This House of Commons committee meeting on government operations and estimates studied the federal “buy Canadian” policy. Appearing were Dominic Laporte, Levent Ozmutlu and Clinton Lawrence-Whyte from Public Services and Procurement Canada (PSPC), and Martin Krumins, Michelle Kealey and Emilio Franco from the Treasury Board Secretariat (TBS).
Dominic Laporte explained that the buy Canadian policy, in effect since December 2025, has two main components: prioritizing Canadian materials like steel, aluminum and wood in federal procurements, and giving Canadian suppliers a 25% evaluation credit for Canadian content in bids over $25 million. He noted the threshold will drop to $5 million in June 2026, and that the policy has so far applied to over $3 billion in solicitations, resulting in $525 million in contracts. He emphasized the policy aims to drive Canadian content without excluding foreign suppliers, and that PSPC is working with provinces to help them implement similar measures.
Levent Ozmutlu clarified that the 25% Canadian content evaluation is part of determining “best value” in bids, and that mandatory requirements for steel, aluminum and wood apply in construction and defence contracts. He noted the policy allows flexibility in the evaluation weight depending on market conditions, and that compliance is verified through self-attestations with a risk-based audit framework being developed.
Clinton Lawrence-Whyte described efforts to make procurement more accessible for small businesses, including simplifying processes and leveraging digital technologies. He noted that PSPC has engaged with thousands of suppliers and uses a client advisory board to coordinate implementation across departments, ensuring readiness as the policy evolves.
Martin Krumins stated that TBS supports extending the buy Canadian policy to grants and contributions, which cover about $90 billion annually across roughly 800 programs. He said all departments completed assessments by February 2026, identifying about 450 programs in scope, and that implementation is progressing through new funding agreements and renegotiated existing ones. He outlined a compliance monitoring strategy using annual risk and compliance processes, departmental reporting and recipient audits, though he acknowledged the paper burden is significant given an estimated 45,000 projects annually.
Michelle Kealey explained that exceptions to the policy for grants and contributions are allowed where funding is already subscribed, programs are sunsetting, or applying the policy would not make sense, with ministerial approval required. She noted that departments are encouraged to include buy Canadian provisions in funding agreement terms and conditions, and that monitoring requirements are outlined at the drafting stage.
Emilio Franco described TBS’s role in amending the procurement directive and extending the policy to Crown corporations via orders in council, with 35 directed and nine others receiving letters of expectation. He said TBS advises departments on designing requirements to favour Canadian inputs, such as specifying Canadian steel in architectural plans, and that the policy is part of a broader government strategy including the defence industrial strategy.
On procedural matters, the committee agreed to invite the minister to appear at a future meeting, with some members expressing disappointment over the minister’s initial refusal to attend.
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