Mr. Speaker, it is a pleasure to rise here again and to talk about the SDTC scandal we have been seized with now for maybe three weeks.
I am here today in the House to discuss a shocking misuse of taxpayers' dollars. Four hundred million dollars has been wasted, while the cost of living is up, food bank usage is up, the carbon tax is up and the Liberal government has an $8 billion budget overrun, according to the Parliamentary Budget Officer.
As many Canadians are aware, the House has been seized with the issue for many weeks. There have been no debates of government bills and no debates on private members' bills because the issue is so important that it must take precedence over all other business and because the Liberal government has refused to comply with a lawful order of the House of Commons.
Many of my constituents may be wondering why I am speaking to the privilege motion for a second time. To explain, I am rising today to speak in support of an amendment to the privilege motion moved by the hon. member for Regina—Qu'Appelle on the failure to produce documents pertaining to the Sustainable Development Technology Canada scandal.
For the benefit of other members and for people watching at home, I will read the motion and the amendments. The motion states:
That the government's failure of fully providing documents, as ordered by the House on June 10, 2024, be hereby referred to the Standing Committee on Procedure and House Affairs;
The amendment reads:
provided that it be an instruction to the committee:
(a) that the following witnesses be ordered to appear before the committee, separately, for two hours each:
(i) the Minister of Innovation, Science and Industry,
(ii) the Clerk of the Privy Council,
(iii) the Auditor General of Canada,
(iv) the Commissioner of the Royal Canadian Mounted Police,
(v) the Deputy Minister of Innovation, Science and Economic Development Canada,
(vi) the Law Clerk and Parliamentary Counsel of the House of Commons,
(vii) the Acting President of Sustainable Development Technology Canada,
(viii) a panel consisting of the Board of Sustainable Development Technology Canada; and
(b) that it report back to the House no later than Friday, November 22, 2024.
The amendment really speaks to the heart of the issue, which is ministerial accountability. I feel that it is important for the benefit of members of this place to dig deep into what ministerial accountability is and why it is so important to the issue at hand.
When the member for Regina—Qu'Appelle raised his initial privilege motion, he referred to a document obtained from the Privy Council office, which states, “Public servants do not share in Ministers’ constitutional accountability to Parliament but support Ministers in this accountability.” It also states that the ultimate accountability for deciding what information to withhold from or release to parliamentarians resides with the responsible minister.
I agree with this; it really is the Minister of Innovation, Science and Industry who is ultimately responsible for the scandal and for the violation of an order of the House. The minister must be held accountable, and that is why it is so important that he hand over the documents and appear at committee.
I will now discuss the origin of ministerial accountability and its relevance to today's debate at length.
To really dig into what ministerial accountability is and what it ought to mean, we can refer to the Prime Minister's own document released on November 27, 2015, when the Liberals formed government for the first time under the current Prime Minister. The document, or guide, is entitled “Open and Accountable Government”. It supposedly sets out core principles regarding the roles and responsibilities of ministers in Canada's system of responsible parliamentary government. This includes the central tenet of ministerial responsibility, both individual and collective, as well as ministers' relations with the Prime Minister and cabinet, their portfolios and Parliament.
I think this is very fascinating. I will read from the Prime Minister's opening message to the ministers. He says:
In our system, the highest manifestation of democratic accountability is the forum of Parliament. You are accountable to Parliament for the exercise of the powers, duties and functions with which you have been entrusted. This requires you to be present in Parliament to answer honestly and accurately about your areas of responsibility, to take corrective action as appropriate to address problems that may arise in your portfolios, to correct any inadvertent errors in answering to Parliament at the earliest opportunity, and to work with parliamentary colleagues of all political persuasions in a respectful and constructive manner.
He goes on to say, and this is my favourite part:
You are responsible for ensuring that your departments are managed well and with complete integrity....
The Prime Minister went on to detail what ministerial accountability meant to him. He states:
Ministers are accountable to Parliament for the exercise of the powers, duties and functions vested in them by statute or otherwise. Ministers must be present in Parliament to respond to questions on the discharge of their responsibilities, including the manner in which public monies were spent, as well as to account for that use. Whether a Minister has discharged responsibilities appropriately is a matter of political judgment by Parliament. The Prime Minister has the prerogative to reaffirm support for that Minister or to ask for his or her resignation.
It is critical to the principle of responsible government that all organizations within the executive be the responsibility of a Minister who is accountable to Parliament for the organization. A Minister is accountable to Parliament for the proper functioning of his or her department and all other organizations within his or her portfolio.
I rarely think or say this, but I completely agree with the Prime Minister: Ministers should be “accountable to Parliament” and “must be present in Parliament to respond to questions on the discharge of their responsibilities, including the manner in which public monies are spent, as well as to account for that use.” I will go on to discuss why this is relevant to the amendment and the issue at hand today.
I would like to remind members in this place exactly how much money was misappropriated by the board of the Sustainable Technology Development Canada Fund. When I speak to constituents, many of them draw comparisons to the sponsorship scandal. I have to remind them that the Liberal sponsorship scandal was a $40-million scandal, one that led to the complete collapse of the Liberal Party because of how egregious the misuse of funds was.
My constituents are baffled when I inform them that the current one is a $400-million scandal, $400 million of taxpayer funds while rents are at an all-time high, mortgage payments have doubled and Canadians cannot even afford to feed their family. It is scandalous, and that is why Conservatives will keep pressing the government on the issue until the taxpayers' funds are repaid and the documents have been handed over.
It is unfortunate that hundreds of millions of wasted taxpayer dollars means nothing to the Liberal government. We saw the indifference that the Liberals displayed when it was revealed that $56 million was wasted on the ArriveCAN app, an application that did not work. Conservatives had hoped that the Liberal government had learned its lesson when that scandal occurred, yet here we are again, embroiled in another costly scandal.
What got us to this point was the Auditor General's conclusion that SDTC board members and officials broke conflict of interest laws 186 times and funnelled $400 million of taxpayers' money to their own companies. This unprecedented waste of taxpayer dollars and the Minister of Industry's refusal to be held to account for the issue are shocking.
The common-sense Conservative amendment we are discussing today explicitly demands that the minister attend committee for two hours and answer for the failure. I would hope that members on all sides of the House would like to see the minister take responsibility for the scandals and failures of his department. The Prime Minister's own document entitled “Open and Accountable Government”, which I referred to earlier, would seem to indicate that is what he ought to do.
Now, for the benefit of my constituents and all Canadians who have been very curious about the issue, I will walk members through the timeline of this particular scandal. We know that Sustainable Development Technology Canada was a not-for-profit foundation that was established by the Government of Canada in 2001 through a special act of Parliament, the Canada Foundation for Sustainable Development Technology Act.
SDTC was created to support and finance clean-technology start-ups, with the goal of delivering economic, environmental and health benefits to Canada. By all accounts, the fund ran well and had zero issues for 17 years, that is until Navdeep Bains, the former Liberal industry minister, decimated the fund and brought in an era of corruption. In late 2018, former minister Bains expressed concerns regarding the chair of SDTC, Jim Balsillie, given his public criticism of the Liberal government's privacy legislation.
Jim Balsillie is a widely respected Canadian businessman who is the former chair and CEO of BlackBerry. He was appointed as chair of SDTC in 2013, during the Harper government, for a term of five years. However, in 2018, the office of then Liberal minister of industry, Navdeep Bains, expressed discomfort about Balsillie's comments with the CEO of SDTC and requested that the chair stop criticizing government legislation. Minister Bains proposed two replacement chairs to the CEO of SDTC in a phone call. One of the candidates proposed was Annette Verschuren, an entrepreneur who was already already receiving SDTC funding through one of her companies.
The minister, the PMO and the PCO were warned of the risks associated with appointing a conflicted chair, and they were told that up until that point the fund had never had a chair with interests in companies receiving funding from SDTC. In June 2019, Minister Bains decided to proceed with the appointment of Annette Verschuren despite repeated warnings expressed to his office. The new chair went on to create an environment where conflicts of interests were tolerated and “managed” by board members.
Board members went on to award SDTC funding to companies in which board members held stock or positions within the company receiving funding. Minister Bains went on to appoint two other controversial board members who engaged in unethical behaviour in breach of the Conflict of Interest Act by approving funding to companies in which they held ownership stakes. During this time, ISED officials sat in on the board meetings and witnessed 186 conflicts at the board but did not intervene.
That brings us to January 2021, when the member for Saint-Maurice—Champlain became the new Minister of Industry, replacing Navdeep Bains after the latter decided not to run for re-election. In November 2022, whistle-blowers raised internal concerns with the Auditor General about unethical practices at SDTC. The Privy Council was briefed by the whistle-blowers about the allegations shortly after and commissioned two independent reports.
In September 2023, the whistle-blowers took the allegations public, and the Minister of Industry agreed to suspend SDTC funding. Finally, in June 2024, the Auditor General's report was released, finding severe governance failures at SDTC. The Auditor General found that there were 186 instances in which conflicts of interest occurred, meaning that the board of directors and the chair had hand-picked where funding was going. Some of that funding went to their own companies. The Auditor General took only a sampling of the funding and found that 82% of that sampling was in a conflict of interest, totalling $330 million.
The Auditor General also found that SDTC did not follow conflict of interest policies in 90 cases, spent nearly $76 million on projects connected to the Liberals' friends appointed to run the fund, spent $59 million on projects that were not allowed to have been awarded any money, and spent $12 million on projects that were both in conflict of interest and were ineligible for funding. In one instance, the hand-picked chair of the fund gave a shocking $217,000 to her own company.
In response to the damning findings, in June, Conservatives put forward a motion calling on the government to provide to the House documents pertaining to SDTC. The motion included provisions for the documents to then be provided to the RCMP so it could undertake a criminal investigation on whether criminal offences were committed. The Liberal government has refused to hand over the documents, and that is why we are still here discussing the motion today.
I would now like to share some of the testimony that the SDTC whistle-blower gave at committee. I find the testimony to be astounding and I commend the witness for their bravery. The whistle-blower stated:
I think the Auditor General's investigation was more of a cursory review. I don't think the goal and mandate of the Auditor General's office is to actually look into criminality, so I'm not surprised by the fact that they haven't found anything criminal. They're not looking at intent. If their investigation was focused on intent, of course they would find the criminality.
He went on to say:
I know that the federal government, like the minister, has continued saying that there was no criminal intent and nothing was found, but I think the committee would agree that they're not to be trusted on this situation. I would happily agree to whatever the findings are by the RCMP, but I would say that I wouldn't trust that there isn't any criminality unless the RCMP is given full authority to investigate.
Another quote I find astounding is:
The true failure of the situation stands at the feet of our current government, whose decision to protect wrongdoers and cover up their findings over the last 12 months is a serious indictment of how our democratic systems and institutions are being corrupted by political interference. It should never have taken two years for the issues to reach this point. What should have been a straightforward process turned into a bureaucratic nightmare that allowed SDTC to continue wasting millions of dollars and abusing countless employees over the last year.
Finally, and this is the quote that really gets to the root of the issue:
...I think the current government is more interested in protecting themselves and protecting the situation from being a public nightmare. They would rather protect wrongdoers and financial mismanagement than have to deal with a situation like SDTC in the public sphere.
It is because of brave whistle-blowers such as this individual that the public was able to see the corruption and rot that the Liberal government had allowed to fester at SDTC. Conservatives commend this individual and thank him for standing up for Canadians. As I just mentioned, this brave whistle-blower believes that criminal intent would be found if the documents the Conservatives have requested were to be handed over to the RCMP. That is why it is so important that the Liberal government comply with the House order and release the documents.
In closing, we are still here today discussing this issue after a month because the government refuses to comply with an order of the House. We are calling on the government to comply with the House's order and hand over the documents unredacted. Then we can find out what really went on and whether there was any criminality, which former employees at SDTC believe there was.
I will end by saying that, after nine years of the Liberal government, there has never been a better time to be a Liberal insider. Under the Liberal government, Liberal insiders feel it is perfectly acceptable to waste $400 million of taxpayer funds while Canadians are struggling. This is a slap in the face to the people in my riding of Barrie—Springwater—Oro-Medonte who are struggling to make ends meet under the costly NDP-Liberal coalition.
Just this week, Karen Shuh, the executive director of the Barrie Food Bank, stated that the food bank is now supporting upward of 7,000 people per month, 37% of whom are children. Ms. Shuh went on to say, “As demand continues to rise, we face increasing challenges in keeping up, often needing to make difficult choices about which foods to cut in order to stretch our donations further.”
Canadians in my community are visiting food banks in record numbers because the Liberal government's inflationary taxes and spending are driving up the cost of everything, and instead of providing Canadians with the relief they deserve, the Liberal government plans to hike the carbon tax again. This costly carbon tax is not only affecting families but also farmers in my community.
I was recently sent an Enbridge bill for almost $10,000 from a farmer in my riding who runs a poultry operation. Their bill shows a carbon tax charge of $2,700 on the cost of fuel to dry grain corn. Shockingly, the carbon tax is actually more than the value of the gas before delivery and global adjustments.
Moving to the poultry side of their operation, this farm pays a comparable tax on the cost to heat their barns. Every 24 weeks, they place over 3,000 day-old breeder chicks in their barns. These barns need to be heated to 32°C as the chicks are so small they cannot heat themselves. This temperature is slowly reduced as the chicks grow stronger. The cost to heat the barns during this placement is approximately $7,000, with approximately a third of that cost being the carbon tax.
During this affordability crisis, one would think that the Liberals would think twice about allowing Liberal insiders to funnel $400 million to their buddies. Unfortunately, they see no issue with this corruption.
I have heard from countless businesses in my riding that have suffered due to inflation, labour shortages, supply chain issues, increasing business debt and federal tax increases. It is devastating to see these businesses, which bring joy to so many members of my community, suffer under the Liberal government's punitive policies.
However, Canadians have something to look forward to. They can look forward to voting for a common-sense Conservative government as the costly NDP stops propping up its government partners and calls a carbon tax election. In this carbon tax election, Canadians would have the opportunity to vote for Conservatives, who would axe the tax, build the homes and fix the budget to bring down inflation and interest rates to make it affordable again for our seniors and all Canadians.
To those watching at home, I say that help is on the way. Once we have a carbon tax election, a common-sense Conservative government would axe the tax on everything, for everyone, everywhere, to bring home powerful paycheques and lower prices for all Canadians.