The Proposed Buy Canadian Act

Day 750, 17:28 Published in Canada New Zealand by SledDog

Last night Jayson V, CSD Congress member from Ontario introduced the a proposal into Congress called "The Buy Canadian Act." This act would require the Canadian government to buy Canadian manufactured goods if the price for such goods is within 5% of the value of a lower priced foreign made product on the open market, provided that none of the 13 original regions of Canada are neither under attack nor occupied. The government will expressly be banned from buying goods from a Canadian based company owned by a person or organization based in a country at war with Canada. There are some slight modifications going on to deal with some expressed concerns.

What does this new bill mean to you?

Well in one sense nothing at all. It doesn't stop you from buying the lowest cost product that's out there. In another sense it could benefit you because, while on the whole Government purchases already give preferential treatment to Canadian goods, the new bill will legislate it. The Canadian Government will be paying Canadian employers instead of foreign employers and taxes from those payments (VAT, Income Tax from workers etc.) will be going to the Canadian government, not a foreign government. Theoretically at least it could mean more revenue for Canadian companies, although as I have said the Government tends to be pretty good about this. One thing it might do is to encourage companies to lower their prices so that they are within the 5% barrier.

So how will this work? Well let's say that the Government needs Moving Tickets and the lowest price for moving tickets is $7.38 from a Latvian company. If the next highest price from a Canadian company is under $7.75, the Government will buy from that Company rather than the Latvian company. Simple as that. And as I mentioned, the provisions of this act are suspended if any of the 13 regions of Canada are under attack or occupied.

While I don't expect this to bill to change much in the way of behaviour - the people in charge of purchasing for the Government are already practicing much of this policy - it is worth having it in writing in the event that the next guy is less attentive to such details.