Government Operations Committee on Feb. 10th, 2011

[Richard Dicerni]

The figures contained in the document to which you are referring are accurate and I agree with you. The big difference pertains to the knowledge infrastructure program. All of the construction initiatives undertaken in partnership with the provinces, in this case with the ministère de l'Éducation and the ministère du Développement économique, de l'innovation et de l'exportation du Québec, in order to renovate CEGEPs and universities, constitute capital for construction development. These projects—I recently discussed this matter with the two deputy ministers from Quebec—will expire on October 31 of this year. The construction projects have been completed. We will continue to invest in research and innovation through the granting councils and through the Canada Foundation for Innovation. We are not touching those areas. The decrease you are referring to pertains to construction programs that had been introduced in the 2009 budget and which are expiring. These renovation projects have been completed.

[Robert Vincent, Bloc, Shefford, QC]

How do you explain that this is being done in research, development and innovation? I do not know. It is going there, but the money is being spent somewhere else.

[Richard Dicerni]

The money has not been spent elsewhere, it was allocated for a two-year period of time. The government recently extended this time period by six months, and now it is expiring. As part of our estimate process, we had to put this program under a certain heading. Since this program was designed to increase the capacity of post-secondary institutions to achieve their own objectives and fulfil their mandate, we classified it under this heading.

[Robert Vincent, Bloc, Shefford, QC]

So Industry Canada was mandated to invest money in cement? It seems to me that the knowledge infrastructure program should not come under Industry Canada. It is up to the federal government to invest, and that goes to another filter. Just like what we saw during the G-8 and G-20 summits when the money was taken from your department but spent elsewhere.

[Richard Dicerni]

I think that you are talking about something else.

[Robert Vincent, Bloc, Shefford, QC]

I know, but this is your department's money that is going elsewhere.

[Richard Dicerni]

As you know, our department does have a component that pertains to science, technology and innovation. It was in part because of our contacts with the provinces that the government, in its 2009 budget, requested that the Department of Industry deliver this program.

I do agree with you that the vast majority of the infrastructure program was managed by the Transportation, Infrastructure and Communities portfolio. Nevertheless, we were responsible for a significant part of the program that was related to the support that we were to provide to post-secondary institutions. There were approximately 550 projects underway throughout the country, including about 80 or 85 in Quebec, that were undertaken in partnership with all of the provincial bodies in the country.

[Robert Vincent, Bloc, Shefford, QC]

Let us talk about the activities of the global reach and agility in targeted Canadian industries program, which focuses on strong economic growth. Could you explain this program in greater detail? Once again, there have been drastic cutbacks. The program initially had $192 million and then it was cut back to $105 million and then to $36 million.

[Richard Dicerni]

The department targets certain sectors with which it works quite closely. The aerospace sector is probably the one that it has focused on the most. I will get back to this matter later, and provide you with more clarification about the numbers. Nevertheless, I know that the support program is continuing and that the appropriations are there. The industrial benefits program is still ongoing, we are very present there. We are continuing most of our investments.

[Robert Vincent, Bloc, Shefford, QC]

In your opening statement document, we read that the impact of constraints for the current fiscal year is estimated...

[Richard Dicerni]

What page are you on?

[Robert Vincent, Bloc, Shefford, QC]

... to be $3 million and, in 2011-2012, $4.6 million.

[Richard Dicerni]

What page are you on, sir?

[Robert Vincent, Bloc, Shefford, QC]

When I take a look at the estimates...

[Richard Dicerni]

What page are you referring to?

[Robert Vincent, Bloc, Shefford, QC]

... I'm thinking that it will be easy for you, you have so many cutbacks.

[Richard Dicerni]

What page are you looking at?

[Robert Vincent, Bloc, Shefford, QC]

I am referring to the document you read earlier. It states that cutbacks to Industry Canada for the current fiscal year are estimated to be $3 million and that, for 2011-2012, this figure will total $4.6 million. I am assuming that these are reductions, cutbacks, right?

[Richard Dicerni]

Yes.

[The Chair, Liberal, John McKay]

Unfortunately, your time is expired. I am sorry.

[Robert Vincent, Bloc, Shefford, QC]

We will get back to this issue later.

[The Chair, Liberal, John McKay]

Mr. Calandra.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

The last couple of years have been somewhat dramatic and your department has done a spectacular job in helping to guide us through what was a pretty devastating downturn. I think the entire department deserves congratulations for what it was able to accomplish in the time allotted to it. I think it's an example of how governments should operate. So I want to thank you for that.

I hope this doesn't come across as rude, but how long have you been involved in government? How long have you been in government?

[Richard Dicerni]

I am closing in on my fifth year as Deputy Minister of Industry. Before that, I had a number of jobs provincially as deputy minister. I was president of Ontario Power Generation for a couple of years.

[Paul Calandra, Conservative, Oak Ridges—Markham, ON]

You have lots of experience then.