Bill C-435

2nd Session, 40th Parliament,

57-58 Elizabeth II, 2009

house of commons of canada

BILL C-435

An Act to favour Canadian procurements

Whereas public sector investment plays a critical role in maintaining balance and ensuring a fair distribution of economic opportunity, income and prosperity to all citizens;

Whereas public procurement, especially through infrastructure investment, is a major component of all government spending and thus plays a key role in stimulating sustainable economic growth, creating domestic jobs in key sectors and regions and maintaining a modern infrastructure, which are all in the public interest;

Whereas, to achieve these goals, the funds used for procurement should be spent predominately in Canada to benefit domestic job creation and economic development, including regionally or sectorally targeted economic development;

Whereas government procurement in Canada happens at the federal, provincial, and municipal levels;

Whereas Canada trades with other federated countries and with their states or provinces and municipalities;

Whereas a fair procurement policy requires, above all, reciprocal access to procurement between jurisdictions, governments, and nations;

Whereas other levels of government, notably municipalities, have already indicated their desire to have reciprocal access to procurement in the United States of America in exchange for access to Canadian municipal procurement;

And whereas it is in keeping with Canada`s commitment to fundamental human rights and labour rights to require that procurement be concluded with jurisdictions that respect core labour standards set by the international community;

Now, therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

1. This Act may be cited as the Made in Canada Procurement Act.

INTERPRETATION

2. The following definitions apply in this Act.

“Canadian product” means any product that is part of, or incidental to, a procurement contract or a transfer

(a) of which more than 50% of the total value is manufactured, produced or assembled in Canada and, in the case of an assembled product, where final assembly is done in Canada; or

(b) in the case of a natural resource, of which more than 50% of the total value originates in Canada.

“core labour standards” means the following labour standards of the International Labour Organization, namely

(a) the right of association;

(b) the right to bargain collectively;

(c) the prohibition on the use of any form of forced or compulsory labour;

(d) a minimum age for employment of children; and

(e) acceptable conditions of work with respect to minimum wages, hours of work and occupational safety and health.

“Government of Canada” means

(a) the Government of Canada or any department or agent of that government;

(b) any Crown corporation; or

(c) any foundation or trust established by the Government of Canada that receives over 75% of its income or funding from that government.

“infrastructure” means any of the following fixed capital assets that are used or operated for the benefit of the public:

(a) highway or rail infrastructure;

(b) local transportation infrastructure;

(c) tourism or urban development infrastructure;

(d) sewage treatment infrastructure;

(e) water infrastructure; or

(f) infrastructure prescribed by regulation made under the Canada Strategic Infrastructure Fund Act.

“similar product” means any product whose nature, quality or terms of delivery are substantially the same as those of another product and meet the requirements of the entity that procures it.

“transfer” means any transfer of more than $100,000 made to a province, municipality or private party for infrastructure, under an appropriation Act or budget implementation legislation.

PREFERENCE GIVEN TO CANADIAN PRODUCTS

3. When the Government of Canada procures a product, it shall, where similar products are available, give preference to a Canadian product over a non-Canadian product, except where the total value of the Canadian product exceeds by more than 10% the price of the non-Canadian product.

4. The Government of Canada may, where similar products are available, fix conditions on access to a transfer to give preference to a Canadian product over a non-Canadian product, except where the total value of the Canadian product exceeds by more than 10% the price of the non-Canadian product.

EXCEPTIONS

5. (1) Despite sections 3 and 4, the Government of Canada may grant a waiver in the following circumstances:

(a) a product is required to deal with an emergency in which there is danger to public health or safety, and there are reasonable grounds to believe that it would not be possible to procure the product in the quantity or within the time period required to deal with the emergency;

(b) it is not possible to procure a Canadian product of sufficient quality or quantity or within the time period required;

(c) a product is acquired to provide humanitarian assistance outside Canada or for the purposes of international development; or

(d) the product is intended for use outside Canada, except in the case of ships, aircrafts and aerospatial products.

(2) The minister responsible for an entity that grants a waiver under subsection (1) shall, within 30 days, cause a notice justifying the exception to be published in the Canada Gazette.

NON-APPLICATION

6. As regards a country that is a party to the North American Free Trade Agreement (NAFTA), this Act does not apply to procurements or transfers in respect of which NAFTA requires that Canada accord to the suppliers of another NAFTA country a treatment no less favourable than the most favourable treatment that Canada accords to its own suppliers.

7. As regards countries that are parties to the Agreement on Government Procurement of the World Trade Organization and with which Canada has negotiated mutually acceptable commitments, this Act does not apply to procurements or transfers subject to that Agreement in respect of which Canada has made specific commitments.

8. Section 7 does not apply in respect of a country that is a party to the Agreement referred to in that section if

(a) the acquisition is for a service in respect of which the country has not accorded Canada reciprocal access; or

(b) the country has not adopted core labour standards.

COMING INTO FORCE

9. This Act comes into force three months after the day on which it receives royal assent.