HomeMy WebLinkAboutTR-42-81 Memorandum
TO: Chairman & Members of the Finance and Administration Committee
FROM: Kathryn Campbell , C.A. , B. Com Deputy - Treasurer
DATE: June 15, 1981
SUBJECT: Ministry of Industry and Tourism - Canadian Preference Policy
ITEM: TR-42-81
Reommendation:
"That implementation of this policy(should only)be considered
for items purchased aboveca certain limit ie) $2,500"
Report:
The present purchasing policies of the Town of Newcastle do not allow us
to easily determine the level of foreign content in our overall purchases.
The majority of our direct suppliers are Canadian firms, but the percentage
of Canadian content held in their inventories, is unknown.
Implemetation of a Canadian peeference policy would necessitate a change in our
tendering procedures. It would be a requirement of the supplier/bidder to
state the percentage of Canadian content in his original tender. Upon
completion of the tendered work, the supplier/bidder would have to provide us
with a certificate of the Canadian content actually used. At that time a
penalty may have to be assessed if the Canadian content falls below an acceptable
level . Since the implementation of this policy may lead to increased levels
of administrative time, the committee should consider instituting a lower
limit, above which this pb1icy would apply. ie. $2,500.
In addition, you will note, the provincial government has a policy of "giving up
to a 10 percent perference for Canadian content of goods and services purchased" .
The adoption of this policy in the Town of Newcastle may lead to higher costs, if
the lowest tender and the required percentage of Canadian content do no coincide.
As a matter of note, the committee recognizes that it has been the policy of the
Region of Durham to obtain most of its long term financing in the United States
where rates are more favourable than in Canada.
K. Campbell .
COMMUNICATIONS U-- I 4c ;eY Iq
Direction
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CnV�i��l�rhlra;s Quncn'S r ark
Ministry of Tladfn ,pronto Toronto
Industry and folvx Ontario Canada
191131; M/A A I
Tourism
965-1809
May 19 , 1981 1 VON!
1
Mr. J.M. Mclllroy
Clerk , Town of Newcastle %}
40 Temperance Street
Bowmanville, Ontario
LlC 3A6
' , I
RE: Canadian Preference Polite
Near Mr. McIllroy:
I
On January 27th, Premier William G. Davis wrote to all
municipalities , school boards, universities, hospitals and
other public bodies strongly urging that they adopt the
Province ' s policy of giving up to 10 per cent preference for
Canadian content of goods and services purchased.
A number of public bodies have already responded to the �
Premier ' s letter by formally adopting the policy. Othars
have requested this Office to provide additional information
as a basis for council or board decisions. On the other_
-hand , we know of situations where , for a variety of reasons ,
the request to adopt the policy has not been brought to
council ' s attention,
rg
The purpose of this letter is twofold. First , to request
that you let us- know where this matter :salads in your
municipality, and second, to offer our assistance to your
council in adopting and implementing the policy.
For your information, I am attaching a copy of the Premier ' s
letter plus a series of questions and answers that we have
developed from our various meetings with public bodies to
this date.
Your early reply to this letter would be appreciated.
r�
/ecut'ive ry tr y, �-
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�a ����p'?'`!��4` '��lt� �
ch�rr �;tS1.
Co-ordinator
Office of Procurement Policy trQf I
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Att. t.1C�17�� _LIEF