The House of Commons Standing Committee on Government Operations and Estimates met to study the federal government’s “buy Canada” procurement policy. Witnesses included Michelle Auger (Canadian Federation of Independent Business), Catherine Cobden and John L. Cuddihy (Canadian Steel Producers Association), Stephen Young (Janco Steel Ltd.), Francis Prévost (Canadian Manufacturers & Exporters - Quebec), Nole Coutrouzas (Millwright Regional Council), Igor Delov (Provincial Building and Construction Trades Council of Ontario), and Daniel Cloutier (Unifor).
Michelle Auger said that only 12% of small and medium-sized enterprises (SMEs) currently sell to the federal government, and 51% are unaware of buy Canada opportunities. She recommended debundling contracts, simplifying administrative requirements, and ensuring eligibility focuses on Canadian-owned businesses rather than solely on raw material sourcing. She warned that conditions such as project labour agreements favouring unionized labour would reduce competition and exclude most SMEs, which are 96% non-unionized.
Catherine Cobden stated that the domestic steel industry faces a 60% drop in U.S. exports due to tariffs and needs the buy Canada policy to pivot to the domestic market. She urged comprehensive implementation across all federal departments and transfers, and said the industry has sufficient scale and capacity to meet demand without causing supply shocks or price escalations. She noted that Canadian steel producers share with U.S. producers a common challenge from global overcapacity, mainly from China.
Stephen Young said Janco Steel has already seen increased inquiries requiring Canadian melted-and-poured steel under the policy. He recommended creative dialogue to produce domestically items like engineered sections and beams from Canadian coil and plate, which are not currently made in Canada but could be fabricated here.
Francis Prévost said the policy can strengthen domestic demand and supply chains but must be part of a broader industrial strategy with investment in productivity, innovation, and workforce training. He cautioned against imposing disproportionate administrative burdens on SMEs and said the policy should require a significant and verifiable share of value to remain in Canada, not necessarily 100% Canadian content.
Nole Coutrouzas argued that a true buy Canadian policy must include Canadian skilled trades labour, not just materials. He said foreign workers are brought in through trade agreement loopholes to perform general trades work that Canadian workers are qualified to do, citing the NextStar project in Windsor. He recommended formal consultation with building trades unions before labour market impact assessments are approved, and tying federal funding to use of certified trades and apprentices.
Igor Delov supported the buy Canadian policy but called for a complementary “hire Canadian” campaign to reduce reliance on temporary foreign workers. He said Canada’s training infrastructure is ready, with no shortage of domestic applicants, and that youth unemployment near 15% makes it critical to prioritize Canadian workers on publicly funded projects. He disagreed with any suggestion that skill shortages justify bypassing Canadian labour.
Daniel Cloutier said the Paccar truck assembly plant, the last in Canada, is struggling because public procurement still favours the lowest bidder, often losing contracts by a 1% difference. He warned that if the plant closes, trucks will no longer be manufactured in Canada, and called this part of a broader deindustrialization trend.
The committee did not debate procedural motions or votes during this meeting.
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