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Decentralized Democracy

House Hansard - 326

44th Parl. 1st Sess.
June 6, 2024 10:00AM
  • Jun/6/24 10:29:46 a.m.
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moved: That the House order the government, Sustainable Development Technology Canada (SDTC) and the Auditor General of Canada each to deposit with the Law Clerk and Parliamentary Counsel, within 14 days of the adoption of this order, the following documents, created or dated since January 1, 2017, which are in its or her possession, custody or control: (a) all files, documents, briefing notes, memoranda, e-mails or any other correspondence exchanged among government officials regarding SDTC; (b) contribution and funding agreements to which SDTC is a party; (c) records detailing financial information of companies in which past or present directors or officers of SDTC had ownership, management or other financial interests; (d) SDTC conflict of interest declarations; (e) minutes of SDTC's Board of Directors and Project Review Committee; and (f) all briefing notes, memoranda, e-mails or any other correspondence exchanged between SDTC directors and SDTC management; provided that, (g) the Law Clerk and Parliamentary Counsel shall promptly thereafter notify the Speaker whether each entity produced documents as ordered, and the Speaker, in turn, shall forthwith inform the House of the notice of the Law Clerk and Parliamentary Counsel but, if the House stands adjourned, the Speaker shall lay the notice upon the table pursuant to Standing Order 32(1); and (h) the Law Clerk and Parliamentary Counsel shall provide forthwith any documents received by him, pursuant to this order, to the Royal Canadian Mounted Police for its independent determination of whether to investigate potential offences under the Criminal Code or any other act of Parliament. He said: Mr. Speaker, after nine years, it is clear that the NDP-Liberal government is not worth the cost or the corruption. The Auditor General delivered a shocking report this week that outlined a history of wasted money, conflicts of interest, and possible illegal and criminal activity in funnelling taxpayer funds to Liberal-friendly board appointees' own companies. Let me just set the context. Right now, Canadians are living through complete misery. Government-caused inflation leading to high interest rates means that Canadians are hit with a brutal double whammy of not only having to pay higher prices at the store but also higher interest payments on their debt, everything from lines of credit to mortgages. They are paying more for the goods they buy and for the money they owe. This comes after the Prime Minister promised Canadians that interest rates would stay low for a very long time. The Prime Minister also promised Canadians that he was going to go into debt so they did not have to. It is cold comfort now for the hundreds of thousands of Canadians who are facing default on their mortgages, as those rates keep rising, pushing people out of the homes that they have lived in for years. In many cases, there are tragic stories of people moving back in with their parents because they have lost the ability to stay in their house. This is all caused by wasteful government spending, pushing up prices and forcing the Bank of Canada to raise interest rates at the fastest pace in Canadian history to combat that inflation. The government will tell us that it is not its fault. The Prime Minister loves to spread blame around. He is always looking for people to pin responsibility on, anyone other than himself. The Liberals say ridiculous things like there is global inflation, as if inflation was kind of like the weather, where we might have a warm front move in off the gulf and we might have some pesky inflation plaguing Canadians. Inflation is always and everywhere a monetary problem. It is always caused when governments print money that they do not have out of thin air, flooding the economy with brand new cash without any growth in economic activity to justify that expansion of the money supply. When the Conservatives point that out to the Liberals, they say that, in fairness, Canada was going through a pandemic and that they had to spend all this money to keep Canadians safe. The Parliamentary Budget Officer found that 40% of all that extra spending had nothing to do with the pandemic. Now, slowly but surely, we are learning what actually happened. The Liberals used the excuse of a pandemic to line the pockets of their friends and waste taxpayer money, not only during that critical period of the pandemic but also in the years that have followed. When Canadians are begging the government to get inflation and interest rates under control, the government keeps borrowing billions and billions to spend, spend, spend, not benefiting Canadians but lining the pockets of its friends. I have so much to say that I do not think I am going to fit it all into my slot, so I am going to share my time with the hon. member for South Shore—St. Margarets, Madam Speaker. I know that he has been working hard on this file. He is one of the members of Parliament who rolled up his sleeves and pored through documents, vigilantly looking for waste of taxpayer money. On this side of the House, we know that Canadians work so hard for the money they earn. The least they can expect is a government that respects the value of that hard work and their tax dollars. I will run through a few of the greatest hits of Liberal corruption during the pandemic. We will remember the time the Prime Minister tried to funnel a billion dollars to his friends at the WE organization, an organization that had paid members of his own family hundreds of thousands of dollars in speaking fees. We will remember former Liberal MP, Frank Baylis, who suddenly, without having experience in the field, developed a medical fabrication company that did not actually produce anything, getting sole-sourced contracts from the government. In the past few months, we have learned more and more about the arrive scam app, where the government ballooned costs for IT services without any accountability or oversight of where that money was going. It is clear that the Liberals use crises and attempts to fulfill noble causes to hide the corruption that they have become so famous for, and now we have an example. The Liberals talk about the crisis that Canadians are facing. They try to justify all their wasteful spending and all their massive tax hikes on the backs of existential threats coming from climate change. However, now we know that their efforts to improve the environment have nothing to do with lowering emissions, but everything to do with doling out cash to people who have supported the Liberal Party in a very real way. Let us look at what the Auditor General found: $76 million in taxpayer money was paid out in direct conflict of interest. That means there were people on the board, people who made the decisions about where the money would go, who should have recused themselves because they had a financial interest in some of the companies that would get contracts. In fact, the Auditor General found, and through investigations at committee we also found, that there were government representatives in almost all the board meetings when these decisions were being made. There cannot be any excuse the government has that this corruption was happening in some kind of arm's length way. They were in the room when they were being warned there were conflicts of interest. They were in the room when the decisions were made. They were in the room when they found out the companies getting the contracts were at least partially owned, if not entirely owned, by members of the board themselves. For Canadians who are following this story, basically what the government did was with respect to an existing agency, SDTC, which, by the way, had been fulfilling all its governance requirements up until 2017. Then something peculiar happened. Former minister Navdeep Bains did not like something that the chair of that board said, something about protecting the privacy of Canadians. That rubbed Navdeep Bains the wrong way, so he fired that chair and he appointed one who would be much more co-operative with the Liberal government. That is when the problems started. The chronology is stark. When he was minister, Navdeep Bains went on to appoint another five controversial board members who engaged in unethical and illegal behaviour by approving funding to companies in which they held ownership or held seats on the board. There are examples of those officials sitting on the board as observers witnessed 96 conflicts of interest, but the officials did not intervene. We have examples from the Auditor General's report of $59 million being paid out to projects that did not qualify. I want to read what the Auditor General said about that. She said, “These projects were ineligible for funding because, for example, they did not support the development or demonstration of a new technology.” The entire point of this agency, the entire point of this funding mechanism, was to incubate, to find potential technologies that might help reduce emissions and clean up particulate matter from the air. The whole purpose was that the agency would grant some of the funds to scale-up some of these innovative technologies. What the Auditor General is saying is that in the agency's own project applications, there is no proof that there would be any benefit to the environment, not that it had tried and failed, not that it hoped that some new technology would work and despite its best efforts it was not fruitful. That happens all the time in the world of scientific innovation and inventions. People take ideas, they test them and sometimes they do not work. They learn from that and they go on to the next thing. In this situation, the applications themselves could not even point to any environmental benefit. There were $6 million charged to taxpayers for projects that were not even built; over $123 million in misappropriated funds; and as I mentioned, over 180 conflicts of interest with the funds. Here we have an example of Canadians suffering through one of the biggest cost of living crises since the Great Depression. Mothers are watering down milk to feed their children; people are moving back in with their parents; and single moms are working two, maybe even three jobs just to tread water, not with any hope of getting ahead but of just keeping a roof over themselves and their family. While all this is happening, while the Prime Minister is claiming that every single penny he needs to scoop out of the pockets of taxpayers must go to all this spending, we find out that hundreds of millions of dollars were wasted, that there were massive conflicts of interest and that we have another example of Liberal corruption, where the Liberals reward their friends instead of respecting taxpayer dollars. That is why this motion is so important, so we can get all the information handed to the RCMP, because this is so serious we believe this warrants a police investigation.
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  • 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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  • 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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  • 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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  • Jun/6/24 11:22:05 a.m.
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Madam Speaker, one thing that is concerning about this situation is that the government knew about the problems with the workforce at SDTC. Now it is proposing another model, moving it under another government department, which would have more direct oversight. What is the point if SDTC management and board members who abuse the staff and the process are still part of it? How many of these individuals has the government rooted out to stop them from joining the recovery process and the justice necessary for the workers who remain there? I asked the government to offer other jobs to the SDTC whistle-blowers and it refused, leaving them in a lurch until right now. What is the government going to do to ensure it is a safe workplace?
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  • Jun/6/24 11:23:01 a.m.
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Madam Speaker, we too feel it is very important to preserve a healthy work environment for the employees of SDTC. After all, they are not the ones at fault here. To the member's point, the board is no longer and will be reconstituted with new members under the new governance framework. As I said in my speech, employees who have worked at SDTC will be given opportunities within the new structure to have meaningful employment and to apply their skills and expertise in a way that benefits the clean-tech sector across Canada, which, to me, makes a lot of sense.
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  • Jun/6/24 11:26:54 a.m.
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Madam Speaker, I think the hon. member's question is a good-faith question. It is exactly what we hope to see. This organization has a legacy of really great strategic work in helping finance, seed and scale up financing for some of our most promising clean-tech entrepreneurs. To see that work continue is really where our commitment is. Obviously, we need to address the governance issues that have surfaced and the practices that have been lacking. I agree with her that the hope is that we can do that, under the National Research Council, in a way that gives a lot more oversight to the federal government. I think that is what is really needed in this case. I share her concern and her commitment to ensuring that we restore SDTC to its previous and most effective model.
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  • Jun/6/24 11:39:38 a.m.
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Madam Speaker, I would say that it is too little, too late. In paragraph 6.52 of the report, the Auditor General says, “We found that the department knew of 96 cases when directors declared conflicts of interest because it had access to the meeting minutes and materials of the board of directors.” The department had access to all kinds of documents. It never asked questions about ineligible projects or about recovering funds from those projects. The department simply did not deal with what was happening at Sustainable Development Technology Canada, or SDTC. What a crying shame that it is now getting rid of SDTC altogether without a plan B.
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  • Jun/6/24 11:41:07 a.m.
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Madam Speaker, first of all, the Liberal government did not do enough in recent years to monitor what was going on. It sent money, but it did nothing to monitor what was being used and what was being done with that money. Second, suggesting that getting rid of SDTC will fix everything is absolutely ridiculous. It is absolutely ridiculous to suggest that eliminating a fund and transferring the money and the employees to the National Research Council will fix everything. These are the same employees. What is more, the eligibility criteria for projects to get funding remain unclear. What is going to happen? We do not know.
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  • Jun/6/24 11:51:30 a.m.
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Madam Speaker, earlier today, we had a Liberal member stand up and say that the government has done what it set out to do. When one looks at 186 breaches of conflict of interest in SDTC alone, the government definitely set out to do what it wanted to do, which was to reward Liberal friends with hundreds of millions of taxpayer dollars. Does my colleague see that particular issue as well with the current government?
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  • Jun/6/24 11:53:01 a.m.
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Madam Speaker, it is important to recognize that SDTC was an arm's-length organization from the government. When it was brought to the attention of the government, immediate actions were in fact taken. Ultimately, today, it has now been given over to NRC to ensure that we can continue to deal with things that are affecting our water, energy and agricultural communities, and to make sure that the good work being done is allowed to continue while we continue to address what the auditor referenced this week. Would the member not agree that having NRC take over is the responsible thing to do? Through NRC, it would be more direct, in terms of the government because it is a Crown corporation.
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  • Jun/6/24 11:53:56 a.m.
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Madam Speaker, the problem is that we never should have reached this point. It was said earlier. Minister Navdeep Bains was informed, and he did nothing. He did not request an audit. Shutting down SDTC is the nuclear option. It might have been better to do things differently. We know this type of program is the product of the government's obvious desire to create a fiscal imbalance, stop funding the provinces and keep their money in an effort to prove that the federal government is the one that gets things done. The federal government is the one that creates agencies, gives funding and grants subsidies. Quebec, however, had Transition énergétique Québec, which, incidentally, operated in partnership with SDTC. It could manage such a fund. Since Quebec is a leader in developing sustainable technologies, I put the suggestion out there.
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  • Jun/6/24 11:56:10 a.m.
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Madam Speaker, I will be splitting my time with the member for Edmonton Griesbach. This issue is serious. New Democrats will support this motion. We have supported shedding more light on this because we believe in the support of sustainable technology, but it has to be done with accountability and it has to be done with a process that builds public confidence. This motion would provide a clearer path of where we need to go because the Liberals continue to be in some type of spin cycle that they cannot get out of and will continue to be in until there is actually justice on this file. SDTC was created under Jean Chrétien's government. It has survived all the way through successive Liberal and Conservative governments over this period of time and, most recently, it has poked its head out again because the workers brought forth the erosion of a good program and some good investments that were costing Canadians. What is important to recognize, too, is that all the other competition that was going on for money in SDTC, which is 100% publicly funded, was lost because corrupt and poor decision-making processes, political interference and intimidation sent money to projects that should not have been supported. By the organization's own internal investigations, which are now shedding more light, it probably had political favouritism involved at the very least. That is unfortunate because all those other companies, investment strategies, programs and services are now cast in doubt. To this day, we have not recovered a single cent from all that money that went out there. The practices got so bad that during the pandemic the government just decided it was going to give everybody a 5% raise because it could not bother to go through the files. The government gave up and decided to just give everybody 5% more across the board in funding. On top of that, there was also 10% more for some select companies and, surprise, surprise, familiar names have popped up and political connections have popped up. There still has not been a word from the government about what it is going to do about that. During that process, some managers were getting bonuses. They should have declared a conflict of interest. Some managers would get their packages, would go into the boardroom and would know it was all on the table there. They would leave for a moment and then they would come right back into the same room. They would do that over and over. What was awful was that there was a direct connection to the minister's office because we had a public servant staffer in there. During all that decision-making process, all that camaraderie and all that time at the board table, there was no information apparently brought back to the minister; nor recognition at a time when we had not one, not two, but now three reports about how poorly it operated, about how poor the decision-making process was and about the culture of racism and sexism. An attack on French workers as well was noted in terms of the whistle-blowers. Some people lost their jobs and they had to sign non-disclosure agreements just to get out of there so they and their families could be protected. I had an amendment that I wanted to propose today that would call on the government to apologize. Neither the government nor the minister nor anybody has apologized to these workers and their families for the stress that they went through every day having to go into a toxic workplace, being pressed to hand out government money to people it should not have gone to, and being maligned in the public as SDTC spokespeople defended the organization and the culture there at the expense of the whistle-blowers. I had a motion that was ruled out of order because of the document requirement. Part of this motion is different from what I was proposing, so we will look for another way to have the government to at least say sorry. How sad is it that I had to come here today to get the government to say sorry to the whistle-blowers? I want to go back for a second. Let us recognize what has happened here. The government created SDTC at so-called arm's length because then the workers were not unionized and it had fewer supports and structures for workers and their families. I asked the government if it would at least, in all these months of investigations and circuses, allow those employees to get out of this toxic environment and have another public service job, but no, the government could not even do that. It could not even do that for the remaining people who have held the line and done the right things. We still do not know who is going to be migrated over to the other agency. They do have an association, so there will be better rights there. I do not know the full story right now, and we do not even know if that is what they wanted. Perhaps some of them still wanted to go somewhere else and start a new chapter, doing the right thing. We should have at least provided the choice for them. The government has not done that, and part of that is because of its insincerity in protecting workers. The government's recent decision on anti-scab legislation does not mean it has changed its culture against workers. I asked that there be an independent evaluation to determine whether managers and people in authority, including board members, should keep their positions and be migrated. That is a fair thing, because there are probably some good people in there who do not need to be blanketed as part of the problem of workplace bullying. We had the Raymond Chabot Grant Thornton report, the confidential report of the special committee and the Osler report. The Privy Council Office got a report, and now we have the Auditor General's report, all because a number of people raised issues about people like Annette Verschuren and others who were in conflict of interest in deciding where money should go and where it should not go. This is the biggest part of this that we want to fix, if we are going to have the confidence of the public for doing work for sustainable technology. I asked my colleague where the Liberals are on this, so let us get an idea here. The Liberals continue to leave all these people on their own. They cannot say sorry, but they had enough energy to buy a pipeline and manage the politics of a pipeline, at 37 times the cost and with less accountability. They are putting that on the shoulders of the workers to whom they still cannot even say they are sorry. An interesting thing has come about in this culture that still exists under Liberals. I recently got a document. As we are looking at a potential strike and border closure, here is what the departments under the governance of the President of the Treasury Board and Minister of Public Safety should know about. Their management plan right now to deal with our customs officers on the front line is an email that went out to their staff and to the unionized workers saying: As stress and anxiety rise with the pending strike deadline of Friday, June 7th, 2024 16:00EST, we wanted to send out some clarifying information to our team. Some officers across the county have received letters deeming their positions “essential”. In essence, this means that they are to report to work for duty (our team) despite being in a legal strike position. These determinations were made with PSAC and TB collaboration. For those officers who did not receive notification and therefore were not deemed “essential”, you have the choice to either participate in the legal strike actions or continue to report to your current work (our team). Whatever decision each team member makes will be respected and kept private. We will not be disclosing who was deemed essential and who was not. We will continue to support each other and continue to ensure our team is a healthy, supportive team, free of any harassment. Should any team members who were not deemed “essential” decide to continue to report to work, please PRIVATELY email me...as such reporting will be recorded to ensure those who reported are continued to be paid. This attempts to bring in scabs and break the union. Right now, our border could be closed for the economy and is being compromised for safety. The President of the Treasury Board has a recommendation to treat these workers like every other border officer and every other public safety officer by giving them the “25 years and out” and also ensuring the workplace is safe for all of us. Shame on the Liberals for the continuing practices of their management and for not caring about the workers who actually fight for Canadians every single day.
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  • Jun/6/24 12:36:11 p.m.
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Madam Speaker, putting the SDTC issue aside, over the last 20 years, it has provided all sorts of opportunities for companies across the country. It has provided opportunities for start-ups wanting to expand, created green jobs and allowed Canadian companies to be leaders in the world in technology. We recognized it was important to dissolve the board and transfer it to the NRC. Does the member have any thoughts with regard to NRC taking over the responsibilities to ensure that we can continue to provide the funds that are necessary for our environment?
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  • Jun/6/24 12:37:04 p.m.
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Madam Speaker, in terms of the first part of the member's question, the big scandal here is that the government has let down small businesses and the innovative sector in Canada. The government has discredited start-ups in this country that legitimately rely on SDTC to bring their technologies to market and commercialize new and innovative technologies that will protect the government. Today we see a clear case of administrative injustice at a level we have not seen very often in the history of our country. The Auditor General's report is like nothing I have ever read. There is case upon case of the government clearly allowing conflicts of interest and for insiders to have money in their pockets at the expense of Canadian companies, which deserve so much more.
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  • Jun/6/24 1:14:22 p.m.
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Madam Speaker, first of all, SDTC is and was an organization at arm's length from the government. Whatever lapses there were in governance were pointed out. I did also read the Auditor General's report. If contribution agreements were signed between parties that did not meet the bar of certain thresholds, they have been identified. I wish to thank the Auditor General for their work. There needs to be transparency and accountability. The conflict commissioner is investigating on that part. Again, this entity, SDTC, has existed for 20 years and has funded 500 companies in the Canadian clean-tech sector. We need to look at the entire picture, but I do very much appreciate the Auditor General's work, all of the organization's work over the years and the reports issued to date.
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  • Jun/6/24 1:17:15 p.m.
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Madam Speaker, I wish to thank the hon. member for Nunavut for her advocacy for the issues in northern Canada and her riding. The Minister of Innovation, Science and Technology took concrete steps immediately when the situation arose, in terms of acting and putting in force measures to stop SDTC from any more contributions or signing contribution agreements. As for the decisions, in terms of moving SDTC to within NRC Canada and combining it with the industrial research assistance program, in 2026-27, the new Canadian innovation corporation, I believe it is called, the Minister of Innovation, Science and Technology has acted swiftly, prudently and effectively.
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  • Jun/6/24 1:44:59 p.m.
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Madam Speaker, it is important for us to recognize that the SDTC has been around for over 20 years, and it is an arm's-length foundation. When the issue became live, we had a government that proactively took actions that ultimately, I would suggest, even led to the Auditor General's report. We have taken tangible actions, such as the freezing of new funding and now replacing the board. I would like to think that the Conservative Party would in fact recognize, at the very least, that as an arm's-length foundation, we have even taken tangible actions to date so we can ensure that sustainable development and technology in Canada continues to grow and continue to receive funds. Could the hon. member indicate whether he supports the change in governance to the NRC?
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  • Jun/6/24 3:24:43 p.m.
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Mr. Speaker, it is interesting, as the Conservatives try to portray a false image that the government has not been acting. Nothing could be further from the truth, when one takes a look at SDTC and the fact that it is an arm's-length foundation that has been there for over 20 years now. When the government did discover what had taken place, a number of initiatives to rectify the problem were also initiated by the government, which ultimately led to the Auditor General doing the report that we have today. The board is no longer in existence, as it is in a transition to the NRC. I am wondering if the member could provide his thoughts on what he believes the NRC is going to be able to do in order to keep the program moving forward.
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  • Jun/6/24 3:26:35 p.m.
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Mr. Speaker, the Liberals are definitely fighting against having this motion carried and having the production of papers. There are $123 million that the Auditor General has identified that did not follow the rules under the conflict of interest declarations. The SDTC actually continued to use funds to benefit themselves and their friends, and the Liberals stuffed this board with their colleagues. We are talking about patronage, and we are talking about pork-barrelling. Are the Liberals voting against this because it is another Liberal cover-up? Is it Liberal incompetence? Is it Liberal corruption? Is it Liberal complicity in what could be under an RCMP investigation that ends in charges under the Criminal Code? Is it all of the above?
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