Jim Bronskill, Canadian Press
Published on Wednesday, February 14, 2024 at 4:54 PM ET
OTTAWA – Canadian manufacturers of masks and other equipment to protect against COVID-19 are suing the federal government for more than $5 billion, saying Ottawa misled them about purchasing and helping sell their products. They are seeking compensation for damages.
In a complaint filed in federal court, companies and industry groups allege that the government made “negligent misrepresentations” to encourage investment in innovation, manufacturing and production of personal protective equipment.
The companies and the Personal Protective Equipment Manufacturers Association of Canada allege the government made misleading statements regarding markets, direct support, flexible procurement and long-term support over a three-year period beginning in March 2020.
The federal government will have an opportunity to defend against unproven allegations as the trial progresses.
The emergence of the novel coronavirus disease (COVID-19) in early 2020 prompted governments and public health authorities to implement special measures to prevent the spread of the disease, including lockdowns, mandatory vaccinations, and mandatory mask-wearing. urged to take appropriate measures.
The companies and their organizations argue that their “special relationship” with the government creates a duty of care to small and medium-sized businesses that have quickly stepped up to make protective equipment for Canadians.
“This commitment emanated from the highest levels of the Canadian government and was supported and disseminated through all departments serving plaintiffs,” the complaint states.
The claim alleges that Canada’s misrepresentations resulted in approximately $88 million in investment losses and an additional $5.4 billion in potential market opportunity losses over 10 years.
The government alleges that through an initiative known as the Canadian Industry Mobilization Plan to Fight COVID-19, new funding will be provided to directly help companies quickly scale up production or modernize manufacturing lines. The company is said to have informed the company that the measures will be taken.
However, as of May 2020, despite identifying masks and respirators as critical items in an airborne pandemic and invoking national security exceptions for procurement, the government has not “contracted” Canadian companies. “I wasn’t there,” he claims.
Additionally, the government claims to have told companies in June 2021 that it intended to agree to 10-year contracts with industry associations and companies to compensate for the fact that it was purchasing protective equipment from foreign companies.
In a similar vein, federal officials claimed last September that the government indicated its intention to support Canadian companies in the procurement of national emergency strategic protective equipment.
However, another official later claimed that the government had told companies that it would “not procure masks and ventilators from them” as part of its strategic stockpile.
Despite pledging to support domestic industry, the government has shunned domestic companies and “instead supported foreign competition,” it claims. Meanwhile, the government’s actions denied Canadian companies “fair and equitable access” to the Ontario and Quebec markets and to the Canadian hospital market.
This claim also states that the Canadian government, through guidance from the Public Health Agency of Canada, is discouraging Canadians from purchasing and using N95s and other manufactured masks, and “inducing them to manufacture, purchase and wear cloth masks for at least the first two doses.” “I did,” he claims. – Pandemic period. ”
This report by The Canadian Press was first published Feb. 14, 2024.
