Debates of June 6th, 2024

Opposition Motion—Documents Regarding Sustainable Development Technology Canada

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, the question is not whether we are going to abolish a fund like this.

The reality is that we are all well aware of the fact that we must continue to invest in technology. What is more, it is part of the Conservative government's policies to bring new technologies on board to deal with the problem of climate change in Canada.

Inevitably there will be and continue to be investments, but not with people who are appointed by friends of the Liberal fund who make sure that Liberal cronies can line their pockets.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Speaker, the Conservative Party seems to have some good ideas. It recently had one. It wants to lower federal gas taxes. That sounds interesting. I wondered why they had not come up with it sooner if it was such a good idea.

I did some searching. In 2008, the Harper government said that higher gas prices were unavoidable and that Canadians would have no choice but to reduce their dependence on oil and gas. He said, and I quote, “I believe you will see, over the next few years, the general trend of gasoline and other energy costs will continue to rise”.

Stephen Harper, the former leader of the Conservative Party, refused to cut federal gas taxes. I will quote him again. He said, “The ability of governments to affect the price of gasoline per se is so small that it's not worth doing. What you've really got to do is lower costs for consumers generally, rather than try to fight the upward trend in the price of gasoline.”

One member who was around under the Harper government is the current leader of the Conservative Party, the member for Carleton. I would like my colleague to explain in concrete terms who is telling the truth. Was it the former leader of the Conservative Party or the new leader of the Conservative Party?

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, it is a little odd that my colleague would ask me a question about that, because we have been extremely clear for months and months. We still want to pause taxes on fuel for the summer to give Canadians a break. Unfortunately, the Bloc Québécois does not want this and has spoken out against this idea.

However, the member is not asking me about the nearly $200 million that was put into a fund managed by friends of the Liberals, who allocated funds to themselves while sitting on the board of directors of that organization. That is completely unacceptable. It is beyond belief. He is not even asking me anything about that.

Does this mean the Bloc Québécois is okay with what those people were doing?

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, one thing that popped into my mind as my colleague was speaking was that he talked about the fact that only Conservatives would be able to stop the corruption and the secrecy. That did make me laugh a bit because perhaps the member forgets all of the secrecy and corruption under the Harper government. Many of the people who were part of that government are still sitting in this place as part of the Conservatives today.

We talk about the scandal with the Senate. We talk about the 170 times Harper refused to give information to Parliament about budget numbers. We talk about when Bev Oda falsified documents. The scandals that the Conservative Party has actively participated in make me wonder how its members have the audacity to stand in this place to criticize the Liberal Party.

Today, it does feel a bit like the Liberal Party and the Conservative Party are both saying that the other party is worse, when Canadians should probably be aware that they are both pretty darn bad.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, once again, I cannot believe it. Questions like that prove the NDP-Liberal coalition wants to protect its Liberal cronies. They are all one and the same. I cannot believe the questions we are hearing today.

We are not the ones saying so. The Auditor General of Canada said so. If I am not mistaken, she was appointed by the current Prime Minister. She is independent. She has been doing an outstanding job for months. This is not her first report. She released three more reports like it this week.

I do not understand why the NDP is still working so hard to protect the Liberals. It is absolutely unacceptable.

[Jenica Atwin, Liberal, Parliamentary Secretary to the Minister of Indigenous Services]

Madam Speaker, I will be splitting my time with the member for Newmarket—Aurora. I am pleased to rise to speak to today's opposition motion with the hopes of addressing the findings and finding a path forward.

The Government of Canada is committed to supporting the growth of the clean-technology sector. Our clean-technology sector is a powerful engine for economic growth. In recent years, Canadian companies have generated revenues and achieved accolades on the global stage. Encouraging innovation in the sector not only drives the creation of new businesses but also attracts significant international investments.

On Tuesday, the Auditor General released her report on the audit of Sustainable Development Technology Canada. The audit's objective was to determine whether funds were managed in accordance with the contribution agreement between SDTC and Innovation, Science and Economic Development Canada and with proper oversight. The report identified issues around project eligibility and conflict of interest at SDTC. The report recommended enhanced oversight by ISED to ensure SDTC's full compliance with its contribution agreement and the proper allocation of funds.

The Auditor General did not report evidence of criminal behaviour. The Auditor General's findings and recommendations are in alignment with the results of the independent fact-finding exercise undertaken at the request of the government by Raymond Chabot Grant Thornton. That exercise resulted in significant actions being taken at SDTC to enhance accountability and transparency.

Following allegations of a toxic workplace and inappropriate practices at SDTC, the government appointed a third party law firm to undertake a fact-finding review of alleged breaches of labour and employment practices and policies at SDTC. It conducted voluntary interviews with current and former employees, and the report concluded that SDTC's leadership did not engage in the type of repetitive, vexatious or major-incident conduct that would constitute harassment, bullying or workplace violence under applicable standards.

Those are three reviews conducted by independent, impartial experts in their respective fields. The very same documents requested in the motion before us would have already been examined. I would ask what the members of the party opposite think would be uncovered in the duplicative exercise that is being proposed. The government took action. The Auditor General took action. We appreciate and accept her findings.

Neither the Auditor General's audit nor any of the other fact-finding reviews found evidence of fraudulent or other criminal activities by any officer, director, member or employee of SDTC. While some of the reviews concluded that there were lapses in SDTC's governance, including its management of a conflict of interest, these findings did not include suspicion or evidence of fraud or other criminal activity that would warrant a referral to the RCMP.

The government has taken steps to directly address the lapses that were identified, and it is ultimately moving the programming to within the National Research Council to ensure the future stewardship of the programs. Leadership has been stabilized with the appointment of a new board chair and two new directors. The new appointees have been chosen for their expertise in governance and organizational transformation. This reflects the mandate to transition the programming and personnel to the NRC.

Furthermore, ISED, through its contribution agreement with SDTC, has put in place measures to strengthen the conflict-of-interest processes and capacity as part of its enhanced oversight, which will continue. Consistent with the responsibilities established in SDTC's enabling statute enacted by Parliament, SDTC is an arm's-length organization that is responsible for the selection and management of projects and the associated agreements. The Government of Canada does not have any evidence of willful misconduct or deliberate unethical behaviour in the establishment of contribution agreements between SDTC and the funding recipients.

The government has taken significant steps to ensure transparency and accountability through increased oversight of SDTC's operations, and following the findings on conflict-of-interest, ISED has implemented enhanced standards for disclosure, documentation and management of conflict of interest, as it should. Furthermore, active reporting requirements have been established to track conflict of interest, disclosures and recusals. This includes measures specific to SDTC employees, external consultants, senior management and the board. These measures will increase accountability, ensuring that any potential conflicts are managed effectively.

The government is committed to ensuring that public investments continue to advance the commercialization of clean technologies in support of Canada's climate change priorities. Efforts have begun to ensure a smooth transition of SDTC programming to the National Research Council under new leadership. Work over the past year has rightly involved a lot of attention on fact finding, due diligence, governance and renewal. My hope is that this can now allow us to move forward and have the House ensure ongoing support for clean tech in Canada as we face down the climate crisis.

Other countries are not waiting to accelerate the growth of their clean technology industries. Whether we look at the United States, Europe, Asia or beyond, governments are enhancing their efforts to position their clean technology companies for success. With the announcement this week, the government is putting the focus back on serving Canadian clean technology innovators and positioning homegrown technologies to compete and win in the global marketplace.

[Bernard Généreux, Conservative, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Madam Speaker, I would like to ask my colleague what she thinks of the Auditor General's report.

This report is very clear and straightforward. The people were appointed by the government, by both the former minister and the current one. They knew that these people had a conflict of interest. There was no doubt about it, but they decided to go ahead anyway, especially the former minister, Mr. Bains, who appeared before the Standing Committee on Industry and Technology yesterday.

Does my colleague think it is okay that these people were appointed even though everyone was well aware they owned companies in this sector and might give themselves some of the money?

Does my colleague accept the report? Does she agree that this matter should be referred to the RCMP?

[Jenica Atwin, Liberal, Fredericton, NB]

Madam Speaker, the various reviews conducted, including the Auditor General's report, have revealed the serious lapses in the SDTC's governance. This prompted a new delivery approach to the government support for the clean-tech sector. On June 4 of this year, the minister announced a new governance approach that will strengthen oversight and accountability to meet today's expectations of stewardship. As soon as the allegations were brought forward, the government acted swiftly to address the situation. Funds were frozen, and there was new funding for the SDTC. We initiated two separate independent reviews to thoroughly examine the claims and invited the Auditor General to conduct the audit. I do accept the findings, and I certainly stand for transparency, for accountability and for upholding the highest standards of integrity for the House.

[Jean-Denis Garon, Bloc, Mirabel, QC]

Mr. Speaker, my colleague made a good speech and underlined the fact that Sustainable Development Technology Canada, or SDTC, was necessary for the development of many technological innovations.

I want to remind her that that is why the Liberals should not have scrapped the foundation by allowing wrongdoing and putting up with it for so long. The government cannot dissociate itself from what happened at SDTC for a very simple reason. Under the law, Minister Bains had the power at the time to request specific audits every year to verify whether the funding agreements and the rules were being followed. During all those years, that Liberal minister never once got up in the morning and decided to request an audit and check for himself.

How is it that this Liberal minister of innovation, science and industry at the time did nothing when he could have done something? How is it that with this government it always takes a report by the Auditor General for it to finally rise in the House and say that something was mismanaged?

[Jenica Atwin, Liberal, Fredericton, NB]

Madam Speaker, of course we take conflicts of interest very seriously. Recusals should be done, and in light of the findings of the report of the OAG, over the coming months, SDTC programming will transition to the National Research Council of Canada. We believe that the NRC's vast experience in supporting innovative, tech-focused, small and medium-sized enterprises under programs such as the industrial research assistance program will make it the ideal choice to responsibly steward these homegrown clean technology companies. This structure will help rebuild public trust, while increasing accountability and transparency.

[Alexandre Boulerice, NDP, Rosemont—La Petite-Patrie, QC]

Madam Speaker, I thank my colleague for her speech, although it feels as though she had to stick to a script today. She was repeating talking points. Personally, I am very concerned about the Liberals' lack of transparency on this issue. The NDP is worried.

On the subject of transparency, in March she voted in favour of the NDP motion on the crisis and genocide taking place in Gaza. Among other things, the motion called for an embargo on arms sales to Israel and the Netanyahu government while it is bombing Gaza. The Minister of Foreign Affairs has not issued a notice to Canadian arms exporters about their continuing to sell weapons to Netanyahu's genocidal regime.

In the interests of transparency, how can my colleague explain her government's inaction when she voted for this motion?

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

I would like to remind the hon. member that we are considering an opposition motion. I regret to tell him that his question has very little to do with that. However, I will give the parliamentary secretary a chance to answer, if she so wishes.

[Jenica Atwin, Liberal, Fredericton, NB]

Madam Speaker, I welcome the question from my hon. colleague. First and foremost, it is a very complicated issue, so I am being careful with my words today, absolutely.

With respect to my support for Gazans and for citizens facing atrocities in the Middle East, I have signed a letter to support an arms embargo. Therefore, I support ongoing efforts to ensure that this tragedy comes to an end.

[The Assistant Deputy Speaker (Mrs. Alexandra Mendès), Liberal, Alexandra Mendes]

Order.

It is my duty pursuant to Standing Order 38 to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Calgary Shepard, Housing; the hon. member for Cypress Hills—Grasslands, Carbon Pricing; the hon. member for Spadina—Fort York, Finance.

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I am pleased to rise today to speak to the motion. On Tuesday, the government announced that it would be transferring Sustainable Development Technology Canada's programming to be based within the National Research Council of Canada. I will speak more about this in a minute. However, I would first like to highlight the events and the independent reviews that have led us to this decision.

The government expects organizations that receive public funds to be held to the highest standards. When allegations of mismanagement at SDTC first came to light, the government took immediate action to undertake the proper due diligence to understand the facts. These were serious allegations, and they warranted a careful assessment of all the evidence. It is only with the facts that we can take the appropriate steps to return to the business of supporting our Canadian clean technology sector.

As the first step, the government engaged an impartial third party, Raymond Chabot Grant Thornton, or RCGT, to undertake a fact-finding exercise. This focused on organizational policies, procedures, program governance and project approval processes. At its conclusion, the fact-finding exercise did not reveal any clear evidence of wrongdoing or misconduct at SDTC. However, RCGT did make a number of observations that showed that SDTC was not in full compliance with the terms and the conditions of its contribution agreements. These findings warranted a deeper examination, and again, the government took action. Innovation, Science and Economic Development Canada, ISED, worked collaboratively with the Office of the Auditor General in support of a full audit.

Just as the government has high standards for the use of public funds, it also expects employees to benefit from a healthy and a respectful work environment. Given this, in addition to the RCGT fact-finding exercise, the government took action to address allegations that related to human resources practices. ISED requested the Department of Justice to appoint a law firm, McCarthy Tétrault, to undertake a fact-finding review of alleged breaches of the labour and employment practices and the policies at SDTC. Current and former employees were permitted to speak freely to the law firm without violating any applicable settlement agreements or non-disclosure agreements. The fact-finding review, which is publicly available, concluded that SDTC's leadership did not engage in the type of repetitive, vexatious or major incident conduct that would constitute harassment, bullying or workplace violence under the applicable standards.

Turning now to the Auditor General's audit, as mentioned, the government welcomed the Auditor General's decision to undertake the audit and fully co-operated with the auditors. Evidence collected from all of these independent reviews have revealed lapses in SDTC's governance model. We are taking definitive action anchored in facts, as established by independent parties, most notably the Auditor General. To be clear, the Auditor General did not report evidence or suspicion of criminal behaviour. The government is confident in the rigour and the expertise the Auditor General and her office brought to this issue, and we accept her findings and recommendations.

Measures have been established for stronger governance and oversight at SDTC. These measures, which will remain in place, ensure increased transparency and accountability. With the changes in leadership, the government will maintain that confidence as the programming transitions into the next phase. While SDTC has been instrumental in developing a successful clean technology sector in Canada over the years, a new delivery approach to support this vital sector of our economy is now needed. That is why the government took decisive action by announcing a new delivery approach that includes transitioning SDTC and its employees to the NRC.

In addition to its proven track record of providing tailored support to Canada's innovative small and medium-sized businesses, the NRC is a Government of Canada organization, and it is subject to rigorous and stringent oversight of its personnel and finances. This move will help rebuild the public trust while increasing accountability and transparency in program delivery.

The decision to transfer the programming is not just about sound government, it is about people and the clean-technology industry. Canada's clean-technology sector is world-renowned for developing innovative, clean-technology solutions.

In 2024, there were 13 Canadian companies named to the Global Cleantech 100 list. This is a clear testament to Canada's innovative ecosystem and the clean-technology sector's ability to compete against leading innovative countries, such as the United States and Germany.

The Government of Canada also recognizes the importance of retaining subject matter experts. These employees have a wealth of experience and knowledge, and have been integral in helping Canada's clean-tech companies move from seed to start-up to scale-up. Their transition to the NRC will help ensure Canada's clean-tech companies will be at the forefront of efforts to address climate change, continuing much-needed federal support for businesses to innovate, grow and create well-paying sustainable jobs. This support will continue. SDTC is resuming funding for all new eligible projects in a sector vital to our country's economy and clean-tech growth.

In line with the Auditor General's findings, ISED will enhance the oversight and monitoring of funding through this transitionary period. We know that clean-tech companies have felt the impacts of the funding pause as the government took the time it needed to uncover the evidence and to put in place a robust governance solution.

We have done what we set out to do, and we thank the clean-tech sector for its resilience and patience as we shaped a new way forward. The government has done its due diligence, and neither the OAG nor any other independent review found any evidence of fraudulent or criminal activities by an officer, director, member or employee of SDTC. While some of these investigations concluded there were lapses in governance, including their management of conflict of interest, these conclusions did not identify fraud or criminal activity.

We are focused on restoring governance at SDTC and getting back to the business of supporting our Canadian innovators. I encourage all members to support the government's actions to advance homegrown clean-tech solutions and achieve Canada's climate goals.

[Heather McPherson, NDP, Edmonton Strathcona, AB]

Madam Speaker, the member talked about some lapses in conflict of interest management. That is a pretty gentle way to describe what happened.

There was gross mismanagement of funds. We know that whistle-blowers have been raising serious questions for years about how these public funds were managed. Their complaints were never taken seriously. It was not until this became public that the government chose to act.

Could the member explain to me why it has taken the government so long to take action on something that it has known about for years?

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I appreciate the comments, observations and questions from my colleague.

I do not have a chronology in front of me, but I do know that when it was appropriate, the government did take action. It made sure that it took thorough action. It did not just react to parts of the story. The government did a very thorough analysis and responded appropriately.

[Stephen Ellis, Conservative, Cumberland—Colchester, NS]

Madam Speaker, standing here in the House of Commons is important on behalf of all Canadians.

Canadians really want to know where the $123 million in the green slush fund is. Will the NDP-Liberal government commit to handing over the documents and allowing the investigation to go forward with the RCMP?

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, the government has taken the appropriate steps to make sure that the organization is transparent and accountable, that there is a review, as appropriate, for all of the undertakings within the organization, and that the Canadian dollars invested in these corporations have, as we have shown earlier, created some very terrific responses as far as innovation in the clean-technology sector goes.

In large measure, our funds were well invested and produced great results and jobs for the Canadian people.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Speaker, the Auditor General's findings are devastating and call for a comprehensive review. This story cannot be allowed to end with the end of SDTC's operations. It is imperative that all documents are preserved to help determine what really happened.

Does my hon. colleague agree?

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, the government will do what is required to do and will produce what is required to produce.

[Mark Gerretsen, Liberal, Kingston and the Islands, ON]

Madam Speaker, I have listened to the member speak, and the member before him, who laid out very clearly in terms of what the investigation revealed, which is that no criminal activity occurred, that they are confident the investigation was thoroughly completed and that, at this point, they have made various recommendations as to how to proceed moving forward, despite the fact that our colleagues across the way just seem unwilling to accept this.

Would the member comment on the thoroughness of the investigation and perhaps remind everybody of what he was saying during his speech?

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, there were three independent reviews. All of the recommendations of those reviews were undertaken.

It is interesting, and I see some of my colleagues who were present at the INDU committee last night, where we did talk to people from the industry, and they said that we need to be very careful that we do not throw the baby out with the bathwater. Again, I remind members that 13 of our Canadian innovators were on the top 100 world, global and innovators awards list. So, we are doing some good things. Let us not throw the baby out with the bathwater.

[Warren Steinley, Conservative, Regina—Lewvan, SK]

Madam Speaker, is this member telling me that there are 90 cases of conflict of interest, not reported, $123 million missing, and he is like, “It's okay. It's been done well”? Is that literally what his speech is about?

[Tony Van Bynen, Liberal, Newmarket—Aurora, ON]

Madam Speaker, I indicated what actions the government has taken and what actions the government will undertake to make sure that we strengthen the governance model, transparency and accountability. I am focused on going forward, of course. This is an important industry for our country. It creates jobs.