Public Accounts committee  I'm sorry. I'm just reviewing the material here.

Public Accounts committee  Just to clarify, this is language from SDTC. SDTC is saying it will work in co-operation with us to reconfirm that active projects—in other words, projects that are not historic and in the past—will meet the goals, objectives and eligibility criteria set out in the contribution agreement.

Public Accounts committee  What I will say is that I'm speaking for ISED, and we have findings from the Auditor General and from RCGT that raise questions around things like eligibility. I'm just using that as an example, but funds went out, so there's a question that members have put to the government, which is, what are you going to do about that?

Public Accounts committee  The funding resumption has already started. There has been some recommencement of funding. As I noted, we have been working with SDTC as it puts its management response action plan in place. We're now satisfied that all those measures are in place. Companies in their stable have been put through additional diligence to make sure that we are satisfied and that everyone is satisfied that they meet criteria around eligibility and around conflict of interest.

Public Accounts committee  Employees have been informed that it is the government's plan to offer them employment at the National Research Council. That transition work will be overseen by the new board, in particular by Paul Boothe as the board chair. The minister has asked Mr. Boothe and the new directors to take this on.

Public Accounts committee  I think I would say that we believe that the fundamental structure of this organization has contributed to these problems. The design of the statute is such that people are going to be on the board who are at high risk of conflict. I think the move to the NRC, actually—

Public Accounts committee  I'm simply noting that the move to the NRC is a major step towards eliminating what is a kind of ongoing—

Public Accounts committee  There will have to be—and there will be—a consideration of all of the findings of the Auditor General's report and the Raymond Chabot report. Decisions will have to be made on what to do in cases in which, as the Auditor General said, for example, money went out to an organization that would not, under the terms of the contribution agreement, normally be entitled to receive it.

Public Accounts committee  I appreciate the member's question. My only point was to say that, in order to respond to it, I think there's a measure of due diligence that's needed. In the case of recoveries, the money that was put out to ineligible activities, that's black and white. In the case of companies where there's a conflict, the facts on the ground matter—

Public Accounts committee  I would simply say that you have to look at each case individually. In the case, for example, of organizations that received money but weren't necessarily compliant with the contribution agreement, the contractual arrangement between the company and SDTC may be such that the company wasn't aware that SDTC was colouring outside the lines.

Public Accounts committee  Yes, I'm happy to answer that question. Very briefly, my point in the last question is that we have to look at the facts of each case, because there are going to be cases in which people acted in good faith, and the fact that there is a deviation does not constitute criminality or malfeasance.

Public Accounts committee  There are two things here. One of them is our agreement with SDTC. That is the principal instrument we use. We would have to look at the kinds of methods or steps we're able to take through the contribution agreement to help effect that. The actual recoveries have to be done by SDTC.

Public Accounts committee  Okay.

Public Accounts committee  Yes, that's right. For example, if there is—

Public Accounts committee  No. Just to be clear, what I'm saying is that we agree with the importance of recovery of funds. Any measure we take has to be through the ambit of the contribution agreement. It was just simply to note, as I said at the outset, that we are not directly administering these funds.