36.320 exactly the product the government uh wants but you haven't dealt with government before it can be
00:14:41.600 very very difficult uh in some cases there are requirements like you that you you had to have
00:14:47.080 had a certain number of of references within the federal government itself so you could be a
00:14:51.900 successful company that's actually done business with other provincial governments and other
00:14:55.360 governments around the world and then you come to the canadian government and and basically the answer
00:14:59.180 is well you haven't done business with us before so you're you're at a major disadvantage
00:15:03.560 um if we want to give opportunity to people that haven't had opportunity before
00:15:09.220 indigenous-owned businesses other minority-owned businesses that that uh may have historically been
00:15:15.780 at a disadvantage the the best way to to give them opportunity is to uh open up and democratize
00:15:23.280 is the procurement process in general uh to make it easier for anyone um who who has the right
00:15:31.600 product to be able to to put their their bid forward but various analyses of this including
00:15:37.560 from the procurement on bed have have shown how a protection for insiders makes it very hard for
00:15:45.460 those who are kind of the barriers to competition right exactly big government loves this right yeah
00:15:50.140 big government loves big business yeah it's easier to deal with right you don't have all these
00:15:54.280 little companies kind of doing their own thing right you have a few big ones that have the capacity
00:16:00.380 you apply through these complex application yeah process that ottawa has come up with where the the
00:16:07.720 little companies the startups or the medium size they have a bit harder time to do it yeah and and
00:16:13.440 you're right we have to make it easier not harder yeah so we're pretty much out of time um question
00:16:20.260 periods coming up but uh the guests always get the last words okay floor is yours well uh i um
00:16:26.960 as as as we've as we've kind of gone into this issue uh there's there's two things that really
00:16:32.900 stick out to me one is is just uh the the building record of scandal this ndp liberal government uh
00:16:40.060 and uh and and like there's so many different things we've got the the green slush fund issue
00:16:46.020 of the house of them not handing over the documents at the government operations committee it's the it's the
00:16:50.620 condo uh issue that overpriced condo they bought in new york and it's the indigenous procurement
00:16:54.940 issues it's arrive can and other other procurement issues uh so there's there's so many different
00:17:00.440 scandals we're dealing with uh it underlines just how much good we can do with a conservative
00:17:05.800 government that is going to be disciplined about connecting money spent with results and then the
00:17:12.820 other the other thing uh that i'm that i'm learning through this process and and really excited about
00:17:18.900 is just the uh the appetite the desire the opportunity for economic development uh in a
00:17:25.140 partnership with indigenous leaders and uh a lot of that's in the resource sector and and coming from
00:17:30.520 a conservative background where we're excited about the resource sector uh that's that's good news i mean
00:17:35.340 uh partnering with indigenous leaders on that is going to be very exciting uh and uh and but it's it's
00:17:42.500 across the spectrum in terms of of different kinds of businesses and and opportunities so um it's it
00:17:49.200 shouldn't be a government knows best approach it should be a uh a genuinely uh partnering uh and and
00:17:56.100 pro-resource approach as we uh as as the canadian government uh under conservative leadership works
00:18:02.260 constructively with uh with indigenous communities to unlock those economic opportunities so uh hopefully
00:18:08.360 very soon we'll be able to uh do away with this uh the scan liberal scandal mire uh and unleash the
00:18:15.880 economic potential of our country i couldn't agree with you more garnet genuine thank you very much for
00:18:19.840 coming on the show thanks for member of parliament for sherwood park so ford saskatchewan thank you for
00:18:24.180 your time guard i thank you for yours this is probably a message you're not hearing in the mainstream
00:18:28.180 media so let's get it out like comment subscribing share this program tell your friends they can also
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