The federal government is considering a change in the way it buys up to $10 billion worth of goods and services each year and some rural advocates worry that could mean less buying in rural Canada.
Last week, Ontario Liberal MP and former auto industry executive Walt Lastewka delivered a report ordered by prime minister Paul Martin that proposes more centralized decision-making in choosing suppliers to reduce the cost of government purchases.
Public works minister Scott Brison quickly predicted that the policy could reduce the costs of government buying by $1 billion annually.
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“Smarter buying should make a huge contribution to the efficiency of government,” he said in a statement issued from his office in Gatineau, Que. Lastewka is his parliamentary secretary.
The report suggested looking at such changes as creating procurement standards throughout the federal government and stressing economies of scale when choosing suppliers.
But the government member designated by Martin to be the dedicated voice for rural Canada in government debates quickly warned there may be a downside to “smart buying” for rural Canada.
“If this means centralized buying, it could mean that a local office in a small community does not buy supplies locally and that will take money out of the local economy,” said Prince Edward Island MP Wayne Easter. “If a dollar saved by government simply means taking money out of rural Canada, it is not really a saving.”
The public works department has promised a national consultation on the proposed change in procedure, and representatives of rural governments say they will be watching to see if Easter’s warning has substance.
“We haven’t heard much about this yet so we’ll have to see,” said Joe Masi, executive director of the Association of Manitoba Municipalities. “If the result is less spending in small communities by the federal government, that would be a concern.”
At the Federation of Canadian Municipalities representing large and small local governments, policy analyst Mike Buda said it has not yet become an issue for rural members but the potential is troubling.
“Any dollar of spending out of rural Canada would be just one more straw on the camel’s back,” he said. “Even if it’s just a few thousand dollars a year less in buying local products, it could have a big impact in a small town and it is money out of rural Canada that already is hit by BSE, bad harvests, low incomes. We’ll have to watch this.”
