Industry Committee on May 8th, 2024

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Masse.

It's now over to Mr. Vis for five minutes.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Thank you, Mr. Chair.

On the main estimates, it shows that Sustainable Development Technology Canada is getting $191,380,000 and change. Isn't the green fund still under a ministerial order?

[Simon Kennedy]

I can turn to the CFO to add colour commentary if desired, but I can just assure the honourable member that there's been no new funding put into SDTC. The money that was referenced when the minister was here, the $750,000, would have been the last capital injection. This would be money that's already in the fiscal framework and is probably just being reprofiled from one year to the next until a decision will be made ultimately as to what to do. It's not new funding.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

There was a new grant under the main estimates. It was line 374.

[Simon Kennedy]

It's more. There is funding that is available for the purpose—

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

They're putting it aside, but they're not giving it yet.

[Simon Kennedy]

They're putting it aside, but that money has not actually been put out the door yet, yes.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

That's fair enough. Thank you.

It states in the main estimates that EV battery manufacturers are receiving $236,846,000 and change. Where is that money going?

[Simon Kennedy]

This would be going to firms that have agreements under the strategic innovation fund for the purposes of building a battery facility. As has been noted and as has been announced publicly—

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Thank you.

The strategic innovation fund also outlines $2,380,000,000 and change. What I understood was that the money was for the construction of plants and the $236 million I just referenced in the main estimates was going to be provided to the battery companies only once they produced the battery. Can you explain that discrepancy for me?

[Simon Kennedy]

I might have to come back with precision on this, but just to respond to your question, for a number of the EV manufacturers, there are two different agreements. There's one that is capital support to build the facility, which typically goes directly through the strategic innovation fund, so some of that you probably see in the estimates. Then there is funding through special contribution agreements, which are designed to mimic, in a sense, the IRA. There may be some money provisioned for that, but as the member noted, that would go out only if and when batteries are shipped.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Can you provide a breakdown to the committee of those expenditures to date, please?

[Simon Kennedy]

Certainly, we could come back on that.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Thank you.

Why does British Columbia get less money for economic development than other provinces?

[Simon Kennedy]

I maybe just would note—it did come up earlier—that the regional development agencies are actually no longer in the industry portfolio, and so there are actually separate ministers and deputy ministers accountable for those agencies. I totally appreciate the member's question, but it's not in our portfolio anymore, so I'm—

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Someone asked that before, I believe.

For the universal broadband fund, there's $432 million and change. Can you provide a breakdown of which telecommunications company is receiving funds under the universal broadband fund, according to the estimates?

[Simon Kennedy]

We can come back on that, for sure.

Very briefly, as context, the estimates provide the allocations year over year. There are many infrastructure projects under the universal broadband fund, so this is the current year's funding requirements. It may not be going to specific new projects announced only this year. It's the flow of cash to support the broader program. We can certainly come back with the full list of projects and where they are across the country.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

I'd love to see that $432 million before I vote on it. Thank you, Deputy Minister.

I looked in the internal services. I will note that it went from about $190 million to $184 million of expenditures, so you've had a $6 million reduction in your internal services—that's good. If you were an auditor, where would you be looking for further savings in the operationalization of your department?

[Simon Kennedy]

That's a tricky question. The government has been very clear on its intent to have further expenditure restraint, which we obviously take very seriously—I personally take it very seriously. We want to be as efficient as we can in spending tax money, so we have to look in all of the areas of our operations, whether that's travel, professional services or, frankly, salaries. The government indicated that there will be a further reduction in head count. The management team is actively going over these very issues now, because my operating assumption is that we will be asked to deliver our mandate with less money and fewer people, and we're going to have to figure out how to do that.

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Thank you.

The department provided $4.6 million for computers in schools. How many computers were provided to children?

[Simon Kennedy]

The computers for schools program has a storied history going back, I think, 30 years now, and there have been hundreds of thousands provided. I'd have to come back with the official statistics. It's a very efficient program that relies extensively on volunteers and donated—

[Brad Vis, Conservative, Mission—Matsqui—Fraser Canyon, BC]

Mr. Chair, would the department be able to provide the number of computers?

[The Chair, Liberal, Joël Lightbound]

I think that's what Mr. Kennedy just suggested.

[Simon Kennedy]

Absolutely, yes. That's no problem.

[The Chair, Liberal, Joël Lightbound]

Thank you. On that note, Mr. Vis, that's all the time you have.

I now turn it over to MP Van Bynen.