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WE scandal: Finance Minister Bill Morneau testifies before House committee | FULL — Transcript

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  1. 0:00i traveled with my family to ecuador to
  2. 0:02see
  3. 0:03and participate in wee's humanitarian
  4. 0:05work there
  5. 0:06in recent days our family has conducted
  6. 0:09a review
  7. 0:10of our personal records and we found
  8. 0:12documentation to confirm our payment of
  9. 0:15expenses for these two trips
  10. 0:16including flight and personal hotel
  11. 0:19costs of
  12. 0:20approximately fifty two thousand dollars
  13. 0:23however we were unable to locate
  14. 0:25receipts for
  15. 0:26any expenses related to we programming
  16. 0:29including accommodation
  17. 0:30this was to my surprise yesterday
  18. 0:34i asked my assistant to reach out to the
  19. 0:37wii
  20. 0:37organization regarding these trips and
  21. 0:40for them to provide me with the amount
  22. 0:42of total expenses incurred
  23. 0:44today i wrote a check in payment of
  24. 0:47forty one thousand dollars three hundred
  25. 0:49and sixty six
  26. 0:50i expected and always had intended to
  27. 0:53pay the full cost of these trips
  28. 0:55and it was my responsibility to make
  29. 0:57sure that was done
  30. 0:59not doing so even unknowingly is not
  31. 1:01appropriate
  32. 1:02i want to apologize for this error on my
  33. 1:05part
  34. 1:06my practice has always been to
  35. 1:08personally pay for expenses incurred in
  36. 1:11my role as finance minister
  37. 1:13whenever i've believed there to be any
  38. 1:14perception of potential personal benefit
  39. 1:18the error this time even though i was
  40. 1:20not traveling in my role as minister
  41. 1:22should not have happened i can also
  42. 1:25confirm
  43. 1:26that my family made two significant
  44. 1:28donations to the wii organization
  45. 1:31each for fifty thousand dollars my wife
  46. 1:34made one
  47. 1:34in april 2018 to support students
  48. 1:38in canada and another one in june of
  49. 1:41this year
  50. 1:41to support covet 19 relief in kenya
  51. 1:45and in canada the work that
  52. 1:48we and organizations like them do is
  53. 1:51important to me
  54. 1:53for over a decade my family has been
  55. 1:54passionate about education efforts in
  56. 1:57africa
  57. 1:58and in canada after our family sponsored
  58. 2:01grace to come to canada for her
  59. 2:02education
  60. 2:03and before i ran for office our family
  61. 2:06led the development of a girls
  62. 2:08school in kokuma refugee camp in kenya
  63. 2:12and over the last three years our family
  64. 2:14has personally committed
  65. 2:16over a million dollars to help refugee
  66. 2:18students from kenya
  67. 2:19continue their education here in canada
  68. 2:22as i've stated previously i participated
  69. 2:25in deliberations on the canada
  70. 2:27student service grant program i do not
  71. 2:30believe i had a conflict
  72. 2:32although i fully recognize that there
  73. 2:35are legitimate questions about the
  74. 2:37perception
  75. 2:38of a conflict in hindsight i should have
  76. 2:41recused myself
  77. 2:42from discussions involving the we
  78. 2:44organization and i will do so in the
  79. 2:46future
  80. 2:48most of all i regret that not recusing
  81. 2:51myself
  82. 2:51has delayed this important support for
  83. 2:53young canadians
  84. 2:55again i want to apologize for
  85. 2:58any mistakes i've made in this situation
  86. 3:01i'm sorry that they've occurred
  87. 3:25a little interpretation thing that looks
  88. 3:27like a globe down there to french when
  89. 3:28you're speaking french
  90. 3:29because both languages come through at
  91. 3:31the same level
  92. 3:33we love to hear your voice but we want
  93. 3:34to hear what it says in in the other
  94. 3:36language
  95. 3:37okay excuse
  96. 3:41come i'm sorry
  97. 3:44lady
  98. 4:07in hindsight
  99. 4:29i'm very sorry earlier today i formally
  100. 4:33asked
  101. 4:33the ethics commissioner to review this
  102. 4:35information uh there's an excuse
  103. 4:41excuse me earlier today i
  104. 4:44formally asked the ethics commissioner
  105. 4:46to review this information
  106. 4:47as part of his examination in order to
  107. 4:50provide this committee with an
  108. 4:52understanding of my role in the
  109. 4:54development and administration of the
  110. 4:56canada student service grant
  111. 4:58i'd like to provide you with a timeline
  112. 5:00of events
  113. 5:01since early march our government has
  114. 5:04been working to roll out canada's
  115. 5:06largest peacetime investment in doing so
  116. 5:09at a speed and a scale to meet the
  117. 5:11rapidly evolving nature
  118. 5:13of this crisis we've worked to deliver a
  119. 5:16comprehensive set of over
  120. 5:1870 different measures that are
  121. 5:19delivering targeted support
  122. 5:21to meet the needs of millions of
  123. 5:23canadians
  124. 5:35programming
  125. 6:18the aboriginal indigenous communities
  126. 6:20and others
  127. 6:22i would like to take the committee in
  128. 6:24detail through how this particular
  129. 6:26decision was approached by myself
  130. 6:28my office and officials to the best of
  131. 6:30my knowledge
  132. 6:32in early april shortly after we'd
  133. 6:34finished rolling out a broad range of
  134. 6:36supports
  135. 6:37including the canada emergency response
  136. 6:39benefit the serb
  137. 6:40our government began to think about the
  138. 6:42next set of challenges that lay ahead
  139. 6:44for canadians
  140. 6:45our government recognized that
  141. 6:47post-secondary students were
  142. 6:49about to complete their school year
  143. 6:51would be needing opportunities over the
  144. 6:53course of the summer
  145. 6:54opportunities that would help them pay
  146. 6:56for tuition and living expenses during
  147. 6:58the school year
  148. 6:59but also opportunities for invaluable
  149. 7:02skill building experiences
  150. 7:04this pandemic hit just while they were
  151. 7:06beginning their lives
  152. 7:08my colleagues and i knew that we had to
  153. 7:10do something to make sure
  154. 7:11their dreams weren't derailed and that
  155. 7:14they could continue to pursue their
  156. 7:15education
  157. 7:17most of all canada is in the midst of a
  158. 7:20national crisis
  159. 7:21and our government recognized that
  160. 7:23students could play an important role in
  161. 7:25supporting canada's
  162. 7:27extraordinary response to this pandemic
  163. 7:30on the evening of april 5th i had a call
  164. 7:33with the prime minister
  165. 7:34to discuss these and other issues we
  166. 7:37identified the need to consider measures
  167. 7:39to support students
  168. 7:41and discussed how the canada service
  169. 7:42corps and canada summer jobs program
  170. 7:45were areas of possible policy work to
  171. 7:47address this need
  172. 7:49i spent that night thinking in detail
  173. 7:52about this issue
  174. 7:53the next morning i tasked my officials
  175. 7:56and my ministerial team
  176. 7:57to begin engaging across government and
  177. 8:00brainstorm different options
  178. 8:02to support students my office and
  179. 8:05department of finance officials
  180. 8:07began working with other government
  181. 8:08departments departments to develop these
  182. 8:11ideas
  183. 8:12and to reach out to youth organizations
  184. 8:14in order to get
  185. 8:15a better sense of the challenges that
  186. 8:17the young people they serve
  187. 8:19were facing on april 7th
  188. 8:22the we organization was one of at least
  189. 8:25a dozen
  190. 8:25organizations that were contacted as
  191. 8:28part of this engagement effort
  192. 8:30in the days following my office's
  193. 8:32initial conversation with we
  194. 8:35the organization shared a proposal on
  195. 8:37social entrepreneurship
  196. 8:39which they had been discussing with
  197. 8:40other offices the we organization had
  198. 8:43sent this proposal to me
  199. 8:45but i didn't review or respond to the
  200. 8:47proposal at that time
  201. 8:50on april 8th and 9th i had my initial
  202. 8:53briefing
  203. 8:54on this potential streams of support for
  204. 8:57young people
  205. 8:58including a potential grant program for
  206. 9:01students looking to gain experience over
  207. 9:03the summer
  208. 9:48um
  209. 9:59and have a continuity of
  210. 10:03as follow-up of a briefing on april 18th
  211. 10:06officials raised that a partnership with
  212. 10:09the private sector
  213. 10:10or not-for-profit sector may be
  214. 10:12necessary in order to successfully
  215. 10:14administer such a program
  216. 10:16officials raised we charity among other
  217. 10:19organizations
  218. 10:20as an example of groups that were
  219. 10:22already doing
  220. 10:24similar work this was the first time
  221. 10:26that i've been involved
  222. 10:27in any discussion related to weed
  223. 10:29charity and what would become the canada
  224. 10:31student service grant
  225. 10:34as part of my briefing materials my
  226. 10:35officials appended a copy of wii's
  227. 10:38social entrepreneurship proposal
  228. 10:40indicating that other departments had
  229. 10:42begun engaging
  230. 10:43on the file i understand that in the
  231. 10:46following days we reached out to my
  232. 10:49office
  233. 10:49regarding their initial discussions with
  234. 10:51employment and social development canada
  235. 10:53and shared a second proposal my office
  236. 10:56continued discussions with we charity
  237. 10:59about how different types of student
  238. 11:00programming could be administered
  239. 11:03on april 21st i verbally approved my
  240. 11:06department's recommendations
  241. 11:08on the broad parameters of the canada
  242. 11:10student service grant
  243. 11:12including the potential involvement of a
  244. 11:13third party
  245. 11:15to be clear no third party such as we
  246. 11:18was chosen or directed within this
  247. 11:21approval
  248. 11:22from that point onwards employment and
  249. 11:24social development canada took the lead
  250. 11:26including the public service
  251. 11:28announcement that we charity be brought
  252. 11:30on as an administrator
  253. 11:32with that said as minister of finance
  254. 11:35i'm responsible for all funding provided
  255. 11:38under the public health
  256. 11:39event of national concern payments act
  257. 11:42as such
  258. 11:43it's important that finance officials
  259. 11:45track every dollar
  260. 11:46authorized to ensure that they're
  261. 11:48allocated appropriately
  262. 11:50i would expect that the department and
  263. 11:52my office would remain engaged in the
  264. 11:54design of the program
  265. 11:56in collaboration with employment and
  266. 11:57social development canada
  267. 11:59the privy council and the prime
  268. 12:01minister's office
  269. 12:02for complete transparency i note that on
  270. 12:05sunday april 26th
  271. 12:07i spoke with craig kielburger i know
  272. 12:09that we would have broadly discussed the
  273. 12:11impact of the covid19 pandemic
  274. 12:14he did not raise the canada student
  275. 12:16service grant nor did i
  276. 12:19on may 5th minister chagar presented
  277. 12:22her initial proposal for canada's
  278. 12:24student service grant
  279. 12:25including we charity as the preferred
  280. 12:27administrator at the covet 19
  281. 12:29cabinet committee i was not in
  282. 12:32attendance
  283. 12:32and did not discuss the proposal with
  284. 12:35officials or cabinet colleagues
  285. 12:37prior to it being presented i was
  286. 12:39briefed on the outcome of that meeting
  287. 12:41two days later on may 7th noting that
  288. 12:44the proposal would then be moving to be
  289. 12:46discussed
  290. 12:47at full cabinet the final decision on
  291. 12:50the canada student service grant was
  292. 12:52presented to full cabinet on may 22nd
  293. 12:55as i've said i should not have
  294. 12:57participated in that discussion and i
  295. 12:59regret that i did not recuse myself
  296. 13:01at that time i provided approval
  297. 13:04on the final revised funding decision
  298. 13:06for the program on june 3rd
  299. 13:08and that was my last direct engagement
  300. 13:10with the program's development
  301. 13:13i regret that my not recusing myself has
  302. 13:16been a reason that students
  303. 13:17have not been able to get the support on
  304. 13:19a timely basis
  305. 13:41i know that canadians are counting on us
  306. 13:43and there's still much more to do
  307. 13:45so thank you mr chair and i welcome the
  308. 13:48questions of you and the committee
  309. 13:51thank you very much uh mr minister for
  310. 13:54uh a very uh
  311. 13:55thorough uh explanation in terms of
  312. 13:58your involvement we'll now go to uh
  313. 14:02uh questions in the first round six
  314. 14:04minutes and we will go to our about uh
  315. 14:0653 minute 55 minutes of
  316. 14:09of of questions uh the lineup is uh mr
  317. 14:13polyam first
  318. 14:14uh then ms katrakas uh then mr forte
  319. 14:18and then mr angus uh mr
  320. 14:21polyam you're on deck sir
  321. 14:25do you expect us to believe that it is a
  322. 14:28mere
  323. 14:29con coincidence
  324. 14:32that you repaid over forty thousand
  325. 14:36dollars of expenses
  326. 14:37associated with your travel on a wii
  327. 14:41charity trip that you just repaid it
  328. 14:44today
  329. 14:44on the same day you were expected to
  330. 14:47testify
  331. 14:48under oath about it is that just a
  332. 14:50coincidence minister
  333. 14:53mr thank you thank you for the question
  334. 14:56uh
  335. 14:58i think what i want to make sure that i
  336. 15:00communicate is
  337. 15:01this was a mistake on my behalf i'm
  338. 15:03responsible
  339. 15:04for any expenses that i incur
  340. 15:08on trips being paid for this was an
  341. 15:11expense that i was
  342. 15:12unaware of that i did not know had not
  343. 15:15been paid
  344. 15:16and when i found that out one over the
  345. 15:19clock dollar
  346. 15:20expense you didn't know about a 41 000
  347. 15:23expense
  348. 15:24how is that even possible
  349. 15:27uh mr minister again mr chair
  350. 15:31um i i just have to say that uh in
  351. 15:34review of our records
  352. 15:35i uh understood that there was no charge
  353. 15:38for these
  354. 15:39uh travel expense or these expenses at
  355. 15:41the uh at the wii facilities
  356. 15:43and once i found that out i endeavored
  357. 15:46to repay that
  358. 15:47and of course it was a mistake on my
  359. 15:49part which i take full responsibility
  360. 15:51for
  361. 15:52the average canadian living in red deer
  362. 15:55or halifax that goes on a trip
  363. 15:58would notice if there was a say a 400
  364. 16:03expense that they didn't pay maybe a
  365. 16:06hotel room
  366. 16:07for a couple of nights that never got
  367. 16:09charged them and they paid immediately
  368. 16:11but you're telling me that on this
  369. 16:13obviously very luxurious trip
  370. 16:16that 41 000 dollars of expenses
  371. 16:21happened right under your nose
  372. 16:24and you didn't know about it until it
  373. 16:26suddenly through an epiphany
  374. 16:28came to your attention the very day you
  375. 16:31were to testify
  376. 16:32in a parliamentary committee about it
  377. 16:34you expect us to believe that
  378. 16:40mr chair my is for me
  379. 16:44there's no one else to answer for you mr
  380. 16:46morneau you're the one
  381. 16:48sorry uh sorry i was uh muted mr
  382. 16:51minister yes you got the
  383. 16:53the floor uh as i said uh you know this
  384. 16:56was
  385. 16:57um a mistake on my behalf we
  386. 17:00uh immediately looked at our records
  387. 17:03we reviewed those records to find the
  388. 17:05flights and the hotel expenses that were
  389. 17:08paid
  390. 17:08and did not find any expenses that were
  391. 17:11charged to us
  392. 17:12for the time at the we facilities
  393. 17:15when we went through our records in
  394. 17:17detail and concluded that
  395. 17:20we realized my wife and i that we needed
  396. 17:23to have
  397. 17:24someone reach out to the we organization
  398. 17:26and did that in order to pay those
  399. 17:28expenses
  400. 17:28it is my mistake it is a mistake that i
  401. 17:31regret
  402. 17:32i apologize for that and um as i said
  403. 17:35i will definitely work with the ethics
  404. 17:38commissioner including this issue
  405. 17:40to make sure it's fully understood and
  406. 17:42accounted for
  407. 17:44do you realize that accepting
  408. 17:48originally accepting these free benefits
  409. 17:51associated with your trip
  410. 17:53was strictly illegal under the contra
  411. 17:56conflict
  412. 17:57of interest act yes or no
  413. 18:00mr minister mr chair um
  414. 18:03we of course uh recognize that we are
  415. 18:06responsible
  416. 18:07for our own expenses that is my
  417. 18:09responsibility
  418. 18:10uh it was something i was unaware of and
  419. 18:13so that
  420. 18:14do you realize it was unaware do you
  421. 18:16realize now that it was illegal
  422. 18:19mr minister that uh those expenses which
  423. 18:23i was unaware of were uh
  424. 18:25appropriately my expenses and that's why
  425. 18:26we've repaid you you realize though that
  426. 18:28it was illegal
  427. 18:29you are as a minister strictly forbidden
  428. 18:31from accepting any form of sponsored
  429. 18:33travel
  430. 18:35under the contract of inter conflict of
  431. 18:36interest act
  432. 18:38i'm asking you do you realize that the
  433. 18:41act makes it
  434. 18:42illegal for you to have accepted these
  435. 18:44expenses
  436. 18:45paid for by we in the in the first place
  437. 18:48was do you realize
  438. 18:50that that was illegal yes or no uh mr
  439. 18:53minister
  440. 18:54you were the floor thank you mr chair
  441. 18:57mr chair as i've said i looked back in a
  442. 19:00detailed fashion over my records
  443. 19:02i found that this uh that we received no
  444. 19:05expenses notice for these expenses as
  445. 19:08soon as we found that out we
  446. 19:10uh endeavored to uh make sure those
  447. 19:12payments uh were
  448. 19:13were made and uh it's a mistake
  449. 19:16i uh i will and uh all right
  450. 19:20thank you very much um
  451. 19:23did you in the month of august 2019
  452. 19:29announce a grant for a wee charity for
  453. 19:32three million dollars
  454. 19:33in the same month that your daughter
  455. 19:36accepted a job from that organization
  456. 19:40yes or no mr minister mr chair
  457. 19:44i think um it's important to know that
  458. 19:46that
  459. 19:47program which i did announced was
  460. 19:50developed and delivered by employment
  461. 19:52and social development canada
  462. 19:54as the person who was responsible for
  463. 19:57that uh organization in the writing i
  464. 19:59did announce that program
  465. 20:01so you announced you announced a three
  466. 20:03million dollar grant
  467. 20:05to an organization that had just hired
  468. 20:08your daughter
  469. 20:09the very same month true statement or
  470. 20:12false statement
  471. 20:17thank you i want to be very clear that
  472. 20:20this is a program that was developed
  473. 20:23true or false delivered by the
  474. 20:24employment
  475. 20:25social development canada i announced it
  476. 20:28on behalf of our government but was
  477. 20:32not involved in the development of that
  478. 20:33program your daughter accepted a
  479. 20:35a position with that organization
  480. 20:38here last question so in the same month
  481. 20:41as your daughter
  482. 20:42accepted a position with the
  483. 20:43organization you announced a three
  484. 20:46million dollar grant
  485. 20:48to that organization is that are you you
  486. 20:51can just tell me if i'm wrong
  487. 20:52am i wrong mr chair i'm
  488. 20:56i'm obviously very proud of the fact
  489. 20:58that grace uh
  490. 20:59took on a co-op job at the wii
  491. 21:02organization
  492. 21:02i'm proud of the fact that she of her
  493. 21:04own accord went out and got a
  494. 21:07first job in an administrative capacity
  495. 21:10and
  496. 21:10obviously my role as a minister is
  497. 21:13separate and distinct from that
  498. 21:15i did deliver an announcement
  499. 21:18but i was not involved in the
  500. 21:19development or the understanding of that
  501. 21:22program
  502. 21:22okay thank you uh thank you both we'll
  503. 21:25go to
  504. 21:26ms kutrakis followed by mr forte
  505. 21:30ms kotrakus thank you mr chair and thank
  506. 21:32you minister morneau for
  507. 21:34appearing before the finance committee
  508. 21:36once again this afternoon
  509. 21:39i truly appreciate the candor and your
  510. 21:42testimony and
  511. 21:44for all the work that you and your
  512. 21:46family
  513. 21:47and our civil servants and the
  514. 21:49department of finance
  515. 21:51do for all canadians especially during
  516. 21:53this difficult time
  517. 21:55i have a few questions so in the
  518. 21:57interest of time i will ask them all
  519. 21:59and leave it with you minister to
  520. 22:01formulate your response
  521. 22:04how many new programs have you and your
  522. 22:06department rolled out in the past 100
  523. 22:08days or so
  524. 22:10what is the approximate value of these
  525. 22:12programs
  526. 22:13roughly how many canadians and canadian
  527. 22:16businesses and non-profit organizations
  528. 22:19have they helped from these programs
  529. 22:22does this compare to anything remotely
  530. 22:24similar
  531. 22:25to what we've done since the full
  532. 22:27mobilization of canada's economy
  533. 22:29and society during the second world war
  534. 22:32eighty years ago
  535. 22:34would it also be fair to say that if we
  536. 22:36did not introduce these programs
  537. 22:38there would be a lot of personal
  538. 22:40suffering and hardship
  539. 22:42would it also be fair to say that our
  540. 22:44economy would be in a
  541. 22:46serious recession or depression if the
  542. 22:49government hadn't acted as quickly and
  543. 22:51decisively as
  544. 22:52it did and finally as a financial person
  545. 22:56myself
  546. 22:58i would say that our success rate has
  547. 23:00been remarkably high
  548. 23:02and that the risk reward profile is
  549. 23:04extremely positive
  550. 23:06the only way to achieve anything is to
  551. 23:09take risks
  552. 23:10to avoid all risks of failure and make
  553. 23:13mistakes
  554. 23:14during as well would mean doing nothing
  555. 23:17and accepting all the personal hardships
  556. 23:19uh
  557. 23:20imposed on innocent canadians that would
  558. 23:23result
  559. 23:24do you agree with my comments
  560. 23:27mr minister i hope you depend on your
  561. 23:29hand because i could hardly keep up and
  562. 23:31i had one
  563. 23:32go ahead mr minister dancer thank you i
  564. 23:35i did have a pen
  565. 23:37i think i need to start by acknowledging
  566. 23:40that
  567. 23:40uh that i did make a mistake with
  568. 23:42respect
  569. 23:43to the uh the lack of
  570. 23:46decision to recuse myself of the
  571. 23:49decision around the we organization
  572. 23:51and i think i also need to acknowledge
  573. 23:54that not
  574. 23:55every single thing that our government
  575. 23:57has done over the course of the last few
  576. 23:59months
  577. 24:00was perfect we have been as was just
  578. 24:03mentioned
  579. 24:03working during a time of of crisis in a
  580. 24:06pandemic
  581. 24:07a time like none of us have ever faced
  582. 24:09before so
  583. 24:11the answer to the the last question uh
  584. 24:14is
  585. 24:14quite clear we knew we needed to move
  586. 24:17at speed and with scale to support
  587. 24:20canadians
  588. 24:21we knew that we needed to do our very
  589. 24:23best analysis
  590. 24:24on what the right policy would be and
  591. 24:27how to best
  592. 24:28get that support out to canadians we
  593. 24:30also knew
  594. 24:31that as we moved forward we would almost
  595. 24:34certainly
  596. 24:35have to fix things and improve things as
  597. 24:37we went along and that was the
  598. 24:38approach that we took i think that the
  599. 24:41response that we've
  600. 24:43had as a country which in answer to the
  601. 24:46direct
  602. 24:46question you know more than 70 programs
  603. 24:49over 200 billion dollars of direct
  604. 24:51support to canadians
  605. 24:52has put us in a much better situation
  606. 24:55than we would have been in had we not
  607. 24:57taken that approach it's delivered for
  608. 24:59individuals and for families it's
  609. 25:02protected our economy for today and
  610. 25:04and for the future and the risks of not
  611. 25:06doing so would have been
  612. 25:08dramatically greater for individuals and
  613. 25:10for families struggling to get by
  614. 25:12but for our long-term future and our
  615. 25:14opportunities so
  616. 25:16i do recognize that there is there's
  617. 25:18more that we need to do
  618. 25:19but this is an unprecedented time we are
  619. 25:22going to continue to
  620. 25:23consider the needs of canadians first uh
  621. 25:26deliver the kind of support required
  622. 25:28and uh improve things as we go along and
  623. 25:31yes
  624. 25:32we will make mistakes uh we will try not
  625. 25:34to make mistakes of course that's never
  626. 25:36our intent but we will uh we will
  627. 25:39rectify those mistakes
  628. 25:40as we think about the next steps and
  629. 25:42this pandemic's not over
  630. 25:43we do know there's there's more work to
  631. 25:45be done and we need to keep
  632. 25:47uh our focus on that and on canadians
  633. 25:51and do i have time for one more mr chair
  634. 25:54you have uh
  635. 25:56a minute or two minutes left okay thank
  636. 25:58you
  637. 25:59um what were your main goals when
  638. 26:01developing programs and policies to
  639. 26:04respond to the crises
  640. 26:05we have heard from other witnesses about
  641. 26:07rapid response simplicity
  642. 26:09largely and large-scale support i know
  643. 26:12that you've mentioned it time and time
  644. 26:13again but i think
  645. 26:14it's worth mentioning once again uh
  646. 26:17never to lose sight
  647. 26:19the pandemic uh the crisis that was
  648. 26:22not only facing canadians but globally
  649. 26:26so what were your main goals when
  650. 26:29developing these programs and policies
  651. 26:31minister morneau
  652. 26:34well again uh thank you for that
  653. 26:36question
  654. 26:38our main goals at the beginning of the
  655. 26:39pandemic are are
  656. 26:41very consistent with our goals now we
  657. 26:43recognize that this pandemic has had
  658. 26:46enormous impacts on on canadians across
  659. 26:49the country
  660. 26:50on family's ability to support
  661. 26:52themselves and also on
  662. 26:54future opportunities so we've been
  663. 26:55looking at how we can support people
  664. 26:57through this
  665. 26:58the serb benefit our our first and most
  666. 27:01important
  667. 27:02measure at the outset was recognizing
  668. 27:04how many people
  669. 27:05were going to be off work without enough
  670. 27:07money to pay for groceries or rent
  671. 27:10and we needed to get support to them
  672. 27:11rapidly the wage subsidy was about
  673. 27:14trying to make sure people could
  674. 27:16keep their job over the long term
  675. 27:18because we know how important
  676. 27:20that is for them but also for our
  677. 27:22economy
  678. 27:23programs like uh what we put together
  679. 27:25for
  680. 27:26students were recognizing that we were
  681. 27:28going to have hundreds of thousands of
  682. 27:30students
  683. 27:31without the ability to get a job this
  684. 27:33summer and we needed to think about how
  685. 27:35we could support them because
  686. 27:36they are by definition our future we
  687. 27:39need to make sure they can
  688. 27:40get back to their studies so that has
  689. 27:42been that's been our focus
  690. 27:45from from day one and it will continue
  691. 27:47to be our focus
  692. 27:49getting through this crisis requires us
  693. 27:50all to work together it's a health
  694. 27:52crisis
  695. 27:53and an economic crisis so we need to
  696. 27:55think about those two things in tandem
  697. 27:57but supporting people has always been
  698. 27:59central to what our government's been
  699. 28:01after
  700. 28:02and central to what i've been focused on
  701. 28:03during this time okay
  702. 28:05uh thank you we'll have to end it uh
  703. 28:06there uh mr forte
  704. 28:08followed by mr angus mr forte
  705. 28:13mr forte
  706. 28:19[Music]
  707. 28:26my screen was frozen oh
  708. 28:42um
  709. 29:19[Music]
  710. 29:48apologizing simply apologizing that
  711. 29:50you're going to be able to
  712. 29:52escape the fury of this um
  713. 29:57this matter
  714. 30:00uh mr chair yeah go ahead mr uh
  715. 30:03my minister merci say
  716. 30:10this is a very important question
  717. 30:17excuse me
  718. 30:35foreign
  719. 31:02the delivery
  720. 31:43the information
  721. 31:59did you think about it
  722. 32:03for the service public to consider come
  723. 32:05on
  724. 32:07public services
  725. 32:26uh
  726. 32:40is
  727. 32:54why didn't
  728. 33:22um
  729. 33:54uh between the two entities
  730. 34:17excuse me
  731. 34:23[Music]
  732. 34:32public
  733. 34:46uh
  734. 35:00is
  735. 35:08of a report on due diligence
  736. 35:28okay thank you uh
  737. 35:31thank you both uh mr angus for six
  738. 35:34minutes and then followed by uh
  739. 35:36uh mr cooper for five uh charlie you're
  740. 35:39up thank you so much mr chair
  741. 35:41uh mr minister um so the discussions
  742. 35:45with we began
  743. 35:46in year officials on april 7th
  744. 35:49um leading up to the prime minister's
  745. 35:52announcement
  746. 35:53uh were there any other proposals
  747. 35:56brought
  748. 35:57forward in that time by any other group
  749. 35:59other than we
  750. 36:04uh mr chair first of all you know thank
  751. 36:07you for the question
  752. 36:09i elaborated on the uh the timeline
  753. 36:12in the prepared remarks uh i was not
  754. 36:17i was not involved directly in any of
  755. 36:19those
  756. 36:20proposals being received or any
  757. 36:23any of those direct discussions with
  758. 36:25other organizations uh i do know
  759. 36:27that that process went through the
  760. 36:29public services
  761. 36:30sorry could you give us the names of any
  762. 36:32other organizations because
  763. 36:34the question we're dealing with was
  764. 36:36whether a group that's very close to you
  765. 36:38and your family and very close to the
  766. 36:40prime minister's family
  767. 36:42was given the inside track so we know
  768. 36:43that you met with craig you talked with
  769. 36:45craig hewlberg and now you say didn't
  770. 36:46discuss this but
  771. 36:47the die had been set we know that your
  772. 36:49your your finance officials had reached
  773. 36:51out to rachel wernick
  774. 36:52uh to tell her to talk to we we know
  775. 36:54that there had been at least two weeks
  776. 36:56of discussing between the first proposal
  777. 36:58and the second proposal
  778. 37:00so was were there other groups that were
  779. 37:03invited at that time to bring forward
  780. 37:05proposals will you give us the names of
  781. 37:07any
  782. 37:08that may have been involved
  783. 37:11uh minister go ahead i am aware that
  784. 37:15there were
  785. 37:16consultations with a number of groups
  786. 37:18that provide
  787. 37:19service for youth i'm not aware of each
  788. 37:22one of those names that was never
  789. 37:23presented to me
  790. 37:27i'm certain mr chair that we can uh
  791. 37:30provide an awareness of the
  792. 37:32of the organizations that were consulted
  793. 37:34with during the course of these uh
  794. 37:36this period okay thank you because
  795. 37:39minister chagger
  796. 37:40said that the idea came from rachel
  797. 37:43wernick
  798. 37:44the civil servant rachel wernick told us
  799. 37:47that she learned about this when
  800. 37:48everyone else learned about it and she
  801. 37:50was directly contacted by your staff
  802. 37:53my concern here mr morneau is if you
  803. 37:55were being the pack mule for the
  804. 37:57kielburgers to get this proposal through
  805. 37:59the fact that you refuse to recuse
  806. 38:01yourself is very very
  807. 38:03damning it it really raises questions
  808. 38:06here
  809. 38:07why did you refuse to recuse yourself
  810. 38:10uh mr minister well thank you uh
  811. 38:14to be to be clear we were we were in a
  812. 38:17position where we were trying to
  813. 38:18determine uh ways that we could deliver
  814. 38:21on behalf of students
  815. 38:23that was the goal here the idea was to
  816. 38:26find
  817. 38:27charlie the minister the minister has uh
  818. 38:30relatively equal time here allow him to
  819. 38:32answer first
  820. 38:33go ahead mr minister that was our
  821. 38:36overriding goal
  822. 38:38we knew that it was important to figure
  823. 38:40out a way to
  824. 38:41engage with students to help them to get
  825. 38:43back to school
  826. 38:44that was my overriding concern i
  827. 38:48uh given you know the the legitimate
  828. 38:51perception of of
  829. 38:52a conflict around my uh involvement
  830. 38:55previously i have said that in hindsight
  831. 38:58i i should have recused myself
  832. 39:00and okay that was a mistake on my part
  833. 39:03have you read the conflict of interest
  834. 39:05act
  835. 39:08mr minister uh mr chair i believe when i
  836. 39:12first came into office i would have had
  837. 39:14access to all of those uh those acts so
  838. 39:17you're not familiar with it the fact
  839. 39:19that you just remembered that we paid
  840. 39:22forty one thousand dollars for you to do
  841. 39:24travel are you not aware that under the
  842. 39:27conflict
  843. 39:28of interest acts sections 11 section 12
  844. 39:30section 15 of the code
  845. 39:33are explicit and it's also explicit
  846. 39:36about the
  847. 39:37the ministers are not to be getting paid
  848. 39:40travel so if you haven't really if you
  849. 39:43don't really remember the conflict of
  850. 39:44interest act you remember the agga khan
  851. 39:47ruling by the ethics commissioner
  852. 39:49because it seems that he made direct
  853. 39:51rulings about a situation that you are
  854. 39:52now
  855. 39:53in isn't there someone in your office
  856. 39:56who would
  857. 39:56tell you come on minister these are the
  858. 39:59these are the rules these
  859. 40:00this is the law of the land it applies
  860. 40:03to you as well
  861. 40:06go ahead mr minister mr chair um
  862. 40:10it is it is a mistake on my part not to
  863. 40:13have
  864. 40:13paid expenses as i've uh said i did not
  865. 40:17know that those expenses were not paid i
  866. 40:19did not
  867. 40:20have any awareness of that but over the
  868. 40:23course of the last uh
  869. 40:24short while i've reviewed my records in
  870. 40:26detail
  871. 40:27and uh given that uh serious oversight i
  872. 40:31have
  873. 40:31made sure that that uh that has been
  874. 40:33rectified but i
  875. 40:35i recognized that it was a mistake and i
  876. 40:37i take responsibility for that
  877. 40:39uh charlie before you before you start
  878. 40:41again can you hold your microphone a
  879. 40:44little closer and don't be
  880. 40:46rubbing at the the translators are
  881. 40:49having difficulty
  882. 40:50go ahead i'll give you the time back
  883. 40:53thank you well i guess the issue here
  884. 40:56is that we paid for your travel
  885. 40:59that has the apparent uh perception
  886. 41:02of attempting to buy political influence
  887. 41:04the fact that you're talking with craig
  888. 41:06kielburger
  889. 41:06you're talking with we i'm not sure
  890. 41:08they're registered to lobby they're
  891. 41:10hiring your daughter
  892. 41:11you're not thinking that there's a
  893. 41:12problem here but they're paying for
  894. 41:14influence i think that that's really
  895. 41:17really concerning that you didn't seem
  896. 41:18to think that that was a problem so i'd
  897. 41:20like to
  898. 41:20to end on the question with we
  899. 41:24you signed a contribution agreement with
  900. 41:26a real estate holding company
  901. 41:29how in god's name is that a credible
  902. 41:33decision by the government of canada
  903. 41:34to funnel nearly a billion dollars to a
  904. 41:37group that's very close to you and your
  905. 41:38family
  906. 41:39it's very close to the prime minister
  907. 41:41and his family
  908. 41:42a group that had gone through no uh
  909. 41:45there was
  910. 41:45no public tender here and they come up
  911. 41:48with a real estate holding company and
  912. 41:50you file the money through them
  913. 41:51what were you thinking uh mr minister uh
  914. 41:55final answer this round
  915. 41:58thank you well to start with as i've
  916. 42:01said
  917. 42:02um i i certainly uh was
  918. 42:05in error not uh not paying expenses i
  919. 42:08didn't know about those expenses being
  920. 42:10paid in my behalf but
  921. 42:11uh that was an error and um i
  922. 42:15i have owned up for that error i
  923. 42:18know that i know that uh the uh
  924. 42:22the government uh decision around
  925. 42:25uh the administration this program was
  926. 42:28taken
  927. 42:28after the appropriate due diligence by
  928. 42:31the public service
  929. 42:32i don't know of which uh organization
  930. 42:36in the uh in the in the we
  931. 42:40decision was the organization that was
  932. 42:43given to that contract that's not
  933. 42:45something that was brought
  934. 42:46to my attention uh of course uh we
  935. 42:49expected
  936. 42:50company and you didn't double check that
  937. 42:52where is the due diligence minister
  938. 42:55as i've said uh mr chair the
  939. 42:58the public service took a look at how we
  940. 43:00could best deliver this program
  941. 43:02and how it could be best administered
  942. 43:05and that recommendation was the one that
  943. 43:06we looked at
  944. 43:08in order to deliver on behalf of
  945. 43:09students okay
  946. 43:11we'll end that round there but uh a look
  947. 43:13from from my perspective there is
  948. 43:16uh some confusion during this
  949. 43:19round uh you've been asked
  950. 43:23why uh as a minister you didn't sign
  951. 43:26you didn't call for tenders i know this
  952. 43:29was a contribution agreement
  953. 43:31uh the implication is
  954. 43:34that you were the minister responsible
  955. 43:37so i got to ask you two questions
  956. 43:39who was the minister responsible in
  957. 43:41terms of this agreement with we
  958. 43:43and who was the minister that signed the
  959. 43:46agreement at the end of the day
  960. 43:49mr miller thank you mr chair i i was not
  961. 43:53the minister responsible
  962. 43:54as uh as i outlined in my prepared
  963. 43:57remarks
  964. 43:57that uh that was minister chagar and
  965. 44:01uh as uh as to your second question on
  966. 44:04who signed the document
  967. 44:06i'm actually not aware of that my
  968. 44:08assumption would be it would be
  969. 44:09minister chagar but i know that
  970. 44:11employment and social development canada
  971. 44:13worked on this program and that was the
  972. 44:16arm of the public service that made the
  973. 44:18recommendation
  974. 44:19after their work okay uh thank you for
  975. 44:22that uh then uh
  976. 44:23next to answer questions we'll start off
  977. 44:25with mr cooper mr fragascottis mr
  978. 44:27pauliev and miss
  979. 44:28zerowitz uh mr cooper five minutes great
  980. 44:31thank you mr chair
  981. 44:32uh thank you minister for being here i
  982. 44:34want to
  983. 44:35ask uh you to explain in further detail
  984. 44:39these 41 000 of
  985. 44:42hidden expenses you have characterized
  986. 44:46these expenses as programming what do
  987. 44:48you mean by that
  988. 44:51well thank you when uh
  989. 44:54when we took a look at our personal
  990. 44:57records we found
  991. 44:59expenses that we'd paid for flights and
  992. 45:01for personal hotel costs
  993. 45:03but we didn't find any expenses from the
  994. 45:06the actual we
  995. 45:06sites that we went to that my
  996. 45:10chances they would have they would have
  997. 45:12been any dining
  998. 45:14or just explain what those expenses were
  999. 45:19thank you mr minister go ahead sorry
  1000. 45:22those expenses would have been
  1001. 45:23for uh anything incurred at the we
  1002. 45:26facilities
  1003. 45:27so so give me an example
  1004. 45:30i have not seen the line by line but i
  1005. 45:33would assume that they would be for
  1006. 45:35accommodation for uh going to the
  1007. 45:38we were when i was uh there in
  1008. 45:41uh ecuador we were helping to build a
  1009. 45:43school so it would have been getting us
  1010. 45:45to the school
  1011. 45:46where we were doing that perhaps the
  1012. 45:48materials to build that school
  1013. 45:51and those were i imagine
  1014. 45:54the the things that uh that were
  1015. 45:57included in those expenses along with
  1016. 45:59presumably
  1017. 46:00uh meals meals so whining and dining
  1018. 46:04while you were
  1019. 46:05in ecuador uh thank you for that
  1020. 46:08um obviously uh it's interesting that
  1021. 46:11you've just decided to do a detailed
  1022. 46:12review now just before you came before
  1023. 46:15our committee
  1024. 46:16uh but i'll leave it at bad i want to
  1025. 46:17now uh go on to
  1026. 46:20the timeline here uh on april 18th you
  1027. 46:24said that you were briefed by
  1028. 46:26your officials uh at that time the we
  1029. 46:29proposal was brought to your attention
  1030. 46:32were any other
  1031. 46:33proposals brought to your attention or
  1032. 46:34were any other organizations mentioned
  1033. 46:37at that meeting
  1034. 46:41thank you i i believe at that meeting i
  1035. 46:45was briefed on the
  1036. 46:47the overall nature of the potential
  1037. 46:49canada student service grant
  1038. 46:51as well as the possibility of using
  1039. 46:54an outside for-profit or not-for-profit
  1040. 46:58organization to administer the program
  1041. 47:01based on the urgency of the program
  1042. 47:03and that was uh that was the sum
  1043. 47:07total of what we were trying to achieve
  1044. 47:08i believe at that briefing
  1045. 47:11and and were were any other proposals
  1046. 47:14provided to you
  1047. 47:16uh no proposals were provided proposals
  1048. 47:20of any sort were provided to me okay
  1049. 47:21well you said you reviewed the we
  1050. 47:23proposal at that time or it was appended
  1051. 47:26um sorry for clarification uh there was
  1052. 47:30a
  1053. 47:30a proposal appended that was for a
  1054. 47:33different
  1055. 47:33program okay so it was not for the
  1056. 47:35administration of the canada
  1057. 47:39a limited amount of time uh from
  1058. 47:42the beginning of march to june 30th how
  1059. 47:45many times have you had contact with
  1060. 47:46anyone associated with the we
  1061. 47:48organization
  1062. 47:51um sorry the dates again were
  1063. 47:54between march 1st and june 30th
  1064. 47:58the um the only
  1065. 48:01uh time that i have any uh
  1066. 48:04recollection of communicating with
  1067. 48:06anyone from the we organization was
  1068. 48:08as i reported on sunday april 26th april
  1069. 48:1126 and that was with craig kielburger
  1070. 48:14yes and how often do you speak with
  1071. 48:16craig kielberger
  1072. 48:19craig hillberger is um obviously someone
  1073. 48:23in my riding who
  1074. 48:24runs a large organization so i've had
  1075. 48:27exposure to him on
  1076. 48:28on numerous occasions but i
  1077. 48:31i don't have any particular regular
  1078. 48:34communication
  1079. 48:35were you surprised that he would have
  1080. 48:36contacted you just four days after he
  1081. 48:39had submitted
  1082. 48:40a proposal he didn't contact me
  1083. 48:44so for clarity i called him uh during
  1084. 48:47that
  1085. 48:48time period i was contacting business
  1086. 48:51leaders
  1087. 48:51labor leaders trying to make sure i
  1088. 48:54understood the nature of the covet 19
  1089. 48:57crisis
  1090. 48:58and hearing the impacts on you know
  1091. 49:00customers or on people
  1092. 49:02that got served uh that that was an
  1093. 49:05important part of my role
  1094. 49:07it continues to be an important part of
  1095. 49:08my role so that we can develop the kind
  1096. 49:10of
  1097. 49:10support necessary so just so you just no
  1098. 49:13question mr cooper well
  1099. 49:15okay since i only have the final
  1100. 49:16question minister will you undertake to
  1101. 49:18provide the committee with all
  1102. 49:19communications
  1103. 49:20uh that your office had uh concerning
  1104. 49:23the pre-proposals that uh are at issue
  1105. 49:26namely the
  1106. 49:27april 9th the april 21st and april 22nd
  1107. 49:31proposal as well as any communications
  1108. 49:33you or your office had with
  1109. 49:35anyone of the we organization uh i
  1110. 49:38we will certainly cooperate with the
  1111. 49:41committee that i think is important
  1112. 49:42i think there's been a request for for
  1113. 49:44documentation which we will certainly
  1114. 49:46comply with
  1115. 49:47thank you uh thank you both i believe uh
  1116. 49:50that we request was
  1117. 49:51made with uh miss warnick and uh as well
  1118. 49:54so
  1119. 49:55okay uh mr fragis goddess uh followed by
  1120. 49:59uh mr
  1121. 50:00pauliev go ahead thank you very thank
  1122. 50:02you very much mr chair thanks for being
  1123. 50:04here
  1124. 50:04minister just to be clear minister
  1125. 50:07mourinho
  1126. 50:08you did not refuse to recuse yourself it
  1127. 50:10was an
  1128. 50:11oversight on your part correct
  1129. 50:15i think it was a mistake on my part i um
  1130. 50:18you know on reflection in hindsight i
  1131. 50:21should have recused myself
  1132. 50:23i i know that that would have been a
  1133. 50:26a better course of action for us to to
  1134. 50:28deal with what we saw as a very
  1135. 50:30important
  1136. 50:31uh challenge facing students
  1137. 50:34i do have to ask minister worked with
  1138. 50:37you for five years know you to be an
  1139. 50:39honorable person and
  1140. 50:40a good man but i do have to ask as far
  1141. 50:43as going
  1142. 50:44forward the process around recusing
  1143. 50:47one's self
  1144. 50:48you've pledged to do so in the future
  1145. 50:50but is it a is it a simple process at
  1146. 50:53the cabinet level
  1147. 50:54to uh to do so
  1148. 50:57well yes i i have recused myself
  1149. 51:00on numerous occasions around cabinet uh
  1150. 51:03when i've seen that there was
  1151. 51:05any potential for conflict so that's
  1152. 51:07been a course i've taken
  1153. 51:09over the time in office and in this case
  1154. 51:13you know my my daughter
  1155. 51:16uh grace was you know working in a
  1156. 51:19she was working in a an administrative
  1157. 51:22role it was her starting job
  1158. 51:24i didn't see that as a conflict you know
  1159. 51:26in hindsight
  1160. 51:28i i should have seen that people would
  1161. 51:30would be concerned about that
  1162. 51:31and so i i wish i had done differently
  1163. 51:35i will certainly in future recuse myself
  1164. 51:37from anything to do
  1165. 51:38with with the we organization as a
  1166. 51:41result
  1167. 51:42of of that association thank you very
  1168. 51:44much no it was a question relating
  1169. 51:46largely to process and
  1170. 51:48you've answered it i have a question
  1171. 51:50also relating to uh
  1172. 51:51to we on this decision why
  1173. 51:54was we chosen specifically and
  1174. 51:58not for example the working through the
  1175. 52:01canada summer jobs program expanding
  1176. 52:03that for example
  1177. 52:04the canada student service corps for
  1178. 52:07instance
  1179. 52:08as another possibility what stood out
  1180. 52:11about we
  1181. 52:11in your mind
  1182. 52:16i think it's important not to talk about
  1183. 52:19we it's more about what we were trying
  1184. 52:21to achieve so our goal was to find a way
  1185. 52:24to
  1186. 52:25to have a an approach to national
  1187. 52:27service during a time of
  1188. 52:29of national crisis we saw that there was
  1189. 52:32a
  1190. 52:32combination of the opportunity for
  1191. 52:35students to be engaged in that
  1192. 52:37and something that would enable students
  1193. 52:39also to
  1194. 52:40to be doing really meaningful work in a
  1195. 52:43summer when so many jobs wouldn't be
  1196. 52:45available
  1197. 52:46and finally we thought that you know the
  1198. 52:48idea that they could
  1199. 52:49uh have some incentive was going to be
  1200. 52:52important both to to make that happen
  1201. 52:54but also to recognize that they weren't
  1202. 52:56going to necessarily have money
  1203. 52:58from jobs this summer because of the the
  1204. 53:00pandemic so
  1205. 53:01so that was the goal the the decision on
  1206. 53:04how to administer it was
  1207. 53:06uh very much taken uh in the course of
  1208. 53:09employment social development canada's
  1209. 53:11review of how to deliver it and when i
  1210. 53:15as i understand it what they were trying
  1211. 53:16to consider was the public service
  1212. 53:18capable
  1213. 53:19of delivering in a very short time
  1214. 53:21period this program that would make a
  1215. 53:22difference for
  1216. 53:24students and they concluded that a
  1217. 53:26better way to do it would be with
  1218. 53:28an outside organization that had those
  1219. 53:30capabilities already so that we could
  1220. 53:32move
  1221. 53:32quickly so that that was the that was
  1222. 53:35the goal
  1223. 53:36and that was the uh recommendation that
  1224. 53:38came back to us
  1225. 53:40which uh of course was satisfying our
  1226. 53:42overall goal
  1227. 53:43and it's very important to put this in
  1228. 53:44the context of what we were facing at
  1229. 53:46that time we were thinking about
  1230. 53:48multiple programs to support you know
  1231. 53:51different
  1232. 53:51uh populations so we were thinking about
  1233. 53:54people who were off work
  1234. 53:56people who were you know maybe uh having
  1235. 53:57more expenses like seniors
  1236. 54:00we were starting to contemplate people
  1237. 54:01with disabilities and the challenges
  1238. 54:03they were facing
  1239. 54:04but students were central to us because
  1240. 54:06there's hundreds of thousands of them
  1241. 54:08that wouldn't have jobs if we didn't
  1242. 54:10find some sort of
  1243. 54:11or wouldn't have opportunities if we
  1244. 54:13didn't find some sort of way to
  1245. 54:16uh to deal with that last question peter
  1246. 54:19thank you very much mr chair with the
  1247. 54:21last question and i've asked this before
  1248. 54:23but since you're the minister of finance
  1249. 54:25i do want to put it to you
  1250. 54:27where do we go from here is is a program
  1251. 54:31possible because i have young people in
  1252. 54:34my constituency i have many
  1253. 54:36not-for-profits and charities that were
  1254. 54:37excited by the
  1255. 54:39visions set out in the canada student
  1256. 54:41service grant
  1257. 54:42want to make a contribution
  1258. 54:45organizations need volunteers and young
  1259. 54:47people are ready to volunteer
  1260. 54:50is it possible to come up with a program
  1261. 54:52that allows for tuition support to be
  1262. 54:54uh granted on the one hand for young
  1263. 54:57people and
  1264. 54:58for organizations to benefit by the
  1265. 55:00presence of young people can we still
  1266. 55:02get to the
  1267. 55:03underlying goal of the of the canada
  1268. 55:05student service grant delivered
  1269. 55:06differently of course
  1270. 55:09i i think it's very important to put
  1271. 55:11this this program
  1272. 55:13in context we we came up with
  1273. 55:16approaches to help students that were
  1274. 55:20multiple we had a nine billion dollar
  1275. 55:23program overall which included support
  1276. 55:25for
  1277. 55:25people that were not going to be able to
  1278. 55:28get jobs
  1279. 55:29direct financial support it was tuition
  1280. 55:32um
  1281. 55:32reduction in in grants for tuition
  1282. 55:35uh or increasing grants for tuition in
  1283. 55:37the fall it was
  1284. 55:39a reduction in interest costs or
  1285. 55:41elimination of interest costs on debt
  1286. 55:43so multiple things we were doing at the
  1287. 55:45same time this was one
  1288. 55:46we saw it as a very important way to
  1289. 55:49engage
  1290. 55:50and and improve uh our ability to deal
  1291. 55:52with the pandemic
  1292. 55:54so we're going to continue to try i
  1293. 55:56think that you know unfortunately this
  1294. 55:58is making it more difficult because the
  1295. 56:00starting position
  1296. 56:01was that the public service didn't have
  1297. 56:03the ability to deliver with the same
  1298. 56:05speed and that means that we are we are
  1299. 56:08trying to figure out a way to do this
  1300. 56:10but but it is difficult for sure we will
  1301. 56:13continue to think
  1302. 56:14though about how we can deliver okay
  1303. 56:17we'll go to
  1304. 56:17uh mr paliyev uh and then on to
  1305. 56:21miss zerowitz uh mr polyam how much time
  1306. 56:24do i have
  1307. 56:25you got five minutes uh mr morneau can
  1308. 56:28you please give me
  1309. 56:30uh uh all of the uh the account of how
  1310. 56:33many times you spoke about
  1311. 56:35we charity with your staff or your
  1312. 56:38officials
  1313. 56:41uh i've tried to give a uh an
  1314. 56:44understanding of the process
  1315. 56:46and the uh the deliberations i i think
  1316. 56:48you've heard from me in my prepared
  1317. 56:50statements the
  1318. 56:51just increasing how many times did you
  1319. 56:54speak about we with your staff or your
  1320. 56:56officials the number of times please
  1321. 56:58uh i think what you will hear in in my
  1322. 57:00preparedness i went through a number of
  1323. 57:02of briefings and those were the the
  1324. 57:04times where this was the
  1325. 57:06uh discussion to recap where we are
  1326. 57:11you and the prime minister gave 912
  1327. 57:15million dollars to the real estate
  1328. 57:17holding arm
  1329. 57:18of a group that had paid the prime
  1330. 57:20minister's family
  1331. 57:22three hundred thousand dollars and gave
  1332. 57:24your daughter a job
  1333. 57:26and your family 41 000 in
  1334. 57:29illegal travel expenses
  1335. 57:33that's just what we know so far
  1336. 57:36we know that this is illegal
  1337. 57:39we know that you ought to have recused
  1338. 57:41yourself under section
  1339. 57:4321 of the conflict of interest act
  1340. 57:46public office holders shall recuse
  1341. 57:47himself
  1342. 57:48from any discussion decision debate or
  1343. 57:50vote on any matter in respect to which
  1344. 57:52he or his
  1345. 57:53he or she would be in a conflict of
  1346. 57:56interest we also know
  1347. 57:58that no public offshore of which you are
  1348. 58:00one under section 11
  1349. 58:02shall accept any gift or other advantage
  1350. 58:04including from a trust
  1351. 58:06that might reasonably be seen to be
  1352. 58:08given
  1353. 58:09to have been given to influence the
  1354. 58:10public office holder
  1355. 58:12in the exercise of an eff of an official
  1356. 58:15power
  1357. 58:16duty or function you have violated that
  1358. 58:18section as well
  1359. 58:20in accepting 41 000
  1360. 58:23of secret travel expenses
  1361. 58:27you've only admitted now that you did
  1362. 58:29that
  1363. 58:30the same day you're called to testify
  1364. 58:32under oath in the matter
  1365. 58:34over a year after the gifts
  1366. 58:37were accepted you are a minister
  1367. 58:41who has already been found guilty of
  1368. 58:43violating the conflict of interest act
  1369. 58:45when you failed to reveal the existence
  1370. 58:48of your villa
  1371. 58:49in france minister
  1372. 58:53you have lost the moral authority to
  1373. 58:55hold your office
  1374. 58:57and it is the position of her majesty's
  1375. 58:59loyal opposition that you resign
  1376. 59:02will you resign uh mr minister the floor
  1377. 59:05is yours
  1378. 59:07uh mr chair and um
  1379. 59:11to the questioner uh i want to just make
  1380. 59:14very clear that
  1381. 59:15there were in fact mistakes made here i
  1382. 59:18have said
  1383. 59:20quite clearly that in hindsight i should
  1384. 59:23have recused myself
  1385. 59:24from this decision when it came to
  1386. 59:26cabinet
  1387. 59:27i did not know that there were expenses
  1388. 59:31that
  1389. 59:31had not been charged to me in that
  1390. 59:34travel
  1391. 59:34and uh that worked sorry ministry mr
  1392. 59:38mr pellier we're usually
  1393. 59:41pretty sticky the other way in time so
  1394. 59:43we'll be sticking this way
  1395. 59:44today the minister has the floor for a
  1396. 59:47little longer
  1397. 59:48go ahead mr minister as i said i did not
  1398. 59:51know
  1399. 59:52that there were expenses that were not
  1400. 59:53charged to me but i'm not making an
  1401. 59:56excuse
  1402. 59:56it was my mistake not to have taken
  1403. 59:58responsibility to
  1404. 1:00:00ensure that those expenses were paid and
  1405. 1:00:03i found that out only with a thorough
  1406. 1:00:06review of my records over the course of
  1407. 1:00:07the last few days
  1408. 1:00:09and that is absolutely a mistake on my
  1409. 1:00:13behalf i've then turned around to
  1410. 1:00:16reimburse sure which i know is important
  1411. 1:00:18sure and i
  1412. 1:00:19i will i will minister i
  1413. 1:00:22will continue to to work on behalf of
  1414. 1:00:26canadians i want to put
  1415. 1:00:27this in context the the program that we
  1416. 1:00:30were trying to deliver for students
  1417. 1:00:32to get them engaged in volunteering we
  1418. 1:00:35believe is
  1419. 1:00:36is very important and that's important
  1420. 1:00:38work that i will continue to do
  1421. 1:00:40with my government over to mr peliap
  1422. 1:00:44canadians will find it impossible to
  1423. 1:00:46believe
  1424. 1:00:48that this organization showered you with
  1425. 1:00:5141
  1426. 1:00:52000 worth of luxury
  1427. 1:00:55and accommodations and that you didn't
  1428. 1:00:58know about it
  1429. 1:00:59that somehow you were enjoying all of
  1430. 1:01:02these benefits and expenses paid for you
  1431. 1:01:04while you were on an exotic vacation to
  1432. 1:01:06ecuador
  1433. 1:01:08and that somehow you didn't even know
  1434. 1:01:10that the expenses occurred who did you
  1435. 1:01:12think
  1436. 1:01:13was paying for all of the wine
  1437. 1:01:16and the food and the luxury travel that
  1438. 1:01:19you were consuming did you think that it
  1439. 1:01:21was just
  1440. 1:01:22falling out of the sky minister who did
  1441. 1:01:25you think was paying
  1442. 1:01:27for these tens of thousands of dollars
  1443. 1:01:29of luxurious
  1444. 1:01:31expenses that you were enjoying
  1445. 1:01:34where did you think it was coming from
  1446. 1:01:36that's the last question we'll give the
  1447. 1:01:38minister time to respond
  1448. 1:01:40go ahead minister well thank you mr
  1449. 1:01:42chair
  1450. 1:01:44uh as i've said we we did go back
  1451. 1:01:47and look at our records and found the
  1452. 1:01:49the travel and hotel costs
  1453. 1:01:52but didn't find any charges to us from
  1454. 1:01:55the we facilities
  1455. 1:01:56this uh this should have been something
  1456. 1:01:59that uh
  1457. 1:02:00that we we rectified sooner uh it was
  1458. 1:02:03absolutely in error i in looking through
  1459. 1:02:06my records was
  1460. 1:02:07uh completely surprised at this
  1461. 1:02:10situation
  1462. 1:02:11and that's not an excuse that's just
  1463. 1:02:13what happened so
  1464. 1:02:15i uh mr chair can just say that again
  1465. 1:02:18you know this was uh this was um an
  1466. 1:02:21excuse and
  1467. 1:02:22and uh that's no excuse rather and it's
  1468. 1:02:24a mistake
  1469. 1:02:25okay uh miss uh zerowitz uh and we will
  1470. 1:02:28have
  1471. 1:02:29uh we'll go to miss sirowitz uh and
  1472. 1:02:32uh i will give miss uh goodro uh
  1473. 1:02:36a couple of minute question and mr angus
  1474. 1:02:39and then we'll have to end
  1475. 1:02:42ms sirwitz okay thank you so much thank
  1476. 1:02:44you minister for
  1477. 1:02:45uh presenting today thank you for your
  1478. 1:02:47remarks at the onset
  1479. 1:02:49um the first thing i'd like to say is
  1480. 1:02:5370 programs and over 200 billion dollars
  1481. 1:02:56in direct support to canadians
  1482. 1:02:58i know that during the time of march and
  1483. 1:03:00april when davenport residents
  1484. 1:03:02were super stressed they were enormously
  1485. 1:03:04happy with the programs as they were
  1486. 1:03:06being announced
  1487. 1:03:07it gave them comfort that there was a
  1488. 1:03:09government who's caring after them
  1489. 1:03:11and was trying to help support them as
  1490. 1:03:13we were going through an unprecedented
  1491. 1:03:16pandemic that no one really knew how it
  1492. 1:03:18was going to unfold
  1493. 1:03:19so i want to say thank you for that i
  1494. 1:03:22also want to say thank you for your
  1495. 1:03:23apology
  1496. 1:03:24um um i think for the both apologies one
  1497. 1:03:27is
  1498. 1:03:27from recusing from the cabinet decision
  1499. 1:03:30and then also
  1500. 1:03:31for the 41 000 payment i do have three
  1501. 1:03:34key questions the first one is
  1502. 1:03:38um can you make it clear to the
  1503. 1:03:40committee was
  1504. 1:03:41was there any direction from you your
  1505. 1:03:44team
  1506. 1:03:45or the financial sort of department
  1507. 1:03:48to select or suggest we
  1508. 1:03:52as the choice for the canada student
  1509. 1:03:54service grant
  1510. 1:03:57uh mr minister uh thank you
  1511. 1:04:00and and uh you know thank you for your
  1512. 1:04:03comments i think
  1513. 1:04:04um it has been a a particularly
  1514. 1:04:07challenging time and i'm
  1515. 1:04:09i'm pleased to hear that you're
  1516. 1:04:11receiving positive feedback from your
  1517. 1:04:13constituents i i just want to
  1518. 1:04:16acknowledge that we are still in a
  1519. 1:04:17pandemic so these challenges will
  1520. 1:04:19continue and we will continue to be
  1521. 1:04:20thinking about how we support people
  1522. 1:04:23the decision around the
  1523. 1:04:28programs to support students were very
  1524. 1:04:30important and those were decisions that
  1525. 1:04:32were taken
  1526. 1:04:34together with other departments they
  1527. 1:04:36were working together on what the right
  1528. 1:04:38approach was to deliver but the
  1529. 1:04:41the final uh recommendation for
  1530. 1:04:44how the program was to be administered
  1531. 1:04:47came from employment and social
  1532. 1:04:48development canada
  1533. 1:04:50and that was uh in their role in
  1534. 1:04:52thinking about how we could best deliver
  1535. 1:04:54for students
  1536. 1:04:54so so that is the approach it was not up
  1537. 1:04:57to
  1538. 1:04:57me or uh or my team to
  1539. 1:05:01come up with those recommendations uh or
  1540. 1:05:03even to do the
  1541. 1:05:04the direct analysis on the capabilities
  1542. 1:05:07but there was
  1543. 1:05:08was there a direct suggestion from
  1544. 1:05:09yourself or your team to actually
  1545. 1:05:11suggest that we
  1546. 1:05:12should be the the um the uh
  1547. 1:05:16the the uh the choice uh for the canvas
  1548. 1:05:18student service grant
  1549. 1:05:21no my team would not have directed that
  1550. 1:05:24and i certainly
  1551. 1:05:25have no awareness no first-hand
  1552. 1:05:27knowledge of of the capabilities of
  1553. 1:05:30either the public service or the we
  1554. 1:05:32organization to deliver that program
  1555. 1:05:34okay my second question is there's a lot
  1556. 1:05:36of concern around the the signing with
  1557. 1:05:38the
  1558. 1:05:38we charity foundation as opposed to we
  1559. 1:05:41charity
  1560. 1:05:42can you just be make it clear for the
  1561. 1:05:44committee that it was
  1562. 1:05:45the responsibility of minister chagar uh
  1563. 1:05:48to actually um sign the final contracts
  1564. 1:05:52and it wasn't with
  1565. 1:05:53yourself or the the finance department
  1566. 1:05:57uh well the your your assertion is
  1567. 1:06:00correct
  1568. 1:06:01it was not my responsibility to sign any
  1569. 1:06:03of those agreements nor
  1570. 1:06:05to consider which organization uh
  1571. 1:06:08would be receiving those uh those
  1572. 1:06:11contracts
  1573. 1:06:12okay um julie uh just check your
  1574. 1:06:15microphone and whether you're in the
  1575. 1:06:16right language
  1576. 1:06:17uh you're not coming through clearly to
  1577. 1:06:18the translation booth just pull up your
  1578. 1:06:20mic a little
  1579. 1:06:21okay so i'm i'm definitely on english
  1580. 1:06:23okay and my last question is
  1581. 1:06:25it's around the 41 000 that you've paid
  1582. 1:06:28back
  1583. 1:06:29at um i believe today minister um
  1584. 1:06:32i believe it was for two trips one was
  1585. 1:06:34to kenya and one was to ecuador
  1586. 1:06:36um oh can you just explain uh what the
  1587. 1:06:39intention of the trip was and was the
  1588. 1:06:41intention always to cover
  1589. 1:06:43your own costs and the cost of your
  1590. 1:06:45family going there
  1591. 1:06:48well thank you and all i can tell you is
  1592. 1:06:52that i was completely surprised
  1593. 1:06:54that there were expenses that had not
  1594. 1:06:56been charged to us on review
  1595. 1:06:58it was always my intention our family's
  1596. 1:07:00intention to pay for all
  1597. 1:07:02expenses these were for two trips one
  1598. 1:07:05trip
  1599. 1:07:05of my wife and daughter to kenya to see
  1600. 1:07:09schools that that were being built there
  1601. 1:07:12and
  1602. 1:07:12uh then subsequently to ecuador where
  1603. 1:07:16uh we went as a family and were involved
  1604. 1:07:18in
  1605. 1:07:19in actually building schools the
  1606. 1:07:22expenses
  1607. 1:07:22uh were appropriately my expenses
  1608. 1:07:26it was my mistake not to have ensured
  1609. 1:07:28that they were paid
  1610. 1:07:29uh i was unaware that they weren't
  1611. 1:07:31charged to us and
  1612. 1:07:33um having found that out i was uh
  1613. 1:07:35obviously
  1614. 1:07:36um felt that i'd made a mistake and i
  1615. 1:07:39needed to immediately rectify the
  1616. 1:07:41situation
  1617. 1:07:42okay thank you
  1618. 1:07:45uh thank you both uh we will go to
  1619. 1:07:49uh miss uh goodro or you've got time for
  1620. 1:07:52a two-minute question
  1621. 1:07:55uh mr forte uh mr goudreau there you are
  1622. 1:07:58go ahead
  1623. 1:07:58emoji minutes and then two minutes to mr
  1624. 1:08:00angus and we're done
  1625. 1:08:04with it
  1626. 1:08:36is
  1627. 1:08:50because i just don't know what to say to
  1628. 1:08:51my constituents when they ask me
  1629. 1:08:53questions like that it's very important
  1630. 1:09:01thank you two things uh yes
  1631. 1:09:18uh
  1632. 1:09:36[Music]
  1633. 1:09:46um
  1634. 1:10:10like should we say something about it
  1635. 1:10:13and what do we do
  1636. 1:10:28foreign
  1637. 1:10:43[Music]
  1638. 1:10:56is
  1639. 1:10:59[Music]
  1640. 1:11:10a time uh two minutes uh and i'll give
  1641. 1:11:14we're a little over time uh mr minister
  1642. 1:11:16but to balance it up i'll have to give
  1643. 1:11:17mr angus two minutes as well uh charlie
  1644. 1:11:20you're on
  1645. 1:11:21thanks so much wayne easter my good
  1646. 1:11:22friend and seat mate
  1647. 1:11:24um mr minister
  1648. 1:11:27um i'm glad that your colleague
  1649. 1:11:30clarified that
  1650. 1:11:31it's not it wasn't actually your
  1651. 1:11:32department that was making the
  1652. 1:11:35working out the details that was bartus
  1653. 1:11:37chagger's office
  1654. 1:11:38and yet we was talking to you and the
  1655. 1:11:40prime minister
  1656. 1:11:41begins talking to you in early april and
  1657. 1:11:44you have the we report
  1658. 1:11:45and you said that the report was
  1659. 1:11:47circulating so
  1660. 1:11:49who in the privy council had that report
  1661. 1:11:51who in the prime minister's
  1662. 1:11:53office had the proposal and had the
  1663. 1:11:56prime minister seen it
  1664. 1:11:59uh well thank you i think uh what's
  1665. 1:12:02important to know here is that
  1666. 1:12:04uh what you're talking about is a
  1667. 1:12:06proposal
  1668. 1:12:08for a different program that that
  1669. 1:12:10apparently went to
  1670. 1:12:12a number of ministers offices it came to
  1671. 1:12:14me directly
  1672. 1:12:15i didn't review it at the time i don't
  1673. 1:12:18have any way
  1674. 1:12:19of of knowing but i would be very
  1675. 1:12:21surprised that that would ever go to the
  1676. 1:12:23prime minister that would not normally
  1677. 1:12:24be something that he would he would see
  1678. 1:12:26the prime minister and you were talking
  1679. 1:12:28about a program that
  1680. 1:12:30i know that there was the original
  1681. 1:12:31proposal but the second proposal
  1682. 1:12:33is very very tied to we and
  1683. 1:12:36they call you up mr morneau uh they
  1684. 1:12:39reach out to you it's not your file it's
  1685. 1:12:41miss
  1686. 1:12:41shaggers but you are a friend of them uh
  1687. 1:12:43they have paid
  1688. 1:12:44forty one thousand dollars to you and
  1689. 1:12:46your family to travel and it's not
  1690. 1:12:48reported
  1691. 1:12:49they've hired your daughter they've paid
  1692. 1:12:50the trudeau family over 300
  1693. 1:12:53000 uh at a time so they have enormous
  1694. 1:12:56amount of influence and so this is the
  1695. 1:12:58question you
  1696. 1:12:59i you know i know you read the conflict
  1697. 1:13:02of interest act when you first became
  1698. 1:13:03minister
  1699. 1:13:04and it's somewhere back in one of your
  1700. 1:13:05files but you need to understand
  1701. 1:13:07it's about buying political influence is
  1702. 1:13:10about being there
  1703. 1:13:11your friend that they contact your
  1704. 1:13:13office and it's your officials that are
  1705. 1:13:14dealing with them
  1706. 1:13:15and so you're dealing with the prime
  1707. 1:13:16minister and he's got the same idea that
  1708. 1:13:18you have
  1709. 1:13:19and boy that idea is just like we
  1710. 1:13:22doesn't it occur to you mr morneau
  1711. 1:13:24that you've been very influenced by this
  1712. 1:13:26group and they've had the inside track
  1713. 1:13:27from the get-go
  1714. 1:13:29and your relationship with them is
  1715. 1:13:30helping push that that you
  1716. 1:13:32were the keel burgers pack mule pushing
  1717. 1:13:35this through
  1718. 1:13:36and now it's all blown up on you we'll
  1719. 1:13:38we'll have to go to the minister and
  1720. 1:13:39please clarify minister whether they
  1721. 1:13:42called you
  1722. 1:13:42or you called them because earlier you
  1723. 1:13:45said
  1724. 1:13:46you called mr kielberger over
  1725. 1:13:49over programming i believe or curb or
  1726. 1:13:51whatever it was
  1727. 1:13:52go ahead uh so uh thank you mr chair i
  1728. 1:13:57think
  1729. 1:13:58so to be really clear here the
  1730. 1:14:01the goal and and certainly in the
  1731. 1:14:03discussions i had with the prime
  1732. 1:14:04minister we were thinking about how we
  1733. 1:14:06could
  1734. 1:14:07support students so that was uh
  1735. 1:14:10critically important we needed to come
  1736. 1:14:11up with ways to make sure that we
  1737. 1:14:13delivered support to students
  1738. 1:14:15the the uh in the
  1739. 1:14:19inference that we had any idea of
  1740. 1:14:21exactly how
  1741. 1:14:22that support would happen or even how it
  1742. 1:14:25would be delivered
  1743. 1:14:26is incorrect we were thinking about how
  1744. 1:14:28we would support students
  1745. 1:14:29and as we developed the policy then we
  1746. 1:14:32we passed it to the public service to
  1747. 1:14:34think about how
  1748. 1:14:35that could be properly delivered and
  1749. 1:14:38that was a critically important step
  1750. 1:14:41in thinking about how we could get that
  1751. 1:14:43support the
  1752. 1:14:45proposal that was circulated from the we
  1753. 1:14:48organization was
  1754. 1:14:49was separate earlier on i certainly
  1755. 1:14:53didn't
  1756. 1:14:54have any uh awareness of that uh
  1757. 1:14:57proposal when it came in
  1758. 1:14:59and much later uh as i reported i did
  1759. 1:15:02have a call with craig kielberger and
  1760. 1:15:04that was just to understand generally
  1761. 1:15:06how
  1762. 1:15:06the covet 19 situation was impacting
  1763. 1:15:10uh businesses and organizations across
  1764. 1:15:12the country
  1765. 1:15:13so you know our goal here is and remains
  1766. 1:15:17to support students
  1767. 1:15:18we we know that there was a mistake made
  1768. 1:15:22in terms of of how we came through this
  1769. 1:15:24decision-making process
  1770. 1:15:26i should have recused myself the prime
  1771. 1:15:28minister's also said that
  1772. 1:15:30and we will we will continue to think
  1773. 1:15:31about how we can best be supportive
  1774. 1:15:34and um you know i want to just say that
  1775. 1:15:37we need to move forward
  1776. 1:15:38it is a time of pandemic and there will
  1777. 1:15:40be more work for us to do
  1778. 1:15:42okay uh minister uh thank you very much
  1779. 1:15:44for your testimony and
  1780. 1:15:46thank you point point of order mr chair
  1781. 1:15:48uh
  1782. 1:15:49what's your point order mr cooper uh
  1783. 1:15:51thank you mr chair i would like to
  1784. 1:15:53put forward a motion to be debated at a
  1785. 1:15:56future
  1786. 1:15:57meeting uh and the motion
  1787. 1:16:00uh reads as follows that mr cooper can
  1788. 1:16:04okay let's hear your motion first and
  1789. 1:16:05then i'll release the minister go ahead
  1790. 1:16:07okay uh whereas uh the minister
  1791. 1:16:10of finance has accepted forty one
  1792. 1:16:14thousand dollars
  1793. 1:16:15in elite in illegal travel expenses and
  1794. 1:16:20that
  1795. 1:16:20the minister of finance is in flagrant
  1796. 1:16:23breach
  1797. 1:16:24of multiple sections of the conflict of
  1798. 1:16:26interest act
  1799. 1:16:27including but not limited to sections 6
  1800. 1:16:3011 and 21 in addition
  1801. 1:16:34to prior violations but the standing
  1802. 1:16:37committee on finance hereby call on the
  1803. 1:16:39minister to immediately resign
  1804. 1:16:41so you were uh uh you're given the four
  1805. 1:16:44to eight hour notice uh
  1806. 1:16:45okay yes thank you for that uh that
  1807. 1:16:48notice is
  1808. 1:16:49uh is uh given uh mr marnell uh thank
  1809. 1:16:52you for your uh
  1810. 1:16:53appearing before the committee today and
  1811. 1:16:55giving your uh statement
  1812. 1:16:57uh and you're answering our questions
  1813. 1:16:59and taking the
  1814. 1:17:01extra time uh that uh normally happens
  1815. 1:17:04when we have a minister before the uh
  1816. 1:17:06before the committee so thank you very
  1817. 1:17:07much uh with that
  1818. 1:17:09uh so you're released minister okay
  1819. 1:17:13we'll go to uh the finance uh
  1820. 1:17:16official uh miss uh kovovich
  1821. 1:17:20uh for uh 30 minutes uh if we could
  1822. 1:17:24i don't know miss kovich hopefully your
  1823. 1:17:27technology is working now and do you
  1824. 1:17:28have an opening state where you're just
  1825. 1:17:30going to questions
  1826. 1:17:32ms kovacs uh thank you mr chair can you
  1827. 1:17:35hear me
  1828. 1:17:36yeah gotcha uh yes um i do have an
  1829. 1:17:40opening statement if you would permit me
  1830. 1:17:41to read it okay
  1831. 1:17:42fire away all right um good afternoon
  1832. 1:17:45committee members my name is michelle
  1833. 1:17:47kovacevic and i am the assistant deputy
  1834. 1:17:49minister for the federal provincial
  1835. 1:17:51relations and social policy branch at
  1836. 1:17:53finance canada
  1837. 1:17:54um before i start i was made aware just
  1838. 1:17:57as i was coming into the office
  1839. 1:17:58that there may be an interest on behalf
  1840. 1:18:01of the committee for me to stay longer
  1841. 1:18:03than 30 minutes
  1842. 1:18:04if that is still the interest in the
  1843. 1:18:05committee i'm happy to do so
  1844. 1:18:07i would like to provide you with context
  1845. 1:18:09on my role in the lead up to the
  1846. 1:18:11announcement by the prime minister and
  1847. 1:18:12the canada student service grant
  1848. 1:18:14and the context with respect to the
  1849. 1:18:16ultimate selection of we charity as a
  1850. 1:18:18third party administrator
  1851. 1:18:20on april 6 during the prime minister's
  1852. 1:18:22morning press conference
  1853. 1:18:23he noted that more support for students
  1854. 1:18:25would be coming soon
  1855. 1:18:27that same day my team reached out to
  1856. 1:18:29colleagues in employment and social
  1857. 1:18:30development canada
  1858. 1:18:31esdc to hear about options for
  1859. 1:18:34supporting students
  1860. 1:18:35my team and i also met with my
  1861. 1:18:37minister's office to understand what was
  1862. 1:18:39needed
  1863. 1:18:40our timelines for developing the package
  1864. 1:18:42were very condensed
  1865. 1:18:44our work was informed by proposals and
  1866. 1:18:46expertise in esdc
  1867. 1:18:47as well as other departments the package
  1868. 1:18:50announced on april 22nd by the prime
  1869. 1:18:52minister
  1870. 1:18:53included over nine billion dollars in
  1871. 1:18:55support for students
  1872. 1:18:56including the creation of the canada
  1873. 1:18:58student service grant
  1874. 1:18:59which at 900 million dollars represents
  1875. 1:19:0210 percent of the overall student
  1876. 1:19:03package that we developed
  1877. 1:19:05today i will focus solely on the options
  1878. 1:19:07that were explored to develop the canada
  1879. 1:19:09student service grant
  1880. 1:19:11the key objective for us was to mobilize
  1881. 1:19:13students to help respond to the pandemic
  1882. 1:19:15while also providing tuition support for
  1883. 1:19:18their future studies
  1884. 1:19:19a number of options were pursued
  1885. 1:19:22including
  1886. 1:19:23firstly a tuition credit or tuition
  1887. 1:19:26waiver for students
  1888. 1:19:27my team along with esdc explored
  1889. 1:19:30delivering this through the canada
  1890. 1:19:31student loan program
  1891. 1:19:33directly via provinces and territories
  1892. 1:19:35or by post-secondary education
  1893. 1:19:37institutions fueling the federal
  1894. 1:19:38government directly
  1895. 1:19:40there were issues with respect to
  1896. 1:19:41validating the identity and eligibility
  1897. 1:19:44of recipients
  1898. 1:19:45in addition to the actual capacity to
  1899. 1:19:47deliver the program across the country
  1900. 1:19:49none of these were considered to be
  1901. 1:19:51ideal we further looked at scaling up
  1902. 1:19:53existing volunteer programs through the
  1903. 1:19:56canada service corps
  1904. 1:19:57and taking it global its administrator
  1905. 1:20:00this option was indeed supported
  1906. 1:20:01and funding was provided to expand the
  1907. 1:20:03number of micro grants for youth from
  1908. 1:20:051800 to 15 000
  1909. 1:20:07and to provide um stipends to
  1910. 1:20:10participants
  1911. 1:20:11however there was interest in and need
  1912. 1:20:13for a much broader reach beyond 15
  1913. 1:20:16000 service opportunities with health
  1914. 1:20:19canada
  1915. 1:20:19my team examined whether students could
  1916. 1:20:22feel a critical need in contact tracing
  1917. 1:20:24related to covid19
  1918. 1:20:26including both volunteer options and
  1919. 1:20:28direct federal hiring to support
  1920. 1:20:30provincial and territorial efforts
  1921. 1:20:32our teams also looked at using a temp
  1922. 1:20:34agency to do hiring on our behalf
  1923. 1:20:36none of these options were selected
  1924. 1:20:38because a large number of volunteers had
  1925. 1:20:40already been identified to do the work
  1926. 1:20:41by the health portfolio
  1927. 1:20:43and provinces and territories at least
  1928. 1:20:45at that point in the
  1929. 1:20:46in the pandemic were still quite
  1930. 1:20:48uncertain about how much help for
  1931. 1:20:50contact tracing they actually needed
  1932. 1:20:52my team then looked at creating a canada
  1933. 1:20:54experience grant
  1934. 1:20:55that would make bursaries available to
  1935. 1:20:57students who volunteered in positions
  1936. 1:20:59deemed essential during covet 19.
  1937. 1:21:02a good deed bonus if you will however
  1938. 1:21:05given significant concerns for the
  1939. 1:21:06health and safety of students my team
  1940. 1:21:08moved away from the idea of an essential
  1941. 1:21:10position
  1942. 1:21:11and broadened the scope of volunteering
  1943. 1:21:14my team along with the sdc of course
  1944. 1:21:16also considered whether two
  1945. 1:21:18organizations working together could
  1946. 1:21:20administer
  1947. 1:21:20this grant we considered a series of
  1948. 1:21:23third parties who could have the
  1949. 1:21:24capacity to deliver this type of program
  1950. 1:21:27including shopify ceridian
  1951. 1:21:30imagine canada volunteer canada the
  1952. 1:21:33canadian red cross
  1953. 1:21:34the united way and the i want to help
  1954. 1:21:36platform concept developed by esdc
  1955. 1:21:39the student announcement on april 22nd
  1956. 1:21:42was high level
  1957. 1:21:43with further details to be worked out
  1958. 1:21:45following further analysis by esdc
  1959. 1:21:48it was during this course of the
  1960. 1:21:49analysis that the potential of
  1961. 1:21:51partnering with we charity came up
  1962. 1:21:53on april 9th i received a what we heard
  1963. 1:21:56document
  1964. 1:21:57summarizing stakeholder feedback on
  1965. 1:21:59student support during the covet
  1966. 1:22:01emergency
  1967. 1:22:02prepared by my minister's office we
  1968. 1:22:04charity was one of 12 stakeholders
  1969. 1:22:06included in the document
  1970. 1:22:08i believe my minister actually mentioned
  1971. 1:22:09that as well on april 16th
  1972. 1:22:12in an email discussion on which
  1973. 1:22:13organizations might be able to deliver a
  1974. 1:22:15range of volunt
  1975. 1:22:16opportunities across the country we
  1976. 1:22:19charity was raised as a possibility by
  1977. 1:22:21colleagues at esdc
  1978. 1:22:23i encourage gsdc to include we charity
  1979. 1:22:26in their analysis of potential delivery
  1980. 1:22:28options
  1981. 1:22:29on april 18th i debriefed my minister's
  1982. 1:22:32office
  1983. 1:22:32on progress on the file i noted to them
  1984. 1:22:35that esdc had informed us that we
  1985. 1:22:37charity
  1986. 1:22:38may be an option my team also held a
  1987. 1:22:41joint teleconference with esdc
  1988. 1:22:43where a number of organizations were
  1989. 1:22:44discussed i cannot recall who actually
  1990. 1:22:47raised the idea to speak with we
  1991. 1:22:49but i cannot call recall that we all
  1992. 1:22:51agreed to it
  1993. 1:22:53on april 19th we received a copy from
  1994. 1:22:55esdc of the april 9th
  1995. 1:22:57we social entrepreneurship proposal
  1996. 1:23:00pardon me that had been previously
  1997. 1:23:02circulated to ministers
  1998. 1:23:04this was the first time the proposal was
  1999. 1:23:06provided to me according to my records
  2000. 1:23:08that same evening my branch routed a
  2001. 1:23:10briefing package to our minister
  2002. 1:23:12that included the we proposal as an
  2003. 1:23:14annex but no analysis nor recommendation
  2004. 1:23:17was provided on we
  2005. 1:23:18the next day april 20th my minister's
  2006. 1:23:21office connected with we charity
  2007. 1:23:23to discuss their ability to deliver
  2008. 1:23:25volunteer opportunities
  2009. 1:23:27the records of this call from my
  2010. 1:23:28minister's office note that we charity
  2011. 1:23:31will rework their 10-week summer program
  2012. 1:23:34proposal
  2013. 1:23:35to fully meet the policy objective of
  2014. 1:23:37national service
  2015. 1:23:38and increase their current placements of
  2016. 1:23:408 000 to double
  2017. 1:23:42on april 22nd of course the prime
  2018. 1:23:44minister made his student package
  2019. 1:23:46announcement
  2020. 1:23:47on april 23rd in a meeting between my
  2021. 1:23:49team and esdc
  2022. 1:23:51we discussed the possibility of we
  2023. 1:23:53charity as a third party who could offer
  2024. 1:23:55virtual volunteer placements and
  2025. 1:23:58potentially administer the canada
  2026. 1:24:00student service grant
  2027. 1:24:01my office also set up a meeting with we
  2028. 1:24:03charity to take place the next afternoon
  2029. 1:24:06on april 24th esdc and finance officials
  2030. 1:24:09spoke with we charity to better
  2031. 1:24:11understand the organization in its
  2032. 1:24:13capacity
  2033. 1:24:14no commitments were made other than esdc
  2034. 1:24:16would follow up
  2035. 1:24:18as is usual after a funding decision and
  2036. 1:24:20announcement
  2037. 1:24:21further development of the detailed
  2038. 1:24:22program proposal was turned over to esdc
  2039. 1:24:26on may 7th i received a copy from esdc
  2040. 1:24:29of a may 4 proposal from we charity to
  2041. 1:24:32deliver the canada student service grant
  2042. 1:24:34for the government
  2043. 1:24:35this is the first time finance officials
  2044. 1:24:37saw a proposal where we
  2045. 1:24:39charity could be the third party
  2046. 1:24:41administrator for the program
  2047. 1:24:43my team continued to work with esdc as
  2048. 1:24:45they developed the program
  2049. 1:24:47and advanced a cabinet proposal i also
  2050. 1:24:49continued to brief my minister's office
  2051. 1:24:51which is normal practice as major
  2052. 1:24:53initiatives proceed to cabinet
  2053. 1:24:55and then to launch in this context we
  2054. 1:24:58charity was raised a number of times and
  2055. 1:25:00ultimately formed the basis of the
  2056. 1:25:02recommendation of esdc to minister
  2057. 1:25:04chagar
  2058. 1:25:04that the govern the government enter
  2059. 1:25:06into a contribution agreement with we
  2060. 1:25:08charity to administer the canada student
  2061. 1:25:10service grant
  2062. 1:25:12finance officials supported this
  2063. 1:25:13recommendation in related advice to our
  2064. 1:25:16minister
  2065. 1:25:16including the detailed costing of the
  2066. 1:25:18proposal as outlined by minister chagar
  2067. 1:25:21in her testimony last week i would be
  2068. 1:25:23happy to answer any questions from the
  2069. 1:25:25committee
  2070. 1:25:26thank you uh thank you very very much
  2071. 1:25:29miss
  2072. 1:25:30kovitch and i failed to uh
  2073. 1:25:33introduce you uh as uh in terms of your
  2074. 1:25:36responsibilities you are
  2075. 1:25:38assistant deputy minister federal
  2076. 1:25:40provincial relations and social uh
  2077. 1:25:42policy
  2078. 1:25:43uh branch so uh thank you for that uh
  2079. 1:25:46that statement
  2080. 1:25:47uh i'm not sure and the clerk will have
  2081. 1:25:50to tell us
  2082. 1:25:50on on this uh miss uh offered to stay
  2083. 1:25:54longer if necessary
  2084. 1:25:56uh what i would suggest is we go to
  2085. 1:25:59eight
  2086. 1:26:00questioners uh four minutes uh
  2087. 1:26:03per question round and
  2088. 1:26:06and i'll go with the list i have from
  2089. 1:26:08panel one because i don't have a new
  2090. 1:26:10list which would be
  2091. 1:26:11starting with uh mr uh cooper then miss
  2092. 1:26:15catrack as miss fourteen
  2093. 1:26:16fourteen and miss uh angus and uh mr
  2094. 1:26:19angus
  2095. 1:26:20uh would we be okay with that but clerk
  2096. 1:26:23i have to ask you
  2097. 1:26:24i know we're under uh tight time frames
  2098. 1:26:27on these uh
  2099. 1:26:29video conferences and are we
  2100. 1:26:32are we going to be okay uh with the uh
  2101. 1:26:35with the use of uh the room uh where
  2102. 1:26:38this is centered at if an ottawa are we
  2103. 1:26:40okay to go
  2104. 1:26:41uh another half an hour the the deputy
  2105. 1:26:44minute assistant deputy minister made a
  2106. 1:26:45seven minute statement
  2107. 1:26:47are we okay to go about another half an
  2108. 1:26:49hour there i'll inquire right now
  2109. 1:26:51um unless you know if it's an issue okay
  2110. 1:26:53so the total list i have
  2111. 1:26:55and it's subject to change because i
  2112. 1:26:57don't have a list folks
  2113. 1:26:58would be cooper kotrakus forte angus
  2114. 1:27:02polyam zerowitz marantz and
  2115. 1:27:04francoscottis
  2116. 1:27:06uh so any difference on that uh just uh
  2117. 1:27:08yell at me i guess what you'll have to
  2118. 1:27:10do mr ferdinand
  2119. 1:27:11oh sorry mr cooper go ahead i think it's
  2120. 1:27:13supposed to be mr paulia first and then
  2121. 1:27:15me
  2122. 1:27:16okay mr polyam want to go first and then
  2123. 1:27:18we'll put cooper in uh
  2124. 1:27:20his place mr paliav yes um
  2125. 1:27:23miss uh kovacevic you
  2126. 1:27:27uh attended a meeting in mid-april
  2127. 1:27:30with miss wernick and miss wernick
  2128. 1:27:33suggested
  2129. 1:27:34before this committee that you were the
  2130. 1:27:36one that first suggested
  2131. 1:27:37we be the delivery group for this
  2132. 1:27:41program is that true
  2133. 1:27:46thank you for the question the um
  2134. 1:27:48meeting that you're referring to
  2135. 1:27:50i believe took place on april the 18th
  2136. 1:27:53in the evening
  2137. 1:27:55uh at this point we are discussing a
  2138. 1:27:58broad range of issues uh
  2139. 1:28:00including sorry we don't have a lot of
  2140. 1:28:01time i'm just asking if you were the one
  2141. 1:28:03who first suggested we that's all
  2142. 1:28:05yep uh i was certainly the one who
  2143. 1:28:08initiated the meeting
  2144. 1:28:09we were talking about grant and credit
  2145. 1:28:12and
  2146. 1:28:12whether um there was uh
  2147. 1:28:15opportunities for uh did you suggest we
  2148. 1:28:19did you suggest we i do not recall
  2149. 1:28:23if it was me who actually raised the
  2150. 1:28:25idea but what i do recall clearly is
  2151. 1:28:28that we all
  2152. 1:28:29agreed to it and just to be clear to the
  2153. 1:28:31committee
  2154. 1:28:32that it was in the context of volunteer
  2155. 1:28:34placement
  2156. 1:28:35in um mobilizing through their social
  2157. 1:28:38media
  2158. 1:28:38to uh okay so so
  2159. 1:28:42uh prior to that had you discussed the
  2160. 1:28:45idea of employing we for this with any
  2161. 1:28:48uh exempt staff of the government of uh
  2162. 1:28:51any of the ministers no uh according to
  2163. 1:28:54my records the first
  2164. 1:28:56mention of we uh to me is on april 16th
  2165. 1:28:59and that again is in a conversation that
  2166. 1:29:02i was having with my colleagues at esdc
  2167. 1:29:05and again this is in the context of
  2168. 1:29:07their names what were their names
  2169. 1:29:09on that call on april 16th that would be
  2170. 1:29:12rachel wernick
  2171. 1:29:13and also the associate deputy minister
  2172. 1:29:16which one who who is that benoit
  2173. 1:29:21and did they suggest where they had
  2174. 1:29:22heard that idea of bringing in we
  2175. 1:29:26this wasn't about bringing in we this
  2176. 1:29:28was about
  2177. 1:29:30the fact that uh we could partner
  2178. 1:29:33with the company like we to do volunteer
  2179. 1:29:36matching
  2180. 1:29:37yeah so the question was did they
  2181. 1:29:38mention if they had where they heard
  2182. 1:29:40that idea from
  2183. 1:29:41um pierre uh we'll we'll give her give
  2184. 1:29:44the lady time to uh
  2185. 1:29:45to answer if we could uh miss kobovic
  2186. 1:29:50yes the idea was uh a partnership could
  2187. 1:29:53a company
  2188. 1:29:54like we want to order volunteers
  2189. 1:29:57go ahead what's your point order so i'm
  2190. 1:29:59not interested in what the idea was i'm
  2191. 1:30:01asking
  2192. 1:30:02where it came from the question was very
  2193. 1:30:04specific it was very clear we don't have
  2194. 1:30:06a lot of time i'd ask
  2195. 1:30:08you to call the witness to answer the
  2196. 1:30:09question the question was
  2197. 1:30:11did esdc officials in that meeting
  2198. 1:30:13mention where they had got
  2199. 1:30:15where they had her first heard the idea
  2200. 1:30:18of bringing we
  2201. 1:30:18into the delivery of this program or
  2202. 1:30:22involving it in any way that's the
  2203. 1:30:25question
  2204. 1:30:25go ahead mrs kovitch all i can say
  2205. 1:30:29is that esdc raised the issue
  2206. 1:30:33we never discussed where the issue came
  2207. 1:30:35from
  2208. 1:30:36and that is it how many times did you
  2209. 1:30:38discuss we with
  2210. 1:30:40exempt staff in the government with
  2211. 1:30:43exempt staff in the government i
  2212. 1:30:46wouldn't know off the top of my head
  2213. 1:30:49but leading up to the prime minister's
  2214. 1:30:53announcement
  2215. 1:30:54um i imagine there would be um
  2216. 1:30:57a number of occasions where i would talk
  2217. 1:31:00about
  2218. 1:31:01uh the partnerships that we could enter
  2219. 1:31:03into
  2220. 1:31:04and how many uh roughly half a dozen
  2221. 1:31:06times
  2222. 1:31:09i don't know i can't i can't recall do
  2223. 1:31:11you remember with whom you had
  2224. 1:31:12you discussed we
  2225. 1:31:16would have to well i would have i would
  2226. 1:31:18very gladly turn over my emails
  2227. 1:31:20and i could you know we could say very
  2228. 1:31:22specifically with whom i was discussing
  2229. 1:31:24i would like to make clear to the
  2230. 1:31:25committee that the discussions were
  2231. 1:31:28on a broad range ideas that's fine
  2232. 1:31:32uh so uh did you ever discuss we
  2233. 1:31:35with minister mourinho
  2234. 1:31:39um yes most certainly uh of course the
  2235. 1:31:42government dates
  2236. 1:31:43on what dates just to give give uh
  2237. 1:31:47she didn't answer the question to her
  2238. 1:31:49question on what dates
  2239. 1:31:51let her allow her to answer the
  2240. 1:31:53questions uh
  2241. 1:31:54miss kovich go ahead
  2242. 1:31:58thank you um i can tell you that leading
  2243. 1:32:00up to the prime minister's announcement
  2244. 1:32:02on the 22nd
  2245. 1:32:04there were three uh briefings of
  2246. 1:32:06minister morneau the 14th
  2247. 1:32:07the 18th and the 21st um
  2248. 1:32:10at no point in any of these briefings
  2249. 1:32:13did we talk about
  2250. 1:32:14uh the idea or advice was given to
  2251. 1:32:18um select we as a recipient for a third
  2252. 1:32:21party so that never came up
  2253. 1:32:23that wasn't my question my question was
  2254. 1:32:26when last question pierre
  2255. 1:32:27all right so uh the the question was
  2256. 1:32:32again on what occasions did you discuss
  2257. 1:32:35we with bill morneau what occasions
  2258. 1:32:38that's all just those that specific
  2259. 1:32:40question
  2260. 1:32:42so only when i have a scheduled briefing
  2261. 1:32:45um with the minister and i gave you the
  2262. 1:32:47three um
  2263. 1:32:48scheduled briefings the first one on the
  2264. 1:32:5014th we were talking about the broad
  2265. 1:32:53nine billion dollar package uh and
  2266. 1:32:55absolutely not about we
  2267. 1:32:57but on the 18th and the 21st there was a
  2268. 1:33:01range of a grant a credit we talked
  2269. 1:33:04about shopify
  2270. 1:33:05ceridian uh in a verbal briefing um i
  2271. 1:33:08certainly may have mentioned it in our
  2272. 1:33:10actual analysis
  2273. 1:33:11uh we do not talk about it except for
  2274. 1:33:14what the minister did actually say
  2275. 1:33:16and that is we attached the annex of the
  2276. 1:33:18first proposal
  2277. 1:33:20um that we received from we
  2278. 1:33:23to a briefing note without any
  2279. 1:33:25recommendation
  2280. 1:33:26and without any analysis okay thank you
  2281. 1:33:29uh thank you uh both
  2282. 1:33:30uh then turning i believe we have miss
  2283. 1:33:33zerowitz next and then mr forte is it mr
  2284. 1:33:36forten you had your hand up
  2285. 1:33:37earlier did you want to what were you
  2286. 1:33:40going to say
  2287. 1:33:44i can't
  2288. 1:33:49you're not coming through to me somehow
  2289. 1:33:58still not okay we'll go
  2290. 1:34:01we'll go to missouri
  2291. 1:34:22because we have to go to the ethics
  2292. 1:34:24committee
  2293. 1:34:25uh we will go a little bit uh
  2294. 1:34:28beyond four because we're going to go
  2295. 1:34:30with eight questioners
  2296. 1:34:32uh at uh at four minutes uh each
  2297. 1:34:36uh if we if we could so we'll go to ms
  2298. 1:34:38sirowicz we'll definitely get to you
  2299. 1:34:40next after miss zero it's neil of time
  2300. 1:34:42to get to the committee
  2301. 1:34:43mr sir
  2302. 1:34:50julie are you there you're mike's mother
  2303. 1:34:53sorry sorry i also do that sometimes
  2304. 1:34:55thank you so much mr chair thank you uh
  2305. 1:34:58miss kovacevic uh thank you for your
  2306. 1:35:00testimony
  2307. 1:35:01today and thanks for your extraordinary
  2308. 1:35:03work there's a narrative and i think
  2309. 1:35:05you're hearing some of the questions
  2310. 1:35:07that um that uh
  2311. 1:35:10it's believed that finance or someone at
  2312. 1:35:13finance
  2313. 1:35:14only suggested we and it was only the
  2314. 1:35:16intention of our government to suggest
  2315. 1:35:18we
  2316. 1:35:19as the uh as the deliverer for the
  2317. 1:35:21canada student service grant
  2318. 1:35:24can you please for the record let us
  2319. 1:35:27know
  2320. 1:35:28whether uh whether it was you or
  2321. 1:35:31whether is the team or officials at
  2322. 1:35:33finance
  2323. 1:35:34who only suggested we as the
  2324. 1:35:38recommendation for the cssg
  2325. 1:35:40or was we always considered with
  2326. 1:35:43a whole number of other organizations
  2327. 1:35:46initially
  2328. 1:35:46so if you could just clarify that
  2329. 1:35:48because that is kind of the implication
  2330. 1:35:49of a lot of the questions here
  2331. 1:35:53thank you for your question so um i can
  2332. 1:35:56clearly say
  2333. 1:35:57that um up to the april 22nd
  2334. 1:36:01announcement the prime minister
  2335. 1:36:02where we announced a set-aside of up to
  2336. 1:36:05900 million dollars
  2337. 1:36:06for a canada student service grant
  2338. 1:36:10that there was no recommendation
  2339. 1:36:13about we and no recommendation to enter
  2340. 1:36:17into a third party in fact the
  2341. 1:36:19recommendation or the
  2342. 1:36:20follow-up was that the department of
  2343. 1:36:22employment and social development
  2344. 1:36:24would have to bring in a proposal with
  2345. 1:36:27the advice on how to do this
  2346. 1:36:28and with whom the final decision
  2347. 1:36:33of course when the government announced
  2348. 1:36:36that it would
  2349. 1:36:37be entering into a contribution
  2350. 1:36:39agreement with we
  2351. 1:36:41we the department of finance uh
  2352. 1:36:43recommended this advice to
  2353. 1:36:45our minister and in our
  2354. 1:36:48note uh we do say we note that
  2355. 1:36:52the we charity organization we have been
  2356. 1:36:56told
  2357. 1:36:56is in fact the only organization
  2358. 1:37:00that could stand up the proposal as is
  2359. 1:37:02described
  2360. 1:37:04with the um you know sort of the
  2361. 1:37:06magnitude and the ambition
  2362. 1:37:08and the volume of the service placements
  2363. 1:37:10desired and
  2364. 1:37:11most importantly in the time required
  2365. 1:37:14um you'll recall that you know april
  2366. 1:37:1722nd when the prime minister made the
  2367. 1:37:18announcement
  2368. 1:37:19very high level announcements still
  2369. 1:37:21worked to be done by the department of
  2370. 1:37:22esdc
  2371. 1:37:23to figure out how to implement this and
  2372. 1:37:26with whom
  2373. 1:37:28you know university and college students
  2374. 1:37:30were just about to finish their spring
  2375. 1:37:31semester so there was
  2376. 1:37:33uh real pressure to do things uh quickly
  2377. 1:37:36and to get this off the ground thank you
  2378. 1:37:40and um and do you know anything like
  2379. 1:37:42what type of due diligence is
  2380. 1:37:44done on um organizations in
  2381. 1:37:48in a normal process so would that have
  2382. 1:37:49been the responsibility of
  2383. 1:37:52um finance to have done sort of the due
  2384. 1:37:54diligence on
  2385. 1:37:56third-party organizations before
  2386. 1:37:58contracts are cyber would that have been
  2387. 1:37:59the responsibility of whoever was
  2388. 1:38:01responsible for the program
  2389. 1:38:04thank you for the question well there's
  2390. 1:38:06many kinds of due diligence and it's not
  2391. 1:38:08for me
  2392. 1:38:09to speculate on how well due diligence
  2393. 1:38:11was executed
  2394. 1:38:12what i can say is that the lead on
  2395. 1:38:16the negotiation of the contribution
  2396. 1:38:17agreement it's not the department of
  2397. 1:38:19finance it in fact is the department of
  2398. 1:38:20esdc
  2399. 1:38:21so choosing the organization and
  2400. 1:38:24anything
  2401. 1:38:24you know the accountability is up to the
  2402. 1:38:28department of esdc
  2403. 1:38:29now the department of finance of course
  2404. 1:38:32uh
  2405. 1:38:32approved the 900 million dollar
  2406. 1:38:34set-aside so
  2407. 1:38:35we are we are looking at the fiscal
  2408. 1:38:38framework and making sure that
  2409. 1:38:41whatever esdc recommends and puts
  2410. 1:38:43forward
  2411. 1:38:45actually abides by and is in keeping
  2412. 1:38:48with the broad parameters
  2413. 1:38:49of what we put in the funding decision
  2414. 1:38:52um
  2415. 1:38:53you know to spend up to 900 million
  2416. 1:38:55dollars we're going to have to end it
  2417. 1:38:56there because mr forten
  2418. 1:38:58hasn't got a lot of time mr fortan the
  2419. 1:39:00floor is yours
  2420. 1:39:01for four minutes
  2421. 1:39:10uh
  2422. 1:39:24is
  2423. 1:39:38yes
  2424. 1:39:44uh sure to best my recollection
  2425. 1:39:48mr chair there was myself of course
  2426. 1:39:52my associate deputy minister susie
  2427. 1:39:54mcdonald
  2428. 1:39:55uh rachel wernick um um
  2429. 1:39:59who is the senior assistant deputy
  2430. 1:40:01minister at esdc
  2431. 1:40:02and she may have been joined by somebody
  2432. 1:40:04but i have to check the record i'm not
  2433. 1:40:21found is that possible
  2434. 1:40:24it would be my pleasure sir and indeed
  2435. 1:40:26um
  2436. 1:40:27the committee has ordered um for us to
  2437. 1:40:30produce uh
  2438. 1:40:31all kinds of documentation which we are
  2439. 1:40:33gathering and we will be submitting
  2440. 1:40:47four or five
  2441. 1:40:50no sorry sir i said that i can recollect
  2442. 1:40:53for sure this is a teleconference at
  2443. 1:40:55like 10 o'clock at night i think or late
  2444. 1:40:57in the evening uh
  2445. 1:40:58me susie and rachel for sure beyond that
  2446. 1:41:02my recollection um
  2447. 1:41:06how many people were with you one
  2448. 1:41:10susie no susie rachel
  2449. 1:41:24that's what i don't know this is a
  2450. 1:41:26teleconference so i don't know if there
  2451. 1:41:27was anybody else on the phone
  2452. 1:41:29okay i don't i don't is
  2453. 1:41:51to be more transparent in attributing
  2454. 1:41:53the contract
  2455. 1:41:57the decision to choose we
  2456. 1:42:01and to enter into a contribution
  2457. 1:42:02agreement whether sole source
  2458. 1:42:05or open tender was a recommendation put
  2459. 1:42:08forward by minister chagar
  2460. 1:42:11the department of finance considers that
  2461. 1:42:14proposal
  2462. 1:42:15and made our recommendation which was
  2463. 1:42:17favorable
  2464. 1:42:18at no time would i have been in in a
  2465. 1:42:20discussion
  2466. 1:42:21at all negotiating this contribution
  2467. 1:42:24agreement that is solely
  2468. 1:42:26uh the responsibility of the department
  2469. 1:42:28of esd
  2470. 1:42:30yes
  2471. 1:42:40uh
  2472. 1:42:53i don't recall exactly what was
  2473. 1:42:55discussed but i
  2474. 1:42:56i can say that we were in agreement with
  2475. 1:42:59the proposal is put forward
  2476. 1:43:01recognizing all the work and policy that
  2477. 1:43:04we had done
  2478. 1:43:04upstream in terms of the capacity and
  2479. 1:43:07the timing for delivery
  2480. 1:43:09and we were in agreement and fully
  2481. 1:43:11supportive of the
  2482. 1:43:12proposal as it was put forward thank you
  2483. 1:43:15uh
  2484. 1:43:15thank you both uh all the best at your
  2485. 1:43:17next committee mr forte
  2486. 1:43:19uh go on the list uh mr
  2487. 1:43:23uh angus uh we'll go with a four minute
  2488. 1:43:26round and then after you mr cooper
  2489. 1:43:30mr angus well thank you so much and
  2490. 1:43:32thank you
  2491. 1:43:33so much for participating in our
  2492. 1:43:35hearings um
  2493. 1:43:37who was the the key point person for we
  2494. 1:43:40when you discussed the proposal
  2495. 1:43:44the key point person where in the
  2496. 1:43:47department of finance
  2497. 1:43:49per week well
  2498. 1:43:52discussions with we who was the point
  2499. 1:43:54person that you discussed with
  2500. 1:43:56so i only had one discussion with we
  2501. 1:43:59uh on april the 24th and this is a
  2502. 1:44:02discussion
  2503. 1:44:03um but there was a proposal
  2504. 1:44:08back around april 7th april 9th that was
  2505. 1:44:10circulating and it was a different
  2506. 1:44:12proposal
  2507. 1:44:13and then we uh changed their proposal to
  2508. 1:44:16meet the guidelines
  2509. 1:44:17so who in your department spoke with
  2510. 1:44:20like someone was speaking with we they
  2511. 1:44:23weren't coming up with this
  2512. 1:44:24from the ouija board so who was the
  2513. 1:44:26person that we that was the point person
  2514. 1:44:29pardon me i understand your question now
  2515. 1:44:31so i can tell you that on april 20th
  2516. 1:44:34my minister's office amit singh
  2517. 1:44:38had connected with somebody at wii i'm
  2518. 1:44:42not sure who
  2519. 1:44:43and they were talking about volunteer
  2520. 1:44:45opportunities and that is the part that
  2521. 1:44:47i read in my opening statement
  2522. 1:44:49but they enhancing from 8 000 to double
  2523. 1:44:53charlie move the microphone a little
  2524. 1:44:54closer to your mouth too please
  2525. 1:44:56okay i will there boss i guess what i'm
  2526. 1:44:59finding really surprising here is we
  2527. 1:45:01have a proposal
  2528. 1:45:02and it's not the the real the one that
  2529. 1:45:05the government needs but then
  2530. 1:45:07another proposal gets written that's
  2531. 1:45:08much more close
  2532. 1:45:11there had to be negotiations back and
  2533. 1:45:12forth with we
  2534. 1:45:14to in order to make this thing credible
  2535. 1:45:16or was this just done on the back of a
  2536. 1:45:18napkin was there work done
  2537. 1:45:19so that this proposal the second
  2538. 1:45:21proposal
  2539. 1:45:22met the requirements so that you could
  2540. 1:45:25then go and and say this is as close as
  2541. 1:45:27we can get this is a group that can do
  2542. 1:45:28it so
  2543. 1:45:30who was that point person so i can't
  2544. 1:45:33speculate and i don't know
  2545. 1:45:34who would have been talking to we if
  2546. 1:45:36anybody it certainly was not
  2547. 1:45:38uh certainly not me or the department of
  2548. 1:45:41finance officials
  2549. 1:45:42um i would i would clarify for the
  2550. 1:45:44committee that
  2551. 1:45:46this second proposal which was building
  2552. 1:45:48on the first one
  2553. 1:45:49which in in addition to social
  2554. 1:45:51entrepreneurship and business service
  2555. 1:45:53placements
  2556. 1:45:54there was a service placement stream so
  2557. 1:45:56covered
  2558. 1:45:57the arts um that is still uh not
  2559. 1:46:01the ultimate proposal in what the
  2560. 1:46:03government agreed to do
  2561. 1:46:04third party administrator okay so how
  2562. 1:46:07many other proposals
  2563. 1:46:09were we were brought forward by
  2564. 1:46:10charities in between
  2565. 1:46:12the first proposal by we and the second
  2566. 1:46:14how many other
  2567. 1:46:16proposals came across the desk at
  2568. 1:46:18finance from
  2569. 1:46:19other groups so
  2570. 1:46:22the proposals that came to me uh none of
  2571. 1:46:26these actually came to me
  2572. 1:46:27i am aware that there was a proposal
  2573. 1:46:30from u15
  2574. 1:46:31with respect to universities you'll
  2575. 1:46:32recall this is an entire student package
  2576. 1:46:35not just a student no no but for this
  2577. 1:46:37specific plan
  2578. 1:46:38it seems odd that there's an original
  2579. 1:46:40proposal it's not the same thing
  2580. 1:46:42at all but then it begins a series of
  2581. 1:46:44discussions and then a second proposal
  2582. 1:46:46comes forward
  2583. 1:46:48and that's very close and then we
  2584. 1:46:49becomes the only group
  2585. 1:46:51um like i i mean you guys don't do
  2586. 1:46:54things on the fly we're talking about
  2587. 1:46:56900 million dollars there had to be
  2588. 1:46:58either a number of other proposals you
  2589. 1:47:00looked at there had to be serious
  2590. 1:47:01negotiations you were involved in
  2591. 1:47:03um were there other proposals on the
  2592. 1:47:06table besides we
  2593. 1:47:07for this specific kind of program did
  2594. 1:47:10you check other groups to say what could
  2595. 1:47:11you deliver and how fast could you turn
  2596. 1:47:13it around
  2597. 1:47:14so what i could say sir is that um the
  2598. 1:47:17pm's announcement on april 22nd was high
  2599. 1:47:20level there was
  2600. 1:47:21no identification of a party it was just
  2601. 1:47:23a set-aside
  2602. 1:47:25and esdc then was is and did
  2603. 1:47:28follow up with respect to how how to
  2604. 1:47:31deliver this and with whom
  2605. 1:47:32so it would be uh esdc who would make
  2606. 1:47:35the determination
  2607. 1:47:36if i guess the issue and i got it
  2608. 1:47:40here but it's it this program seems
  2609. 1:47:43tailor made for we
  2610. 1:47:45we've been involved in discussions
  2611. 1:47:47politically exempt staff are involved
  2612. 1:47:49you haven't named who they are
  2613. 1:47:50the question we're asking and we're not
  2614. 1:47:52blaming you but we're asked talking
  2615. 1:47:54about your higher-ups
  2616. 1:47:55was we given the inside track and we
  2617. 1:47:57haven't seen anything that tells us
  2618. 1:47:59that between the first and the second
  2619. 1:48:01proposal
  2620. 1:48:02that there was a whole bunch of other
  2621. 1:48:04proposals on the table
  2622. 1:48:05what we've seen is between the first and
  2623. 1:48:07second proposals that we
  2624. 1:48:08were certainly able to really refine
  2625. 1:48:11their position so that when rachel
  2626. 1:48:12werner called them
  2627. 1:48:13they had all the right answers so i need
  2628. 1:48:15to know who we was involved in the
  2629. 1:48:17discussions and how much discussions
  2630. 1:48:19went back and forth so that that second
  2631. 1:48:21proposal was a lot closer
  2632. 1:48:22to what you guys agreed to and that's
  2633. 1:48:24the answer i'm not hearing
  2634. 1:48:27i can only tell oh thank you i can only
  2635. 1:48:30tell you the facts as i understand them
  2636. 1:48:31and know them
  2637. 1:48:32and that is that on april 20th there was
  2638. 1:48:34one um
  2639. 1:48:35one conversation between my minister's
  2640. 1:48:37office and we which i have
  2641. 1:48:39already discussed and outside of that
  2642. 1:48:41other than my own conversation with
  2643. 1:48:43rachel
  2644. 1:48:44and we on the 24th i am unaware of any
  2645. 1:48:47other
  2646. 1:48:47um contact at all and i can't speak to
  2647. 1:48:50that okay
  2648. 1:48:50okay uh thank you uh we will uh
  2649. 1:48:54go to the last round four minutes a
  2650. 1:48:56piece
  2651. 1:48:57uh the lineup will be mr cooper mr
  2652. 1:48:59fragis goddess mr morantz and
  2653. 1:49:02and miss kotrakus mr cooper okay
  2654. 1:49:06uh thank you uh mr chair i want to thank
  2655. 1:49:08uh the witness i want to just
  2656. 1:49:10get a better understanding of
  2657. 1:49:13how we came up you had mentioned as i
  2658. 1:49:18understood your
  2659. 1:49:19timeline that the possibility of
  2660. 1:49:23we came up in an email discussion
  2661. 1:49:26on april 16th from esdc
  2662. 1:49:30am i right you are correct
  2663. 1:49:33and who raised that
  2664. 1:49:37from esdc
  2665. 1:49:40that would have been my colleague rachel
  2666. 1:49:42wernick
  2667. 1:49:44rachel wernick and prior to that time
  2668. 1:49:46you had never
  2669. 1:49:47heard anyone bring up we
  2670. 1:49:50other than on april 9th when you said
  2671. 1:49:54there was
  2672. 1:49:54some stakeholder feedback in which 12
  2673. 1:49:58charities were identified is that
  2674. 1:50:01correct
  2675. 1:50:02that's correct april 16th according to
  2676. 1:50:04my records is the first time that we
  2677. 1:50:07enters into a broad-ranging discussion
  2678. 1:50:11uh we have not even uh settled on a
  2679. 1:50:13grant we are talking about
  2680. 1:50:15tuition credit fine fine i i got that
  2681. 1:50:19but on april the 9th
  2682. 1:50:23during that the same day as the
  2683. 1:50:26stakeholder
  2684. 1:50:27feedback session we submits a proposal
  2685. 1:50:30is that right
  2686. 1:50:32well i became aware of that proposal on
  2687. 1:50:35april 19th
  2688. 1:50:36when esdc that's not my question my
  2689. 1:50:39question is
  2690. 1:50:40the there was a proposal from we
  2691. 1:50:42submitted on that date april 9
  2692. 1:50:45right yes and who was it sent
  2693. 1:50:48from i don't have anything
  2694. 1:50:52to find out what do you undertake to
  2695. 1:50:54find out
  2696. 1:50:55i can do my best to do that sir all i
  2697. 1:50:57can say is that
  2698. 1:50:58i received no that's fine i understand
  2699. 1:51:00that who was it sent to
  2700. 1:51:02i presume you don't know that either i
  2701. 1:51:04don't but it was sent
  2702. 1:51:06to finance the ministers
  2703. 1:51:11that's right the minister said that
  2704. 1:51:12himself
  2705. 1:51:14were you aware of any other proposals
  2706. 1:51:16that had been submitted on april 9
  2707. 1:51:18prior to that i am not aware of any sir
  2708. 1:51:21you're not aware of any
  2709. 1:51:22okay so we have this proposal
  2710. 1:51:26from we and uh now
  2711. 1:51:29uh in terms of um what happened after
  2712. 1:51:34that you briefed
  2713. 1:51:35the actually maybe backtracking a little
  2714. 1:51:37bit you talked about
  2715. 1:51:39the fact that you considered a number of
  2716. 1:51:41organizations this is before
  2717. 1:51:43april 9th in in broad terms
  2718. 1:51:47of potentially administering some sort
  2719. 1:51:50of student program
  2720. 1:51:51correct uh april 6th
  2721. 1:51:54uh 7th 8th the very early days i get
  2722. 1:51:57that thank you thank you for that
  2723. 1:51:59will allow and allow the adm to answer
  2724. 1:52:02that uh
  2725. 1:52:03mr cooper go ahead uh miss kobich
  2726. 1:52:06so the records will show that those
  2727. 1:52:08early days uh
  2728. 1:52:10were about describing an entire frame
  2729. 1:52:12for the student package which turned out
  2730. 1:52:14to be the 9 billion dollars
  2731. 1:52:15thank you for that now you had mentioned
  2732. 1:52:17a series of organizations one of which
  2733. 1:52:19was
  2734. 1:52:20volunteer canada now president of
  2735. 1:52:22volunteer canada
  2736. 1:52:23came here before the committee and
  2737. 1:52:27said that they had never been approached
  2738. 1:52:31by your department by any
  2739. 1:52:34department regarding a student package
  2740. 1:52:38and when i asked the president of
  2741. 1:52:41volunteer canada to explain
  2742. 1:52:44ms wernick's testimony namely that
  2743. 1:52:47volunteer canada had been considered she
  2744. 1:52:49was unable to explain
  2745. 1:52:51how possibly volunteer canada could have
  2746. 1:52:53been considered when they never even
  2747. 1:52:54were contacted
  2748. 1:52:55how do you explain that that'll be the
  2749. 1:52:57last question
  2750. 1:52:58sure thank you for the question so all
  2751. 1:53:01those companies that i mentioned
  2752. 1:53:02in my organizations that i mentioned in
  2753. 1:53:04my opening statement
  2754. 1:53:06this is all a part of the broad ideas
  2755. 1:53:08that we are considering
  2756. 1:53:10leading up to the april 22nd
  2757. 1:53:12announcement and decision by the
  2758. 1:53:14government
  2759. 1:53:14to the only organization
  2760. 1:53:18mr mr cooper the the adm has the floor
  2761. 1:53:22go ahead mr kobovich thank you leading
  2762. 1:53:25up to the
  2763. 1:53:26uh april 22nd announcement in fact the
  2764. 1:53:28department of finance had not contacted
  2765. 1:53:30any of those on any of those
  2766. 1:53:32organizations including we
  2767. 1:53:34the officials had not contacted and they
  2768. 1:53:36never did call a volunteer camp i'm so
  2769. 1:53:38i'm
  2770. 1:53:38i'm you're at a time mr cooper
  2771. 1:53:42uh okay we'll go to mr fragis goddess
  2772. 1:53:45i'm not sure whether it's going to be mr
  2773. 1:53:46marantz or mr
  2774. 1:53:48uh they'll have to let me know
  2775. 1:53:50when we get there
  2776. 1:53:51and uh and we'll conclude with uh
  2777. 1:53:54miss kutrakus uh peter
  2778. 1:53:58thank you mr chair uh thank you for
  2779. 1:54:00being here ms kovachevic
  2780. 1:54:01and for your outstanding work in
  2781. 1:54:05this entire experience you and so many
  2782. 1:54:07other public servants have
  2783. 1:54:08really gone to bat for the entire
  2784. 1:54:10country i'm sure spending
  2785. 1:54:12a lot of time away from loved ones from
  2786. 1:54:14uh family members
  2787. 1:54:16specifically and and others as well so
  2788. 1:54:18thank you for your contributions
  2789. 1:54:19my question relates to contribution
  2790. 1:54:22agreements
  2791. 1:54:24that that go ahead we've heard
  2792. 1:54:27at the committee before that we had
  2793. 1:54:31quite an extensive network connected to
  2794. 1:54:35000 schools connected to 2.4 million
  2795. 1:54:38students
  2796. 1:54:39one of the reasons that they were chosen
  2797. 1:54:41was because
  2798. 1:54:42of that extensive reach that they had
  2799. 1:54:45we've worked as a government
  2800. 1:54:47as well with the united way with food
  2801. 1:54:49banks canada always on the premise it
  2802. 1:54:51seems
  2803. 1:54:52that the network and reach of a
  2804. 1:54:54particular
  2805. 1:54:55entity qualifies it to be
  2806. 1:54:58the to take the lead in a contribution
  2807. 1:55:01agreement
  2808. 1:55:02is that in fact the case in your
  2809. 1:55:03experience are you in a position to
  2810. 1:55:05speak to that
  2811. 1:55:06is is that one of the key criteria the
  2812. 1:55:08the ability of an organization
  2813. 1:55:10to to reach many different entities
  2814. 1:55:13uh and help the government deliver vital
  2815. 1:55:16programming and services
  2816. 1:55:20that's a pretty broad question thank you
  2817. 1:55:21for it um
  2818. 1:55:23i'm not sure i can generalize i think in
  2819. 1:55:26some cases that may be the case but what
  2820. 1:55:28i can say with respect to the decision
  2821. 1:55:30by the government to enter into
  2822. 1:55:32a contribution agreement with we in fact
  2823. 1:55:35the capacity to reach
  2824. 1:55:38students wherever they were in canada
  2825. 1:55:40was certainly
  2826. 1:55:42you know foremost in our mind being able
  2827. 1:55:44to ramp up quickly
  2828. 1:55:46being able to support not just students
  2829. 1:55:48um you know volunteer matching isn't
  2830. 1:55:50you know a hot dog stand outside a
  2831. 1:55:52hocking arena that needs to be
  2832. 1:55:53structured you need to be supportive
  2833. 1:55:56but also the the not-for-profit and
  2834. 1:55:58charity sector who would be
  2835. 1:56:00offering volunteer placements who they
  2836. 1:56:02themselves were in the middle of a
  2837. 1:56:03pandemic
  2838. 1:56:05facing financial issues many of them and
  2839. 1:56:08more importantly what a typical
  2840. 1:56:11volunteer experience was given the
  2841. 1:56:13social distancing
  2842. 1:56:15scenario in the middle of the pandemic
  2843. 1:56:17made the whole thing very precarious and
  2844. 1:56:19so there were not a lot of organizations
  2845. 1:56:21quite frankly
  2846. 1:56:22in our estimation that could could cough
  2847. 1:56:26up
  2848. 1:56:27all these criteria and all these skills
  2849. 1:56:30in the short order and the enormously
  2850. 1:56:32aggressive timeline in which we were
  2851. 1:56:34working
  2852. 1:56:35was there an organization that was
  2853. 1:56:36comparable or
  2854. 1:56:38was did we have the sort of reach that
  2855. 1:56:41that just you know put set it aside as
  2856. 1:56:44as
  2857. 1:56:45the organization i mean as i said before
  2858. 1:56:47the numbers we've heard are
  2859. 1:56:49almost two and a half million students
  2860. 1:56:51seven thousand schools
  2861. 1:56:53uh was there another organization that
  2862. 1:56:55rivaled that
  2863. 1:56:56at all or or did we really have that
  2864. 1:56:59ability uh unique unto itself
  2865. 1:57:01to my knowledge i don't think i can i
  2866. 1:57:04can answer that because i'm not an
  2867. 1:57:05expert in social policy
  2868. 1:57:07uh necessarily i'm in the department of
  2869. 1:57:10finance
  2870. 1:57:11but from what we understood from our
  2871. 1:57:13colleagues at esdc
  2872. 1:57:14they were the best placed um given um
  2873. 1:57:18given everything that was to be expected
  2874. 1:57:19and the ambition of the government
  2875. 1:57:21last question peter sure i've asked this
  2876. 1:57:24question before but i think it's
  2877. 1:57:26worth raising one more time when the
  2878. 1:57:29consideration was being taken as to who
  2879. 1:57:31could best deliver the canada student
  2880. 1:57:33service grant
  2881. 1:57:34some have posed the the canada
  2882. 1:57:38service corps should have been chosen uh
  2883. 1:57:41why not the canada service corps uh ms
  2884. 1:57:44kobachevik what
  2885. 1:57:45uh what was it uh about them that uh
  2886. 1:57:48that prevented that from from going
  2887. 1:57:50ahead
  2888. 1:57:52that option going ahead yes thank you
  2889. 1:57:54for that question
  2890. 1:57:55in fact uh the records will show that
  2891. 1:57:57the canada service corps
  2892. 1:57:59was in fact the place where esdc started
  2893. 1:58:01and they actually submitted a proposal
  2894. 1:58:03to us
  2895. 1:58:04to ramp up um its uh its capacity to
  2896. 1:58:07offer microgrants
  2897. 1:58:08uh and in fact uh there was one initial
  2898. 1:58:11proposal where they ramped up to seven
  2899. 1:58:13thousand
  2900. 1:58:13and there will be a record of me saying
  2901. 1:58:15that isn't that's too modest
  2902. 1:58:16and then they came back with a second
  2903. 1:58:18proposal of 15 000.
  2904. 1:58:20i know that esdc also looked at the
  2905. 1:58:22administrator taking it global
  2906. 1:58:24to see if it had uh you know two-factor
  2907. 1:58:28authentication if it had you know
  2908. 1:58:29sophisticated ways to volunteer match
  2909. 1:58:31and whether um whether you know in
  2910. 1:58:33partnership with esdc that
  2911. 1:58:35this is something we could leverage in
  2912. 1:58:37the end uh
  2913. 1:58:39the capacity obviously was funded for
  2914. 1:58:41for canada service corps
  2915. 1:58:42but that was sort of the maximum and the
  2916. 1:58:44ambition
  2917. 1:58:45and the need was still greater than what
  2918. 1:58:47the canada service corps
  2919. 1:58:48in our estimation and in esdc's
  2920. 1:58:50estimation could deliver okay
  2921. 1:58:52thank you uh thank you both are we going
  2922. 1:58:54to you mr
  2923. 1:58:56uh we going to from the conservative
  2924. 1:58:58camp mr
  2925. 1:58:59or mr marantz oh you're going to me okay
  2926. 1:59:02thank you good thank you
  2927. 1:59:03sir when you start to get into your more
  2928. 1:59:06detailed discussions about
  2929. 1:59:08we it sounds like it was on around the
  2930. 1:59:1020th
  2931. 1:59:1122nd who and you said they were looking
  2932. 1:59:15at capacity
  2933. 1:59:16so who is looking at the capacity of
  2934. 1:59:19this organization
  2935. 1:59:20their financial capacity their their
  2936. 1:59:23ability to deliver
  2937. 1:59:24more than just statements from them
  2938. 1:59:27about their reach
  2939. 1:59:28reaches you know it could be facebook
  2940. 1:59:31likes it could be their social media
  2941. 1:59:33exposure but that doesn't necessarily
  2942. 1:59:35deal with capacity
  2943. 1:59:37so who was looking at their actual
  2944. 1:59:39physical capacity
  2945. 1:59:40because it sounds like they had to hire
  2946. 1:59:42a raft of people before the contract or
  2947. 1:59:44the contribution agreement was even
  2948. 1:59:46signed
  2949. 1:59:47and they've had to since lay them off so
  2950. 1:59:49was that your department or was that
  2951. 1:59:50esdc
  2952. 1:59:53so that that is not that is not my
  2953. 1:59:56department
  2954. 1:59:57you'll recall that leading up to the
  2955. 1:59:59prime minister's announcement there was
  2956. 2:00:00no decision
  2957. 2:00:02on a third party administer and so any
  2958. 2:00:05discussion that happened with we
  2959. 2:00:07was it was potential it's can you do
  2960. 2:00:09social mobilization can you do a public
  2961. 2:00:11awareness campaign can you be a partner
  2962. 2:00:13in volunteer matching
  2963. 2:00:14um as uh as the announcement was made
  2964. 2:00:18the high level announcement for
  2965. 2:00:19up to 900 million on the 22nd
  2966. 2:00:22effectively the baton
  2967. 2:00:23gets tossed from finance department to
  2968. 2:00:26esdc
  2969. 2:00:27and it is now esdc who was responsible
  2970. 2:00:30to develop
  2971. 2:00:31a proposal for consideration of cabinet
  2972. 2:00:34on how to
  2973. 2:00:36meet the criteria for a canada student
  2974. 2:00:38services grant so
  2975. 2:00:40the the further questions as you have
  2976. 2:00:44asked would be carried out
  2977. 2:00:46on the second end the latter end as
  2978. 2:00:48opposed to the front end when it was
  2979. 2:00:50more
  2980. 2:00:51policy elucidation deliberation and what
  2981. 2:00:53we were really trying to do is make sure
  2982. 2:00:55that there were credible organizations
  2983. 2:00:58not just we anything so that when the
  2984. 2:01:01prime minister announced the canada
  2985. 2:01:02student service grant
  2986. 2:01:04we could with some assuredness say there
  2987. 2:01:06are options that we can deliver on
  2988. 2:01:08whatever those options may be esdc will
  2989. 2:01:11have to elucidate and determine
  2990. 2:01:13and recommend um there will be options
  2991. 2:01:15so that we can deliver these grants to
  2992. 2:01:17students
  2993. 2:01:18who needed them within weeks the
  2994. 2:01:21ambition of the government was initially
  2995. 2:01:23for a may launch
  2996. 2:01:25understand all that but it to me it
  2997. 2:01:28strikes me
  2998. 2:01:29it's finance you're you're you're
  2999. 2:01:32sending out a program that is 900
  3000. 2:01:34million dollars
  3001. 2:01:36surely someone in your department if
  3002. 2:01:38you're going to sign a contribution
  3003. 2:01:39agreement even at csdc
  3004. 2:01:41who takes responsibility to making sure
  3005. 2:01:45that that the organization that you're
  3006. 2:01:47going to sign a contribution agreement
  3007. 2:01:49has
  3008. 2:01:49the financial wherewithal the proper
  3009. 2:01:52governance
  3010. 2:01:53everything that you would expect to
  3011. 2:01:55taking public sector
  3012. 2:01:57dollars to execute the program i i i
  3013. 2:02:00there must be somebody whether it's estc
  3014. 2:02:02but surely finance must have a role in
  3015. 2:02:04that
  3016. 2:02:06go ahead ma'am oh i was just going to
  3017. 2:02:09say
  3018. 2:02:09thank you i was just going to say that
  3019. 2:02:11you know again
  3020. 2:02:12i repeat that there was no
  3021. 2:02:14recommendation on who to deliver
  3022. 2:02:16uh up to the 22nd when the funding
  3023. 2:02:19decision and the decision of the
  3024. 2:02:20government
  3025. 2:02:20is made and so after that it really
  3026. 2:02:23really is
  3027. 2:02:24uh the department of esdc to negotiate
  3028. 2:02:27the contribution agreement
  3029. 2:02:28and all the trappings that come with it
  3030. 2:02:31in terms of
  3031. 2:02:32being satisfied that uh everything is in
  3032. 2:02:35order
  3033. 2:02:36last question james
  3034. 2:02:39if if this was within your department so
  3035. 2:02:41let's say you were the approving
  3036. 2:02:43department the process that you go
  3037. 2:02:44through
  3038. 2:02:45in the administration would you delve
  3039. 2:02:48into
  3040. 2:02:48uh capacity financial capacity
  3041. 2:02:51governance like
  3042. 2:02:52what level of due diligence would you do
  3043. 2:02:54within your department if you were
  3044. 2:02:56charged with it
  3045. 2:02:58um so i mean i can't i can't speculate
  3046. 2:03:01on what i would have done or what i
  3047. 2:03:02might do but i certainly what would be
  3048. 2:03:04your normal practice what would your be
  3049. 2:03:05your normal practice
  3050. 2:03:07for this side of that agreement
  3051. 2:03:10i imagine it would be very similar to
  3052. 2:03:12the practice that my colleagues have
  3053. 2:03:13already used dc
  3054. 2:03:14exercised and it's you know there are
  3055. 2:03:16terms and conditions that guide
  3056. 2:03:18um entering into contribution agreements
  3057. 2:03:21and and we would follow them
  3058. 2:03:23in the same fashion okay uh miss
  3059. 2:03:26cutrakas you'll have to wrap it up uh
  3060. 2:03:28any
  3061. 2:03:30thank you mr chair thank you for your
  3062. 2:03:32testimony uh ms
  3063. 2:03:34kovachevitz i hope i pronounced your
  3064. 2:03:36name uh correctly
  3065. 2:03:38and for appearing before the finance
  3066. 2:03:40committee today
  3067. 2:03:41and for your testimony and i also want
  3068. 2:03:43to
  3069. 2:03:44echo and add my voice to thank you for
  3070. 2:03:47the great work that you and your
  3071. 2:03:48department have done
  3072. 2:03:50with all the work that you have done we
  3073. 2:03:53have helped millions of canadians and
  3074. 2:03:54hundreds of thousands of canadian
  3075. 2:03:56businesses
  3076. 2:03:57and we've helped our economy from a deep
  3077. 2:04:00recession
  3078. 2:04:01and possibly in a very incredibly short
  3079. 2:04:04time and
  3080. 2:04:05possibly worse than a recession um
  3081. 2:04:09you probably have said this before but i
  3082. 2:04:12think it's worth mentioning again so i
  3083. 2:04:14will raise it again
  3084. 2:04:15um could you please walk us through the
  3085. 2:04:17process of how typically the various
  3086. 2:04:20programs
  3087. 2:04:20arising from the pandemic making up the
  3088. 2:04:23canada
  3089. 2:04:24emergency response plan or program
  3090. 2:04:27were put together and got through the
  3091. 2:04:29idea generation
  3092. 2:04:30analysis and decision making process
  3093. 2:04:34and in cases of working with third
  3094. 2:04:36parties such as we
  3095. 2:04:38was the process significantly different
  3096. 2:04:41and if it was
  3097. 2:04:43why and how
  3098. 2:04:46thank you for the question i mean i
  3099. 2:04:48guess i would start by saying
  3100. 2:04:50the department of finance and myself in
  3101. 2:04:53the current situation that we're
  3102. 2:04:55describing i'm
  3103. 2:04:56not involved the department of finance
  3104. 2:04:58is not involved in negotiating the
  3105. 2:05:00agreement
  3106. 2:05:01and we're not involved in notioning the
  3107. 2:05:02agreement with um
  3108. 2:05:04with with we charity so those uh
  3109. 2:05:07questions uh are are questions for
  3110. 2:05:10uh esdc and and not for finance
  3111. 2:05:13in terms of the process thank you for
  3112. 2:05:15that question
  3113. 2:05:16uh yes this has been a um
  3114. 2:05:20wow a whirlwind over the last couple of
  3115. 2:05:22months in terms of the number of
  3116. 2:05:23programs we've put in place
  3117. 2:05:24as assistant deputy minister for social
  3118. 2:05:26policy i have been involved in you know
  3119. 2:05:29in the serb in the student package
  3120. 2:05:31persons with disabilities indigenous you
  3121. 2:05:34know essential
  3122. 2:05:35workers wage top up it's been very very
  3123. 2:05:38busy given the time given the
  3124. 2:05:40unprecedented
  3125. 2:05:42you know sort of circumstances canada
  3126. 2:05:44and the world has found itself in
  3127. 2:05:46it is not unusual and it is not even
  3128. 2:05:48unusual before covert times for there to
  3129. 2:05:50be
  3130. 2:05:51upstream policy deliberation um you know
  3131. 2:05:54the government says we want to do
  3132. 2:05:55something or you know we have money or
  3133. 2:05:58there's a real need that people need
  3134. 2:06:00something
  3135. 2:06:00so we work with esdc with my minister's
  3136. 2:06:03office
  3137. 2:06:03how can you know what are the real needs
  3138. 2:06:05who should we talk to what can we put in
  3139. 2:06:07place
  3140. 2:06:08and quite frankly almost everything in
  3141. 2:06:10my purview in the social policy
  3142. 2:06:12realm um kind of worked that way there's
  3143. 2:06:14a lot of
  3144. 2:06:16massive amounts of discussions and
  3145. 2:06:17emails ideas
  3146. 2:06:19fecund ideas kind of rolling off the
  3147. 2:06:21tongue
  3148. 2:06:22trying to land on what ultimately will
  3149. 2:06:25be the best
  3150. 2:06:26best program service or support to put
  3151. 2:06:28in place to help
  3152. 2:06:30canadians who needed it during the
  3153. 2:06:31pandemic and
  3154. 2:06:34how would you say you and your
  3155. 2:06:35department were feeling during these
  3156. 2:06:37times i know for
  3157. 2:06:38many of us for myself i can only speak
  3158. 2:06:41for myself but these are unprecedented
  3159. 2:06:43times this is the first time that i've
  3160. 2:06:45had to
  3161. 2:06:46primarily work from home it's been quite
  3162. 2:06:48stressful we all have families we all
  3163. 2:06:51have
  3164. 2:06:51you know uh we need to be careful and
  3165. 2:06:54take care of our own health
  3166. 2:06:56what would you say was the environment
  3167. 2:06:58how was the morale of
  3168. 2:06:59of your department and other departments
  3169. 2:07:01that were working
  3170. 2:07:02on this to make sure that we deliver the
  3171. 2:07:05programs
  3172. 2:07:06that canadians uh look to us for
  3173. 2:07:09and especially the youth
  3174. 2:07:12thank you for that question i guess i
  3175. 2:07:14really i can't you know i can't
  3176. 2:07:15speculate on how other people in other
  3177. 2:07:17departments were feeling
  3178. 2:07:19but um you know we are the public
  3179. 2:07:20service we stand here to execute the
  3180. 2:07:22will of the government and to help
  3181. 2:07:24canadians who needed help
  3182. 2:07:25we do it proudly and we do it fairly we
  3183. 2:07:28provide our advice independently
  3184. 2:07:31but right now i would tell you i'm tired
  3185. 2:07:35okay we will have to end it at that
  3186. 2:07:38thank you uh miss katraka as we're
  3187. 2:07:40starting to run up against uh
  3188. 2:07:43giving uh parliamentary staff time to
  3189. 2:07:45clean up the the room before the next
  3190. 2:07:47panel starts uh uh i just should mention
  3191. 2:07:51to committee before i release meskovic
  3192. 2:07:55the
  3193. 2:07:56the prime minister has accepted the
  3194. 2:07:58invitation to appear at the finance
  3195. 2:08:00committee
  3196. 2:08:01uh arrangements will be made regarding
  3197. 2:08:04that date and time i think we'd re
  3198. 2:08:08asked him uh for the 28th
  3199. 2:08:12uh but i'm sure we'd all be in agreement
  3200. 2:08:14that uh giving his schedule that
  3201. 2:08:17uh that uh the clerk will have to
  3202. 2:08:20uh negotiate a time and place we still
  3203. 2:08:22will be meeting on the 28th there is
  3204. 2:08:25already uh
  3205. 2:08:26witnesses uh scheduled uh for that day
  3206. 2:08:29so that's for the committee
  3207. 2:08:30invitation uh uh point of order mr
  3208. 2:08:34chair yeah who is that coming from early
  3209. 2:08:37angus
  3210. 2:08:38okay just quickly i'm wondering because
  3211. 2:08:40we have uh
  3212. 2:08:42representatives from we coming next week
  3213. 2:08:44we're talking about the agreement but we
  3214. 2:08:46don't really know what it looks like is
  3215. 2:08:47it possible we can get the contribution
  3216. 2:08:49agreement
  3217. 2:08:50so we're just more efficient when we're
  3218. 2:08:52meeting because it's hard to talk around
  3219. 2:08:54something unless you know exactly what
  3220. 2:08:56the terms are
  3221. 2:08:57uh well we can
  3222. 2:09:00we can certainly make a request to the
  3223. 2:09:03clerk of the uh
  3224. 2:09:04privy council he was at the meeting the
  3225. 2:09:06other day and i think he said he would
  3226. 2:09:08provide that to us
  3227. 2:09:09uh and so i will ask the clerk to
  3228. 2:09:14quickly draft a little note to the clerk
  3229. 2:09:16of the privy council to see if we can
  3230. 2:09:18get that contribution agreement before
  3231. 2:09:21uh we appears thank you i will ask the
  3232. 2:09:24clerk on behalf of the committee to do
  3233. 2:09:25that uh miss
  3234. 2:09:27kobovich i think you said that
  3235. 2:09:30it right you said it's been a whirlwind
  3236. 2:09:33uh
  3237. 2:09:33three months uh and
  3238. 2:09:37we've said it numerous times at this
  3239. 2:09:40committee
  3240. 2:09:40we do i know today's today's hearings
  3241. 2:09:44and these hearings
  3242. 2:09:46sometimes don't look appreciative of the
  3243. 2:09:49of the work that you all do but i want
  3244. 2:09:50to tell you that we are
  3245. 2:09:52very appreciative as canadians as
  3246. 2:09:55members of parliament
  3247. 2:09:57uh on the work that the the public
  3248. 2:09:59service
  3249. 2:10:00does we always run into some snags in
  3250. 2:10:02the road but that goes with the process
  3251. 2:10:04so
  3252. 2:10:05uh on behalf of the the committee i
  3253. 2:10:08sincerely want to thank you for
  3254. 2:10:09appearing here today uh but even more so
  3255. 2:10:13you and your colleagues for all the work
  3256. 2:10:15that you've done the long hours you put
  3257. 2:10:17in the time away from family
  3258. 2:10:19different working conditions etc etc etc
  3259. 2:10:23uh that you guys that you folks have
  3260. 2:10:25faced
  3261. 2:10:26uh in order to put out the programming
  3262. 2:10:28to benefit canadians in canadian
  3263. 2:10:30business so we want to thank
  3264. 2:10:32you for that and your colleagues as well
  3265. 2:10:35uh with that
  3266. 2:10:35uh you're welcome and uh do take care
  3267. 2:10:39uh so with that we will uh adjourn the
  3268. 2:10:42meeting and we will see
  3269. 2:10:43uh everyone on tuesday and we'll send
  3270. 2:10:45that note to the uh
  3271. 2:10:46to the clerk thank you all meeting
  3272. 2:10:54adjourned
  3273. 2:10:56[Music]
  3274. 2:11:15you

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