Public Works advised…
Power-Up The Value Chains For Canadian Growth!
October 05, 2006

Ottawa, October 5, 2006 -- A Discussion Paper released today by Canada's largest high-tech association urged the federal government to use Public Sector Procurement in a strategic way, to create favourable conditions for the growth of the Canadian economy.

The Paper, "Mastering Global Value Chains -- How Government Procurement Can Spur Canadian Success In An Age of Global Opportunities", advised the Minister of Public Works and Government Services Canada (PWGSC) to use the $18.5-billion it now spends on services and goods to strategically advance Canadian-based firms.

"By stimulating the entry of Canadian companies into strategic 'Global Value Chains', Public Sector Procurement can energize our economy by plugging our companies into the hottest economy the world has seen to-date -- and do so without an increase in government spending," said Terence H. Matthews, Chair, March Networks, and National Spokesperson, CATAAlliance.

"Current Canadian procurement policies have one goal; to efficiently obtain equipment and services," noted John Reid, President of the Canadian Advanced Technology Alliance (CATAAlliance). "While that is important, a second goal, equally important, can be added to procurement: ensure that it is used as a lever to achieve a wider objective -- the development of Canadian industry."

CATAAlliance advises that Canada can painlessly create the conditions that encourage the "attachment" of Canadian-based companies to the vital Global Value Chains, by:

  1. Aligning national procurement to a strategy that requires bidders on government contracts to show how their bid helps Canadian companies enter Global Value Chains; and
  2. Spearheading the creation of industrial teams to approach global Value Chain opportunities with a Canadian solution, following the example of successes such as the Joint Strike Fighter program.

"In a nutshell, CATA's proposal is to rationalize current Public Sector Procurement purchases to strategically strengthen Canadian-based Value Chains," said Mr. Reid. "Based on the way other governments use their purchasing power to develop such Value Chains, CATA urges that the Canadian Government pass appropriate legislation that gives preference in contracts to those companies that can demonstrate the growth and strengthening of Canadian-based Value Chains."

CATAAlliance is stressing the creation of Global Value Chains because they are emerging as the superchargers of business growth in today's international economy. "The world is facing the largest stimulus to economic growth in history," stated Barry Gander, EVP, CATAAlliance. "More countries are industrializing and plugging into the global economy than ever before. It is critical that Canadian companies have every opportunity to become part of the global surge."

Global Value Chain development by PWGSC could help Canada:

  • Increase economic growth within Canada;
  • Simulate key sectors, especially the Small and Medium-sized Enterprises (SME's) that drive so much innovation;
  • Add synergy to overall public sector policies, so that procurement harmonizes with the programs of various other Departments; and
  • Contribute to the strengthening of the ability of Canadian firms to enter the world's Global Value Chains, where today's economic opportunities are being defined around the world.

The CATA Paper also describes ways the other Government Ministries could work together to create a strategic engine for Canadian growth.

CATA, with its partner Access Group, is holding a three-city CEO Summit meeting to investigate best practices in the creation of Global Value Chains, and create practical guidelines for their development. The cities involved are Vancouver, Calgary and Toronto. For further information on the Summit contact Access Group President Taimour Zaman, at: taimour@accessgroup.com.cn

For a copy of the CATAAlliance Paper, CATA Members can contact: Cathi Malette.

For further inquiries contact:
John Reid, President,
CATAAlliance
(613) 236-6550
johnreid@attglobal.net