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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 / c ' onl(lrio r �, 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, �- _ �a ����p'?'`!��4` '��lt� � ch�rr �;tS1. Co-ordinator Office of Procurement Policy trQf I (A Att. t.1C�17�� _LIEF