Evidence of meeting #38 for Access to Information, Privacy and Ethics in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was old.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Claude Benoit  President and Chief Executive Officer, Old Port of Montréal Corporation Inc.
Gerry Weiner  Chairman of the Board, Old Port of Montréal Corporation Inc.

11 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

We are going to start in a few minutes. I would first ask the media to leave so that the members of the committee can do their work.

Good morning and welcome, everyone. Thank you for joining us.

Mr. Del Mastro has a point of order.

11 a.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you, Mr. Chairman.

Might I ask that the witness be sworn in for this morning's testimony?

11 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

Since the clerk is usually in charge of this procedure, I would like to ask him to ensure that the witness takes an oath.

11 a.m.

Claude Benoit President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

I, Claude Benoit, do solemnly, sincerely, and truly affirm and declare the taking of any oath is, according to my religious belief, unlawful. I do also solemnly, sincerely, and truly affirm and declare that the evidence I shall give on this examination shall be the truth, the whole truth, and nothing but the truth.

11 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

Thank you, Ms. Benoit. Thank you for making this trip today.

Without further delay, I will give you 10 minutes for your presentation. We will then move to the first question and answer period for seven minutes, followed by five-minute periods.

So the floor is yours and you have 10 minutes.

11 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

Thank you, Mr. Chair.

Members of Parliament, I would like to begin by thanking you for your invitation, which will allow the Old Port of Montréal Corporation to attest to the rigour and transparency of its management, to set the record straight and dispel any doubts sparked by the recent allegations of the Journal de Montreal and QMI Agency, and to attest to the fact that the corporation respects all the rules and regulations to which it is subject, as will be determined in a special examination by the Auditor General's office, an initiative we applaud.

But first, I would like to explain what the Old Port of Montréal Corporation is.

The Old Port of Montréal Corporation is a wholly owned subsidiary created in 1981. It has the status of a parent Crown corporation, but only under certain specific provisions of the Financial Administration Act. As a result, it reports directly to the appropriate minister. It is an agent crown corporation. The Auditor General of Canada is its designated auditor. Its share capital is held by the Canada Lands Company. Its directors are appointed by the CLC. The board of directors appoints the chair of the board and the CEO.

The Old Port is not the Montreal Port Authority, as many people mistakenly assume. We occupy a territory covering 40 hectares, 60% of which is parkland, public space, and access and traffic routes along the Saint Lawrence River, in the southern part of Montreal's historic district.

The Corporation's mandate, since it was created 30 years ago, is to develop and manage assets that are today valued at $500 million, and administer an annual budget of $48 million, while respecting the objectives set for us by the government.

The government has the following objectives: to preserve and promote Canada's heritage; to improve urban living conditions and facilitate public access to the shores of the St. Lawrence; to contribute to regional economic development efforts; to maintain some port operations suitable to an urban and historic environment; and to assert the federal presence in a dynamic manner.

The corporation is the custodian of a heritage site of great urban, historical and commercial value. The development of the Old Port was guided by the community, following a major public consultation, which resulted in a report in 1986 that led to the development guidelines, the relevance of which was reiterated at an examination of the corporation's mandate in 2002.

So what are those principles? They are: to maintain free, unrestricted access at all times; to implement a product and service offering that complements the wider downtown area, supported by adjacent sectors and in response to collective needs; to maintain an overall vision for the development of the port, architectural and shoreline heritage by preserving the views; and to remain under the control of public powers by encouraging participation by all levels of government to do so.

In addition, when we invest in major projects we do it in a responsible manner. When choosing projects, we are guided by the following criteria: user safety, environmental protection, direct revenue opportunities for the corporation and economic benefits for the district and the city, and creating value for these assets.

To achieve these objectives, the corporation supports a team of 425 employees in peak season, divided into two business units: the Quays of the Old Port of Montréal and the Montreal Science Centre. Our teams are motivated and committed. We provide high-quality training to ensure optimal delivery of services. Our team is stable, with a turnover rate comparable to that in our industry.

By reorganizing our staff over the past dozen years, we have managed to adapt our teams to deal with various challenges, i.e. increasing our revenues, reducing our expenses, and taking charge of assets of more than $500 million, since 2009.

Our labour relations are constructive and harmonious. For example, when the collective agreement expired in 2010, a new contract was signed on the same day.

Our corporation manages its budget responsibly, in order to make wise investments in the public interest and also to generate the maximum possible revenues to ensure self-funding.

The corporation therefore operates the Science Centre and the IMAX theatre. We sign and manage annual commercial agreements with more than 45 concessionaires. More than 20 sponsors invest in promoting the destination and its programs. More than 200 companies rent our facilities for events such as product launches, and client and employee meetings. We sign contracts for the production of activities and events with more than 30 creative, innovative firms.

The annual economic impact of all these activities is nearly $60 million in added value for the region, as well as 900 jobs in all of its activities and those of its partners.

In 30 years, the federal government's investment, coupled with investments by municipal and provincial governments, has contributed to the development of the historic district and resulted in investments of more than $2.4 billion. An entire district of the city was thus revitalized.

All of our activities are managed scrupulously, in strict compliance with the rules in effect. Our books are open and our management is transparent. All of our management decisions are made on the basis of two main principles: making the best possible use of taxpayers' money, which we receive from the Government of Canada, and developing a product of the highest quality, in keeping with our mission. The corporation respects the management framework and the control required under Canada's Financial Administration Act. Its policies and procedures are based on the Treasury Board's directives and its practices are modelled on best practices in its area of expertise.

Our corporation is responsible and respects its commitments. Since 2007, we have respected the budget allotted to us by the government. The same applies to the increased revenues and lower costs that enabled us to absorb salary increases and new taxes and participate in reducing our country's deficit. Since 2007, we have increased our revenues by an average of 3% with price increases, new sponsorships, new world-class products, and an upward revision of our leases to bring in the highest revenues to which we are entitled for the attendance figures we provide. Since 2007, we have reduced our travel, meal and catering expenses, and maintained salaries at the most acceptable level for our industry.

Our corporation's collaboration with the office of the Auditor General of Canada is one of our obligations, and our relationship with this office is very important to us. The AG's office conducts an annual audit of the corporation's financial statements, after which it systematically issues an unqualified opinion. Our collaboration with the AG's office, which could be described as exemplary, as well as the implementation of its instructions and recommendations, coupled with the regular internal audits, have improved the corporation's business processes over the years.

The Old Port Corporation of 2012 is a far cry from what it was in 2004. We must therefore see our corporation's management as an example of ongoing improvement with a view to the accountable management of public funds.

Today, in addition to being the city's only vantage point on the river, the Old Port of Montréal is also the most popular recreational and popular tourist site in Quebec. With 6.6 million visitors in 2011, the Old Port is indeed a major tourist attraction. In 2010, the Old Port of Montréal joined the list of the world's 15 most beautiful waterfronts. If the Old Port is today as popular with the public, it is because, over the years, it has been able to develop its individuality, its uniqueness and its brand. It is unquestionably the Government of Canada's pride and joy in Montreal and Quebec.

Unfortunately, the reputation of this major institution has now been unfairly tarnished by misleading allegations made out of context, put together in an attempt to malign the corporation and spark outrage.

Following these allegations, the corporation's books were opened to the AG's office for the purposes of a special audit requested by our minister. We welcome this initiative, which will confirm the scrupulous management of the Old Port of Montréal, just as we welcome any recommendations from the Office of the Auditor General that could improve our management and our practices so they reflect the best standards of the federal government.

I thank you for your attention and am ready to answer your questions.

11:10 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

Thank you, Ms. Benoit.

Without further delay, I will give the floor to Mr. Boulerice, who has seven minutes.

May 10th, 2012 / 11:10 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Thank you, Mr. Chair.

Thank you, for your presentation and for joining us, Ms. Benoit. I would like to thank you for responding to the request that I made before this committee.

As you might suspect, we are going to have some tough questions, but before getting to the meat of the matter, I would still like to give you a pat on the back. As a Montrealer and a father, I would like to congratulate you on the Science Centre in Montreal. It is a great place. It is always a treat to go there with my children. You have great exhibits.

But in terms of how your budget is managed, without wanting to get anyone upset, we have some serious questions to ask you. There are thousands of paid lunches with duck confit on the menu. We have heard about luxury retreats to Mont-Tremblant. Over two years, they have cost $13,842 for eight people, or roughly $7,000 per meeting. You also receive a car allowance of $20,000, though you live about three blocks away from your office.

How do you justify those financial anomalies and what seems to be a waste of public funds?

11:10 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

Thank you for your question.

First, I would like to clarify something. You were told that the catering costs were astronomical. I have to tell you that, over the past three years, since 2009, a total of 2,530 meals and snacks were served at 175 business meetings, for an average cost of $15 per person. Those meals and snacks were served at business meetings with two to 150 people, such as volunteer teachers and science researchers, volunteer members on the science and programming committees, and at biennial meetings for the Old Port of Montréal Corporation employees. Although the meals were delivered at the Old Port, they were not delivered or served at my office, as the QMI Agency alleges. As you said, all those meals and snacks amounted to $11,300 per year, and they were justified.

As for annual meetings outside the office, it is normal for our managers to be able to get away once a year so that they can focus on our objectives and the business plan, which we are responsible for and which we submit to the government every year. We are managing a budget of $48 million and we have $500 million in assets. That is the common practice both in the private and the public sectors. Those two meetings are always with nine people and they last three days. In my view, they were justified. I would also like to point out that, in 2011, given the cuts that we made to help reduce the government’s debt, we decided to hold the meeting with our employees somewhere in Montreal.

11:10 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Okay.

But Ms. Benoit, you get a car allowance of $20,000 when you live on McGill Street and the Old Port is about three or four blocks away from there. You almost have the same lifestyle as a Conservative minister with a limo. How do you justify this car allowance?

11:10 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

The car allowance is a taxable benefit for the chief executive, which has historically been included in the compensation. I use this car to travel on behalf of the Old Port of Montréal Corporation, not on my personal behalf. Since it is a benefit that comes with my pay, it is part of the compensation package. It has been the same for 12 years, and it has nothing to do with where I live. It does not cover my trips from home. It has nothing to do with that. It is a taxable benefit that has been historically included in the compensation package of the chief executive.

11:15 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

The clock is ticking, so I am going to move to another topic, Ms. Benoit.

It is a bit odd for someone to get paid for 10 days of work to go on a trip to Australia, where a nine-page PowerPoint presentation was made. It is all well and good to have a pretty PowerPoint presentation with a lot of pictures, but, from the point of view of average people or taxpayers, it is a bit strange to have 10 days of work paid in Australia to do a PowerPoint presentation.

11:15 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

Mr. Chair, this 10-day mission was duly approved and it included two days of travel. The mission consisted of a visit to the sites and facilities of interest to the Old Port of Montréal Corporation. In terms of the planning of international ferry terminals, we have a project with the Port of Montréal. In terms of recreational boating, we were in the process of replacing our facilities.

We went to the Powerhouse Museum, in Sydney, to see the Star Wars exhibit from the Boston museum that was there and to be able to assess the other proposals made to us. The Star Wars exhibit, not the same one, is now in Montreal. We also visited a big observation wheel, the Southern Star, in Melbourne, because we had a similar project on the table for the Old Port.

Unfortunately, Mr. Boulerice, you were misinformed. Seven reports for a total of 100 pages and 275 photographs were produced, distributed to managers and shared with our networks. A number of observations have led to solutions, encouraged ideas and helped the corporation make more informed choices, including opting for “blockbuster” exhibits at the science centre.

So it is not accurate to claim that those reports are summed up in a nine-page PowerPoint presentation with a lot of pictures and very little text, and to label them all as “useless report”. Unfortunately, there is a mix-up with the report dealing with the ferris wheel alone, the only request made by the QMI Agency. To keep track of the expenses for my mission, I made sure I separated my travel and vacation expenses.

11:15 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

But taxpayers still paid for half of your trip. When public service is being cut, when 19,000 public servants who provide services directly to the public are losing their jobs, everyone else is expected to tighten their belts. We get the feeling that the Old Port of Montréal is throwing money out the window. Your average Joe and Josephine won't be travelling to New Zealand and Australia. In addition, when you talk about 10 days of work to help the Old Port of Montréal Corporation make informed choices, I don't buy that.

11:15 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

The expenses and travel costs are in compliance with the Treasury Board guidelines We often receive missions like that at the Old Port of Montréal Corporation. We share a great deal of our expertise, we welcome people and we provide them with information about our site. It is quite normal and crucial for a president and CEO to be able to go see other facilities, to do some research, to draw on what is being done elsewhere in order to be able to share ideas and expertise, and to create networks, so that we have the most popular site in Canada and in the greater Montreal area.

11:15 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

It might have been a better idea for the people in New Zealand and Australia to send you a nine-page PowerPoint document showing you how they work. That would have been cheaper for taxpayers.

Do I still have time, Mr. Chair?

11:15 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

You have a few seconds left.

11:15 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Let me go back to the car allowance. What do you use the $20,000 for? If you don’t use it to go to the office, what do you use it for?

11:15 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

Mr. Chair, let me clarify that the amount is $12,000 per year, or $1,000 per month. As you know, it is taxable at the maximum rate, and the allowance is to cover my car costs when I travel on behalf of the Old Port of Montréal Corporation.

11:15 a.m.

NDP

The Chair NDP Pierre-Luc Dusseault

Thank you, Ms. Benoit.

Your time is up, Mr. Boulerice.

I will now give the floor to Mr. Del Mastro.

11:15 a.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

Thank you very much, Mr. Chairman.

Madame Benoit, thank you for appearing today.

How long have you been serving in your capacity with the Old Port of Montreal? What year did you start?

11:15 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

In November 2000.

11:15 a.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

It was November of 2009. Okay.

11:15 a.m.

President and Chief Executive Officer, Old Port of Montréal Corporation Inc.

Claude Benoit

No, it was in 2000.

11:15 a.m.

Conservative

Dean Del Mastro Conservative Peterborough, ON

It was 2000. Thank you very much.

Whose decision was it to hire Mr. Richard Tardif as your chief financial officer?