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Mr. Kevin Lamoureux (Parliamentary Secretary to the Leader of the Government in the House of Commons, Lib.)

Jun/6/24 10:55:46 a.m.
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Madam Speaker, to the member's point, the government has consistently acknowledged the work that our independent officers do for the House of Commons on behalf of Canadians. Where there is a need, the government has taken to action address the concerns. We continue to wait, and we will ultimately see what takes place. Having said that, I would contrast some of the actions of the current government with those of previous administrations. There was the ETS scandal, which was in excess of $400 million, under the Harper regime, which completely ignored the issue and denied any sort of accountability and transparency. The member can feel free to provide comment on that if he would like.

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Mr. Rick Perkins

Jun/6/24 10:56:42 a.m.
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Madam Speaker, I understand why the parliamentary secretary does not want to talk about the scandal we are debating today. The issue is this: The government claims to have done something, but it was actually the whistle-blowers who exposed this corruption, because the government was not doing its job. Even after receiving word of it, the government did nothing except call for a study. It was the ethics committee, led by a Standing Order 106(4) motion brought forward by our ethics critic, that called for it to be investigated by the Auditor General. The Auditor General's review was done because of the actions of our side, the official opposition, not because of the Liberals, who are continuing to cover up the corruption.

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Mr. Jean-Denis Garon (Mirabel, BQ)

Jun/6/24 10:57:37 a.m.
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Madam Speaker, yesterday, former minister Navdeep Bains appeared before the Standing Committee on Industry and Technology. The Auditor General's report very clearly indicates that the minister at the time had the power to request that Sustainable Development Technology Canada, or SDTC, be audited to see what was happening, so I asked the minister how many audits he had requested. Not only did the former minister not respond, but we know that he did not request any audits. He told us that this was a completely independent fund. What does my colleague think that Minister Bains should have done at the time when allegations of wrongdoing were already circulating in his department?

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Mr. Rick Perkins

Jun/6/24 10:58:16 a.m.
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Madam Speaker, it was an excellent question the member for Mirabel asked at the committee meeting last night. Of course, the automaton, AI-generated vision of former minister Bains just stuck with the process, and the answer, obviously, was zero, because he would not answer it. What former minister Bains could have done in the first place to prevent this was to not appoint corrupt Liberals to the board but to appoint people with ethical approaches to business and to ensure that when he got the monthly reports from the board with respect to the board meetings and what was going on, he did something to stop the corruption with respect to the 186 times the Liberals voted to give themselves money.

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Mr. Brian Masse (Windsor West, NDP)

Jun/6/24 10:59:02 a.m.
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Madam Speaker, a good example of how this type of situation would escape the current process the government has decided on is an interesting point the member has talked about before. Annette Verschuren is a good example of receiving all kinds of money from several different projects, and even from SDTC, but what about the managers who got bonuses to give money to projects that were not even recommended for acceptance? Why are we not getting the money back from those people? They got the bonuses through corruption and malfeasance, and at the expense of the workers whom I have been trying to raise as the real victims in the situation.

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Mr. Rick Perkins

Jun/6/24 10:59:47 a.m.
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Madam Speaker, that is true. Like a lot of things with respect to the government, the management of SDTC was not paid for results but for output, which generated the need for its members to get a bonus when they put money into a project. That was not a great way to go forward. I would say this about the governance structure of the organization, which deteriorated greatly in 2019: When the chair changed the rules with respect to conflict of interest to suit her own benefit, it actually allowed the directors to buy shares in the companies for insider trading three days after the board approved money for those companies. That is how bad the corruption in the organization was under the Liberals.

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Mr. Ryan Turnbull (Parliamentary Secretary to the Deputy Prime Minister and Minister of Finance and to the Minister of Innovation, Science and Industry, Lib.)

Jun/6/24 11:00:44 a.m.
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Madam Speaker, I am pleased to rise today to speak to this motion. I would like to address the substance of the issues raised and present the government's action to address allegations at SDTC and the actions we are taking to restore public trust and restore funding to Canada's world-class clean-tech sector that is helping deliver climate solutions and create the jobs of the future. On Tuesday, we announced that we will transition SDTC programming to the National Research Council to enhance governance and ensure public confidence after recent reviews, including, but not limited to, the report of the Office of the Auditor General, which revealed lapses in SDTC's governance. We take those lapses very seriously. Transitioning SDTC programming to the NRC will ensure continued support for clean technology innovations, which, as we all know, is not only crucial for meeting Canada's climate targets, but is also helping companies scale up and grow, strengthening our economy and creating good jobs. The changes announced will provide continuity and stability for clean-tech companies across the country, ensuring that entrepreneurs can move forward confidently with current projects and SDTC employees have opportunities to continue their work to enable homegrown innovation. I will return to these themes in more detail in a moment. First, let me provide some background on the facts, the specific issues raised, the reaction by the government and the key steps that we are taking. This government expects organizations that receive public funds to be held to the highest standards. When allegations of mismanagement at SDTC first came to light, our government took immediate action to undertake the proper due diligence to understand the facts. These were serious allegations that warranted a careful assessment of all of the evidence. Only with the facts could we then take the appropriate next steps. As the first step, the government engaged an impartial third party, Raymond Chabot Grant Thornton, to undertake a fact-finding exercise. That fact-finding exercise focused on a review of documentation and interviews with key stakeholders related to organizational policies and procedures, program governance and the project approval process. RCGT also interviewed employees, external advisers, senior management, members of SDTC's board and government officials. After receiving this report, we took swift action to freeze any new funding to SDTC and we tasked the organization with a management response and action plan. We also began to work collaboratively with the Office of the Auditor General to support a full and comprehensive audit. Just as the government has high standards for the use of government funds, we expect employees to benefit from a healthy and respectful work environment. Given this, in addition to the RCGT fact-finding exercise, the government took action to address allegations related to human resource practices at SDTC. With SDTC's consent, which was required due to the organization's status as a shared governance corporation at arm's length from Innovation, Science and Economic Development, ISED requested that the Department of Justice appoint McCarthy Tétrault LLP to undertake a fact-finding review of alleged breaches of labour and employment practices and policies at SDTC. Current and former employees were permitted to speak openly and freely to the law firm without violating any applicable settlement agreements or non-disclosure agreements. The report of the review, which the government has made publicly available, concluded that SDTC's leadership did not engage in the type of repetitive, vexatious or major-incident conduct that would constitute harassment, bullying or workplace violence under applicable standards. Now, let me move on to two days ago, on June 4, when the Auditor General, as we all know, released the report of her audit of SDTC. As mentioned, the government welcomed the Auditor General's decision to undertake this audit and fully co-operated with the auditors. The Government of Canada agrees with the findings of the Auditor General's report on SDTC. We acknowledge the areas identified for improving governance, accountability and conflict of interest practices. Several of the recommendations are already being implemented by the organization, such as revising procedures for funding decisions and project oversight, as well as clarifying roles and responsibilities. The government is committed to working with SDTC to implement further measures that uphold transparency and prudent management of public funds. Evidence collected from all of these independent reviews revealed lapses in SDTC's governance. We have never once denied that those are true lapses in its governance. The government listened and, as we saw yesterday, we are taking definitive action. To be clear however, the Auditor General did not report any evidence or suspicion of criminal behaviour. As acknowledged by Ms. Hogan herself before committee on Tuesday, Innovation, Science and Economic Development Canada has reacted quickly and well in response to the findings in the reports. In October 2023, a management response and action plan was developed, which set out action items aimed at improving SDTC's governance, its conflict of interest management and human resource practices; and at enhancing ISED's oversight of SDTC to ensure that the organization is in full compliance with its contribution agreement. A reinforced contribution agreement with SDTC will formalize the enhanced governance practices and oversight measures set out in the MRAP. Of chief importance among amendments and complementary MRAP actions are those that clarify, enhance and standardize SDTC's reporting requirements and processes, which will allow the government greater insight into and oversight of the organization's operations and management of public funds. To help restore confidence in SDTC's management of public funds for the benefit of Canadians, ISED has implemented enhanced standards for disclosure, documentation and management of conflicts of interest. Furthermore, active reporting requirements have been established to track conflict of interest disclosures and recusals. This includes measures specific to SDTC employees, external consultants, senior management and the board. These measures will increase accountability, ensuring that any potential conflicts are managed effectively. They also introduce new requirements for declaring and documenting management of conflicts of interest within the foundation and reporting them to ISED. Collectively, these measures establish stronger governance and oversight of SDTC and will ensure increased transparency, accountability and confidence in the new board's ability to continue delivering benefits to Canadians as the programming transitions to its next phase. Sustainable Development Technology Canada was created over 20 years ago in 2001. Canada's clean technology ecosystem looked very different at that time and was much less mature than it is today. The funding that has been provided since has helped to commercialize many clean technologies, and these projects continue to make valuable contributions to the Canadian economy, and the environment, today. It has been an example of how Liberal leadership in the environment and climate change has always supported economic growth in Canada, helping good companies grow and helping Canada be a leader in the world. The governance model adopted by Parliament at that time in the Canada Foundation for Sustainable Development Technology Act provided for a high degree of independence, but the various reviews I have outlined prompted the government to take a close look at whether the governance structure of SDTC continues to be fit for purpose today. After careful consideration, we determined that a new delivery model for SDTC programming was needed. This is why our government took action by announcing a new delivery approach that includes transitioning SDTC programming and employees to National Research Council Canada. In addition to its proven track record of providing tailored support to Canada's innovative small and medium-sized businesses, the NRC is a Crown agency and is subject to rigorous and stringent oversight of its personnel and finances. This will help rebuild public trust while increasing accountability and transparency in program delivery. This transition will take several months, so the government appointed new SDTC leadership, made up of highly regarded and trusted individuals, to lead the important work ahead to ensure the terms and conditions of ongoing projects are respected, and appropriate employment opportunities for SDTC employees at the NRC are identified, because it is not just about sound governance; it is about people. SDTC's employees have a wealth of experience and knowledge of the clean-tech sector and have been integral in helping Canada's clean-tech companies move from seed to start-up to scale-up. Their transition to the NRC will help ensure that Canada's clean-tech companies will be at the forefront in the fight against climate change by receiving the same type of support to innovate, grow and create well-paying, sustainable jobs. This support will continue with resumed funding for new, eligible projects in a sector vital to our country's economy and clean growth transition. In line with the Auditor General's findings, ISED will enhance oversight and monitoring of funding throughout the transition period. Now, the opposition members do not take climate change seriously. We know that from their many actions and votes against climate change. Conservatives would rather play politics than make sure that Canada's clean-tech sector can keep paving the way for the solutions the world needs. However, we understand that confidence in SDTC must be restored so that these visionary entrepreneurs can receive the funding they need for their businesses. Continuity of support for our clean-tech sector is paramount in the fight against climate change, and to keep growing our economy and keep Canada competitive in a world looking for cleaner solutions. We know that clean-tech companies have felt the impacts of the funding pause as this government took the time it needed to uncover the evidence and identify a robust governance solution. We have done what we set out to do, and we thank the clean-tech sector for its resilience and patience as we shape the way forward. The wheels are in motion at ISED, the NRC and SDTC to make the transfer happen while ensuring continuity for clean-tech projects and SDTC employees. By transitioning the support for clean-technology innovators into the NRC, leveraging its robust governance structure, the government will maintain the strengths of the programming that have benefited Canada's clean-tech companies for over two decades. Going forward, it is crucial that our efforts are focused on supporting Canadian innovators in the clean-tech sector. These companies are generating jobs and developing world-class technologies to respond to the impacts of climate change and build the economy of the future here in Canada.

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Mr. Ryan Williams (Bay of Quinte, CPC)

Jun/6/24 11:13:19 a.m.
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Madam Speaker, the appetite for Canadians for corruption is very low, but specifically, right now, given the fact that the financial burden of Canadians is becoming quite high, this corruption, after nine years of this Liberal government, is just becoming far too much for Canadians. We know that of all the individuals being investigated, we are asking the RCMP to look into this one individual, who may or may not be investigated, as it is very concerning. A former industry minister, Navdeep Baines, appointed the chair of the board. Subsequent members to the board, who he knew at the time, had conflicts of interest and doled out $140 million of taxpayer money where directors voted 186 times in instances with conflicts of interest. However, more concerning to Canadians with the burden of the cost of living is that this minister got a million-dollar job with Rogers Communication at a time when he promised cellphone bills would be down 25%, and this government subsequently promised 50%. Rogers has posted its best profit ever off the backs of Canadians. Canadians demand an answer. Why was this appropriate for this government to treat this individual and others this way and for the further corruption coming from this story and others?

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Mr. Ryan Turnbull

Jun/6/24 11:14:33 a.m.
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Madam Speaker, again, from day one, when we learned of the allegations of mismanagement, our government has consistently taken steps forward to address the issues that surfaced, and I have outlined that very clearly in my speech. Our government has taken action time and time again to collect the facts. We have never denied the fact that these allegations are serious and that there are breaches to specific governance standards that we all think we need to uphold. We are doing the work. We are now relaunching SDTC with a new governance model that will have the accountability, transparency and oversight that I think we all agree is needed.

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Mr. Sébastien Lemire (Abitibi—Témiscamingue, BQ)

Jun/6/24 11:15:25 a.m.
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Madam Speaker, towards the end of his speech, the parliamentary secretary raised a couple of interesting points, namely the consequences these measures will have and the relentlessness of the Conservatives, who, as we know, are largely funded by oil companies. He was talking about the consequences this relentlessness had on Sustainable Development Technology Canada, which invests massively in green funds, technological innovation and small and medium-sized businesses that will contribute to the energy transition and the economy of tomorrow. I would like to ask the government representative what he thinks of this strategy. More importantly, what does the government intend to do to ensure that investment in these SMEs continues? After all, they depend on investment to be able to take their technologies to the next level. They have been neglected for just over a year now. These SMEs have no governance or ethical problems, but they are victims of these political strategies.

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Mr. Ryan Turnbull

Jun/6/24 11:16:19 a.m.
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Madam Speaker, part of my reason for getting into politics was to support small and medium-sized enterprises in this country and ensure that we unlock capital and investment to scale up the innovative solutions that entrepreneurs and small business owners are developing, so we can meet the challenges of today and tomorrow, one of the challenges obviously being climate change. I cannot tell members how committed we in the government are. There is a heartfelt commitment to ensuring that small businesses can access the capital and support they need. Obviously, SDTC has played a pivotal role in that. We got a letter from Canada Cleantech that said, “Canada has consistently outperformed in the cleantech sector relative to its size, partly due to the support of SDTC as a funding source for early-stage technologies.” That is just one example. That is why we feel it is so important to get SDTC back up and running under a new governance framework.

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Mr. Brad Redekopp

Jun/6/24 11:17:31 a.m.
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Madam Speaker, I am rising to address the point of order raised earlier today by the member for Winnipeg Centre. I wish to apologize—

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The Assistant Deputy Speaker (Mrs. Carol Hughes)

Jun/6/24 11:17:41 a.m.
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The point of order was set aside, if I remember correctly. I will allow the hon. member to continue, but I would ask him to indicate which standing order he is rising on.

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Mr. Brad Redekopp

Jun/6/24 11:18:13 a.m.
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Madam Speaker, I would like to advise the House that I misspoke one word when I read my speech on Tuesday night.

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The Assistant Deputy Speaker (Mrs. Carol Hughes)

Jun/6/24 11:18:20 a.m.
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I will listen to it, but if it becomes a point of debate, I will let the member know. I am hoping that it will be on a point of order from the Standing Orders. The hon. member for Saskatoon West.

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Mr. Brad Redekopp

Jun/6/24 11:18:28 a.m.
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Re: Bill C-20

Madam Speaker, I wish to apologize to the member, to the House and anyone else I may have offended. Specifically, the member referenced a speech that I gave in the House Tuesday night on Bill C-20. In a quote she read from my speech, I said the following, “One of the interesting things in that particular incident was that the perpetrator, Myles Sanderson, had a history of violent offences and had been recently released on parole, despite the prediction by the parole board that he was likely to reoffend because of his racial background.” I misspoke when I used the word “because”. I meant to say “regardless”. This was caught immediately and when the blues came out, the preliminary version of Hansard, we requested to change the word “because” to “regardless”. That change was accepted and published in Hansard officially. Once again, I apologize for misspeaking. I never meant to offend anyone. I never meant to cast any aspersions on anyone because of race.

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The Assistant Deputy Speaker (Mrs. Carol Hughes)

Jun/6/24 11:19:18 a.m.
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That was a point of order. The hon. member for Winnipeg Centre.

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Ms. Leah Gazan

Jun/6/24 11:19:25 a.m.
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Madam Speaker, in terms of the blues, we are allowed to change things, but the change by the member entirely takes away what was said in the House. The edit made to the blues changed it entirely. Changing the record from “because of his racial background” to “regardless of his racial background” might seem like a small change, but it fundamentally alters the meaning of what was said. The former links criminality to one's race and the latter is not connected to race. That is—

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The Assistant Deputy Speaker (Mrs. Carol Hughes)

Jun/6/24 11:20:19 a.m.
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The hon. member for Saskatoon West has apologized. I would ask the member for Winnipeg Centre to speak to the Clerk to find out if that is more a question of privilege. It seems to me that it is more of a point of debate at this point in trying to expand on the point of order that the hon. member just brought forward again. I am not sure if it is a question of privilege as opposed to a point of order. It seems to be debate. The hon. member for Saskatoon West did apologize. The hon. member for Winnipeg Centre.

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Ms. Leah Gazan

Jun/6/24 11:21:11 a.m.
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Madam Speaker, the member did not really apologize. He gave the reason he changed the word. He is not taking responsibility— Some hon. members: Oh, oh!

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Apologize

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