Question Period Note: Leases and contracts related to the St-Bernard-de-Lacolle Border Crossing

About

Reference number:
PSPC-2022-QP-00022
Date received:
Apr 22, 2022
Organization:
Public Services and Procurement Canada
Name of Minister:
Tassi, Filomena (Hon.)
Title of Minister:
Minister of Public Services and Procurement

Issue/Question:

In 2017, with Public Services and Procurement Canada’s (PSPC) support, the Canada Border Services Agency (CBSA) put in place sole-sourced leases with companies owned by Pierre Guay, due to the location of the property, to help accommodate an increase in asylum seekers at the St-Bernard-de-Lacolle border crossing. When asked by La Presse in a media call received in October 2021, CBSA did not disclose the value of the leases, citing confidentiality reasons. Mr. Guay is characterized in a La Presse article as a supporter of the Liberal Party of Canada.

A number of agreements have been concluded with Mr. Guay (e.g. lease for office space, land lease, contracts for use of the hotel adjacent to the border crossing), and various requests (media and access to information) were made concerning these agreements. As PSPC negotiated the leases on behalf of the CBSA, it responded to the reporter’s queries.

Suggested Response:

  • As the Government of Canada’s central purchasing agent and real property expert, Public Services and Procurement Canada supports federal departments and agencies in their response to those seeking asylum in Canada
    • On behalf of the Canada Border Services Agency, Public Services and Procurement Canada negotiated leases for temporary space to receive refugee claimants and process their claims in Saint-Bernard-de-Lacolle, Quebec
    • Given the location of the property and its proximity to the border, this was an ideal location for this purpose

If Pressed on details of the lease agreement:

  • Generally, Public Services and Procurement Canada is not able to unilaterally disclose certain details of lease agreements given that some information may be commercially confidential

Background:

In March 2017, CBSA mandated PSPC to negotiate a first, sole-sourced lease agreement for office space in a building owned by Importations Guay Ltée in Saint-Bernard-de-Lacolle, Québec. Due to the urgency of the situation, PSPC negotiated directly with the lessor and concluded an agreement for execution by the CBSA. This agreement has been renewed until June 30, 2022. Other agreements, (e.g. lease for office space, land lease, contracts for use of the hotel adjacent to the border crossing), were also concluded with companies owned by Mr. Guay in 2017.

In 2020, the CBSA indicated that they would also like to be able to use the warehouse located on property adjacent to the office to receive refugee claimants. Two new lease agreements were put in place, one running from April 1, 2022, to March 31, 2027, and the second from July 1, 2022, to March 31, 2027. A land lease agreement that terminated March 31, 2022, was also extended until March 31, 2023.

On October 12, 2021, following a news release, CBSA received a media request regarding the value of the agreements between the Government of Canada and Importations Guay Ltée in Saint-Bernard-de-Lacolle. This request was denied on the basis on confidentiality and contractual clauses.

On December 7, 2021, PSPC also received a media request from La Presse requesting the value of the agreements between the Government of Canada and companies owned by Pierre Guay in Saint-Bernard-de-Lacolle. PSPC did not disclose the value of the agreements due to reasons of commercial confidentiality. On December 7, 2021, PSPC also received an access to information request concerning the agreements and all related information, citing a 2004 Federal Appeal Court decision arguing the Department must make the value of the lease public. [Redacted]

On March 10, 2022, PSPC received a media request from La Presse regarding all the leases and contracts that the department has with Mr. Guay's companies. This information has been disclosed, except for the amounts of the contracts.

Additional Information:

None