Industry Committee on May 8th, 2012

[Geoff Regan, Liberal, Halifax West, NS]

It is for me, too, and I'll be happy to come back to that in a moment. But there are issues about political hiring within the umbrella of ACOA and Enterprise Cape Breton.

Let's talk about Enterprise Cape Breton, which is of course at arm's-length but does report to you and is within your area of responsibility. We know there have been a number of defeated federal Conservative candidates, provincial Conservative candidates, and a former aide to a provincial Conservative minister who have been directly hired by ECBC without the hirings being posted, without job postings.

For instance one of them is former Conservative candidate and staffer for Peter Mackay, Allan Murphy, who was hired in a position here in Ottawa that had never existed before at ACOA, had never existed in the 57-year history of the Cape Breton Development Corporation, but apparently was suddenly absolutely vital.

So in view of this history, in view of all these hirings without postings, which are clearly political, Minister, what I ask is for you to clear the air. Will you commit to call in the Auditor General to investigate the hiring practices at Enterprise Cape Breton?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Well, Enterprise Cape Breton—and Paul, correct me if I'm wrong—is not subject to the Public Service Employment Act in terms of its hiring. It is responsible for its own hiring, and—

[Geoff Regan, Liberal, Halifax West, NS]

It's an arm of government. Let's face it: it's an arm of government and of your government.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

Yes, it is a crown corporation that is responsible for—

[Geoff Regan, Liberal, Halifax West, NS]

So it's okay that they don't post jobs when they have hirings? Is that okay with you?

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

I'm not aware of that. I cannot comment on that allegation of yours. Whether or not that has happened, I don't know. If it has, of course I would want to know why. But it is not as I understand it within my prerogative to tell the ECBC board how to manage its business.

[Geoff Regan, Liberal, Halifax West, NS]

So you don't think the Conservative government has any responsibility to direct ECBC to do hiring in a way that falls within certain standards, like for example posting jobs. It's okay if they simply hire a defeated Alan Murphy, a defeated former federal Conservative candidate—

[The Chair, Conservative, David Sweet]

Mr. Lake.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

On a point of order, Chair, Mr. Regan is making some strong allegations here. I would just ask that when folks are making these kinds of allegations, they actually have something to back them up.

[Geoff Regan, Liberal, Halifax West, NS]

I'd be happy to do that, Mr. Chairman.

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

When they're making the allegations, they're just throwing them out there.

[Geoff Regan, Liberal, Halifax West, NS]

I'm not just throwing them out. The question is, were they hired without job postings? If that's the case—

[Mike Lake, Conservative, Edmonton—Mill Woods—Beaumont, AB]

You don't know the answer.

[Geoff Regan, Liberal, Halifax West, NS]

I do know. The answer is that they were. It's been publicized before. If you want me to list them, I'm happy to do that.

[The Chair, Conservative, David Sweet]

Thank you, Mr. Lake.

We'll continue on with your questioning, and maybe let the minister go ahead and answer now.

[Bernard Valcourt, Conservative, Madawaska—Restigouche, NB]

I'll maybe ask Paul to clarify the obligations of Enterprise Cape Breton and the development corporation in terms of its hiring.

[Paul LeBlanc]

By virtue of my position as president of ACOA, the ACOA legislation stipulates that the president of ACOA is the chairperson of the Enterprise Cape Breton Corporation's board of directors. I have this optic into the ECBC operation as the chair of the board.

The Honourable Mr. Regan points out that the corporation is an arm of government. I would specify that it's an organization of government that is at arm's-length of the core of government in a governance sense.

[Geoff Regan, Liberal, Halifax West, NS]

But the way that the public.... I mean, there has to be a way for the taxpayers to have accountability for an organization like that, let's face it.

[Paul LeBlanc]

I just wanted to add that the executive management of the corporation operates under a human resource management policy framework that includes principles of fairness and transparency and that, to the best of my knowledge, requires postings of jobs or seeks to manage processes that are fair, equitable, and that would bear up to scrutiny and are transparent—

[Geoff Regan, Liberal, Halifax West, NS]

Perhaps you could tell me, then—

[Paul LeBlanc]

I might just add that there's a subcommittee of the board members, the directors of the board, dedicated specifically to overseeing the corporation's human resources management. Its recruitment plans are actually approved at the board level.

[Geoff Regan, Liberal, Halifax West, NS]

Perhaps you're able to tell me how many job cuts there have been at ECBC as a result of this budget or last year's, similar to the 45 and 65 position cuts at ACOA generally. And to your knowledge, are any of the following folks affected by this: Alan Murphy, Ken Langley, or Rob MacLean?

[Paul LeBlanc]

To my knowledge, and I'm quite certain this is correct, there have been no human resource reductions at the corporation, and the very specific reason for this is that the corporation has actually grown, because it took on the responsibility of the closed other corporation, DEVCO, in Cape Breton.

[The Chair, Conservative, David Sweet]

Thank you.

[Paul LeBlanc]

DEVCO got folded into ECBC. So ECBC actually grew.