Mr. Speaker, before I start, I would like to wish everyone a merry Christmas.
Today, we will talk about the SDTC and some of the actions that happened. It can be a bit technical, but in essence it is a horrendous but fairly simple scandal. It is involves the formation of an organization, a company on the behest of the government, and it had a laudable objective.
We are suffering through a productivity crisis. Our productivity is among the lowest of advanced economies. We would rank at the bottom probably in the G7 and as one of the lower performers in the OECD. Productivity sounds like working hard and all those good things, but that is not substantially what productivity gets a lift by. We can work as hard as we want, but if we do not have the appropriate innovation and technology, we simply will not get ahead as a company or, in this case, as a country.
This example is obviously an exaggeration but does well to show an example. If we are tasked with digging a hole, perhaps a foundation for a house or a building, and if our only technology is a shovel, we will be there for a long time. Even if we have the best workers in the world, we will not be able to compete with someone who has an excavator. Unfortunately, this is too often the case, granted that is exaggerated.
Our machinery, our systems, our technology are often five, or 10 or 15 years behind most of our competition. One of the most significant competitors is right across the border, in the United States of America. Its equipment will often be five to 10 years, on average, younger than ours. If we have an older car, as I do, it does not operate as efficiently or as effectively as a brand-new car, or if it is an older refrigerator, it does not operate as well as a brand-new one. Since we are using older machinery and equipment, we are falling further and further behind.
This brings me to the SDTC, which its laudable objective was to help cure this problem by stimulating the economy, by improving productivity through investments by the government, investments in the economy and in innovation particularly. The idea was that if we innovated, if we came up with some absolutely amazing ideas that we could grow into machinery, we could increase productivity. Productivity, when it is increased, affects nearly all of us. A rising tide lifts all boats.
The idea was to make some investments into these important innovations and technologies to help the Canadian economy and all Canadians. It is a laudable objective. In fact, past governments have even participated and agreed with this. There is some debate on whether a government can do this effectively or not. In this case, we really did not get the opportunity to see whether it could be effective or not. That was because instead of making those investments into equipment, technology and innovation that would help our economy, unfortunately, Liberal cronyism and corruption got the best of this organization.
What happened was the government, with taxpayer dollars, funded $400 million. This is a fiduciary duty. The government was collecting from Canadians from coast to coast, taking that $400 million, putting it into a pot and giving these individuals, the members of the board of the SDTC, the responsibility of finding some of the best innovation to invest in so we can lift the entire standard of living for Canadians from coast to coast.
These people were given a tremendous responsibility, a real fiduciary responsibility. They were giving other people's money to invest on their behalf for the hopeful return of improving the standard of living for all. Unfortunately, nothing could be further from the truth of what happened. We had $400 million, which were basically spent in corruption and given to Liberal insiders instead of actually helping innovation.
There are a number of different facets, including over $50 million given to ineligible contracts. This is just saying that what we are going to do is design a framework to give this $400 million away and in that framework, we are hopefully going to capture and design it well enough so that we are going to get those great companies, those great individuals who have those ideas that can help the productivity issue. They did come up with that framework. Then they decided to take $50 million and not put it within that framework, making it totally ineligible.
The most troubling part of this is that, of that $400 million, tens of millions of dollars were given away in conflicts of interest. Conflicts of interest can sound a bit fancy, but what does that all mean?
Let us go back to that pot of money that was been gathered from coast to coast through income tax, sales tax and through the carbon tax. All of this money was taken, put into this pot and SDTC was given the responsibility to administrate and to award these monies. We have this $400 million and then we have this group of people who have to decide where that money goes. Unfortunately, tens of millions of dollars of that went to people who were supposed to objectively decide where that money would go.
In some cases, this is how it would work. There would be an application and then that application would come before these individuals who would be the arbiters of where that money would go. What would happen? One board of directors or one of the members would say that they had a conflict of interest. That is company A. Therefore, that individual would walk out of the room, all the while knowing that they would hear from an individual who had ownership or who had an interest in company B, which was next in line with an application.
We have an interest in company B and we are looking at the grant for company A, knowing full well that in the next half an hour, they are going to decide whether we get the money. The idea that this would not bias someone is just this side of absurd. Hundreds of millions of dollars have gone out the door.
It is important to note, and this is the part that is really under-reported and really not expressed enough, that this money does not come from the Prime Minister's trust fund. That money does not emerge from ether. The is pulled from the hands of hard-working Canadians. It is taken from a single mom. In fact, a single mom earning $40,000 or $50,000 can face a marginal effective tax rate as high as 40%, 50%, even 60%. With the clawbacks and with income tax, that is absolutely what they pay. We can look it up at the Fraser Institute or we can look at C.D. Howe, which has written numerous papers on it. I trust the members to look at this and review it, because that is the reality of it. This money that is being taken from hard-working Canadians is then funnelled, in buckets full, to Liberal insiders.
I want to give one example of where that $400 million could have been spent and where that $400 million could have done, in my estimation, a great deal of good. I have the privilege of being the shadow minister for transportation. In the last couple of transportation committee meetings, we have been discussing and studying the “big dock”. Not many of us will know what the “big dock” is and that is fine. The “big dock” is located in Fort Chipewyan in northern Alberta.
There are two first nations groups and also Métis people that utilize the “big dock”, in addition to a rural municipality. The “big dock” is the centre of activity. It is where children learn to swim. It is often the time where children might throw in their first line to catch that fish. I can remember my son actually catching his first fish. It is such an exciting moment. This is the centre of community. Also, the only way people can get in and out of the community during the summer is through this big dock or wharf. At the transport committee, we learned that this dock and the vicinity was contaminated and that Transport Canada knew about this since 1997.
Most recently, a report in 2017 said there were hydrocarbons, arsenic, and other heavy metals and contaminants that I certainly would not want my children, or anyone's children, to swim or play in. There are even older reports that show there is perhaps radiation surrounding this dock. Transport Canada knew about this.
In the 2017 report, which there was an obligation under the environmental assessment to disclose, the government said it was looking at divesting this. It sent two out of the three indigenous groups this in a package of due diligence. It was a huge package. Those who have practised law know what due diligence can look like. It can be tens of thousands of documents at a time.
The Liberals, through Transport Canada, said it was good enough because they disclosed it. They did not disclose it. They kept it a secret. Since 2017, they knew it was contaminated. Worse, they had to be dragged kicking and screaming. We actually found out about it because the chiefs at the time realized the dock was actually getting covered as the water levels were declining, because sediment was building up around the dock. They needed to dredge it. It was not purely for recreation; as I said, it is the only way out of the community.
When the wildfires struck the area, the communities had difficulty evacuating. They asked in 2023 and again in 2024 to have the area dredged. Transport Canada was reluctant. The communities did not know why, but they knew that if another wildfire hit, the people may not be able to get out. They might literally burn to death. They said, “We are going to do it, whether you want it or not.” What was the response from Transport Canada? “You will be put in jail. If you go ahead and dredge this, you will go to jail.”
The communities were then left in the terrible position of letting their people down by not dredging it, meaning the next wildfire could very well be the end of their people, or they could go to jail. They actually took what I thought was a brilliant course of action. They hired their own toxicologist. They wanted to find out what was going on. They found out a couple of things: first, it was contaminated; second, after the contamination was discovered, the government did not bother to study it for the effect on human health.
The Liberal government, through its agency Transport Canada, knew it was contaminated. The next logical step from a professional toxicologist was to look at the effect of that contamination on human health. Instead of doing that to find out if it would have an impact and what that impact would be, the communities decided to keep this as a commercial port, even though anyone who has been to the big dock would easily say it is much more than an area, a barge dock, where we ship off supplies.
The big dock is a community hub. This is where children swim and fish. The Liberals chose to turn a blind eye to this. That is what they did. It was not until the indigenous people chose to hire their own toxicologist that they found out about the contamination. Here we are now, still dragging the Liberals kicking and streaming. The communities asked for $25 million, which is a fair amount of money. Goodness sakes, for folks in my community, $25 million sounds like a lot of money. However, the government spent $400 million to achieve nothing but padding the pockets of Liberal insiders, and for less than 10% of that investment, we could have cleaned up and remediated the entire area around the big dock.
The government could have built a brand new dock so there was an area for children to swim and fish in and enjoy again, an area where the first peoples, the Chipewyan nation, could evacuate effectively. It could have done that for less than 10% of what it wasted padding the pockets of Liberal insiders.
I have been trying to speak to this in a way I hope most folks can understand when we hear the number $400 million. With the billions the government has spent, we do not know what the deficit is because it will not even tell us. Its public accounts are due by September at the very latest. We are now in December. We still do not know effectively what the deficit is. We will hear criticisms, mostly from that side of the aisle and the folks on the other side of the aisle who support them, that sometimes we ask questions that are too aggressive or even seem petty. However, I have heard the Leader of the Opposition ask this completely substantial and reasonable question: What is the deficit? What type of government does not respond to that type of question six months after it is supposed to have published it?
Do members know what would happen in a private business if a CEO refused to tell people what its losses, revenue and costs were for this long a time? I can tell them exactly what would happen. They would be fired and would go to jail. There is a duty on all of us, as it is not the government's money it is administering or negotiating; it is not the Prime Minister's money. It is that of the people of Victoria, Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Orono, Cramahe and Brighton, who work day in and day out for it. These are dollars they were hoping to utilize for their children's education. For many of them, their children's education is so far off that they just want to make sure their kids can eat at the end of the week.
Instead of that money going where it can best be spent by the people who earned it, it is sent here, to the ivory white towers, where these folks will tell them they know better. The Liberals will make sure those people do not just spend their money on beer and popcorn; rather, they will take that money and invest it for them because they know better. Well, we have clearly seen that they do not and that the money belongs in the hands of the hard-working people who earned it. It belongs in the hands of our indigenous communities. It belongs in the hands of our farmers, business owners and job creators, because they earned it, they value it and they know where best to spend it.
The next time members hear some story about this great Liberal program that is going to come out and revolutionize the world, I want them to think about the single mother who is putting water in the milk to make sure her child has enough to get through the end of the week. Is it worth taking another $20 or $30 from her for this great imaginary program that will never do anything but build bureaucracy?
We need to return to being the freest country in the world. We need to return to being a country where everyone has opportunities, where it does not matter who they are or where they came from, but how hard they work, what they want to accomplish and who they want to be.
It has been a privilege to rise.