Evidence of meeting #53 for Canadian Heritage in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was nicholson.
A video is available from Parliament.
11:50 a.m.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
—around severance payments for Mr. Smith. How much is Mr. Smith receiving in severance for having stepped down?
11:50 a.m.
Senior Vice-President, Strategy, Operations and Brand, Hockey Canada
Thanks for the question.
I actually report to Mr. Smith, and that would be a question for the board.
11:50 a.m.
Liberal
The Chair Liberal Hedy Fry
Thank you.
Thank you, Peter.
Now we're going to the second round.
Before we do, I would like to again repeat this for people on the floor. Please turn off your microphones or mute yourself in some way after you finish speaking or while others are speaking. The echo causes a problem for the interpreters sometimes, because there's a huge echo. Thank you.
Now we're going to the second round, which is a five-minute round. Again, the five minutes are for the question and the answer.
We'll begin with the Conservative Party and Ms. Rachael Thomas for five minutes, please.
November 15th, 2022 / 11:50 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
Thank you.
Mr. McLaughlin, I'm wondering if the current board of directors is in the process of choosing the next CEO.
11:50 a.m.
Senior Vice-President, Strategy, Operations and Brand, Hockey Canada
Thank you, Madam Chair, for the question.
The current board of directors will not choose the CEO. That will be at the discretion of the new board. The new board will be in place after election on December 17.
11:50 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
Thank you.
I'm also wondering who put the five questions forward to Mr. Cromwell to investigate.
11:50 a.m.
Senior Vice-President, Strategy, Operations and Brand, Hockey Canada
On July 12, we had meetings with the board. We invited experts on governance to come in to help our board understand what a proper and appropriate governance review could look like.
The questions were built by experts and approved by the board. Then the process was moved forward.
We were fortunate that Justice Cromwell and his team have done an outstanding job and really provided a framework and a road map for us as we move forward with our new board.
11:50 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
I note that in the five questions that were put forward, there was a request that he look at two of the funds, but not the third fund. In fact, the third fund wasn't even disclosed. It was something that he dug up.
Why is that?
11:50 a.m.
Senior Vice-President, Strategy, Operations and Brand, Hockey Canada
I can't speak to why that is, but I can tell you that I'm glad that he did. I think it's outstanding.
Again, it sheds a light on what you and your colleagues have talked about, which is that in the interest of transparency and much better communication, we have a great opportunity there to be much better. The work that Justice Cromwell has done is going to lead the organization moving forward.
11:50 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
Mr. McLaughlin, I would agree with you. I do think there is an opportunity to do much better.
In your opening remarks, you gave a list of a few things that the organization promised to do and has followed through on. One of them was that the organization promised to do a “full governance review” and they did that. You're pointing to the Cromwell report.
My concern, however, is that this is actually the third independent governance review since 2014. In eight years, this is the third one that has been required because adequate action hasn't been taken. The culture of secrecy and cover-up has been perpetuated for eight years despite these three independent reviews.
I'm curious. Why should the Canadian public trust you now?
11:55 a.m.
Senior Vice-President, Strategy, Operations and Brand, Hockey Canada
Thank you, Madam Chair, for the question.
I can't speak to the previous governance reviews. I can only speak to how I operate, how our staff operates and how our members operate. At the end of the day, it's all about delivery and execution.
We have a significant mandate and we need to deliver for all Canadians. There's no room for error on that. That's why I can say that we're appreciative of the work that Justice Cromwell has done.
I can tell you that on October 15 and 16, we met with our members. The members have already advanced a number of the recommendations of Justice Cromwell and his team. Further dialogue will take place this weekend. The work will be in the hands of our transition board to help lead and drive forward.
I'm very hopeful as we move forward, with respect to the work of the governance review.
11:55 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
Mr. Nicholson, one thing that Justice Cromwell stated in his report, on page 95, was this: “Both the [National Equity Fund] and the [Insurance Rate Stabilization] Fund are used for purposes that are not fully disclosed in the financial statements.” This phrase “not fully disclosed” speaks of secrecy, rather than transparency.
You stated that, as CEO, your goal was to make yourself transparent and financially accountable. Why didn't you fully disclose the need for this fund?
11:55 a.m.
chairman of hockey, Oilers Entertainment Group
Thank you, Madam Chair, for the question.
I really felt that we did disclose the information to our members.
Remember who our members were. There are 13 branches—
11:55 a.m.
Conservative
Rachael Thomas Conservative Lethbridge, AB
Mr. Nicholson, with all due respect, Justice Cromwell would disagree with you. He said that it wasn't fully disclosed.
You might feel that way, but an independent reviewer is saying that isn't the case. Why isn't it?
11:55 a.m.
chairman of hockey, Oilers Entertainment Group
What I recall, and [Technical difficulty—Editor].
11:55 a.m.
Liberal
Anthony Housefather Liberal Mount Royal, QC
I have a point of order, Madam Chair.
Mrs. Thomas's time should be stopped. Mr. Nicholson's last answer wasn't audible to us. I think he's on mute.
Perhaps he could resume his answer, Madam Chair.
11:55 a.m.
Liberal
Chris Bittle Liberal St. Catharines, ON
On a point of order, Madam Chair, I think you may be able to hear us, but we can't hear anyone on Zoom.
I don't know if we can suspend perhaps for a moment. Again, I agree with Mr. Housefather that Mrs. Thomas's time should be stopped and Mr. Nicholson should be given an opportunity to answer the question.
11:55 a.m.
The Clerk
Dr. Fry, nobody in the room can hear you except me with my headset on.
Can you say “suspend” and I will inform the PVO?
Noon
Liberal
The Chair Liberal Hedy Fry
Thank you.
Mrs. Thomas, we will resume. I'm giving you an extra few seconds, because this had started before we stopped the clock.
Noon
Conservative
Rachael Thomas Conservative Lethbridge, AB
Thank you.
Mr. Nicholson, I'll go ahead and give you an opportunity to answer as to why you didn't fully disclose in the financial statements this fund that existed for insurance rate stabilization.
Noon
chairman of hockey, Oilers Entertainment Group
Yes. I really thought we did. I don't have the financial statements in front of me, Rachael. I felt that we gave those to our members. If they're not in our financial statements that you received from Hockey Canada, then obviously they weren't given out to them.
Noon
Conservative
Rachael Thomas Conservative Lethbridge, AB
Mr. Nicholson, in your view, though, should that be made available?