Canadian Heritage Committee on Nov. 30th, 2023

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

I had mostly asked my question.

Ms. Mondou, what steps has your department taken to address the situation?

[Isabelle Mondou]

In fact, as was the case with Ms. Shaw, the department of sport has no investigative powers. That's why an independent mechanism was created. It's precisely to conduct these investigations.

[Sébastien Lemire, Bloc, Abitibi—Témiscamingue, QC]

Thank you, Madam Chair.

[The Chair, Liberal, Hedy Fry]

Thank you.

Peter, go ahead.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you very much, Madam Chair.

You're generous, and I appreciate that.

I want to—

[The Chair, Liberal, Hedy Fry]

I just want to get the work done. Go ahead.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you.

I want to come back to the issue of Laith Marouf. I appreciate the four steps I heard about. First, I want to know whether any money has been recovered so far. Second, in terms of the Canada Revenue Agency, what does that mean? What are the sources of funds that the Canada Revenue Agency would simply garnish, obviously, coming into the country?

Third, what are the the court procedures that are currently in place—in which court and what has been filed officially?

[Isabelle Mondou]

Let me start by saying that I will never apologize enough for the events that happened around the distribution of that contract. As a department, we are committed to combatting any form of violation of human rights, so this has been something that has been extremely damaging to our reputation and, frankly, to our employees, who are committed to doing that work. Therefore, I want to apologize on my behalf and on behalf of all the employees of the department.

With regard to the measures that were taken, there has been an agreement made with the Canada Revenue Agency—as we do in other circumstances—that if this organization, which is incorporated, has any money due to the Canada Revenue Agency, we are the first creditor and we can benefit from recovering that money.

I won't be able to give you more detail than that because, frankly, the Canada Revenue Agency is not telling me how it will happen. However, it knows that if it gets any money from the organization, we will recoup that money. That's point number one.

On point number two.... I feel that you have a question.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

No money has been recovered, not a cent yet.

[Isabelle Mondou]

No money has been recovered so far.

The second element is that we have filed, in court, a procedure called an annulation de contrat.

I think a “cancellation of contract” would be the proper term in English. That's what we have filed in court to be able to recuperate that money.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

That is filed in which court?

[Isabelle Mondou]

I should know the answer, but I will get back to you. I don't remember if it's the federal or superior court. My colleague has it here. It's the Superior Court, civil division, Province of Quebec.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you.

[Isabelle Mondou]

We can leave a copy of the procedure with you.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you. I think the committee would appreciate getting that.

Part of the mandate letter for the minister talks about honouring residential school survivors and the children who are victims of residential schools, working “with Indigenous leadership, Survivors, families, communities and experts on the planning, design and construction of a national monument in Ottawa.”

Where are we at in terms of that important recognition of the cultural genocide that was the residential schools?

[Isabelle Mondou]

Thank you for the question.

The last step that was public was the location of the monument. Last June, in mid-June I believe, a ceremony was held by the advisory committee, which is made up of residential school survivors. It announced that there will be a location for the monument very close to here, on the Hill. The location has been selected. We are working now with both Speakers to ensure that, obviously, we respect proper parliamentary procedure, and we are working closely with the public service.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Will the monument be located on Parliament Hill?

[Isabelle Mondou]

Yes, it will be.

I can send you the exact location with the map of where the monument will be, if the committee is interested. The committee is now working on its vision for the monument and how it wants to proceed to get what we normally call the RFP, which is a call for proposals. They want to do it in a way that's very much driven by the survivors. They are meeting regularly to discuss that. That's the next step. They have to decide how they want to proceed with basically the launch of the contract for the monument.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Lastly, I'd like to ask you two more questions. The first concerns Google and the benefits the company receives.

Have you done the math to find out whether we're giving Google more than we're getting under the agreement? Is there a tax advantage when you take into account the indirect subsidies we give them through the advertising tax credit?

My second question concerns online harms. Is there a draft bill already circulating that the department is aware of or commenting on?

[Isabelle Mondou]

I will answer the second question. The work is very advanced on the bill, which was designed based on the consultation, the advisory committee and all the work that Minister Rodriguez led across the country on the consultation. I think the committee will be sad if I don't turn at least once to Owen for a question on Bill C-18, so I will do that.

[Thomas Owen Ripley]

Thank you, MP Julian, for the question.

If I understand correctly, it's about section 19 of the Income Tax Act. The starting point for that provision is that businesses should be able to deduct expenses accrued in the regular course of their business. Those would include advertising. That applies to small and medium-sized enterprises that frequently use these platforms to advertise.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

I do understand. What I'm asking is whether there has been an evaluation of whether Google still gets more from the federal government in direct subsidies with this deal or whether Google gives back a little bit of what they receive.

[Thomas Owen Ripley]

Thank you for the question.

I wouldn't characterize it as a subsidy, because the default rule for businesses is that you are able to deduct your expenses incurred in the course of business.

[The Chair, Liberal, Hedy Fry]

I think we're not getting translation.

The French is coming in instead of the English.

[The Clerk of the Committee, Ms. Geneviève Desjardins]

Is that on the English channel?