Industry Committee on Oct. 3rd, 2024

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Okay. Can you please table with the committee a month-by-month repayment plan of that loan?

[Francis Bilodeau]

We'll provide information on the loan and the details and the repayments, yes.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Okay. Thank you very much.

When did the negotiations or when did the conversations around this 2024 loan begin? It's the one that was just announced here the other day. When was that process initiated?

[Francis Bilodeau]

We've had ongoing discussions with Telesat for a while. I would say that we've been engaging in discussions around our financial support for a number of years, including way back into the SIF agreements. The more fulsome negotiations around the potential loans would have been over the last several months.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Specifically on the $2.1 billion, did that start only in the last couple of months?

[Francis Bilodeau]

We have an ongoing relationship with Telesat through a number of funding agreements. We've had insights into their finances for a number of years. We've had insights into the relationship for a number of years, but wholesale negotiations around the loans would have been over the last several months.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

You must have had formal negotiations with Telesat on the $2.1 billion—yes or no?

[Francis Bilodeau]

The department was active in discussions with Telesat to get to the loans, yes.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

When did that begin? It's specific to this one. I know there's a long-standing relationship. That's not what I'm asking about. Specific to the $2.1 billion, when did that begin?

[Francis Bilodeau]

I don't have an exact date. I can tell you that it's been several months. I can come back to you if we have an exact date. Again, it's an evolving discussion and relationship with a strategic company for Canada.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Can you table that information with the committee as well?

[Francis Bilodeau]

We can provide information on our discussions and negotiations with Telesat.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Thank you very much.

How many homes will be connected to the Internet because of these loans and these investments?

[Francis Bilodeau]

The investment is in the strategic capacity for Telesat. In terms of the objective of the relationship with Telesat, certainly there's an element that is about connecting homes, but as the primary government instrument for connecting homes around the UBF and the $2 billion in investments being made, the objective is—

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

I'm sorry. I'm going to interrupt you, just because I do have limited time.

There must have been a cost-benefit analysis done. We're connecting homes. We're investing this much money. What was the cost-benefit analysis that was done on the investment for connecting people to broadband, connecting homes? What was that cost-benefit analysis? Do you have that?

[Francis Bilodeau]

We have a number of analyses that were done. Obviously, in this case, the sole objective of this investment is not only to connect homes but to build a strategic capacity in Canada with a Canadian company.

We have other investments, including a $600-million prepurchase agreement, where no money has been paid, that will connect homes at the rate of Telesat. No money has been disbursed out of that one.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Okay.

When it comes to some guardrails that maybe would have been put in place regarding billions of dollars in loans, are there executive compensation restrictions for executives at Telesat while these loans are outstanding, just to make sure that any taxpayer money is specifically going to a deliverable rather than to an executive compensation package?

[Francis Bilodeau]

Some of the details I can't necessarily provide, because they would be considered confidential. There are a number of covenants within any of our agreements, including requirements for investments to be in Canada and to remain in Canada, and for the company to stay in Canada.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

With regard to executive compensation agreements, though, are you telling me that these executives could potentially be lining their pockets with taxpayer money? Did you not put a guardrail in place to make sure that taxpayer money is going only to deliverables and not to executives?

[Francis Bilodeau]

Our investments are based upon the investments that have to be made by the company.

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Is that to the executives or to the deliverable?

[Francis Bilodeau]

There are a number of guardrails within the agreement. I can come back to you on what is shareable or not, including—

[Jeremy Patzer, Conservative, Cypress Hills—Grasslands, SK]

Yes. Please do. I would appreciate that.

Very quickly, when do you expect the Northvolt plant in Quebec to be operational?

[Benoit Tessier, Director General, Automotive, Transportation, Digital and Industry Skills Branch, Department of Industry]

Thank you for the question.

Essentially, as communicated by the company, there's a strategic review being conducted by the company in Europe. The company is assuring us that the start of production date in Canada will not be affected. Therefore, the start of production date is planned for 2027.

[The Chair, Liberal, Joël Lightbound]

Thank you, Mr. Patzer. You're out of time.

Mr. Arya, go ahead.