The House resumed consideration of the motion.
:
Mr. Speaker, I actually do not mind addressing the House on this particular issue, but I thought I would start off in the same manner in which the former leader of the Conservative Party, today's , did. I can understand why he wanted to talk about the economy, interest rates, inflation rates and concerns that he had with the government on those issues. Before he actually got to the motion itself, he spent probably about 50% of his time talking about that issue.
I like to think that the member has some valid points in some of the things that he was saying in terms of concerns that Canadians have in regard to some of those key indicators, and that is why I thought that maybe, given that the former leader of the Conservative Party started the debate talking about the economy, I would participate by sharing some thoughts, some actual facts, on that issue.
Yesterday was actually a very good day in Canada. Yesterday, the Governor of the Bank of Canada actually reduced interest rates. We are the first country in the G7 to actually see a reduction in the interest rate. That is good news, and I want to reinforce that to members opposite. This will be the first reduction in four years, and we have to put it into the context of what is happening around the world.
When we take a look at interest rates and inflation rates around the world, Canada is doing relatively well, especially if we compare our economy, interest rates and inflation rates to other G7 and G20 countries. Canada is doing quite well, and yesterday, with the announcement from the Governor of the Bank of Canada, we actually saw a decrease. Canada is the first country in the G7 to do so.
I address that point to my friend, the Conservative House leader, who started off by talking about concerns regarding interest rates. I thought that was some good news, and I wanted to share that with the member opposite.
Now let us talk about the motion that we have today. If we take a look at Sustainable Development and Technology Canada, better known as SDTC, which has been referred to throughout the day, I believe it is important that we highlight the fact that SDTC has been around for over 20 years. That is a very important fact. Next to that, we need to recognize that it is actually an arm's-length foundation, meaning that it has a very independent nature.
When we think of the board that members continuously make reference to, the Government of Canada does not appoint all the board members. We are not solely appointing the entirety of the board members to SDTC, and I think that is another very important thing to realize.
When we think in terms of what SDTC has done over the last 20 years, it is important that we reflect on the hundreds of projects that have been initiated, and as a direct result of that initiation, Canada has done relatively well on a number of fronts. When I think of Sustainable Development Technology Canada over the years, I think of quality air, clean water, enriched soil and the type of technology that needs to be developed in order to provide that quality, as well as to look at environmental initiatives that will have an impact not only here in Canada, but around the world.
As an arm's-length foundation, many of the investments have allowed Canadian companies not only to create jobs in Canada, not only to ensure that we have a healthier environment, but also to lead the world in many areas, and so we are contributing to technological advancements around the world through SDTC.
When we think of how the government provides funds to support Canadian companies that have the potential to be world leaders in technology, as a political entity, the Liberal Party has valued and recognized the importance of the government being involved indirectly, which is why it is in support of the foundation. The foundation, as I pointed out, was created 20 years ago. Obviously, it has survived a good number of years, even under Stephen Harper. We recognize the fact that the foundation continued to receive support. I suspect, with the millions of dollars that it has received over the years, that many of those Canadian-based companies, and the fine work they have done in terms of the advancement of technology, have contributed in many different ways, not only here, but abroad.
If we look at some of the companies that have benefited by it, three things come to my mind. I think of water, whether it is water treatment or whatever it might be. I think of energy with Manitoba and Quebec, two provinces that have so much development in hydro. There is so much potential in that industry and Canada, on many fronts, leads the way, because, in good part, of agencies such as SDTC, along with other levels of government and their investments or the national government's investments. When I think of water, energy and agriculture, all one really needs to do is take a look at the last few years to see how those three items come to the top of mind for me personally and why I believe it was important that the government take action on the issue.
Let us put it in perspective in terms of what has actually taken place. There were concerns raised a couple years back in regards to how SDTC was being governed, and employees and others had legitimate concerns. That was brought to the attention of the government. The government intentionally chose to look into the matter with not one, but two internal-type reviews, one being an external third party from within the department. An assessment was done and that report came out last fall. The government was concerned about the report and ultimately froze the new funding going to SDTC. The report, at least in part, caused the Auditor General of Canada to take note and to look into the matter. As a direct result of that, what we saw was the report that was just released earlier this week.
When the report was released, the government, as it has in the past, consistently acknowledged that we have independent offices of the House of Commons to support members and to ensure that there is a higher sense of transparency and accountability. Through that report, we get a much clearer sense of the serious issues that had to be addressed. We are taking actions based on many of the report's recommendations. The government respects the recommendations and continues to follow them and the thoughts flowing out of that report.
Some tangible actions have already been taken. There is no longer a board and we have put into place a transitionary board with retired deputy ministers; I believe there are three retired deputy ministers. We are looking at how ensure that there is ongoing governance that will reinstate public confidence in a program that, generally speaking, has delivered for Canadians. We recognize that there have been some issues. We are not denying that. That is why we are dealing with the governance issue today and it is now being transferred over into the jurisdiction of the NRC.
We are taking it away from a foundation-type of board model, which is arm's-length from the government, and we are putting it into a Crown corporation, where there is the opportunity to ensure more direct accountability. I see that as a very strong, tangible action. When we first heard about the issue, the minister took action to ensure that we could find out more information as to what was taking place. For the Conservatives opposite to try to give an impression that the government has not been taking action, I think, is somewhat misleading.
At the end of the day, when a government spends a great deal of money, sometimes money is spent in an inappropriate fashion. When that takes place, I would suggest that it is important to watch the actions of the government to ensure public confidence, transparency and integrity of the system, a higher sense of oversight and a better sense of accountability. Changing that governance, ultimately, is going to ensure all of that.
The NRC has done some wonderful things in Canada. It has an infrastructure that is already in place. I suspect that many individuals from SDTC will have the opportunity to continue, to ensure that those jobs are in fact being taken into consideration. Think about the programs that are out there. I do not know all of the Canadian-based companies that have received support, but there are quite a few of them and many of them are ongoing. We are talking about hundreds over the years, so it is important that we continue with the program itself. This is where it will be interesting to hear from members of the Conservative Party in terms of where they see the program or the initiative.
Stephen Harper supported it, but we know that there has been a hard right turn within the Conservative Party. Just like Erin O'Toole supported a price on pollution, today's Conservatives do not support a price on pollution. Do they support having greener grants and support programs? Is that part of the motivation? They have not been clear on that issue.
Instead of having a substantive debate in regard to the benefits that have been realized, whether it is the jobs, the economics or the environment and the world-leading technology that is being developed, the Conservatives' sole focus is to try to shift the blame and say that the government has not been responding to the issues as they have been coming up, and then they try to label our government as corrupt. Nothing could be further from the truth on this issue.
It is interesting, when we do a comparison. When Stephen Harper was the Prime Minister, we had the ETS scandal, and I made reference to it earlier. A number of people across the way had that shell shock-type of look, or one of a deer caught in the headlights. Maybe they should look it up. That was a technology service contract and, indirectly, the himself would have been somewhat associated with it, at least for a portion of his time with the Stephen Harper government. That was a $400-million contract.
If the Conservatives want to talk about corruption, they should take a look at the allegations that were being made back then. Now contrast how the Conservative Party approached that mega-scandal with what they are saying today. We can see that it is quite different. Today's Conservative Party looks at things in a very different light. What we see is a Conservative Party that really has one or two issues that they want to focus on, and if we try to change that focus, the Conservatives get upset.
Conservatives want to focus on personalizing politics. They want to divide Canadians. They want to try to give the impression that Canada is broken, and that the institution of Parliament is not working. On the one hand, that is the type of messaging that we see time and time again. Character assassination is on the top of that list. The Conservatives are trying to feed the far right, and get them upset, angry and motivated to do the things that we are seeing today, which is somewhat disappointing in many ways.
On the other hand, the Conservatives go around, spreading misinformation on issues, such as the carbon rebate versus the carbon tax. I would suggest that the issue we have before us today is an issue the Liberal government is taking seriously. It has demonstrated that by the actions that we have taken to date.
We are going to ensure that there is a high sense of accountability and transparency on the issue. We are going to ensure that, at the end of the day, Canadian taxpayers are protected, so the program will lead to ongoing clean energy and worldwide recognition of the advancements that Canada is making on technology.
:
Madam Speaker, I will be sharing my time with the member for .
Before I begin, I want to share some very bad news with the House. After nine years of this , the cost of housing has never been higher. Rentals.ca reports that rents have increased 9.3% year over year. That means the average rent reached $2,202 in May. This is an all-time high for rents paid in Canada. In Vancouver, rent costs $2,671; in Toronto, $2,479; in Halifax, $1,925; in Montreal, $1,763; in Winnipeg, $1,416. No one has been spared.
The cost of housing keeps soaring because this government is not building enough of it. Only the Conservatives have a plan for building homes, not bureaucracy. I wanted to take this opportunity to pass that message on. Why? We witnessed something quite incredible this week. We received not one, not two, not three, but four damning reports about this government's management.
A damning report has been released on this government's management of foreign affairs. We learned about it this week. The National Security and Intelligence Committee of Parliamentarians also released a scathing report, which revealed that the Prime Minister repeatedly tried to cover up, deny and then downplay the impact of foreign interference on Parliament and on our elections.
It was probably a terrible day for the Liberals, but I would say that it was an even worse day for Canadians when they saw the Auditor General's reports on McKinsey, the Liberal green fund, which we are talking about today, and cybersecurity.
There have been three reports showing that this government is simply incapable of managing the affairs of the state and the money that Canadians entrust to it. It is not the government's money. It is Canadian taxpayers' money. Unfortunately, the government no longer deserves the trust of Canadians when it comes to managing the money people earn by working hard day after day, and night after night for some folks, seven days a week. Reading these reports, one cannot help but wonder how the Liberals manage to do so much so poorly.
Why am I mentioning that? The reason is that the government continues to spend freely with $61 billion in new inflationary spending that was supported by the Bloc Québécois in the last budget. What did that do? It drove up the cost of housing in a way that has never before been seen in Canada.
Food also costs more. All a person has to do is go to the grocery store on a daily or weekly basis. One has to be there to see people passing up the nicer cuts of meat for something cheaper. People have to make tough choices like that, and sometimes they cannot even buy food that is essential for staying healthy. Why? They cannot afford it. They are worried that, when they get to the register, they will find out they do not have enough money in their bank account to cover their groceries. That is what things are like now in Canada after nine years of this Prime Minister.
Last week, we moved a motion that neither the Bloc Québécois, nor the Liberal Party, nor the NDP supported. We asked the government to suspend the gas tax this summer to give a little breathing room to Quebeckers and Canadians who have been struggling with the cost of living and inflation over the past year. We wanted to give them a break and a chance to dream of taking a little vacation. Unfortunately, the other three parties rejected the idea out of hand. For purely ideological reasons, those people no longer want us to use cars. They want us to travel by bike, through bike paths or whatever, even though they know perfectly well that we do not have the infrastructure.
An hon. member: Oh, oh!
Mr. Luc Berthold: It is true, Madam Speaker, that we do not travel through bike paths; we travel on bike paths. The NDP member himself is very much in favour of increasing carbon taxes. He himself voted against our motion to suspend the taxes. He is against Canadians and Quebeckers taking vacations this summer.
Today we are talking about the sixth report of the Auditor General, the subject of which is Sustainable Development Technology Canada, or SDTC. As I said, this report is damning for a number of reasons. This report covers the period from March 1, 2017, to December 31, 2023. During that time, the board of directors approved 226 projects worth $836 million. That is a lot of money.
It all started after a whistle-blower exposed what was going on by recording a senior public servant who criticized the Liberal government's total incompetence because it inappropriately awarded contracts worth $123 million.
I am going to take the liberty of repeating the statements made by this whistle-blower, given that they are the reason we are here today. Thank goodness at least one person dared to stand up and make it clear that the minister responsible, and his office, knew about the corruption within the Liberal green fund and were helping spread it. According to the whistle-blower, they then lied repeatedly. “The minister said...multiple times, that he was briefed on the outcome only on August 27, but that's definitively not true.”
These are comments from the whistle-blower who broke this scandal. Thanks to him, Canadians were able to learn about what was going on within this organization, this Liberal green fund.
The Auditor General noted that the SDTC did not comply with conflict of interest policies in 90 cases. That means that people voted on funding when they were directly involved in the companies receiving it. That is unbelievable. Unfortunately, a departmental representative attended most of those meetings but turned a blind eye. He seems to have done absolutely nothing to help prevent these conflicts of interest.
Some $76 million was allocated to projects with ties to Liberal cronies, appointed to the leadership of this organization. Some $59 million was allocated to projects that should not have received money. We are talking about money that should have gone to innovative environmental projects but instead went to projects that had nothing to do with environmental innovation. How was anyone okay with this?
The thing that stands out from the Auditor General's report is that this all started when former minister Navdeep Bains decided to dismiss the former chair and appoint one of his friends to head the fund. All the problems started there. Before that, there was no problem at the SDTC.
The other thing to keep in mind is on page 23 of the Auditor General's report and reads as follows:
We found that Innovation, Science and Economic Development Canada had not received records of conflicts of interest at Sustainable Development Technology Canada....
That is understood. Further on, the report states as follows:
We found that the department had not asked for or received such information and did not determine what actions it should take when informed of conflicts of interest by the foundation.
The Auditor General concluded the following:
Sustainable Development Technology Canada did not always manage public funds in accordance with the terms and conditions....
Most importantly, she stated the following:
Innovation, Science and Economic Development Canada's oversight did not ensure that the administration of public funds was in accordance with the terms and conditions of the contribution agreements and with relevant government policies.
That is squarely the minister's responsibility. He did not do his job. He could have and should have put a stop to this spending spree a lot sooner. Unfortunately, he did not.
Today, we are asking that all of the material examined by the Auditor General be turned over to the RCMP so that it can get to the bottom of this matter and, most importantly, tell us whether any fraud was committed.
:
Madam Speaker, I am pleased to have the opportunity to speak today.
Nine years with this in power has meant nine years of scandals. The scandals are piling up here in Ottawa at an unbelievable rate. There is a new one every day. This week, the Auditor General of Canada discovered that the Prime Minister turned Sustainable Development Technology Canada into a slush fund for Liberal Party insiders.
This is taxpayers' money, more specifically, $123 million that SDTC awarded to close associates who were not only in a conflict of interest, but in some cases were not even eligible for funding. A total of $59 million of Canadians' money was awarded for ineligible projects, and $76 million was awarded for projects with a connection to Liberal cronies who had been appointed to positions within SDTC.
There is more. The Auditor General's report further indicates that long-standing conflict of interest management policies were completely ignored in 90 of the cases. We are not talking about one or two cases. We are talking about nearly 100 cases where conflict of interest policies were not followed. This is serious.
I was a member of the board of directors of the Port of Québec, and I owned a company. Obviously, the Port of Québec could not do business with my company. It was out of the question. It was not allowed. I do not understand how the members of this organization's board of directors were able to give themselves so much money. It is unbelievable.
More specifically, the SDTC chair, who was chosen by none other than the Prime Minister himself, misappropriated $217,000 for her own personal gain. She blatantly exploited public resources and behaved incredibly irresponsibly with regard to the ethics rules and with regard to the trust of Canadians.
Is no one in the government able to allocate those funds properly? One has to wonder. Who is responsible for preventing this type of scandal? One also has to wonder about that.
Whistle-blowers are the ones who tipped us off. They made sure that we, the official opposition, moved this investigation forward until it reached the point where the Auditor General was asked to investigate to get to the bottom of things.
The Auditor General made it clear that the responsibility lies squarely with the industry minister. This minister failed to adequately monitor contracts awarded to Liberal insiders and, in so doing, he seriously failed in his duty to protect Canadian taxpayers as well as Canadian dollars. He completely neglected the essential task of ensuring that public funds are managed with integrity and transparency. This scandalous situation is equally unacceptable.
The abuse of power and corruption are unacceptable. Canadians deserve much better after nine years of scandals from this Prime Minister. The Prime Minister and his government have betrayed the trust of Canadians with every misallocated dollar. We pay taxes. We send money to the federal government in the hope that the federal government will spend it wisely and, more importantly, offer services and products that we could be proud of. That is not the case right now.
They betray our trust with every dollar wasted and every dollar taken out of Canadians' pockets. Public funds are not there to line the pockets of Liberal cronies or to make the rich richer. Canadians are suffering and are having an extremely tough time meeting their most essential needs, namely food and shelter. While hunger and homelessness are a reality for more and more Canadians, while they cannot even live in dignity, while they are faced with choices such as buying food or paying the rent, living in a motel or living in the street, the government is turning public funds into a slush fund for its friends. How could such an abuse of power happen? How could there be such a misappropriation of funds?
The Auditor General noted that Sustainable Development Technology Canada did not comply with conflict of interest policies in a hundred or so cases; spent nearly $76 million on projects with ties to highly placed Liberal cronies in the organization; and spent $59 million on projects that should not have received money. Think about it. There is a special fund that is supposed to be used to help the environment and help the country become carbon neutral by 2050, and it is being used to fund projects that have nothing to do with the green fund. It is quite incredible.
The Auditor General also noted that SDTC also spent $12 million on projects that involved a conflict of interest and were also ineligible for funding. What is more, its chair diverted $217 billion to her own company.
Talk about a total and outrageous lack of accountability. The Liberal government is neither transparent nor accountable. It should always be held responsible for its actions, and it should always answer Canadians' questions, especially when their money is being misappropriated, wasted, invested in a corrupt and negligent way. I think I speak for all Canadians when I say that we need answers. The most important thing is making sure Canadians get answers. That is why we think this matter should be handed over to the RCMP so they can find out the truth.
Once again, we are disappointed for Canadians, disappointed for our country and disappointed in this Liberal government. However, our disappointment merely reinforces and confirms what we already knew. We need to bring common sense back to Ottawa, and we need to do it now. Only the common-sense Conservatives can put an end to the corruption, the irresponsibility and the negligence. Respecting conflict of interest policies does not seem like mission impossible to us. It should not even be an issue. At the risk of repeating myself, it is just common sense.
I took a course in business administration at Université Laval. That was in 2013, if I am not mistaken. Anyone who wants to have a governance role must absolutely ensure that there is no conflict of interest in anything they are going to do. Allocating millions of dollars to one's own companies within an organization like that is completely and utterly unacceptable.
I can guarantee that we will bring common sense back to Ottawa. Serving the interests of those who elected us, representing them properly, answering their questions correctly, ensuring they can live with dignity, all without abusing their money, now that is common sense, and that is what we will stand up for on this side of the House. Nine years of scandals is nine years too long. Canadians deserve to see an end to this long and difficult era of scandals. We want to help bring this chapter to an end. Democracy depends on peoples' trust in their representatives. Without that trust, we have nothing.
Today, we are speaking out against the irresponsible corruption that has taken place at Sustainable Development Technology Canada, an organization where a failure of governance and a continuous cycle of mismanagement have led to very serious violations of conflict of interest policies. This has led to the mismanagement of over $123 million of taxpayers' money. An RCMP investigation is absolutely crucial. As usual, the government claims to be surprised and will waste even more money on overly generously paid consultants to cover up yet another scandal.
We know that the minister was informed years ago that there were concerns regarding Sustainable Development Technology Canada, so why did the problem continue? How did the mismanagement get so out of hand? This investigation is urgent. Action is urgently needed. It is imperative that we take action as quickly as possible. Therefore I move, seconded by the hon. member for , the following amendment:
That the motion be amended:
(a) by replacing the words “14 days“ with the words “30 days”;
(b) by adding the word “and” at the end of paragraph (f), and by adding, after paragraph (f), the following new paragraph: “(g) in the case of the Auditor General of Canada, any other document, not described in paragraphs (a) to (f), upon which she relied in preparing her Report 6—Sustainable Development Technology Canada, which was laid upon the table on Tuesday, June 4, 2024;”; and
(c) in paragraph (h), by deleting all the words after the word “Police”.
:
Madam Speaker, I will be splitting my time with the member for . I am pleased to rise to speak to today's opposition motion with the hopes of addressing the findings and finding a path forward.
The Government of Canada is committed to supporting the growth of the clean-technology sector. Our clean-technology sector is a powerful engine for economic growth. In recent years, Canadian companies have generated revenues and achieved accolades on the global stage. Encouraging innovation in the sector not only drives the creation of new businesses but also attracts significant international investments.
On Tuesday, the Auditor General released her report on the audit of Sustainable Development Technology Canada. The audit's objective was to determine whether funds were managed in accordance with the contribution agreement between SDTC and Innovation, Science and Economic Development Canada and with proper oversight. The report identified issues around project eligibility and conflict of interest at SDTC. The report recommended enhanced oversight by ISED to ensure SDTC's full compliance with its contribution agreement and the proper allocation of funds.
The Auditor General did not report evidence of criminal behaviour. The Auditor General's findings and recommendations are in alignment with the results of the independent fact-finding exercise undertaken at the request of the government by Raymond Chabot Grant Thornton. That exercise resulted in significant actions being taken at SDTC to enhance accountability and transparency.
Following allegations of a toxic workplace and inappropriate practices at SDTC, the government appointed a third party law firm to undertake a fact-finding review of alleged breaches of labour and employment practices and policies at SDTC. It conducted voluntary interviews with current and former employees, and the report 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.
Those are three reviews conducted by independent, impartial experts in their respective fields. The very same documents requested in the motion before us would have already been examined. I would ask what the members of the party opposite think would be uncovered in the duplicative exercise that is being proposed. The government took action. The Auditor General took action. We appreciate and accept her findings.
Neither the Auditor General's audit nor any of the other fact-finding reviews found evidence of fraudulent or other criminal activities by any officer, director, member or employee of SDTC. While some of the reviews concluded that there were lapses in SDTC's governance, including its management of a conflict of interest, these findings did not include suspicion or evidence of fraud or other criminal activity that would warrant a referral to the RCMP.
The government has taken steps to directly address the lapses that were identified, and it is ultimately moving the programming to within the National Research Council to ensure the future stewardship of the programs. Leadership has been stabilized with the appointment of a new board chair and two new directors. The new appointees have been chosen for their expertise in governance and organizational transformation. This reflects the mandate to transition the programming and personnel to the NRC.
Furthermore, ISED, through its contribution agreement with SDTC, has put in place measures to strengthen the conflict-of-interest processes and capacity as part of its enhanced oversight, which will continue. Consistent with the responsibilities established in SDTC's enabling statute enacted by Parliament, SDTC is an arm's-length organization that is responsible for the selection and management of projects and the associated agreements. The Government of Canada does not have any evidence of willful misconduct or deliberate unethical behaviour in the establishment of contribution agreements between SDTC and the funding recipients.
The government has taken significant steps to ensure transparency and accountability through increased oversight of SDTC's operations, and following the findings on conflict-of-interest, ISED has implemented enhanced standards for disclosure, documentation and management of conflict of interest, as it should. 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.
The government is committed to ensuring that public investments continue to advance the commercialization of clean technologies in support of Canada's climate change priorities. Efforts have begun to ensure a smooth transition of SDTC programming to the National Research Council under new leadership. Work over the past year has rightly involved a lot of attention on fact finding, due diligence, governance and renewal. My hope is that this can now allow us to move forward and have the House ensure ongoing support for clean tech in Canada as we face down the climate crisis.
Other countries are not waiting to accelerate the growth of their clean technology industries. Whether we look at the United States, Europe, Asia or beyond, governments are enhancing their efforts to position their clean technology companies for success. With the announcement this week, the government is putting the focus back on serving Canadian clean technology innovators and positioning homegrown technologies to compete and win in the global marketplace.
:
Madam Speaker, I am pleased to rise today to speak to the motion. On Tuesday, the government announced that it would be transferring Sustainable Development Technology Canada's programming to be based within the National Research Council of Canada. I will speak more about this in a minute. However, I would first like to highlight the events and the independent reviews that have led us to this decision.
The government expects organizations that receive public funds to be held to the highest standards. When allegations of mismanagement at SDTC first came to light, the government took immediate action to undertake the proper due diligence to understand the facts. These were serious allegations, and they warranted a careful assessment of all the evidence. It is only with the facts that we can take the appropriate steps to return to the business of supporting our Canadian clean technology sector.
As the first step, the government engaged an impartial third party, Raymond Chabot Grant Thornton, or RCGT, to undertake a fact-finding exercise. This focused on organizational policies, procedures, program governance and project approval processes. At its conclusion, the fact-finding exercise did not reveal any clear evidence of wrongdoing or misconduct at SDTC. However, RCGT did make a number of observations that showed that SDTC was not in full compliance with the terms and the conditions of its contribution agreements. These findings warranted a deeper examination, and again, the government took action. Innovation, Science and Economic Development Canada, ISED, worked collaboratively with the Office of the Auditor General in support of a full audit.
Just as the government has high standards for the use of public funds, it also expects employees to benefit from a healthy and a respectful work environment. Given this, in addition to the RCGT fact-finding exercise, the government took action to address allegations that related to human resources practices. ISED requested the Department of Justice to appoint a law firm, McCarthy Tétrault, to undertake a fact-finding review of alleged breaches of the labour and employment practices and the policies at SDTC. Current and former employees were permitted to speak freely to the law firm without violating any applicable settlement agreements or non-disclosure agreements. The fact-finding review, which is 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 the applicable standards.
Turning now to the Auditor General's audit, as mentioned, the government welcomed the Auditor General's decision to undertake the audit and fully co-operated with the auditors. Evidence collected from all of these independent reviews have revealed lapses in SDTC's governance model. We are taking definitive action anchored in facts, as established by independent parties, most notably the Auditor General. To be clear, the Auditor General did not report evidence or suspicion of criminal behaviour. The government is confident in the rigour and the expertise the Auditor General and her office brought to this issue, and we accept her findings and recommendations.
Measures have been established for stronger governance and oversight at SDTC. These measures, which will remain in place, ensure increased transparency and accountability. With the changes in leadership, the government will maintain that confidence as the programming transitions into the next phase. While SDTC has been instrumental in developing a successful clean technology sector in Canada over the years, a new delivery approach to support this vital sector of our economy is now needed. That is why the government took decisive action by announcing a new delivery approach that includes transitioning SDTC and its employees to the NRC.
In addition to its proven track record of providing tailored support to Canada's innovative small and medium-sized businesses, the NRC is a Government of Canada organization, and it is subject to rigorous and stringent oversight of its personnel and finances. This move will help rebuild the public trust while increasing accountability and transparency in program delivery.
The decision to transfer the programming is not just about sound government, it is about people and the clean-technology industry. Canada's clean-technology sector is world-renowned for developing innovative, clean-technology solutions.
In 2024, there were 13 Canadian companies named to the Global Cleantech 100 list. This is a clear testament to Canada's innovative ecosystem and the clean-technology sector's ability to compete against leading innovative countries, such as the United States and Germany.
The Government of Canada also recognizes the importance of retaining subject matter experts. These employees have a wealth of experience and knowledge, 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 Canada's clean-tech companies will be at the forefront of efforts to address climate change, continuing much-needed federal support for businesses to innovate, grow and create well-paying sustainable jobs. This support will continue. SDTC is resuming funding for all new eligible projects in a sector vital to our country's economy and clean-tech growth.
In line with the Auditor General's findings, ISED will enhance the oversight and monitoring of funding through this transitionary period. We know that clean-tech companies have felt the impacts of the funding pause as the government took the time it needed to uncover the evidence and to put in place 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 shaped a new way forward. The government has done its due diligence, and neither the OAG nor any other independent review found any evidence of fraudulent or criminal activities by an officer, director, member or employee of SDTC. While some of these investigations concluded there were lapses in governance, including their management of conflict of interest, these conclusions did not identify fraud or criminal activity.
We are focused on restoring governance at SDTC and getting back to the business of supporting our Canadian innovators. I encourage all members to support the government's actions to advance homegrown clean-tech solutions and achieve Canada's climate goals.
:
Madam Speaker, I am pleased to stand in this place today to speak to the Conservative opposition day motion introduced in the House, which calls for the following:
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 [although I understand an amendment has been made] 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:
The motion goes on to detail the nature of the documents and the process for obtaining them and ultimately the submission of these documents 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.”
Before I go any further, I will note I am splitting my time with my colleague, the MP for .
Earlier this week, the Auditor General of Canada tabled three damning reports in the House of Commons, including “Report 6—Sustainable Development Technology Canada.” Under the scandal-ridden Liberal government, the SDTC has become plagued by conflicts of interest as the corrupt nature of the government has taken hold of this organization.
Let us take a look at the “At a Glance” page of her report, which reads, “Overall, we found significant lapses in Sustainable Development Technology Canada’s governance and stewardship of public funds.” As well, “Innovation, Science and Economic Development Canada did not sufficiently monitor the compliance with the contribution agreements between the foundation and the Government of Canada.”
The Auditor General found that SDTC had awarded funding to projects that were ineligible, even though “they did not meet key requirements” and where conflicts of interest existed. In total, 123 million dollars' worth of contracts were found to have been given inappropriately, with $59 million being given to projects that never should have been awarded any money at all.
On top of this, the Auditor General discovered that conflicts of interest were connected to approval decisions. Because of this, nearly $76 million of funding was awarded to projects where there was a connection to the Liberal friends appointed to roles within SDTC, while $12 million of funding was given to projects that were both ineligible and had a conflict of interest.
In fact, the Auditor General discovered that long-established conflict of interest policies were not followed in 90 cases. That must be a record for a single organization managing hundreds of millions of dollars. In one instance, the 's hand-picked SDTC chair siphoned off $217,000 to her own company.
At a time when Canadians are struggling to pay their mortgages, put gas in their vehicles to go to work or feed their families, the Liberal government is doing what Liberals do best, which is wasting taxpayers' dollars. They make a big show of creating the appearance of doing something while blatantly disregarding the policies and rules in order to funnel money into the pockets of Liberal insiders.
The Auditor General made it clear the blame for this scandal lies directly at the feet of the 's , who did not sufficiently monitor the contracts that were being awarded to Liberal insiders. The minister utterly failed in his duty to protect the Canadian taxpayer.
The Auditor General also released a damning report into the taxpayer-funded contracts that the awarded to his well-connected friends at McKinsey. The AG discovered that over the past few years, McKinsey has been awarded almost $200 million in contracts and that 90% of the contracts awarded to McKinsey were given without following the appropriate guidelines. Are we seeing a pattern here? In many cases, it was unclear what the purpose of the contract was or if the desired outcome was even achieved.
It gets better, or should I say, it gets worse? In one case, the Canada Border Services Agency saw that McKinsey did not qualify for a contract. Can members guess what it did? It revised the statement of work so that McKinsey could qualify. That is not all. The Liberal government often sole-sourced these contracts directly to McKinsey and never even bothered to explain why a non-competitive process was justified. Can members imagine that? This is a multinational, billion-dollar company. This is absolutely concerning.
About 70% of all contracts awarded to McKinsey were non-competitive. Worse still, in 13 out of 17, or 77%, of the contracts involving sensitive data given to McKinsey, the Liberal government allowed McKinsey to operate without the necessary security clearances.
What is going on here? Why did the government go to such great lengths to break the rules? At that time, McKinsey was led by Dominic Barton. That might explain it. He was a close friend and adviser of the and the . I guess it should come as no surprise that the Liberals gave McKinsey hundreds of millions of dollars.
Barton was the key figure in the Liberals' Advisory Council on Economic Growth and their Indo-Pacific Advisory Committee. It was also Barton's idea to create the failed, scandal-plagued Canada Infrastructure Bank. It was Barton and McKinsey that had to pay nearly $600 million in damages for helping create the opioid crisis. Despite this, the appointed Barton as Canada's ambassador to China.
We cannot forget arrive scam and the damning Auditor General's report that came out in February of this year. It is a report that resulted from a motion put forward by Conservatives that called on the Auditor General to conduct a performance audit, including the payments, contracts and subcontracts for all aspects of the ArriveCAN app, and to prioritize this investigation. What did the Auditor General find? Members guessed it. She found a glaring disregard for management practices and an inability to assess the true cost of this app given the lack of information available to do a proper audit. It is an app that should have cost Canadians $80,000, but it ballooned to $60 million, and probably more.
The outrageous spending habits of the government have put the futures of Canadians at risk. It has created a cost of living crisis, making it difficult for Canadians to put food on the table and a roof over their heads. It has failed to deliver for Canadians on every level. A record two million Canadians are visiting food banks in a single month. Housing costs have doubled. Mortgages have doubled. Over 50% of Canadians are $200, or less, away from going broke, yet the government continues to refuse to take any responsibility for its failed nine years of governance.
After nine years of the , life has never been more difficult for Canadians. For well-connected Liberal friends, life has never been so good. The Prime Minister turned Sustainable Development Technology Canada into a slush fund for Liberal insiders. This was made clear through a secret recording of a senior civil servant who slammed the outright incompetence of the Liberal government, calling the SDTC's actions “a sponsorship-scandal level kind of giveaway.”
The is not worth the cost and is not worth the corruption. It is incumbent on the House to shine light on the failures of the government and its corruption, and to deliver answers for Canadians. That is why I hope all members in the House will vote in favour of this motion, which would deliver more transparency for Canadians.
When we get elected, common-sense Conservatives would end the corruption and fix the budget by firing the high-priced consultants.
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Madam Speaker, I rise to speak in support of our Conservative motion that calls on the Liberals to end their cover-up and produce for the House, as well as turn over to the RCMP, all documents relating to corruption and self-dealing with respect to the Liberals' billion-dollar green slush fund, otherwise known as Sustainable Development Technology Canada, or SDTC.
The staggering level of corruption, conflicts and self-dealing was revealed in the Auditor General's report that was tabled in the House earlier this week. It is a direct result of a culture of corruption embedded in the rotten Liberal government. That is demonstrated by the fact that, before the Liberals took office, under the previous Harper Conservative government, SDTC was functioning well. That is evidenced by a 2017 report of the Auditor General that went back into the Harper era and gave SDTC a clean bill of health.
The ethical spiral downward at SDTC occurred exclusively under the watch of the Liberals, and more specifically, under the former minister of industry, Navdeep Bains, and the current . To put a timeline on when that began, I would submit it happened when Navdeep Bains, the 's good buddy, decided, for purely political reasons, to fire the Harper-appointed chair of SDTC, who had presided over it when it received a clean bill of health from the Auditor General, and replace that chair with Ms. Annette Verschuren.
There was a major problem with the appointment of Verschuren because she had a major conflict of interest, namely that her company was receiving money from SDTC. That is a major conflict of interest that Navdeep Bains was warned about multiple times, including by Annette Verschuren herself, who, to her credit, said that she had a conflict of interest. Navdeep Bains did not care and, conflicts of interest be damned, he appointed Annette Verschuren as chair. The culture within any organization begins at the top, and the culture that was set by Navdeep Bains at SDTC was a culture where conflicts of interest did not matter.
Looking back at what has transpired since that time, and the decisions that Navdeep Bains made, both with respect to the appointment of Verschuren, as well as several other directors, it is now evident to me that Navdeep Bains wanted to turn SDTC into a slush fund where Liberal insiders could rig the system to line their own pockets by ripping off taxpayers. That is precisely what has happened at SDTC, and Navdeep Bains is the architect of that.
For years, Navdeep Bains, as the former industry minister, and the current turned a blind eye to all kinds of conflicts of interest, and tens of millions of dollars of taxpayer money was being funnelled improperly out the door at SDTC. The only time the minister pretended to take some interest in the corruption at SDTC was when a whistle-blower sounded the alarm over nearly $40 million in so-called COVID relief payments being approved by the board. The Auditor General, in her report, determined that those COVID relief payments contravened the contribution agreement with the Department of Industry, and that there were 66 cases of conflicts of interest in which board members voted to approve funds that were funnelled into companies that they had an interest in.
I have to note that Annette Verschuren, the chair, actually moved both motions to funnel monies into her own companies from SDTC. The rot and corruption was blatant. They were not even trying to hide it. However, it gets a lot worse than the COVID relief payments, because the Auditor General found 186 cases of conflicts of interest involving board members and consultants. In 90 cases, board members voted to approve funds that were funnelled into companies they had an interest in and benefited from, and they did not even so much as declare a conflict. Some $76 million went into those companies, voted for by board members at SDTC.
It is not just $76 million, and I should not say “just” $76 million. Tens of millions of taxpayers' money was also funnelled into companies of SDTC board members while those members served on the board. I note, for instance, that the 's good friend and former colleague Andrée-Lise Méthot, at the time as she served on the board, benefited to the tune of $42.5 million in SDTC funds, which went into her companies. Then there are Guy Ouimet, another board member, whose companies received $4 million in funding from SDTC, and Liberal insider and former Liberal staffer Stephen Kukucha, whose companies received $25 million from SDTC when he served on the board.
This speaks not only to major and serious conflicts of interest, but to the fact that members of the board broke the law. They broke the Conflict of Interest Act. Board members are public office holders. They are bound by the Conflict of Interest Act and the Canada Foundation for Sustainable Development Technology Act, which the Auditor General determined. The Canada Foundation for Sustainable Development Technology Act very expressly, in subsection 12(2), provides that board members shall not profit or benefit from decisions of the board, and they profited handsomely.
In addition to that, $59 million improperly went out the door to projects that contravened the contribution agreement with the Department of Industry, and that is just scratching the surface because those are only the projects that the Auditor General audited. The Auditor General concluded that there were likely many more projects to which money went out the door improperly. Through it all, an assistant deputy minister sat in on each and every board meeting in which these decisions were made, when board members had conflicts of interest and when money went out the door in contravention of the contribution agreements, and former minister Bains and the current did nothing. The current minister turned a blind eye until he was caught.
One current senior industry official said that things are so bad at SDTC, he compared them to “a sponsorship-scandal level kind of giveaway”. Based on what we know from the Auditor General's report, which likely just scratches the surface of the corruption and self-dealing at SDTC, it looks to be a lot worse than the sponsorship scandal. We are talking about potentially hundreds of millions of dollars that were improperly funnelled out the door from which board members profited.
In closing, let me simply say this is why it is time for the Liberals to end the cover-up. It is time to turn over the documents to the RCMP. It is time to call in the Mounties.