Industry Committee on May 7th, 2014

[Denise Frenette]

Yes.

[Brian Masse, NDP, Windsor West, ON]

Thank you.

[The Chair, Conservative, David Sweet]

Monsieur Côté.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Thank you, Mr. Chair.

I would like to respond to what Mr. Warawa said. It's quite amusing to hear that he wants to speed things along, as the ECBC awaits the findings of the Auditor General's investigation into the Ben Eoin marina expenses. He wants to hurry up and deal with the problem by sending the ECBC into the lion's den.

Ms. Frenette, as you said, in its new simplified form, it will become more of an advisory body. Decision-making will be centralized such that decisions will not be made in the Atlantic provinces.

What's more, ACOA's direct spending is being cut. It will get $288 million for the 2014-15 fiscal year, in contrast to the $408 million it had in 2010-11.

[Denise Frenette]

There were two parts to your comment.

First, you said decisions would not be made in the Atlantic provinces. Did I understand that correctly?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

What I understood from your explanation was that it would be more of an advisory body than a decision-making one, as far as how ACOA funding is used. Did I misunderstand?

[Denise Frenette]

I think so.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Oh, okay.

[Denise Frenette]

The decision-making structure did not actually change. Decisions are made in the Atlantic region and that is going to continue.

The other thing you mentioned was the budget reduction.

[Raymond Côté, NDP, Beauport—Limoilou, QC]

I was referring to the expenditures tied to ACOA programs.

[Denise Frenette]

As far as ACOA's programs are concerned, the budget remains solid. We anticipate $300 million in funding for ACOA programs. Our budget was cut and we had to achieve efficiencies, as did every other department. But our reduction was no larger than those of the other departments.

When you asked about the reduction, you referred to the numbers for 2010, did you not?

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Yes, I referred to the 2010-11 fiscal year, when your budget was $408 million.

[Denise Frenette]

I don't have the exact figures with me, but if I'm not mistaken, in 2010-11, we were delivering specific programs under the economic action plan. That funding was allocated to us on a temporary basis. After delivering those programs, we are now back to our core funding level, which has not been cut.

[The Chair, Conservative, David Sweet]

Thank you kindly, Ms. Frenette and Mr. Côté.

Now on to Madam Gallant, for five minutes.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Thank you, Mr. Chairman.

Through you, I'll be making some comments before I ask my questions. It's really unfortunate that Mr. Cuzner isn't here because I think he would benefit from hearing them, but nevertheless I'll put them on the record so that he can read them later. It was my understanding that he was trying to impugn our government for not having all the efficiencies or perhaps not spending the money meant for Atlantic Canada in the proper way.

I was first elected in 2000, and I had my very first brush with ACOA in about 2001. It was an ACOA refugee, I believe the correct terminology would be. This gentleman had been the person who had to legitimize any expense claims. When an expense claim came to him and there was not a matching receipt, he refused the claim. Then there was also the aspect of March Madness, where he was asked to backdate invoices so that they could claim them at the end of the year.

Anyway, he refused to do that. As a consequence they took work away from him, to the point where eventually he was just sitting in a room with nothing to do. He said to his superiors, “I might as well be in the Legion drinking beer.” And they said, “Which Legion?” He told them which Legion, and that brought him to my riding, under an ACOA program called Exchanges Canada. So the person who worked in the Legion in this community went down to ACOA to learn business management from ACOA's standpoint, while this person went to the Legion to learn the business of the Legion there. That is how they took care of their problem and were able to get on with phony expenses again.

That was the point I wanted to make. And that was under the Liberal government.

What we are doing here is trying to ensure that the money goes to legitimate entities, and that more money goes, because we're taking away a board that really doesn't have functionality when it can be done through the different framework.

When members of the board were selected, what was the process? Was there an election? Was it a political appointment? How did the board members' positions come to be?

[Denise Frenette]

The board members were Governor in Council appointments, made on the recommendation of the minister.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Okay.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Pardon me, Mr. Chair.

[The Chair, Conservative, David Sweet]

Yes, Mr. Morin?

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

I apologize for interrupting my Conservative colleague, but I am flabbergasted at what she just said. I have no doubt she's telling the truth. My understanding is that she identified a genuine case of fraud. I hope she reported it to the authorities. Everyone knows that claiming—

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

We tried our very best at the time.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

Yes, you did.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

This was years ago. But thank you for that intervention.

[Dany Morin, NDP, Chicoutimi—Le Fjord, QC]

And thank you so much.

[Cheryl Gallant, Conservative, Renfrew—Nipissing—Pembroke, ON]

Okay.

What was the role of the board members? Were they deciding which entities received funding for different programs?