Media Room

Speeches

Speaking notes
for the Honourable Scott Brison,
Minister of Public Works and Government Services Canada

SYDNEY AND AREA CHAMBER OF COMMERCE

November 12, 2004

Thank you for those kind words. And good day.

It's great to be here in Sydney and at home in Nova Scotia with Parliament now on an off week. And I can tell you that, for me, it's certainly a welcome break.

For those of you political junkies who watch Question Period in the House of Commons, you'll know that I've been on the hot seat for the past five weeks. I'm delighted to find myself the minister of Public Works and Government Services Canada where of course there is no controversy.

Today, I want to talk to you about some positive news…actually a very positive success story, and that's the case of the Canadian economy. I'm not sure Canadians understand how Canada has in many ways become the envy of the industrial world.

I don't want to bore with you with too many statistics, but there are truly some amazing accomplishments to note. Canada has had seven consecutive budget surpluses, the only country in the G7 industrialized countries to consistently stay out of deficit.

Compare that to our neighbours south of the border. The U.S. is now running a deficit of 422 billion dollars, and that's in U.S. dollars.

Unlike most other industrialized countries, Canada is also paying down its debt. And that means reducing that burden on future generations.

Since 1996, we have repaid 61 billions of dollars of debt and lowered the debt to GDP ratio from a high of 68% down to 41%. The goal of the Martin government is to reach a 25% debt to GDP ratio in the next decade.

Interest rates remain low, fueling consumer spending on big ticket items such as cars, as well as a housing boom. Yet inflation remains low as well with the latest year over year rate of just 1.8 percent.

And any of you planning an escape this winter will no doubt be applauding the phenomenal upswing in the value of the Canadian dollar….it's now worth more than 83 cents U.S., the highest value in a dozen years. That's a good news story in the long run. In essence, it's a pay increase, considering Canada's role as a trading nation.

Some had predicted that the higher dollar would dampen Canadian export prospects in the short term. But the latest figures show that exports actually surged by more than 20 percent in the second quarter. And Canada continues to enjoy a healthy trade surplus and current account surplus…again something many other industrialized nations can only envy.

The future also looks promising. For example, the Conference Board of Canada continues to show business confidence on the upswing and well above its historical average. And a 2004 study by KPMG concludes that Canada has the lowest business costs among 11 major nations in North America, Europe and Asia-Pacific.

All Canadians should feel proud of our fiscal and economic record of recent years.

We should also recognize that growth and prosperity is not reflected in all areas of the country. And it's a priority of our government to assure that Atlantic Canada and Cape Breton share in that growth and prosperity as well.

The Paul Martin government is committed to trying to help broaden the base of the economy, give a hands up, and stem the outmigration of young Cape Bretoners.

Already, the federal government has helped create 6,000 direct jobs in Cape Breton over the past five years. And income levels and GDP are also edging up.

There are many positive signs. For example, the federal government put more than 12 million dollars into a big success story, Cape Breton Castings. And there is also the new Magna Tesma auto parts plant, a facility that has also received federal support.

I'd also like to talk to you today about my strategic vision for my department of Public Works and Government Services Canada. It's a vision of transformative change aimed at improving services, while saving hundreds of millions of dollars….perhaps billions of dollars, over time.

It's a three-part strategy. First, consolidating government procurement. The Government of Canada now spends $13 billion a year on goods and services. However, too many of our buys are one-off, done in isolation and fail to take advantage of economies of scale.

Our goal is to find at least 10 percent savings, or more than a billion dollars a year. Smarter buying should make a huge contribution to the efficiency of government.

Second, there is an opportunity to save money in our real property area, or the office buildings owned by Public Works and Government Services Canada. I'm sure some of you have read in the media about the possible sale of some office buildings. No decision has been made. But we intend to further study this issue and look at other options including the out-sourcing of management and Real Estate Investment Trusts, or REITs.

The fact is something must be done when the private sector on average is 20 percent more efficient in managing office space.

Our cost structure is too high.

Some people fear this proposal could mean less of a federal presence in communities and regions. But let me assure you…nothing will be done to lessen the visibility of the federal government anywhere in this country. I am a product of the regions.

And some of the changes we are considering could possibly give Ottawa more flexibility to shift jobs outside the national capital into the regions.

Fifty two percent of office space is now in Ottawa. In my opinion there is more centralization in Ottawa than necessary when telecommunications and computers have meant the death of distance. I think that's it's a good idea to put public servants closer to the people they serve. There is simply no compelling reason anymore to keep the majority of public servants in the Ottawa-Gatineau area.

The third area is making advances in information technology and moving toward 24/7 services for businesses and average Canadians.

My goal is for Public Works and Government Services Canada to play a key role in the government's larger expenditure review. I am part of the Expenditure Review committee headed by the Honourable John McCallum. It intends to reallocate $12 billion dollars in government spending over the next five years.

That's money that can instead be spent on the priorities of Canadians such as health care, child care, Aboriginals and the environment.

Many people ask why there is an Expenditure Review when the government is in a surplus position. In my opinion, we have the responsibility to eliminate waste and redundancies no matter whether we are in surplus or in a deficit position. Every penny spent should reflect the priorities of Canadians. The choices being made by government are not as hard as those being made by a family of four making just twenty or thirty thousand dollars a year. And if we choose well, we can make the decisions made by those Canadians that much easier.

This Liberal government is committed to delivering on its promises. You will remember that Prime Minister Paul Martin promised a ten-year health deal during the election campaign. And just three months later, that's what he delivered. A 41-billion dollar health package. A package that will mean more than a billion dollars for Nova Scotia.

Premier John Hamm told Newsworld on September 16 that "from a Nova Scotia perspective, this was the most successful First Ministers' meeting I have attended in more than five years as Premier."

I also know one big issue still to be resolved is the new offshore accord for Nova Scotia. I assure you that we are committed to reaching a deal that would give this province more money and fairly deal with the issue of the clawback on offshore revenues. This year Nova Scotia will receive $1.158  billion dollars, almost $100 million more than last year. That works out to about $1,236 per person.

We are now offering Nova Scotia the right to keep 100 percent of its revenues from the offshore without any clawback in equalization.

That situation would continue until Nova Scotia's wealth is $400 higher per capita than the 5-province Canadian standard used to calculate equalization. And the offer comes with an eight-year guarantee.

I know that we have yet to reach a firm agreement but as you know a meeting took place between the premiers of Nova Scotia and Newfoundland on Wednesday.

The premiers came out of that meeting saying there had been a misunderstanding about the issue, and that the get-together had been worthwhile and productive. And Premier Hamm is now expressing "cautious optimism" that a deal can soon be reached that is in the best interests of Nova Scotians. I can tell you that all regions benefit when Nova Scotia and Newfoundland do well.

The federal government is committed to the well-being of this part of the country.

And that's the reason I am here today, to tour the Sydney Tar Ponds first hand and assure Cape Bretoners that we will be moving ahead with a clean-up as soon as possible.

And that clean-up is going to mean hundreds of good jobs as well.

The Speech from the Throne on October 5 reiterated the commitment of the Government of Canada to have clean and healthy communities as they're "in the frontlines in building a better quality of life."

I'm sure you all know that the governments of Canada and of Nova Scotia announced a cost-sharing agreement last spring to proceed with the clean-up of the Tar Ponds and Coke oven sites here in Sydney.

And as a clear signal of our desire to promptly move ahead, we've jointly committed 400 million dollars to the effort, with 280 million of that coming from the federal government.

Since then, my department has gathered a project team to lead the federal involvement in the project. And our partner, the Province of Nova Scotia, has established a dedicated agency to implement the clean-up.

Soon you will be seeing progress. Treasury Board is expected to soon approve funding to move forward with the first phase of Preventative Works for the project.

This will include removal of the Cooling Pond, realignment of the Coke Ovens Brook and relocation of the Whitney Pier Water Line. Construction on these projects should start by the spring of 2005. Construction of the coffer dam should start by the spring of 2006. So rest assured, work will be starting even as the environmental assessment gets underway.

Right now the provincial government is developing the "Project Description": a comprehensive document to give a detailed account of the way the clean-up will unfold from beginning to end over the next 10 years.

The Project Description will then be measured against the requirements of the Canadian Environment Assessment Act to determine the appropriate environmental assessment track for the project.

We must make sure that the choice of a specific environmental track will rest on solid legal ground, in order to guarantee success and avoid unnecessary delays.

During my visit, I have heard loud and clear from Cape Bretoners that they want to move forward and avoid anything that could stall this important project.

I should also note that the federal government wants to ensure the meaningful participation of First Nations in the economic benefits of this project.

We have been conducting discussions with the Membertou and we are now working on guiding principles to make sure the Aboriginal community is involved in the clean-up activity.

I am proud that the federal Public Works and Government Services Canada department is leading the federal involvement in this project.

We have experience and expertise in environmental issues and, at Public Works and Government Services Canada, we get things done.

My department is in the forefront of our attempt to "green" government. Public Works and Government Services Canada has made its own operations 33% more energy efficient since 1990. We reduced greenhouse gas emissions by about 20%. And the federal government is operating 216 fuel-efficient vehicles, believed to be the largest fleet in Canada.

We are encouraging the government-wide purchase of green products. And there are many other initiatives.

For example, by expanding electronic direct deposit we will not only save 86 million dollars this fiscal year, but also spare about 45,000 trees as well. Not bad.

But more to the point, when it comes to an issue such as the Sydney Tar Ponds, we have the ability to deal with large and complex projects. The department is involved in the remediation of contaminated mining sites in the Canadian North. We are working on the clean-up of the former U.S. Naval Base in Argentia, Newfoundland.

Right here in Cape Breton, we are in the third year of a ten-year program to clean up the Devco properties, something that will cost up to $150 million.

Over the past few years, organizations such as NATO and countries such as Sweden and some of the Baltic republics have engaged our management and technical expertise to help them remediate their contaminated sites.

In fact, I'd love to go further and see Public Works and Government Services Canada partner with CIDA and the department of Foreign Affairs to become a leading expert in environmental remediation in contaminated sites throughout the developing world.

So it's obvious that Public Works and Government Services Canada has the right stuff to contribute significantly to the clean-up of the Tar Ponds and Coke Oven sites in partnership with the Government of Nova Scotia. I know many of you are anxious to get this done. And I promise you it will be done. And done as soon as possible.

During my visit today, I have come to realize how Sydney is a community on the move, and that the Cape Breton Regional Municipality is poised to once again be the engine of economic prosperity in this region.

I think Cape Breton will have a bright and prosperous future. And I believe this project will stand as a symbol of the renewed pride the residents of Sydney have in their community. It signals a new sustainable beginning for generations to come.

Thank you.