Thank you.
The difference in opinion is when we read subsection 37.1(1) and the government's policy on how to record liabilities. It says very clearly, and we give it to you in the attachment:
It is the policy of the Government of Canada to record liabilities to outside organizations and liabilities incurred up to and including March 31 in each fiscal year and to charge them to existing appropriations or provide for them through a central provision for valuation.
Government provided for the $21.8 million through a central provision. We are of the opinion it should have been charged to the appropriation for the Canada Firearms Centre because there was clearly an appropriation that covered the development costs of this program.
The government has brought forward arguments that there wasn't a formal contract in place and because of that it shouldn't be charged, but if you go back to their policy on payables at year-end, it says if there is an existing appropriation, liability should be charged to that. An appropriation was voted by Parliament for the Canada Firearms Centre and the development costs of that system would be included in that.
The whole discussion, quite frankly, about whether there was a contract is a bit moot. We're saying there was a liability and government has now agreed there is a liability.