The RM of Gimli council is changing its procurement policy to buy local and/or Canadian products and services over American goods and services in response to U.S. president Donald Trump’s threats to impose tariffs on all Canadian products sent to the United States and to make Canada America’s 51st state.
Over the past few weeks, Trump signed executive orders to impose a 25 per cent tariff on all Canadian goods and a 10 per cent tariff on energy, scheduled to start March 4, and a further 25 per cent on Canadian steel and aluminum. Trump told reporters last week the steel tariff would be “stacked” on top of the 25 per cent on all goods, thereby making it 50 per cent. That tariff is scheduled to start March 12. Trump is mercurial and erratic, and no one can be certain whether his tariffs will be implemented as promised, whether he’ll delay them or whether he’ll suddsenly introduce new tariffs.
At council’s Feb. 12 regular meeting, councillor Andy Damm introduced a motion to put procurement on council’s agenda, suggesting the RM pivot to purchasing Canadian products and services to help support the country’s economy and to provide a measure of stability for an uncertain economic time ahead.
Council unanimously passed a resolution to support the change to its procurement policy.
“I had asked for a discussion on procurement because I thought it was important that we address this issue at this moment in time. The tariffs that are likely coming will negatively affect everybody,” said Damm a day after the meeting. “As the municipality is the leader of the community, I think it’s incumbent upon us to make sure we support our local businesses and the individuals working in our community.”
The RM had already committed to purchasing a ladder truck for the Gimli Fire Department before Trump’s tariffs and it won’t be able to cancel that contract, he said. The ladder truck was procured though Calgary-based Rocky Mountain, which in turn sourced it though Rosenbauer in the States.
“But going forward, we have other major procurements coming up, such as a pumper truck [for the fire department] that has to be purchased, and we’ve got some issues with one of our graders, which we may have to replace. These larger items are in addition to the products and services the municipality normally procures,” said Damm. “What this means is that RM administration will be putting local, provincial and Canadian products first on our procurement list.”
In terms of services, the RM already has a contract (signed prior to Trump’s threats) with an American-based online portal in which RM of Gimli property owners can apply for a short-term rental licence.
The Express asked the RM whether its contracts for products and services with American suppliers can be cancelled or whether it would have to wait until they expire, as well as requested a rough accounting of how much the RM’s American contracts are worth.
The RM’s manager of community engagement Christine Payne said the municipality will be taking stock of all its contracts and purchases, keeping in mind its legal obligations under trade agreements.
“With the resolution just passed, administration will be reviewing all contracts and purchases and, where possible, prioritizing Canadian goods and services in our procurement practices. This decision reflects our commitment to supporting Canadian businesses, strengthening our local economy and responding proactively to the potential economic impacts of ongoing U.S. trade tariffs,” said Payne.
American tariffs and Canadian countervailing tariffs have the potential to disrupt supply chains, increase prices and negatively impact Canadian industries, she said. But prioritising Canadian products and services could pay off in the long run.
“By updating our procurement bylaws and policies, the RM of Gimli aims to protect local jobs, foster economic resilience and contribute to the stability of our national economy,” she said. “While prioritizing Canadian products, the RM of Gimli remains fully committed to upholding its legal obligations under international and domestic trade agreements, including the Comprehensive Economic and Trade Agreement (CETA), the Canadian Free Trade Agreement (CFTA), and the New West Partnership Trade Agreement (NWPTA).”
Payne said the RM doesn’t have, at this time, information about how much its American contracts are worth.
Analysts and Canadian politicians are warning about rising inflation should Trump impose his tariffs and Canada respond in kind. The cost of food, gasoline and probably everything else will rise, hurting both Canadian and American consumers.
Just how badly the municipality, local businesses and residents could be hit if Trump makes good on his tariff threats is “difficult to gauge” at the moment, said Damm, but he expects it to be “far-reaching.”
Because Canadians are in no position to influence American policy, Damm said we have to use our financial power to effect change and protect ourselves, our communities and the Canadian economy.
“We can’t vote in an American election and change any outcomes, but we can certainly vote with our dollars,” said Damm. “There are many cultures in the world that don’t say a thing when they’re [aggrieved] – they just don’t come back.”
As far as who could support those unduly affected by tariffs, Damm said it’s “everybody’s duty” to support businesses, jobs and people across the nation.
“Support can’t be put on one single entity, such as the provincial or federal governments,” he said. “This requires everybody to stand up at this point and do their best to support our nation.”
Other council news:
- In addition to discussing procurement at its meeting last week, council discussed the new fitness centre that will be built near the Gimli Recreation Centre.
Damm said he has some concerns about fiscal security in relation to the building, which a majority of council had approved last year. The initial price tag was around $950,000, and council had the funds budgeted. But the cost is expected to increase.
“I asked that administration, to the best of their ability, provide not just the cost of what the fitness centre will be, but also to make sure we’re going to be able to fund it fully,” said Damm. “The fitness centre was around $950,000 and we had all the funds secured for it. If that price goes up with inflation and with other requirements for the building, I’m very concerned about our ability to get those funds lined up. I don’t want us to be scrambling to try to finish the fitness centre and finding out we don’t have the funds to do it.”
Councillor Richard Petrowski was the only councillor who voted against approving the fitness centre last year in April, saying there was no professional conceptual plan presented and that money could be better spent on waterline renewal.
He said last week he has reservations about the affordability of the fitness centre.
“I don’t want to burden our ratepayers with another potential multi-million-dollar project at this time,” said Petrowski.
- The RM issued cheques to Chudd’s Chrysler Ltd., mayor Kevin Chudd’s family-owned dealership, for a total of $141,611.50 for a new truck for fire chief Mike Chudd.
Two preliminary cash disbursements were issued in January, one for $134,880.00 on Jan. 24 and another for $6,731.50 on Jan. 29.
The new truck will be used by the fire chief to attend fire calls and other fire department-related business.
“A older-model truck the former fire chief used, which Mike Chudd took over when he became fire chief, was on its last legs at that time. Inevitably, what happened is council ordered a new vehicle for the fire chief and just before we were to take possession of it, the old truck died,” said Damm. “Instead of incurring the cost of repairing it, we accelerated the process of getting the new truck and the additional equipment it needs such as lights bars and identifying decals.”
- The RM posted council members’ indemnities and expenses for 2024 on its website.
As of Dec. 31, 2024, mayor Kevin Chudd was paid $45,725.00 plus $3,135.60 for expenses. Deputy mayor Kurt Reichert was paid $38,015.78 plus 2,238.19 for expenses. Councillor Thora Palson was paid 36,343.80 plus $1,750.31 for expenses. Councillor Richard Petrowski was paid $36,790.62 plus $2,217.49 for expenses. Councillor Andy Damm was paid $35,846.88 plus $3,899.96 for expenses. In total, the RM paid its council $205,963.64.
Differences in pay are attributable to how many meetings, events and so forth councillors participate in and how far they have to drive to the administration building in Gimli from their residences (and back) to attend to municipal matters.
- After working in collaboration with the provincial government to improve safety, the RM announced that speed limits changes on Highway 9 through Sandy Hook, a densely packed subdivision, will be altered.
The summer speed limit of 50 km/h has been extended further north (towards Gimli) beyond Kencaron Crescent. The seasonal speed limit period has also been lengthened to run from the Friday before Victoria Day to the Tuesday after Thanksgiving. The winter speed limit of 90 km/h remains unchanged for the time being, but could change depending on the RM’s evaluation of the impact of its upcoming Master Trails Plan.
