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By Andy Blatchford

New federal rules that threaten to ban companies convicted of crimes from public contracts could kill jobs and hurt the Canadian economy, warns a study conducted for a powerful business group.

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The report lists the potential consequences of Ottawa’s so-called integrity framework, a measure strengthened last spring to disqualify would-be suppliers busted in Canada or abroad for offences such as fraud, bribery and extortion.

The companies would face a 10-year ban, or debarment, from vying for the often-lucrative procurement deals offered through the government’s primary contracting department: Public Works.

But such bans would not only inflict damage on suspended firms, they also risk “far-reaching harm” on Canada’s economy, says the study, commissioned by the Canadian Council of Chief Executives.

The report was one of two research documents the council forwarded to Public Works last week. The department says its officials are reviewing both reports.