Public Accounts Committee on June 20th, 2024

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

The Verschuren Centre was set up by the board chair Annette Verschuren as a vanity project for her family. They were one of the vetters. MaRS, which is a den of stuff in Toronto that ISED funds—

[Matthew Green, NDP, Hamilton Centre, ON]

I have a point of order.

I apologize, but I just want to let you know that the French interpretation is coming through on the English channel.

[The Chair, Conservative, John Williamson]

We will look into that.

It's okay now. Thank you, Mr. Green.

Mr. Perkins, you have just over 40 seconds left.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

The board chair's centre had to vet the money, and it recommended companies that she had a financial interest in. Annette Verschuren chaired MaRS. That was one of the accelerators that approved stuff. Is that correct?

[Sheryl Urie]

I would say, yes—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

You would say yes. Okay.

[Sheryl Urie]

—all the accelerators across the country, and the seed funding program began—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

FounderFuel was another accelerator, in Quebec, and it was owned by another board member, Andrée-Lise Méthot. Is that correct?

[Sheryl Urie]

I'm not confident that that's an accelerator. I don't know—

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

It's on the accelerator list.

[Sheryl Urie]

There are over 80, and I don't know the names of all of them.

[Rick Perkins, Conservative, South Shore—St. Margarets, NS]

Well, it's here.

I can assure you that in terms of this fund, almost all the funds appear to have gone to conflicted businesses outside of the government's terms for the use of this money. The money was filtered through these accelerators and controlled by these two board members—

[The Chair, Conservative, John Williamson]

Thank you, Mr. Perkins.

We'll come back to you, I'm sure.

Ms. Khalid, you have the floor for six minutes.

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

Thank you very much, Mr. Chair.

Thank you to the witnesses for being here today.

Ms. Urie, I know the Conservative member Mr. Perkins asked a whole bunch of questions and didn't exactly give you any opportunity to answer many of them.

I'm wondering if you want to add something in response to the previous questioner.

[Sheryl Urie]

Sure.

The previous questions focused largely on our seed funding stream. The seed funding stream was a stream that was envisioned to be able to provide funding across the country to smaller communities and to entrepreneurs who weren't usually able to access different pools of funding within the government. The seed funding stream sought out partners from across the country. We'd never received applications from Newfoundland and P.E.I. or some of these regions, and that was really the purpose of the seed funding stream. It was envisioned prior to the previous chair's joining the board.

This program has enabled SDTC to increase the number of women entrepreneurs who have been funded through SDTC funds. We've also enabled them to graduate to a larger fund and to perhaps access larger pools of government funding that's available to many entrepreneurs across the country but that these smaller entrepreneurs haven't had the opportunity to access.

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

Thank you for that.

Do you think the program is successful? Is it reaching its objectives?

[Sheryl Urie]

Unequivocally, I believe that across government the seed funding program has been deemed successful in accelerating some of these small businesses that generally haven't had the opportunity to have the support, because it's not just funding support that you receive. You also receive greater connection to the ecosystem to have other supports, such as mentors within your own sector. Yes, it's been seen as a great success.

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

When we see Conservative messaging about such programs, which are being referred to as a “green slush fund”, how do you think that impacts the credibility of an organization like that?

[Sheryl Urie]

It's difficult, I think, for SDTC and its employees to hear that type of messaging delivered when we see some of the companies that have come through our portfolio and have been able to provide an incredible number of jobs and have contributed to environmental benefits across the country, and all Canadians are benefiting from this.

For us, it's a bit of a challenge, for sure.

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

Thank you.

Mr. Boothe, I'll turn to you.

What is your role now in this transitional board, and how do you see the organization going forward?

[Paul Boothe]

My role is chair of the board, but this is a board of three equals, all former deputy ministers.

We have three priorities. When I was a deputy minister, we told our ministers that they should have only three priorities, so I think we have the right number. My priorities are to implement the Auditor General's report, to restart the funding, and to plan and implement the transfer to the National Research Council.

We have divided the work among ourselves. One of my colleagues will focus mostly on planning the transition. Another will focus mostly on restarting the funding—

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

I'm sorry, but I'm just going to stop you right there for a second.

Chair, I can literally hear my Conservative colleagues whispering so loudly that I can't hear the witness.

If you could, please, gentlemen.... Thank you.

[The Chair, Conservative, John Williamson]

Thank you, Ms. Khalid.

You have two minutes left.

[Paul Boothe]

My main focus will be implementing the Auditor General's report. That's how we're dividing the work.

[Iqra Khalid, Liberal, Mississauga—Erin Mills, ON]

Thank you for that.

Ms. Hogan, what do you think of the new transitional infrastructure, and what challenges do you think the organization will face?