WE scandal: Finance Minister Bill Morneau testifies before House committee | FULL — Transcript
Full transcript
- 0:00i traveled with my family to ecuador to
- 0:02see
- 0:03and participate in wee's humanitarian
- 0:05work there
- 0:06in recent days our family has conducted
- 0:09a review
- 0:10of our personal records and we found
- 0:12documentation to confirm our payment of
- 0:15expenses for these two trips
- 0:16including flight and personal hotel
- 0:19costs of
- 0:20approximately fifty two thousand dollars
- 0:23however we were unable to locate
- 0:25receipts for
- 0:26any expenses related to we programming
- 0:29including accommodation
- 0:30this was to my surprise yesterday
- 0:34i asked my assistant to reach out to the
- 0:37wii
- 0:37organization regarding these trips and
- 0:40for them to provide me with the amount
- 0:42of total expenses incurred
- 0:44today i wrote a check in payment of
- 0:47forty one thousand dollars three hundred
- 0:49and sixty six
- 0:50i expected and always had intended to
- 0:53pay the full cost of these trips
- 0:55and it was my responsibility to make
- 0:57sure that was done
- 0:59not doing so even unknowingly is not
- 1:01appropriate
- 1:02i want to apologize for this error on my
- 1:05part
- 1:06my practice has always been to
- 1:08personally pay for expenses incurred in
- 1:11my role as finance minister
- 1:13whenever i've believed there to be any
- 1:14perception of potential personal benefit
- 1:18the error this time even though i was
- 1:20not traveling in my role as minister
- 1:22should not have happened i can also
- 1:25confirm
- 1:26that my family made two significant
- 1:28donations to the wii organization
- 1:31each for fifty thousand dollars my wife
- 1:34made one
- 1:34in april 2018 to support students
- 1:38in canada and another one in june of
- 1:41this year
- 1:41to support covet 19 relief in kenya
- 1:45and in canada the work that
- 1:48we and organizations like them do is
- 1:51important to me
- 1:53for over a decade my family has been
- 1:54passionate about education efforts in
- 1:57africa
- 1:58and in canada after our family sponsored
- 2:01grace to come to canada for her
- 2:02education
- 2:03and before i ran for office our family
- 2:06led the development of a girls
- 2:08school in kokuma refugee camp in kenya
- 2:12and over the last three years our family
- 2:14has personally committed
- 2:16over a million dollars to help refugee
- 2:18students from kenya
- 2:19continue their education here in canada
- 2:22as i've stated previously i participated
- 2:25in deliberations on the canada
- 2:27student service grant program i do not
- 2:30believe i had a conflict
- 2:32although i fully recognize that there
- 2:35are legitimate questions about the
- 2:37perception
- 2:38of a conflict in hindsight i should have
- 2:41recused myself
- 2:42from discussions involving the we
- 2:44organization and i will do so in the
- 2:46future
- 2:48most of all i regret that not recusing
- 2:51myself
- 2:51has delayed this important support for
- 2:53young canadians
- 2:55again i want to apologize for
- 2:58any mistakes i've made in this situation
- 3:01i'm sorry that they've occurred
- 3:25a little interpretation thing that looks
- 3:27like a globe down there to french when
- 3:28you're speaking french
- 3:29because both languages come through at
- 3:31the same level
- 3:33we love to hear your voice but we want
- 3:34to hear what it says in in the other
- 3:36language
- 3:37okay excuse
- 3:41come i'm sorry
- 3:44lady
- 4:07in hindsight
- 4:29i'm very sorry earlier today i formally
- 4:33asked
- 4:33the ethics commissioner to review this
- 4:35information uh there's an excuse
- 4:41excuse me earlier today i
- 4:44formally asked the ethics commissioner
- 4:46to review this information
- 4:47as part of his examination in order to
- 4:50provide this committee with an
- 4:52understanding of my role in the
- 4:54development and administration of the
- 4:56canada student service grant
- 4:58i'd like to provide you with a timeline
- 5:00of events
- 5:01since early march our government has
- 5:04been working to roll out canada's
- 5:06largest peacetime investment in doing so
- 5:09at a speed and a scale to meet the
- 5:11rapidly evolving nature
- 5:13of this crisis we've worked to deliver a
- 5:16comprehensive set of over
- 5:1870 different measures that are
- 5:19delivering targeted support
- 5:21to meet the needs of millions of
- 5:23canadians
- 5:35programming
- 6:18the aboriginal indigenous communities
- 6:20and others
- 6:22i would like to take the committee in
- 6:24detail through how this particular
- 6:26decision was approached by myself
- 6:28my office and officials to the best of
- 6:30my knowledge
- 6:32in early april shortly after we'd
- 6:34finished rolling out a broad range of
- 6:36supports
- 6:37including the canada emergency response
- 6:39benefit the serb
- 6:40our government began to think about the
- 6:42next set of challenges that lay ahead
- 6:44for canadians
- 6:45our government recognized that
- 6:47post-secondary students were
- 6:49about to complete their school year
- 6:51would be needing opportunities over the
- 6:53course of the summer
- 6:54opportunities that would help them pay
- 6:56for tuition and living expenses during
- 6:58the school year
- 6:59but also opportunities for invaluable
- 7:02skill building experiences
- 7:04this pandemic hit just while they were
- 7:06beginning their lives
- 7:08my colleagues and i knew that we had to
- 7:10do something to make sure
- 7:11their dreams weren't derailed and that
- 7:14they could continue to pursue their
- 7:15education
- 7:17most of all canada is in the midst of a
- 7:20national crisis
- 7:21and our government recognized that
- 7:23students could play an important role in
- 7:25supporting canada's
- 7:27extraordinary response to this pandemic
- 7:30on the evening of april 5th i had a call
- 7:33with the prime minister
- 7:34to discuss these and other issues we
- 7:37identified the need to consider measures
- 7:39to support students
- 7:41and discussed how the canada service
- 7:42corps and canada summer jobs program
- 7:45were areas of possible policy work to
- 7:47address this need
- 7:49i spent that night thinking in detail
- 7:52about this issue
- 7:53the next morning i tasked my officials
- 7:56and my ministerial team
- 7:57to begin engaging across government and
- 8:00brainstorm different options
- 8:02to support students my office and
- 8:05department of finance officials
- 8:07began working with other government
- 8:08departments departments to develop these
- 8:11ideas
- 8:12and to reach out to youth organizations
- 8:14in order to get
- 8:15a better sense of the challenges that
- 8:17the young people they serve
- 8:19were facing on april 7th
- 8:22the we organization was one of at least
- 8:25a dozen
- 8:25organizations that were contacted as
- 8:28part of this engagement effort
- 8:30in the days following my office's
- 8:32initial conversation with we
- 8:35the organization shared a proposal on
- 8:37social entrepreneurship
- 8:39which they had been discussing with
- 8:40other offices the we organization had
- 8:43sent this proposal to me
- 8:45but i didn't review or respond to the
- 8:47proposal at that time
- 8:50on april 8th and 9th i had my initial
- 8:53briefing
- 8:54on this potential streams of support for
- 8:57young people
- 8:58including a potential grant program for
- 9:01students looking to gain experience over
- 9:03the summer
- 9:48um
- 9:59and have a continuity of
- 10:03as follow-up of a briefing on april 18th
- 10:06officials raised that a partnership with
- 10:09the private sector
- 10:10or not-for-profit sector may be
- 10:12necessary in order to successfully
- 10:14administer such a program
- 10:16officials raised we charity among other
- 10:19organizations
- 10:20as an example of groups that were
- 10:22already doing
- 10:24similar work this was the first time
- 10:26that i've been involved
- 10:27in any discussion related to weed
- 10:29charity and what would become the canada
- 10:31student service grant
- 10:34as part of my briefing materials my
- 10:35officials appended a copy of wii's
- 10:38social entrepreneurship proposal
- 10:40indicating that other departments had
- 10:42begun engaging
- 10:43on the file i understand that in the
- 10:46following days we reached out to my
- 10:49office
- 10:49regarding their initial discussions with
- 10:51employment and social development canada
- 10:53and shared a second proposal my office
- 10:56continued discussions with we charity
- 10:59about how different types of student
- 11:00programming could be administered
- 11:03on april 21st i verbally approved my
- 11:06department's recommendations
- 11:08on the broad parameters of the canada
- 11:10student service grant
- 11:12including the potential involvement of a
- 11:13third party
- 11:15to be clear no third party such as we
- 11:18was chosen or directed within this
- 11:21approval
- 11:22from that point onwards employment and
- 11:24social development canada took the lead
- 11:26including the public service
- 11:28announcement that we charity be brought
- 11:30on as an administrator
- 11:32with that said as minister of finance
- 11:35i'm responsible for all funding provided
- 11:38under the public health
- 11:39event of national concern payments act
- 11:42as such
- 11:43it's important that finance officials
- 11:45track every dollar
- 11:46authorized to ensure that they're
- 11:48allocated appropriately
- 11:50i would expect that the department and
- 11:52my office would remain engaged in the
- 11:54design of the program
- 11:56in collaboration with employment and
- 11:57social development canada
- 11:59the privy council and the prime
- 12:01minister's office
- 12:02for complete transparency i note that on
- 12:05sunday april 26th
- 12:07i spoke with craig kielburger i know
- 12:09that we would have broadly discussed the
- 12:11impact of the covid19 pandemic
- 12:14he did not raise the canada student
- 12:16service grant nor did i
- 12:19on may 5th minister chagar presented
- 12:22her initial proposal for canada's
- 12:24student service grant
- 12:25including we charity as the preferred
- 12:27administrator at the covet 19
- 12:29cabinet committee i was not in
- 12:32attendance
- 12:32and did not discuss the proposal with
- 12:35officials or cabinet colleagues
- 12:37prior to it being presented i was
- 12:39briefed on the outcome of that meeting
- 12:41two days later on may 7th noting that
- 12:44the proposal would then be moving to be
- 12:46discussed
- 12:47at full cabinet the final decision on
- 12:50the canada student service grant was
- 12:52presented to full cabinet on may 22nd
- 12:55as i've said i should not have
- 12:57participated in that discussion and i
- 12:59regret that i did not recuse myself
- 13:01at that time i provided approval
- 13:04on the final revised funding decision
- 13:06for the program on june 3rd
- 13:08and that was my last direct engagement
- 13:10with the program's development
- 13:13i regret that my not recusing myself has
- 13:16been a reason that students
- 13:17have not been able to get the support on
- 13:19a timely basis
- 13:41i know that canadians are counting on us
- 13:43and there's still much more to do
- 13:45so thank you mr chair and i welcome the
- 13:48questions of you and the committee
- 13:51thank you very much uh mr minister for
- 13:54uh a very uh
- 13:55thorough uh explanation in terms of
- 13:58your involvement we'll now go to uh
- 14:02uh questions in the first round six
- 14:04minutes and we will go to our about uh
- 14:0653 minute 55 minutes of
- 14:09of of questions uh the lineup is uh mr
- 14:13polyam first
- 14:14uh then ms katrakas uh then mr forte
- 14:18and then mr angus uh mr
- 14:21polyam you're on deck sir
- 14:25do you expect us to believe that it is a
- 14:28mere
- 14:29con coincidence
- 14:32that you repaid over forty thousand
- 14:36dollars of expenses
- 14:37associated with your travel on a wii
- 14:41charity trip that you just repaid it
- 14:44today
- 14:44on the same day you were expected to
- 14:47testify
- 14:48under oath about it is that just a
- 14:50coincidence minister
- 14:53mr thank you thank you for the question
- 14:56uh
- 14:58i think what i want to make sure that i
- 15:00communicate is
- 15:01this was a mistake on my behalf i'm
- 15:03responsible
- 15:04for any expenses that i incur
- 15:08on trips being paid for this was an
- 15:11expense that i was
- 15:12unaware of that i did not know had not
- 15:15been paid
- 15:16and when i found that out one over the
- 15:19clock dollar
- 15:20expense you didn't know about a 41 000
- 15:23expense
- 15:24how is that even possible
- 15:27uh mr minister again mr chair
- 15:31um i i just have to say that uh in
- 15:34review of our records
- 15:35i uh understood that there was no charge
- 15:38for these
- 15:39uh travel expense or these expenses at
- 15:41the uh at the wii facilities
- 15:43and once i found that out i endeavored
- 15:46to repay that
- 15:47and of course it was a mistake on my
- 15:49part which i take full responsibility
- 15:51for
- 15:52the average canadian living in red deer
- 15:55or halifax that goes on a trip
- 15:58would notice if there was a say a 400
- 16:03expense that they didn't pay maybe a
- 16:06hotel room
- 16:07for a couple of nights that never got
- 16:09charged them and they paid immediately
- 16:11but you're telling me that on this
- 16:13obviously very luxurious trip
- 16:16that 41 000 dollars of expenses
- 16:21happened right under your nose
- 16:24and you didn't know about it until it
- 16:26suddenly through an epiphany
- 16:28came to your attention the very day you
- 16:31were to testify
- 16:32in a parliamentary committee about it
- 16:34you expect us to believe that
- 16:40mr chair my is for me
- 16:44there's no one else to answer for you mr
- 16:46morneau you're the one
- 16:48sorry uh sorry i was uh muted mr
- 16:51minister yes you got the
- 16:53the floor uh as i said uh you know this
- 16:56was
- 16:57um a mistake on my behalf we
- 17:00uh immediately looked at our records
- 17:03we reviewed those records to find the
- 17:05flights and the hotel expenses that were
- 17:08paid
- 17:08and did not find any expenses that were
- 17:11charged to us
- 17:12for the time at the we facilities
- 17:15when we went through our records in
- 17:17detail and concluded that
- 17:20we realized my wife and i that we needed
- 17:23to have
- 17:24someone reach out to the we organization
- 17:26and did that in order to pay those
- 17:28expenses
- 17:28it is my mistake it is a mistake that i
- 17:31regret
- 17:32i apologize for that and um as i said
- 17:35i will definitely work with the ethics
- 17:38commissioner including this issue
- 17:40to make sure it's fully understood and
- 17:42accounted for
- 17:44do you realize that accepting
- 17:48originally accepting these free benefits
- 17:51associated with your trip
- 17:53was strictly illegal under the contra
- 17:56conflict
- 17:57of interest act yes or no
- 18:00mr minister mr chair um
- 18:03we of course uh recognize that we are
- 18:06responsible
- 18:07for our own expenses that is my
- 18:09responsibility
- 18:10uh it was something i was unaware of and
- 18:13so that
- 18:14do you realize it was unaware do you
- 18:16realize now that it was illegal
- 18:19mr minister that uh those expenses which
- 18:23i was unaware of were uh
- 18:25appropriately my expenses and that's why
- 18:26we've repaid you you realize though that
- 18:28it was illegal
- 18:29you are as a minister strictly forbidden
- 18:31from accepting any form of sponsored
- 18:33travel
- 18:35under the contract of inter conflict of
- 18:36interest act
- 18:38i'm asking you do you realize that the
- 18:41act makes it
- 18:42illegal for you to have accepted these
- 18:44expenses
- 18:45paid for by we in the in the first place
- 18:48was do you realize
- 18:50that that was illegal yes or no uh mr
- 18:53minister
- 18:54you were the floor thank you mr chair
- 18:57mr chair as i've said i looked back in a
- 19:00detailed fashion over my records
- 19:02i found that this uh that we received no
- 19:05expenses notice for these expenses as
- 19:08soon as we found that out we
- 19:10uh endeavored to uh make sure those
- 19:12payments uh were
- 19:13were made and uh it's a mistake
- 19:16i uh i will and uh all right
- 19:20thank you very much um
- 19:23did you in the month of august 2019
- 19:29announce a grant for a wee charity for
- 19:32three million dollars
- 19:33in the same month that your daughter
- 19:36accepted a job from that organization
- 19:40yes or no mr minister mr chair
- 19:44i think um it's important to know that
- 19:46that
- 19:47program which i did announced was
- 19:50developed and delivered by employment
- 19:52and social development canada
- 19:54as the person who was responsible for
- 19:57that uh organization in the writing i
- 19:59did announce that program
- 20:01so you announced you announced a three
- 20:03million dollar grant
- 20:05to an organization that had just hired
- 20:08your daughter
- 20:09the very same month true statement or
- 20:12false statement
- 20:17thank you i want to be very clear that
- 20:20this is a program that was developed
- 20:23true or false delivered by the
- 20:24employment
- 20:25social development canada i announced it
- 20:28on behalf of our government but was
- 20:32not involved in the development of that
- 20:33program your daughter accepted a
- 20:35a position with that organization
- 20:38here last question so in the same month
- 20:41as your daughter
- 20:42accepted a position with the
- 20:43organization you announced a three
- 20:46million dollar grant
- 20:48to that organization is that are you you
- 20:51can just tell me if i'm wrong
- 20:52am i wrong mr chair i'm
- 20:56i'm obviously very proud of the fact
- 20:58that grace uh
- 20:59took on a co-op job at the wii
- 21:02organization
- 21:02i'm proud of the fact that she of her
- 21:04own accord went out and got a
- 21:07first job in an administrative capacity
- 21:10and
- 21:10obviously my role as a minister is
- 21:13separate and distinct from that
- 21:15i did deliver an announcement
- 21:18but i was not involved in the
- 21:19development or the understanding of that
- 21:22program
- 21:22okay thank you uh thank you both we'll
- 21:25go to
- 21:26ms kutrakis followed by mr forte
- 21:30ms kotrakus thank you mr chair and thank
- 21:32you minister morneau for
- 21:34appearing before the finance committee
- 21:36once again this afternoon
- 21:39i truly appreciate the candor and your
- 21:42testimony and
- 21:44for all the work that you and your
- 21:46family
- 21:47and our civil servants and the
- 21:49department of finance
- 21:51do for all canadians especially during
- 21:53this difficult time
- 21:55i have a few questions so in the
- 21:57interest of time i will ask them all
- 21:59and leave it with you minister to
- 22:01formulate your response
- 22:04how many new programs have you and your
- 22:06department rolled out in the past 100
- 22:08days or so
- 22:10what is the approximate value of these
- 22:12programs
- 22:13roughly how many canadians and canadian
- 22:16businesses and non-profit organizations
- 22:19have they helped from these programs
- 22:22does this compare to anything remotely
- 22:24similar
- 22:25to what we've done since the full
- 22:27mobilization of canada's economy
- 22:29and society during the second world war
- 22:32eighty years ago
- 22:34would it also be fair to say that if we
- 22:36did not introduce these programs
- 22:38there would be a lot of personal
- 22:40suffering and hardship
- 22:42would it also be fair to say that our
- 22:44economy would be in a
- 22:46serious recession or depression if the
- 22:49government hadn't acted as quickly and
- 22:51decisively as
- 22:52it did and finally as a financial person
- 22:56myself
- 22:58i would say that our success rate has
- 23:00been remarkably high
- 23:02and that the risk reward profile is
- 23:04extremely positive
- 23:06the only way to achieve anything is to
- 23:09take risks
- 23:10to avoid all risks of failure and make
- 23:13mistakes
- 23:14during as well would mean doing nothing
- 23:17and accepting all the personal hardships
- 23:19uh
- 23:20imposed on innocent canadians that would
- 23:23result
- 23:24do you agree with my comments
- 23:27mr minister i hope you depend on your
- 23:29hand because i could hardly keep up and
- 23:31i had one
- 23:32go ahead mr minister dancer thank you i
- 23:35i did have a pen
- 23:37i think i need to start by acknowledging
- 23:40that
- 23:40uh that i did make a mistake with
- 23:42respect
- 23:43to the uh the lack of
- 23:46decision to recuse myself of the
- 23:49decision around the we organization
- 23:51and i think i also need to acknowledge
- 23:54that not
- 23:55every single thing that our government
- 23:57has done over the course of the last few
- 23:59months
- 24:00was perfect we have been as was just
- 24:03mentioned
- 24:03working during a time of of crisis in a
- 24:06pandemic
- 24:07a time like none of us have ever faced
- 24:09before so
- 24:11the answer to the the last question uh
- 24:14is
- 24:14quite clear we knew we needed to move
- 24:17at speed and with scale to support
- 24:20canadians
- 24:21we knew that we needed to do our very
- 24:23best analysis
- 24:24on what the right policy would be and
- 24:27how to best
- 24:28get that support out to canadians we
- 24:30also knew
- 24:31that as we moved forward we would almost
- 24:34certainly
- 24:35have to fix things and improve things as
- 24:37we went along and that was the
- 24:38approach that we took i think that the
- 24:41response that we've
- 24:43had as a country which in answer to the
- 24:46direct
- 24:46question you know more than 70 programs
- 24:49over 200 billion dollars of direct
- 24:51support to canadians
- 24:52has put us in a much better situation
- 24:55than we would have been in had we not
- 24:57taken that approach it's delivered for
- 24:59individuals and for families it's
- 25:02protected our economy for today and
- 25:04and for the future and the risks of not
- 25:06doing so would have been
- 25:08dramatically greater for individuals and
- 25:10for families struggling to get by
- 25:12but for our long-term future and our
- 25:14opportunities so
- 25:16i do recognize that there is there's
- 25:18more that we need to do
- 25:19but this is an unprecedented time we are
- 25:22going to continue to
- 25:23consider the needs of canadians first uh
- 25:26deliver the kind of support required
- 25:28and uh improve things as we go along and
- 25:31yes
- 25:32we will make mistakes uh we will try not
- 25:34to make mistakes of course that's never
- 25:36our intent but we will uh we will
- 25:39rectify those mistakes
- 25:40as we think about the next steps and
- 25:42this pandemic's not over
- 25:43we do know there's there's more work to
- 25:45be done and we need to keep
- 25:47uh our focus on that and on canadians
- 25:51and do i have time for one more mr chair
- 25:54you have uh
- 25:56a minute or two minutes left okay thank
- 25:58you
- 25:59um what were your main goals when
- 26:01developing programs and policies to
- 26:04respond to the crises
- 26:05we have heard from other witnesses about
- 26:07rapid response simplicity
- 26:09largely and large-scale support i know
- 26:12that you've mentioned it time and time
- 26:13again but i think
- 26:14it's worth mentioning once again uh
- 26:17never to lose sight
- 26:19the pandemic uh the crisis that was
- 26:22not only facing canadians but globally
- 26:26so what were your main goals when
- 26:29developing these programs and policies
- 26:31minister morneau
- 26:34well again uh thank you for that
- 26:36question
- 26:38our main goals at the beginning of the
- 26:39pandemic are are
- 26:41very consistent with our goals now we
- 26:43recognize that this pandemic has had
- 26:46enormous impacts on on canadians across
- 26:49the country
- 26:50on family's ability to support
- 26:52themselves and also on
- 26:54future opportunities so we've been
- 26:55looking at how we can support people
- 26:57through this
- 26:58the serb benefit our our first and most
- 27:01important
- 27:02measure at the outset was recognizing
- 27:04how many people
- 27:05were going to be off work without enough
- 27:07money to pay for groceries or rent
- 27:10and we needed to get support to them
- 27:11rapidly the wage subsidy was about
- 27:14trying to make sure people could
- 27:16keep their job over the long term
- 27:18because we know how important
- 27:20that is for them but also for our
- 27:22economy
- 27:23programs like uh what we put together
- 27:25for
- 27:26students were recognizing that we were
- 27:28going to have hundreds of thousands of
- 27:30students
- 27:31without the ability to get a job this
- 27:33summer and we needed to think about how
- 27:35we could support them because
- 27:36they are by definition our future we
- 27:39need to make sure they can
- 27:40get back to their studies so that has
- 27:42been that's been our focus
- 27:45from from day one and it will continue
- 27:47to be our focus
- 27:49getting through this crisis requires us
- 27:50all to work together it's a health
- 27:52crisis
- 27:53and an economic crisis so we need to
- 27:55think about those two things in tandem
- 27:57but supporting people has always been
- 27:59central to what our government's been
- 28:01after
- 28:02and central to what i've been focused on
- 28:03during this time okay
- 28:05uh thank you we'll have to end it uh
- 28:06there uh mr forte
- 28:08followed by mr angus mr forte
- 28:13mr forte
- 28:19[Music]
- 28:26my screen was frozen oh
- 28:42um
- 29:19[Music]
- 29:48apologizing simply apologizing that
- 29:50you're going to be able to
- 29:52escape the fury of this um
- 29:57this matter
- 30:00uh mr chair yeah go ahead mr uh
- 30:03my minister merci say
- 30:10this is a very important question
- 30:17excuse me
- 30:35foreign
- 31:02the delivery
- 31:43the information
- 31:59did you think about it
- 32:03for the service public to consider come
- 32:05on
- 32:07public services
- 32:26uh
- 32:40is
- 32:54why didn't
- 33:22um
- 33:54uh between the two entities
- 34:17excuse me
- 34:23[Music]
- 34:32public
- 34:46uh
- 35:00is
- 35:08of a report on due diligence
- 35:28okay thank you uh
- 35:31thank you both uh mr angus for six
- 35:34minutes and then followed by uh
- 35:36uh mr cooper for five uh charlie you're
- 35:39up thank you so much mr chair
- 35:41uh mr minister um so the discussions
- 35:45with we began
- 35:46in year officials on april 7th
- 35:49um leading up to the prime minister's
- 35:52announcement
- 35:53uh were there any other proposals
- 35:56brought
- 35:57forward in that time by any other group
- 35:59other than we
- 36:04uh mr chair first of all you know thank
- 36:07you for the question
- 36:09i elaborated on the uh the timeline
- 36:12in the prepared remarks uh i was not
- 36:17i was not involved directly in any of
- 36:19those
- 36:20proposals being received or any
- 36:23any of those direct discussions with
- 36:25other organizations uh i do know
- 36:27that that process went through the
- 36:29public services
- 36:30sorry could you give us the names of any
- 36:32other organizations because
- 36:34the question we're dealing with was
- 36:36whether a group that's very close to you
- 36:38and your family and very close to the
- 36:40prime minister's family
- 36:42was given the inside track so we know
- 36:43that you met with craig you talked with
- 36:45craig hewlberg and now you say didn't
- 36:46discuss this but
- 36:47the die had been set we know that your
- 36:49your your finance officials had reached
- 36:51out to rachel wernick
- 36:52uh to tell her to talk to we we know
- 36:54that there had been at least two weeks
- 36:56of discussing between the first proposal
- 36:58and the second proposal
- 37:00so was were there other groups that were
- 37:03invited at that time to bring forward
- 37:05proposals will you give us the names of
- 37:07any
- 37:08that may have been involved
- 37:11uh minister go ahead i am aware that
- 37:15there were
- 37:16consultations with a number of groups
- 37:18that provide
- 37:19service for youth i'm not aware of each
- 37:22one of those names that was never
- 37:23presented to me
- 37:27i'm certain mr chair that we can uh
- 37:30provide an awareness of the
- 37:32of the organizations that were consulted
- 37:34with during the course of these uh
- 37:36this period okay thank you because
- 37:39minister chagger
- 37:40said that the idea came from rachel
- 37:43wernick
- 37:44the civil servant rachel wernick told us
- 37:47that she learned about this when
- 37:48everyone else learned about it and she
- 37:50was directly contacted by your staff
- 37:53my concern here mr morneau is if you
- 37:55were being the pack mule for the
- 37:57kielburgers to get this proposal through
- 37:59the fact that you refuse to recuse
- 38:01yourself is very very
- 38:03damning it it really raises questions
- 38:06here
- 38:07why did you refuse to recuse yourself
- 38:10uh mr minister well thank you uh
- 38:14to be to be clear we were we were in a
- 38:17position where we were trying to
- 38:18determine uh ways that we could deliver
- 38:21on behalf of students
- 38:23that was the goal here the idea was to
- 38:26find
- 38:27charlie the minister the minister has uh
- 38:30relatively equal time here allow him to
- 38:32answer first
- 38:33go ahead mr minister that was our
- 38:36overriding goal
- 38:38we knew that it was important to figure
- 38:40out a way to
- 38:41engage with students to help them to get
- 38:43back to school
- 38:44that was my overriding concern i
- 38:48uh given you know the the legitimate
- 38:51perception of of
- 38:52a conflict around my uh involvement
- 38:55previously i have said that in hindsight
- 38:58i i should have recused myself
- 39:00and okay that was a mistake on my part
- 39:03have you read the conflict of interest
- 39:05act
- 39:08mr minister uh mr chair i believe when i
- 39:12first came into office i would have had
- 39:14access to all of those uh those acts so
- 39:17you're not familiar with it the fact
- 39:19that you just remembered that we paid
- 39:22forty one thousand dollars for you to do
- 39:24travel are you not aware that under the
- 39:27conflict
- 39:28of interest acts sections 11 section 12
- 39:30section 15 of the code
- 39:33are explicit and it's also explicit
- 39:36about the
- 39:37the ministers are not to be getting paid
- 39:40travel so if you haven't really if you
- 39:43don't really remember the conflict of
- 39:44interest act you remember the agga khan
- 39:47ruling by the ethics commissioner
- 39:49because it seems that he made direct
- 39:51rulings about a situation that you are
- 39:52now
- 39:53in isn't there someone in your office
- 39:56who would
- 39:56tell you come on minister these are the
- 39:59these are the rules these
- 40:00this is the law of the land it applies
- 40:03to you as well
- 40:06go ahead mr minister mr chair um
- 40:10it is it is a mistake on my part not to
- 40:13have
- 40:13paid expenses as i've uh said i did not
- 40:17know that those expenses were not paid i
- 40:19did not
- 40:20have any awareness of that but over the
- 40:23course of the last uh
- 40:24short while i've reviewed my records in
- 40:26detail
- 40:27and uh given that uh serious oversight i
- 40:31have
- 40:31made sure that that uh that has been
- 40:33rectified but i
- 40:35i recognized that it was a mistake and i
- 40:37i take responsibility for that
- 40:39uh charlie before you before you start
- 40:41again can you hold your microphone a
- 40:44little closer and don't be
- 40:46rubbing at the the translators are
- 40:49having difficulty
- 40:50go ahead i'll give you the time back
- 40:53thank you well i guess the issue here
- 40:56is that we paid for your travel
- 40:59that has the apparent uh perception
- 41:02of attempting to buy political influence
- 41:04the fact that you're talking with craig
- 41:06kielburger
- 41:06you're talking with we i'm not sure
- 41:08they're registered to lobby they're
- 41:10hiring your daughter
- 41:11you're not thinking that there's a
- 41:12problem here but they're paying for
- 41:14influence i think that that's really
- 41:17really concerning that you didn't seem
- 41:18to think that that was a problem so i'd
- 41:20like to
- 41:20to end on the question with we
- 41:24you signed a contribution agreement with
- 41:26a real estate holding company
- 41:29how in god's name is that a credible
- 41:33decision by the government of canada
- 41:34to funnel nearly a billion dollars to a
- 41:37group that's very close to you and your
- 41:38family
- 41:39it's very close to the prime minister
- 41:41and his family
- 41:42a group that had gone through no uh
- 41:45there was
- 41:45no public tender here and they come up
- 41:48with a real estate holding company and
- 41:50you file the money through them
- 41:51what were you thinking uh mr minister uh
- 41:55final answer this round
- 41:58thank you well to start with as i've
- 42:01said
- 42:02um i i certainly uh was
- 42:05in error not uh not paying expenses i
- 42:08didn't know about those expenses being
- 42:10paid in my behalf but
- 42:11uh that was an error and um i
- 42:15i have owned up for that error i
- 42:18know that i know that uh the uh
- 42:22the government uh decision around
- 42:25uh the administration this program was
- 42:28taken
- 42:28after the appropriate due diligence by
- 42:31the public service
- 42:32i don't know of which uh organization
- 42:36in the uh in the in the we
- 42:40decision was the organization that was
- 42:43given to that contract that's not
- 42:45something that was brought
- 42:46to my attention uh of course uh we
- 42:49expected
- 42:50company and you didn't double check that
- 42:52where is the due diligence minister
- 42:55as i've said uh mr chair the
- 42:58the public service took a look at how we
- 43:00could best deliver this program
- 43:02and how it could be best administered
- 43:05and that recommendation was the one that
- 43:06we looked at
- 43:08in order to deliver on behalf of
- 43:09students okay
- 43:11we'll end that round there but uh a look
- 43:13from from my perspective there is
- 43:16uh some confusion during this
- 43:19round uh you've been asked
- 43:23why uh as a minister you didn't sign
- 43:26you didn't call for tenders i know this
- 43:29was a contribution agreement
- 43:31uh the implication is
- 43:34that you were the minister responsible
- 43:37so i got to ask you two questions
- 43:39who was the minister responsible in
- 43:41terms of this agreement with we
- 43:43and who was the minister that signed the
- 43:46agreement at the end of the day
- 43:49mr miller thank you mr chair i i was not
- 43:53the minister responsible
- 43:54as uh as i outlined in my prepared
- 43:57remarks
- 43:57that uh that was minister chagar and
- 44:01uh as uh as to your second question on
- 44:04who signed the document
- 44:06i'm actually not aware of that my
- 44:08assumption would be it would be
- 44:09minister chagar but i know that
- 44:11employment and social development canada
- 44:13worked on this program and that was the
- 44:16arm of the public service that made the
- 44:18recommendation
- 44:19after their work okay uh thank you for
- 44:22that uh then uh
- 44:23next to answer questions we'll start off
- 44:25with mr cooper mr fragascottis mr
- 44:27pauliev and miss
- 44:28zerowitz uh mr cooper five minutes great
- 44:31thank you mr chair
- 44:32uh thank you minister for being here i
- 44:34want to
- 44:35ask uh you to explain in further detail
- 44:39these 41 000 of
- 44:42hidden expenses you have characterized
- 44:46these expenses as programming what do
- 44:48you mean by that
- 44:51well thank you when uh
- 44:54when we took a look at our personal
- 44:57records we found
- 44:59expenses that we'd paid for flights and
- 45:01for personal hotel costs
- 45:03but we didn't find any expenses from the
- 45:06the actual we
- 45:06sites that we went to that my
- 45:10chances they would have they would have
- 45:12been any dining
- 45:14or just explain what those expenses were
- 45:19thank you mr minister go ahead sorry
- 45:22those expenses would have been
- 45:23for uh anything incurred at the we
- 45:26facilities
- 45:27so so give me an example
- 45:30i have not seen the line by line but i
- 45:33would assume that they would be for
- 45:35accommodation for uh going to the
- 45:38we were when i was uh there in
- 45:41uh ecuador we were helping to build a
- 45:43school so it would have been getting us
- 45:45to the school
- 45:46where we were doing that perhaps the
- 45:48materials to build that school
- 45:51and those were i imagine
- 45:54the the things that uh that were
- 45:57included in those expenses along with
- 45:59presumably
- 46:00uh meals meals so whining and dining
- 46:04while you were
- 46:05in ecuador uh thank you for that
- 46:08um obviously uh it's interesting that
- 46:11you've just decided to do a detailed
- 46:12review now just before you came before
- 46:15our committee
- 46:16uh but i'll leave it at bad i want to
- 46:17now uh go on to
- 46:20the timeline here uh on april 18th you
- 46:24said that you were briefed by
- 46:26your officials uh at that time the we
- 46:29proposal was brought to your attention
- 46:32were any other
- 46:33proposals brought to your attention or
- 46:34were any other organizations mentioned
- 46:37at that meeting
- 46:41thank you i i believe at that meeting i
- 46:45was briefed on the
- 46:47the overall nature of the potential
- 46:49canada student service grant
- 46:51as well as the possibility of using
- 46:54an outside for-profit or not-for-profit
- 46:58organization to administer the program
- 47:01based on the urgency of the program
- 47:03and that was uh that was the sum
- 47:07total of what we were trying to achieve
- 47:08i believe at that briefing
- 47:11and and were were any other proposals
- 47:14provided to you
- 47:16uh no proposals were provided proposals
- 47:20of any sort were provided to me okay
- 47:21well you said you reviewed the we
- 47:23proposal at that time or it was appended
- 47:26um sorry for clarification uh there was
- 47:30a
- 47:30a proposal appended that was for a
- 47:33different
- 47:33program okay so it was not for the
- 47:35administration of the canada
- 47:39a limited amount of time uh from
- 47:42the beginning of march to june 30th how
- 47:45many times have you had contact with
- 47:46anyone associated with the we
- 47:48organization
- 47:51um sorry the dates again were
- 47:54between march 1st and june 30th
- 47:58the um the only
- 48:01uh time that i have any uh
- 48:04recollection of communicating with
- 48:06anyone from the we organization was
- 48:08as i reported on sunday april 26th april
- 48:1126 and that was with craig kielburger
- 48:14yes and how often do you speak with
- 48:16craig kielberger
- 48:19craig hillberger is um obviously someone
- 48:23in my riding who
- 48:24runs a large organization so i've had
- 48:27exposure to him on
- 48:28on numerous occasions but i
- 48:31i don't have any particular regular
- 48:34communication
- 48:35were you surprised that he would have
- 48:36contacted you just four days after he
- 48:39had submitted
- 48:40a proposal he didn't contact me
- 48:44so for clarity i called him uh during
- 48:47that
- 48:48time period i was contacting business
- 48:51leaders
- 48:51labor leaders trying to make sure i
- 48:54understood the nature of the covet 19
- 48:57crisis
- 48:58and hearing the impacts on you know
- 49:00customers or on people
- 49:02that got served uh that that was an
- 49:05important part of my role
- 49:07it continues to be an important part of
- 49:08my role so that we can develop the kind
- 49:10of
- 49:10support necessary so just so you just no
- 49:13question mr cooper well
- 49:15okay since i only have the final
- 49:16question minister will you undertake to
- 49:18provide the committee with all
- 49:19communications
- 49:20uh that your office had uh concerning
- 49:23the pre-proposals that uh are at issue
- 49:26namely the
- 49:27april 9th the april 21st and april 22nd
- 49:31proposal as well as any communications
- 49:33you or your office had with
- 49:35anyone of the we organization uh i
- 49:38we will certainly cooperate with the
- 49:41committee that i think is important
- 49:42i think there's been a request for for
- 49:44documentation which we will certainly
- 49:46comply with
- 49:47thank you uh thank you both i believe uh
- 49:50that we request was
- 49:51made with uh miss warnick and uh as well
- 49:54so
- 49:55okay uh mr fragis goddess uh followed by
- 49:59uh mr
- 50:00pauliev go ahead thank you very thank
- 50:02you very much mr chair thanks for being
- 50:04here
- 50:04minister just to be clear minister
- 50:07mourinho
- 50:08you did not refuse to recuse yourself it
- 50:10was an
- 50:11oversight on your part correct
- 50:15i think it was a mistake on my part i um
- 50:18you know on reflection in hindsight i
- 50:21should have recused myself
- 50:23i i know that that would have been a
- 50:26a better course of action for us to to
- 50:28deal with what we saw as a very
- 50:30important
- 50:31uh challenge facing students
- 50:34i do have to ask minister worked with
- 50:37you for five years know you to be an
- 50:39honorable person and
- 50:40a good man but i do have to ask as far
- 50:43as going
- 50:44forward the process around recusing
- 50:47one's self
- 50:48you've pledged to do so in the future
- 50:50but is it a is it a simple process at
- 50:53the cabinet level
- 50:54to uh to do so
- 50:57well yes i i have recused myself
- 51:00on numerous occasions around cabinet uh
- 51:03when i've seen that there was
- 51:05any potential for conflict so that's
- 51:07been a course i've taken
- 51:09over the time in office and in this case
- 51:13you know my my daughter
- 51:16uh grace was you know working in a
- 51:19she was working in a an administrative
- 51:22role it was her starting job
- 51:24i didn't see that as a conflict you know
- 51:26in hindsight
- 51:28i i should have seen that people would
- 51:30would be concerned about that
- 51:31and so i i wish i had done differently
- 51:35i will certainly in future recuse myself
- 51:37from anything to do
- 51:38with with the we organization as a
- 51:41result
- 51:42of of that association thank you very
- 51:44much no it was a question relating
- 51:46largely to process and
- 51:48you've answered it i have a question
- 51:50also relating to uh
- 51:51to we on this decision why
- 51:54was we chosen specifically and
- 51:58not for example the working through the
- 52:01canada summer jobs program expanding
- 52:03that for example
- 52:04the canada student service corps for
- 52:07instance
- 52:08as another possibility what stood out
- 52:11about we
- 52:11in your mind
- 52:16i think it's important not to talk about
- 52:19we it's more about what we were trying
- 52:21to achieve so our goal was to find a way
- 52:24to
- 52:25to have a an approach to national
- 52:27service during a time of
- 52:29of national crisis we saw that there was
- 52:32a
- 52:32combination of the opportunity for
- 52:35students to be engaged in that
- 52:37and something that would enable students
- 52:39also to
- 52:40to be doing really meaningful work in a
- 52:43summer when so many jobs wouldn't be
- 52:45available
- 52:46and finally we thought that you know the
- 52:48idea that they could
- 52:49uh have some incentive was going to be
- 52:52important both to to make that happen
- 52:54but also to recognize that they weren't
- 52:56going to necessarily have money
- 52:58from jobs this summer because of the the
- 53:00pandemic so
- 53:01so that was the goal the the decision on
- 53:04how to administer it was
- 53:06uh very much taken uh in the course of
- 53:09employment social development canada's
- 53:11review of how to deliver it and when i
- 53:15as i understand it what they were trying
- 53:16to consider was the public service
- 53:18capable
- 53:19of delivering in a very short time
- 53:21period this program that would make a
- 53:22difference for
- 53:24students and they concluded that a
- 53:26better way to do it would be with
- 53:28an outside organization that had those
- 53:30capabilities already so that we could
- 53:32move
- 53:32quickly so that that was the that was
- 53:35the goal
- 53:36and that was the uh recommendation that
- 53:38came back to us
- 53:40which uh of course was satisfying our
- 53:42overall goal
- 53:43and it's very important to put this in
- 53:44the context of what we were facing at
- 53:46that time we were thinking about
- 53:48multiple programs to support you know
- 53:51different
- 53:51uh populations so we were thinking about
- 53:54people who were off work
- 53:56people who were you know maybe uh having
- 53:57more expenses like seniors
- 54:00we were starting to contemplate people
- 54:01with disabilities and the challenges
- 54:03they were facing
- 54:04but students were central to us because
- 54:06there's hundreds of thousands of them
- 54:08that wouldn't have jobs if we didn't
- 54:10find some sort of
- 54:11or wouldn't have opportunities if we
- 54:13didn't find some sort of way to
- 54:16uh to deal with that last question peter
- 54:19thank you very much mr chair with the
- 54:21last question and i've asked this before
- 54:23but since you're the minister of finance
- 54:25i do want to put it to you
- 54:27where do we go from here is is a program
- 54:31possible because i have young people in
- 54:34my constituency i have many
- 54:36not-for-profits and charities that were
- 54:37excited by the
- 54:39visions set out in the canada student
- 54:41service grant
- 54:42want to make a contribution
- 54:45organizations need volunteers and young
- 54:47people are ready to volunteer
- 54:50is it possible to come up with a program
- 54:52that allows for tuition support to be
- 54:54uh granted on the one hand for young
- 54:57people and
- 54:58for organizations to benefit by the
- 55:00presence of young people can we still
- 55:02get to the
- 55:03underlying goal of the of the canada
- 55:05student service grant delivered
- 55:06differently of course
- 55:09i i think it's very important to put
- 55:11this this program
- 55:13in context we we came up with
- 55:16approaches to help students that were
- 55:20multiple we had a nine billion dollar
- 55:23program overall which included support
- 55:25for
- 55:25people that were not going to be able to
- 55:28get jobs
- 55:29direct financial support it was tuition
- 55:32um
- 55:32reduction in in grants for tuition
- 55:35uh or increasing grants for tuition in
- 55:37the fall it was
- 55:39a reduction in interest costs or
- 55:41elimination of interest costs on debt
- 55:43so multiple things we were doing at the
- 55:45same time this was one
- 55:46we saw it as a very important way to
- 55:49engage
- 55:50and and improve uh our ability to deal
- 55:52with the pandemic
- 55:54so we're going to continue to try i
- 55:56think that you know unfortunately this
- 55:58is making it more difficult because the
- 56:00starting position
- 56:01was that the public service didn't have
- 56:03the ability to deliver with the same
- 56:05speed and that means that we are we are
- 56:08trying to figure out a way to do this
- 56:10but but it is difficult for sure we will
- 56:13continue to think
- 56:14though about how we can deliver okay
- 56:17we'll go to
- 56:17uh mr paliyev uh and then on to
- 56:21miss zerowitz uh mr polyam how much time
- 56:24do i have
- 56:25you got five minutes uh mr morneau can
- 56:28you please give me
- 56:30uh uh all of the uh the account of how
- 56:33many times you spoke about
- 56:35we charity with your staff or your
- 56:38officials
- 56:41uh i've tried to give a uh an
- 56:44understanding of the process
- 56:46and the uh the deliberations i i think
- 56:48you've heard from me in my prepared
- 56:50statements the
- 56:51just increasing how many times did you
- 56:54speak about we with your staff or your
- 56:56officials the number of times please
- 56:58uh i think what you will hear in in my
- 57:00preparedness i went through a number of
- 57:02of briefings and those were the the
- 57:04times where this was the
- 57:06uh discussion to recap where we are
- 57:11you and the prime minister gave 912
- 57:15million dollars to the real estate
- 57:17holding arm
- 57:18of a group that had paid the prime
- 57:20minister's family
- 57:22three hundred thousand dollars and gave
- 57:24your daughter a job
- 57:26and your family 41 000 in
- 57:29illegal travel expenses
- 57:33that's just what we know so far
- 57:36we know that this is illegal
- 57:39we know that you ought to have recused
- 57:41yourself under section
- 57:4321 of the conflict of interest act
- 57:46public office holders shall recuse
- 57:47himself
- 57:48from any discussion decision debate or
- 57:50vote on any matter in respect to which
- 57:52he or his
- 57:53he or she would be in a conflict of
- 57:56interest we also know
- 57:58that no public offshore of which you are
- 58:00one under section 11
- 58:02shall accept any gift or other advantage
- 58:04including from a trust
- 58:06that might reasonably be seen to be
- 58:08given
- 58:09to have been given to influence the
- 58:10public office holder
- 58:12in the exercise of an eff of an official
- 58:15power
- 58:16duty or function you have violated that
- 58:18section as well
- 58:20in accepting 41 000
- 58:23of secret travel expenses
- 58:27you've only admitted now that you did
- 58:29that
- 58:30the same day you're called to testify
- 58:32under oath in the matter
- 58:34over a year after the gifts
- 58:37were accepted you are a minister
- 58:41who has already been found guilty of
- 58:43violating the conflict of interest act
- 58:45when you failed to reveal the existence
- 58:48of your villa
- 58:49in france minister
- 58:53you have lost the moral authority to
- 58:55hold your office
- 58:57and it is the position of her majesty's
- 58:59loyal opposition that you resign
- 59:02will you resign uh mr minister the floor
- 59:05is yours
- 59:07uh mr chair and um
- 59:11to the questioner uh i want to just make
- 59:14very clear that
- 59:15there were in fact mistakes made here i
- 59:18have said
- 59:20quite clearly that in hindsight i should
- 59:23have recused myself
- 59:24from this decision when it came to
- 59:26cabinet
- 59:27i did not know that there were expenses
- 59:31that
- 59:31had not been charged to me in that
- 59:34travel
- 59:34and uh that worked sorry ministry mr
- 59:38mr pellier we're usually
- 59:41pretty sticky the other way in time so
- 59:43we'll be sticking this way
- 59:44today the minister has the floor for a
- 59:47little longer
- 59:48go ahead mr minister as i said i did not
- 59:51know
- 59:52that there were expenses that were not
- 59:53charged to me but i'm not making an
- 59:56excuse
- 59:56it was my mistake not to have taken
- 59:58responsibility to
- 1:00:00ensure that those expenses were paid and
- 1:00:03i found that out only with a thorough
- 1:00:06review of my records over the course of
- 1:00:07the last few days
- 1:00:09and that is absolutely a mistake on my
- 1:00:13behalf i've then turned around to
- 1:00:16reimburse sure which i know is important
- 1:00:18sure and i
- 1:00:19i will i will minister i
- 1:00:22will continue to to work on behalf of
- 1:00:26canadians i want to put
- 1:00:27this in context the the program that we
- 1:00:30were trying to deliver for students
- 1:00:32to get them engaged in volunteering we
- 1:00:35believe is
- 1:00:36is very important and that's important
- 1:00:38work that i will continue to do
- 1:00:40with my government over to mr peliap
- 1:00:44canadians will find it impossible to
- 1:00:46believe
- 1:00:48that this organization showered you with
- 1:00:5141
- 1:00:52000 worth of luxury
- 1:00:55and accommodations and that you didn't
- 1:00:58know about it
- 1:00:59that somehow you were enjoying all of
- 1:01:02these benefits and expenses paid for you
- 1:01:04while you were on an exotic vacation to
- 1:01:06ecuador
- 1:01:08and that somehow you didn't even know
- 1:01:10that the expenses occurred who did you
- 1:01:12think
- 1:01:13was paying for all of the wine
- 1:01:16and the food and the luxury travel that
- 1:01:19you were consuming did you think that it
- 1:01:21was just
- 1:01:22falling out of the sky minister who did
- 1:01:25you think was paying
- 1:01:27for these tens of thousands of dollars
- 1:01:29of luxurious
- 1:01:31expenses that you were enjoying
- 1:01:34where did you think it was coming from
- 1:01:36that's the last question we'll give the
- 1:01:38minister time to respond
- 1:01:40go ahead minister well thank you mr
- 1:01:42chair
- 1:01:44uh as i've said we we did go back
- 1:01:47and look at our records and found the
- 1:01:49the travel and hotel costs
- 1:01:52but didn't find any charges to us from
- 1:01:55the we facilities
- 1:01:56this uh this should have been something
- 1:01:59that uh
- 1:02:00that we we rectified sooner uh it was
- 1:02:03absolutely in error i in looking through
- 1:02:06my records was
- 1:02:07uh completely surprised at this
- 1:02:10situation
- 1:02:11and that's not an excuse that's just
- 1:02:13what happened so
- 1:02:15i uh mr chair can just say that again
- 1:02:18you know this was uh this was um an
- 1:02:21excuse and
- 1:02:22and uh that's no excuse rather and it's
- 1:02:24a mistake
- 1:02:25okay uh miss uh zerowitz uh and we will
- 1:02:28have
- 1:02:29uh we'll go to miss sirowitz uh and
- 1:02:32uh i will give miss uh goodro uh
- 1:02:36a couple of minute question and mr angus
- 1:02:39and then we'll have to end
- 1:02:42ms sirwitz okay thank you so much thank
- 1:02:44you minister for
- 1:02:45uh presenting today thank you for your
- 1:02:47remarks at the onset
- 1:02:49um the first thing i'd like to say is
- 1:02:5370 programs and over 200 billion dollars
- 1:02:56in direct support to canadians
- 1:02:58i know that during the time of march and
- 1:03:00april when davenport residents
- 1:03:02were super stressed they were enormously
- 1:03:04happy with the programs as they were
- 1:03:06being announced
- 1:03:07it gave them comfort that there was a
- 1:03:09government who's caring after them
- 1:03:11and was trying to help support them as
- 1:03:13we were going through an unprecedented
- 1:03:16pandemic that no one really knew how it
- 1:03:18was going to unfold
- 1:03:19so i want to say thank you for that i
- 1:03:22also want to say thank you for your
- 1:03:23apology
- 1:03:24um um i think for the both apologies one
- 1:03:27is
- 1:03:27from recusing from the cabinet decision
- 1:03:30and then also
- 1:03:31for the 41 000 payment i do have three
- 1:03:34key questions the first one is
- 1:03:38um can you make it clear to the
- 1:03:40committee was
- 1:03:41was there any direction from you your
- 1:03:44team
- 1:03:45or the financial sort of department
- 1:03:48to select or suggest we
- 1:03:52as the choice for the canada student
- 1:03:54service grant
- 1:03:57uh mr minister uh thank you
- 1:04:00and and uh you know thank you for your
- 1:04:03comments i think
- 1:04:04um it has been a a particularly
- 1:04:07challenging time and i'm
- 1:04:09i'm pleased to hear that you're
- 1:04:11receiving positive feedback from your
- 1:04:13constituents i i just want to
- 1:04:16acknowledge that we are still in a
- 1:04:17pandemic so these challenges will
- 1:04:19continue and we will continue to be
- 1:04:20thinking about how we support people
- 1:04:23the decision around the
- 1:04:28programs to support students were very
- 1:04:30important and those were decisions that
- 1:04:32were taken
- 1:04:34together with other departments they
- 1:04:36were working together on what the right
- 1:04:38approach was to deliver but the
- 1:04:41the final uh recommendation for
- 1:04:44how the program was to be administered
- 1:04:47came from employment and social
- 1:04:48development canada
- 1:04:50and that was uh in their role in
- 1:04:52thinking about how we could best deliver
- 1:04:54for students
- 1:04:54so so that is the approach it was not up
- 1:04:57to
- 1:04:57me or uh or my team to
- 1:05:01come up with those recommendations uh or
- 1:05:03even to do the
- 1:05:04the direct analysis on the capabilities
- 1:05:07but there was
- 1:05:08was there a direct suggestion from
- 1:05:09yourself or your team to actually
- 1:05:11suggest that we
- 1:05:12should be the the um the uh
- 1:05:16the the uh the choice uh for the canvas
- 1:05:18student service grant
- 1:05:21no my team would not have directed that
- 1:05:24and i certainly
- 1:05:25have no awareness no first-hand
- 1:05:27knowledge of of the capabilities of
- 1:05:30either the public service or the we
- 1:05:32organization to deliver that program
- 1:05:34okay my second question is there's a lot
- 1:05:36of concern around the the signing with
- 1:05:38the
- 1:05:38we charity foundation as opposed to we
- 1:05:41charity
- 1:05:42can you just be make it clear for the
- 1:05:44committee that it was
- 1:05:45the responsibility of minister chagar uh
- 1:05:48to actually um sign the final contracts
- 1:05:52and it wasn't with
- 1:05:53yourself or the the finance department
- 1:05:57uh well the your your assertion is
- 1:06:00correct
- 1:06:01it was not my responsibility to sign any
- 1:06:03of those agreements nor
- 1:06:05to consider which organization uh
- 1:06:08would be receiving those uh those
- 1:06:11contracts
- 1:06:12okay um julie uh just check your
- 1:06:15microphone and whether you're in the
- 1:06:16right language
- 1:06:17uh you're not coming through clearly to
- 1:06:18the translation booth just pull up your
- 1:06:20mic a little
- 1:06:21okay so i'm i'm definitely on english
- 1:06:23okay and my last question is
- 1:06:25it's around the 41 000 that you've paid
- 1:06:28back
- 1:06:29at um i believe today minister um
- 1:06:32i believe it was for two trips one was
- 1:06:34to kenya and one was to ecuador
- 1:06:36um oh can you just explain uh what the
- 1:06:39intention of the trip was and was the
- 1:06:41intention always to cover
- 1:06:43your own costs and the cost of your
- 1:06:45family going there
- 1:06:48well thank you and all i can tell you is
- 1:06:52that i was completely surprised
- 1:06:54that there were expenses that had not
- 1:06:56been charged to us on review
- 1:06:58it was always my intention our family's
- 1:07:00intention to pay for all
- 1:07:02expenses these were for two trips one
- 1:07:05trip
- 1:07:05of my wife and daughter to kenya to see
- 1:07:09schools that that were being built there
- 1:07:12and
- 1:07:12uh then subsequently to ecuador where
- 1:07:16uh we went as a family and were involved
- 1:07:18in
- 1:07:19in actually building schools the
- 1:07:22expenses
- 1:07:22uh were appropriately my expenses
- 1:07:26it was my mistake not to have ensured
- 1:07:28that they were paid
- 1:07:29uh i was unaware that they weren't
- 1:07:31charged to us and
- 1:07:33um having found that out i was uh
- 1:07:35obviously
- 1:07:36um felt that i'd made a mistake and i
- 1:07:39needed to immediately rectify the
- 1:07:41situation
- 1:07:42okay thank you
- 1:07:45uh thank you both uh we will go to
- 1:07:49uh miss uh goodro or you've got time for
- 1:07:52a two-minute question
- 1:07:55uh mr forte uh mr goudreau there you are
- 1:07:58go ahead
- 1:07:58emoji minutes and then two minutes to mr
- 1:08:00angus and we're done
- 1:08:04with it
- 1:08:36is
- 1:08:50because i just don't know what to say to
- 1:08:51my constituents when they ask me
- 1:08:53questions like that it's very important
- 1:09:01thank you two things uh yes
- 1:09:18uh
- 1:09:36[Music]
- 1:09:46um
- 1:10:10like should we say something about it
- 1:10:13and what do we do
- 1:10:28foreign
- 1:10:43[Music]
- 1:10:56is
- 1:10:59[Music]
- 1:11:10a time uh two minutes uh and i'll give
- 1:11:14we're a little over time uh mr minister
- 1:11:16but to balance it up i'll have to give
- 1:11:17mr angus two minutes as well uh charlie
- 1:11:20you're on
- 1:11:21thanks so much wayne easter my good
- 1:11:22friend and seat mate
- 1:11:24um mr minister
- 1:11:27um i'm glad that your colleague
- 1:11:30clarified that
- 1:11:31it's not it wasn't actually your
- 1:11:32department that was making the
- 1:11:35working out the details that was bartus
- 1:11:37chagger's office
- 1:11:38and yet we was talking to you and the
- 1:11:40prime minister
- 1:11:41begins talking to you in early april and
- 1:11:44you have the we report
- 1:11:45and you said that the report was
- 1:11:47circulating so
- 1:11:49who in the privy council had that report
- 1:11:51who in the prime minister's
- 1:11:53office had the proposal and had the
- 1:11:56prime minister seen it
- 1:11:59uh well thank you i think uh what's
- 1:12:02important to know here is that
- 1:12:04uh what you're talking about is a
- 1:12:06proposal
- 1:12:08for a different program that that
- 1:12:10apparently went to
- 1:12:12a number of ministers offices it came to
- 1:12:14me directly
- 1:12:15i didn't review it at the time i don't
- 1:12:18have any way
- 1:12:19of of knowing but i would be very
- 1:12:21surprised that that would ever go to the
- 1:12:23prime minister that would not normally
- 1:12:24be something that he would he would see
- 1:12:26the prime minister and you were talking
- 1:12:28about a program that
- 1:12:30i know that there was the original
- 1:12:31proposal but the second proposal
- 1:12:33is very very tied to we and
- 1:12:36they call you up mr morneau uh they
- 1:12:39reach out to you it's not your file it's
- 1:12:41miss
- 1:12:41shaggers but you are a friend of them uh
- 1:12:43they have paid
- 1:12:44forty one thousand dollars to you and
- 1:12:46your family to travel and it's not
- 1:12:48reported
- 1:12:49they've hired your daughter they've paid
- 1:12:50the trudeau family over 300
- 1:12:53000 uh at a time so they have enormous
- 1:12:56amount of influence and so this is the
- 1:12:58question you
- 1:12:59i you know i know you read the conflict
- 1:13:02of interest act when you first became
- 1:13:03minister
- 1:13:04and it's somewhere back in one of your
- 1:13:05files but you need to understand
- 1:13:07it's about buying political influence is
- 1:13:10about being there
- 1:13:11your friend that they contact your
- 1:13:13office and it's your officials that are
- 1:13:14dealing with them
- 1:13:15and so you're dealing with the prime
- 1:13:16minister and he's got the same idea that
- 1:13:18you have
- 1:13:19and boy that idea is just like we
- 1:13:22doesn't it occur to you mr morneau
- 1:13:24that you've been very influenced by this
- 1:13:26group and they've had the inside track
- 1:13:27from the get-go
- 1:13:29and your relationship with them is
- 1:13:30helping push that that you
- 1:13:32were the keel burgers pack mule pushing
- 1:13:35this through
- 1:13:36and now it's all blown up on you we'll
- 1:13:38we'll have to go to the minister and
- 1:13:39please clarify minister whether they
- 1:13:42called you
- 1:13:42or you called them because earlier you
- 1:13:45said
- 1:13:46you called mr kielberger over
- 1:13:49over programming i believe or curb or
- 1:13:51whatever it was
- 1:13:52go ahead uh so uh thank you mr chair i
- 1:13:57think
- 1:13:58so to be really clear here the
- 1:14:01the goal and and certainly in the
- 1:14:03discussions i had with the prime
- 1:14:04minister we were thinking about how we
- 1:14:06could
- 1:14:07support students so that was uh
- 1:14:10critically important we needed to come
- 1:14:11up with ways to make sure that we
- 1:14:13delivered support to students
- 1:14:15the the uh in the
- 1:14:19inference that we had any idea of
- 1:14:21exactly how
- 1:14:22that support would happen or even how it
- 1:14:25would be delivered
- 1:14:26is incorrect we were thinking about how
- 1:14:28we would support students
- 1:14:29and as we developed the policy then we
- 1:14:32we passed it to the public service to
- 1:14:34think about how
- 1:14:35that could be properly delivered and
- 1:14:38that was a critically important step
- 1:14:41in thinking about how we could get that
- 1:14:43support the
- 1:14:45proposal that was circulated from the we
- 1:14:48organization was
- 1:14:49was separate earlier on i certainly
- 1:14:53didn't
- 1:14:54have any uh awareness of that uh
- 1:14:57proposal when it came in
- 1:14:59and much later uh as i reported i did
- 1:15:02have a call with craig kielberger and
- 1:15:04that was just to understand generally
- 1:15:06how
- 1:15:06the covet 19 situation was impacting
- 1:15:10uh businesses and organizations across
- 1:15:12the country
- 1:15:13so you know our goal here is and remains
- 1:15:17to support students
- 1:15:18we we know that there was a mistake made
- 1:15:22in terms of of how we came through this
- 1:15:24decision-making process
- 1:15:26i should have recused myself the prime
- 1:15:28minister's also said that
- 1:15:30and we will we will continue to think
- 1:15:31about how we can best be supportive
- 1:15:34and um you know i want to just say that
- 1:15:37we need to move forward
- 1:15:38it is a time of pandemic and there will
- 1:15:40be more work for us to do
- 1:15:42okay uh minister uh thank you very much
- 1:15:44for your testimony and
- 1:15:46thank you point point of order mr chair
- 1:15:48uh
- 1:15:49what's your point order mr cooper uh
- 1:15:51thank you mr chair i would like to
- 1:15:53put forward a motion to be debated at a
- 1:15:56future
- 1:15:57meeting uh and the motion
- 1:16:00uh reads as follows that mr cooper can
- 1:16:04okay let's hear your motion first and
- 1:16:05then i'll release the minister go ahead
- 1:16:07okay uh whereas uh the minister
- 1:16:10of finance has accepted forty one
- 1:16:14thousand dollars
- 1:16:15in elite in illegal travel expenses and
- 1:16:20that
- 1:16:20the minister of finance is in flagrant
- 1:16:23breach
- 1:16:24of multiple sections of the conflict of
- 1:16:26interest act
- 1:16:27including but not limited to sections 6
- 1:16:3011 and 21 in addition
- 1:16:34to prior violations but the standing
- 1:16:37committee on finance hereby call on the
- 1:16:39minister to immediately resign
- 1:16:41so you were uh uh you're given the four
- 1:16:44to eight hour notice uh
- 1:16:45okay yes thank you for that uh that
- 1:16:48notice is
- 1:16:49uh is uh given uh mr marnell uh thank
- 1:16:52you for your uh
- 1:16:53appearing before the committee today and
- 1:16:55giving your uh statement
- 1:16:57uh and you're answering our questions
- 1:16:59and taking the
- 1:17:01extra time uh that uh normally happens
- 1:17:04when we have a minister before the uh
- 1:17:06before the committee so thank you very
- 1:17:07much uh with that
- 1:17:09uh so you're released minister okay
- 1:17:13we'll go to uh the finance uh
- 1:17:16official uh miss uh kovovich
- 1:17:20uh for uh 30 minutes uh if we could
- 1:17:24i don't know miss kovich hopefully your
- 1:17:27technology is working now and do you
- 1:17:28have an opening state where you're just
- 1:17:30going to questions
- 1:17:32ms kovacs uh thank you mr chair can you
- 1:17:35hear me
- 1:17:36yeah gotcha uh yes um i do have an
- 1:17:40opening statement if you would permit me
- 1:17:41to read it okay
- 1:17:42fire away all right um good afternoon
- 1:17:45committee members my name is michelle
- 1:17:47kovacevic and i am the assistant deputy
- 1:17:49minister for the federal provincial
- 1:17:51relations and social policy branch at
- 1:17:53finance canada
- 1:17:54um before i start i was made aware just
- 1:17:57as i was coming into the office
- 1:17:58that there may be an interest on behalf
- 1:18:01of the committee for me to stay longer
- 1:18:03than 30 minutes
- 1:18:04if that is still the interest in the
- 1:18:05committee i'm happy to do so
- 1:18:07i would like to provide you with context
- 1:18:09on my role in the lead up to the
- 1:18:11announcement by the prime minister and
- 1:18:12the canada student service grant
- 1:18:14and the context with respect to the
- 1:18:16ultimate selection of we charity as a
- 1:18:18third party administrator
- 1:18:20on april 6 during the prime minister's
- 1:18:22morning press conference
- 1:18:23he noted that more support for students
- 1:18:25would be coming soon
- 1:18:27that same day my team reached out to
- 1:18:29colleagues in employment and social
- 1:18:30development canada
- 1:18:31esdc to hear about options for
- 1:18:34supporting students
- 1:18:35my team and i also met with my
- 1:18:37minister's office to understand what was
- 1:18:39needed
- 1:18:40our timelines for developing the package
- 1:18:42were very condensed
- 1:18:44our work was informed by proposals and
- 1:18:46expertise in esdc
- 1:18:47as well as other departments the package
- 1:18:50announced on april 22nd by the prime
- 1:18:52minister
- 1:18:53included over nine billion dollars in
- 1:18:55support for students
- 1:18:56including the creation of the canada
- 1:18:58student service grant
- 1:18:59which at 900 million dollars represents
- 1:19:0210 percent of the overall student
- 1:19:03package that we developed
- 1:19:05today i will focus solely on the options
- 1:19:07that were explored to develop the canada
- 1:19:09student service grant
- 1:19:11the key objective for us was to mobilize
- 1:19:13students to help respond to the pandemic
- 1:19:15while also providing tuition support for
- 1:19:18their future studies
- 1:19:19a number of options were pursued
- 1:19:22including
- 1:19:23firstly a tuition credit or tuition
- 1:19:26waiver for students
- 1:19:27my team along with esdc explored
- 1:19:30delivering this through the canada
- 1:19:31student loan program
- 1:19:33directly via provinces and territories
- 1:19:35or by post-secondary education
- 1:19:37institutions fueling the federal
- 1:19:38government directly
- 1:19:40there were issues with respect to
- 1:19:41validating the identity and eligibility
- 1:19:44of recipients
- 1:19:45in addition to the actual capacity to
- 1:19:47deliver the program across the country
- 1:19:49none of these were considered to be
- 1:19:51ideal we further looked at scaling up
- 1:19:53existing volunteer programs through the
- 1:19:56canada service corps
- 1:19:57and taking it global its administrator
- 1:20:00this option was indeed supported
- 1:20:01and funding was provided to expand the
- 1:20:03number of micro grants for youth from
- 1:20:051800 to 15 000
- 1:20:07and to provide um stipends to
- 1:20:10participants
- 1:20:11however there was interest in and need
- 1:20:13for a much broader reach beyond 15
- 1:20:16000 service opportunities with health
- 1:20:19canada
- 1:20:19my team examined whether students could
- 1:20:22feel a critical need in contact tracing
- 1:20:24related to covid19
- 1:20:26including both volunteer options and
- 1:20:28direct federal hiring to support
- 1:20:30provincial and territorial efforts
- 1:20:32our teams also looked at using a temp
- 1:20:34agency to do hiring on our behalf
- 1:20:36none of these options were selected
- 1:20:38because a large number of volunteers had
- 1:20:40already been identified to do the work
- 1:20:41by the health portfolio
- 1:20:43and provinces and territories at least
- 1:20:45at that point in the
- 1:20:46in the pandemic were still quite
- 1:20:48uncertain about how much help for
- 1:20:50contact tracing they actually needed
- 1:20:52my team then looked at creating a canada
- 1:20:54experience grant
- 1:20:55that would make bursaries available to
- 1:20:57students who volunteered in positions
- 1:20:59deemed essential during covet 19.
- 1:21:02a good deed bonus if you will however
- 1:21:05given significant concerns for the
- 1:21:06health and safety of students my team
- 1:21:08moved away from the idea of an essential
- 1:21:10position
- 1:21:11and broadened the scope of volunteering
- 1:21:14my team along with the sdc of course
- 1:21:16also considered whether two
- 1:21:18organizations working together could
- 1:21:20administer
- 1:21:20this grant we considered a series of
- 1:21:23third parties who could have the
- 1:21:24capacity to deliver this type of program
- 1:21:27including shopify ceridian
- 1:21:30imagine canada volunteer canada the
- 1:21:33canadian red cross
- 1:21:34the united way and the i want to help
- 1:21:36platform concept developed by esdc
- 1:21:39the student announcement on april 22nd
- 1:21:42was high level
- 1:21:43with further details to be worked out
- 1:21:45following further analysis by esdc
- 1:21:48it was during this course of the
- 1:21:49analysis that the potential of
- 1:21:51partnering with we charity came up
- 1:21:53on april 9th i received a what we heard
- 1:21:56document
- 1:21:57summarizing stakeholder feedback on
- 1:21:59student support during the covet
- 1:22:01emergency
- 1:22:02prepared by my minister's office we
- 1:22:04charity was one of 12 stakeholders
- 1:22:06included in the document
- 1:22:08i believe my minister actually mentioned
- 1:22:09that as well on april 16th
- 1:22:12in an email discussion on which
- 1:22:13organizations might be able to deliver a
- 1:22:15range of volunt
- 1:22:16opportunities across the country we
- 1:22:19charity was raised as a possibility by
- 1:22:21colleagues at esdc
- 1:22:23i encourage gsdc to include we charity
- 1:22:26in their analysis of potential delivery
- 1:22:28options
- 1:22:29on april 18th i debriefed my minister's
- 1:22:32office
- 1:22:32on progress on the file i noted to them
- 1:22:35that esdc had informed us that we
- 1:22:37charity
- 1:22:38may be an option my team also held a
- 1:22:41joint teleconference with esdc
- 1:22:43where a number of organizations were
- 1:22:44discussed i cannot recall who actually
- 1:22:47raised the idea to speak with we
- 1:22:49but i cannot call recall that we all
- 1:22:51agreed to it
- 1:22:53on april 19th we received a copy from
- 1:22:55esdc of the april 9th
- 1:22:57we social entrepreneurship proposal
- 1:23:00pardon me that had been previously
- 1:23:02circulated to ministers
- 1:23:04this was the first time the proposal was
- 1:23:06provided to me according to my records
- 1:23:08that same evening my branch routed a
- 1:23:10briefing package to our minister
- 1:23:12that included the we proposal as an
- 1:23:14annex but no analysis nor recommendation
- 1:23:17was provided on we
- 1:23:18the next day april 20th my minister's
- 1:23:21office connected with we charity
- 1:23:23to discuss their ability to deliver
- 1:23:25volunteer opportunities
- 1:23:27the records of this call from my
- 1:23:28minister's office note that we charity
- 1:23:31will rework their 10-week summer program
- 1:23:34proposal
- 1:23:35to fully meet the policy objective of
- 1:23:37national service
- 1:23:38and increase their current placements of
- 1:23:408 000 to double
- 1:23:42on april 22nd of course the prime
- 1:23:44minister made his student package
- 1:23:46announcement
- 1:23:47on april 23rd in a meeting between my
- 1:23:49team and esdc
- 1:23:51we discussed the possibility of we
- 1:23:53charity as a third party who could offer
- 1:23:55virtual volunteer placements and
- 1:23:58potentially administer the canada
- 1:24:00student service grant
- 1:24:01my office also set up a meeting with we
- 1:24:03charity to take place the next afternoon
- 1:24:06on april 24th esdc and finance officials
- 1:24:09spoke with we charity to better
- 1:24:11understand the organization in its
- 1:24:13capacity
- 1:24:14no commitments were made other than esdc
- 1:24:16would follow up
- 1:24:18as is usual after a funding decision and
- 1:24:20announcement
- 1:24:21further development of the detailed
- 1:24:22program proposal was turned over to esdc
- 1:24:26on may 7th i received a copy from esdc
- 1:24:29of a may 4 proposal from we charity to
- 1:24:32deliver the canada student service grant
- 1:24:34for the government
- 1:24:35this is the first time finance officials
- 1:24:37saw a proposal where we
- 1:24:39charity could be the third party
- 1:24:41administrator for the program
- 1:24:43my team continued to work with esdc as
- 1:24:45they developed the program
- 1:24:47and advanced a cabinet proposal i also
- 1:24:49continued to brief my minister's office
- 1:24:51which is normal practice as major
- 1:24:53initiatives proceed to cabinet
- 1:24:55and then to launch in this context we
- 1:24:58charity was raised a number of times and
- 1:25:00ultimately formed the basis of the
- 1:25:02recommendation of esdc to minister
- 1:25:04chagar
- 1:25:04that the govern the government enter
- 1:25:06into a contribution agreement with we
- 1:25:08charity to administer the canada student
- 1:25:10service grant
- 1:25:12finance officials supported this
- 1:25:13recommendation in related advice to our
- 1:25:16minister
- 1:25:16including the detailed costing of the
- 1:25:18proposal as outlined by minister chagar
- 1:25:21in her testimony last week i would be
- 1:25:23happy to answer any questions from the
- 1:25:25committee
- 1:25:26thank you uh thank you very very much
- 1:25:29miss
- 1:25:30kovitch and i failed to uh
- 1:25:33introduce you uh as uh in terms of your
- 1:25:36responsibilities you are
- 1:25:38assistant deputy minister federal
- 1:25:40provincial relations and social uh
- 1:25:42policy
- 1:25:43uh branch so uh thank you for that uh
- 1:25:46that statement
- 1:25:47uh i'm not sure and the clerk will have
- 1:25:50to tell us
- 1:25:50on on this uh miss uh offered to stay
- 1:25:54longer if necessary
- 1:25:56uh what i would suggest is we go to
- 1:25:59eight
- 1:26:00questioners uh four minutes uh
- 1:26:03per question round and
- 1:26:06and i'll go with the list i have from
- 1:26:08panel one because i don't have a new
- 1:26:10list which would be
- 1:26:11starting with uh mr uh cooper then miss
- 1:26:15catrack as miss fourteen
- 1:26:16fourteen and miss uh angus and uh mr
- 1:26:19angus
- 1:26:20uh would we be okay with that but clerk
- 1:26:23i have to ask you
- 1:26:24i know we're under uh tight time frames
- 1:26:27on these uh
- 1:26:29video conferences and are we
- 1:26:32are we going to be okay uh with the uh
- 1:26:35with the use of uh the room uh where
- 1:26:38this is centered at if an ottawa are we
- 1:26:40okay to go
- 1:26:41uh another half an hour the the deputy
- 1:26:44minute assistant deputy minister made a
- 1:26:45seven minute statement
- 1:26:47are we okay to go about another half an
- 1:26:49hour there i'll inquire right now
- 1:26:51um unless you know if it's an issue okay
- 1:26:53so the total list i have
- 1:26:55and it's subject to change because i
- 1:26:57don't have a list folks
- 1:26:58would be cooper kotrakus forte angus
- 1:27:02polyam zerowitz marantz and
- 1:27:04francoscottis
- 1:27:06uh so any difference on that uh just uh
- 1:27:08yell at me i guess what you'll have to
- 1:27:10do mr ferdinand
- 1:27:11oh sorry mr cooper go ahead i think it's
- 1:27:13supposed to be mr paulia first and then
- 1:27:15me
- 1:27:16okay mr polyam want to go first and then
- 1:27:18we'll put cooper in uh
- 1:27:20his place mr paliav yes um
- 1:27:23miss uh kovacevic you
- 1:27:27uh attended a meeting in mid-april
- 1:27:30with miss wernick and miss wernick
- 1:27:33suggested
- 1:27:34before this committee that you were the
- 1:27:36one that first suggested
- 1:27:37we be the delivery group for this
- 1:27:41program is that true
- 1:27:46thank you for the question the um
- 1:27:48meeting that you're referring to
- 1:27:50i believe took place on april the 18th
- 1:27:53in the evening
- 1:27:55uh at this point we are discussing a
- 1:27:58broad range of issues uh
- 1:28:00including sorry we don't have a lot of
- 1:28:01time i'm just asking if you were the one
- 1:28:03who first suggested we that's all
- 1:28:05yep uh i was certainly the one who
- 1:28:08initiated the meeting
- 1:28:09we were talking about grant and credit
- 1:28:12and
- 1:28:12whether um there was uh
- 1:28:15opportunities for uh did you suggest we
- 1:28:19did you suggest we i do not recall
- 1:28:23if it was me who actually raised the
- 1:28:25idea but what i do recall clearly is
- 1:28:28that we all
- 1:28:29agreed to it and just to be clear to the
- 1:28:31committee
- 1:28:32that it was in the context of volunteer
- 1:28:34placement
- 1:28:35in um mobilizing through their social
- 1:28:38media
- 1:28:38to uh okay so so
- 1:28:42uh prior to that had you discussed the
- 1:28:45idea of employing we for this with any
- 1:28:48uh exempt staff of the government of uh
- 1:28:51any of the ministers no uh according to
- 1:28:54my records the first
- 1:28:56mention of we uh to me is on april 16th
- 1:28:59and that again is in a conversation that
- 1:29:02i was having with my colleagues at esdc
- 1:29:05and again this is in the context of
- 1:29:07their names what were their names
- 1:29:09on that call on april 16th that would be
- 1:29:12rachel wernick
- 1:29:13and also the associate deputy minister
- 1:29:16which one who who is that benoit
- 1:29:21and did they suggest where they had
- 1:29:22heard that idea of bringing in we
- 1:29:26this wasn't about bringing in we this
- 1:29:28was about
- 1:29:30the fact that uh we could partner
- 1:29:33with the company like we to do volunteer
- 1:29:36matching
- 1:29:37yeah so the question was did they
- 1:29:38mention if they had where they heard
- 1:29:40that idea from
- 1:29:41um pierre uh we'll we'll give her give
- 1:29:44the lady time to uh
- 1:29:45to answer if we could uh miss kobovic
- 1:29:50yes the idea was uh a partnership could
- 1:29:53a company
- 1:29:54like we want to order volunteers
- 1:29:57go ahead what's your point order so i'm
- 1:29:59not interested in what the idea was i'm
- 1:30:01asking
- 1:30:02where it came from the question was very
- 1:30:04specific it was very clear we don't have
- 1:30:06a lot of time i'd ask
- 1:30:08you to call the witness to answer the
- 1:30:09question the question was
- 1:30:11did esdc officials in that meeting
- 1:30:13mention where they had got
- 1:30:15where they had her first heard the idea
- 1:30:18of bringing we
- 1:30:18into the delivery of this program or
- 1:30:22involving it in any way that's the
- 1:30:25question
- 1:30:25go ahead mrs kovitch all i can say
- 1:30:29is that esdc raised the issue
- 1:30:33we never discussed where the issue came
- 1:30:35from
- 1:30:36and that is it how many times did you
- 1:30:38discuss we with
- 1:30:40exempt staff in the government with
- 1:30:43exempt staff in the government i
- 1:30:46wouldn't know off the top of my head
- 1:30:49but leading up to the prime minister's
- 1:30:53announcement
- 1:30:54um i imagine there would be um
- 1:30:57a number of occasions where i would talk
- 1:31:00about
- 1:31:01uh the partnerships that we could enter
- 1:31:03into
- 1:31:04and how many uh roughly half a dozen
- 1:31:06times
- 1:31:09i don't know i can't i can't recall do
- 1:31:11you remember with whom you had
- 1:31:12you discussed we
- 1:31:16would have to well i would have i would
- 1:31:18very gladly turn over my emails
- 1:31:20and i could you know we could say very
- 1:31:22specifically with whom i was discussing
- 1:31:24i would like to make clear to the
- 1:31:25committee that the discussions were
- 1:31:28on a broad range ideas that's fine
- 1:31:32uh so uh did you ever discuss we
- 1:31:35with minister mourinho
- 1:31:39um yes most certainly uh of course the
- 1:31:42government dates
- 1:31:43on what dates just to give give uh
- 1:31:47she didn't answer the question to her
- 1:31:49question on what dates
- 1:31:51let her allow her to answer the
- 1:31:53questions uh
- 1:31:54miss kovich go ahead
- 1:31:58thank you um i can tell you that leading
- 1:32:00up to the prime minister's announcement
- 1:32:02on the 22nd
- 1:32:04there were three uh briefings of
- 1:32:06minister morneau the 14th
- 1:32:07the 18th and the 21st um
- 1:32:10at no point in any of these briefings
- 1:32:13did we talk about
- 1:32:14uh the idea or advice was given to
- 1:32:18um select we as a recipient for a third
- 1:32:21party so that never came up
- 1:32:23that wasn't my question my question was
- 1:32:26when last question pierre
- 1:32:27all right so uh the the question was
- 1:32:32again on what occasions did you discuss
- 1:32:35we with bill morneau what occasions
- 1:32:38that's all just those that specific
- 1:32:40question
- 1:32:42so only when i have a scheduled briefing
- 1:32:45um with the minister and i gave you the
- 1:32:47three um
- 1:32:48scheduled briefings the first one on the
- 1:32:5014th we were talking about the broad
- 1:32:53nine billion dollar package uh and
- 1:32:55absolutely not about we
- 1:32:57but on the 18th and the 21st there was a
- 1:33:01range of a grant a credit we talked
- 1:33:04about shopify
- 1:33:05ceridian uh in a verbal briefing um i
- 1:33:08certainly may have mentioned it in our
- 1:33:10actual analysis
- 1:33:11uh we do not talk about it except for
- 1:33:14what the minister did actually say
- 1:33:16and that is we attached the annex of the
- 1:33:18first proposal
- 1:33:20um that we received from we
- 1:33:23to a briefing note without any
- 1:33:25recommendation
- 1:33:26and without any analysis okay thank you
- 1:33:29uh thank you uh both
- 1:33:30uh then turning i believe we have miss
- 1:33:33zerowitz next and then mr forte is it mr
- 1:33:36forten you had your hand up
- 1:33:37earlier did you want to what were you
- 1:33:40going to say
- 1:33:44i can't
- 1:33:49you're not coming through to me somehow
- 1:33:58still not okay we'll go
- 1:34:01we'll go to missouri
- 1:34:22because we have to go to the ethics
- 1:34:24committee
- 1:34:25uh we will go a little bit uh
- 1:34:28beyond four because we're going to go
- 1:34:30with eight questioners
- 1:34:32uh at uh at four minutes uh each
- 1:34:36uh if we if we could so we'll go to ms
- 1:34:38sirowicz we'll definitely get to you
- 1:34:40next after miss zero it's neil of time
- 1:34:42to get to the committee
- 1:34:43mr sir
- 1:34:50julie are you there you're mike's mother
- 1:34:53sorry sorry i also do that sometimes
- 1:34:55thank you so much mr chair thank you uh
- 1:34:58miss kovacevic uh thank you for your
- 1:35:00testimony
- 1:35:01today and thanks for your extraordinary
- 1:35:03work there's a narrative and i think
- 1:35:05you're hearing some of the questions
- 1:35:07that um that uh
- 1:35:10it's believed that finance or someone at
- 1:35:13finance
- 1:35:14only suggested we and it was only the
- 1:35:16intention of our government to suggest
- 1:35:18we
- 1:35:19as the uh as the deliverer for the
- 1:35:21canada student service grant
- 1:35:24can you please for the record let us
- 1:35:27know
- 1:35:28whether uh whether it was you or
- 1:35:31whether is the team or officials at
- 1:35:33finance
- 1:35:34who only suggested we as the
- 1:35:38recommendation for the cssg
- 1:35:40or was we always considered with
- 1:35:43a whole number of other organizations
- 1:35:46initially
- 1:35:46so if you could just clarify that
- 1:35:48because that is kind of the implication
- 1:35:49of a lot of the questions here
- 1:35:53thank you for your question so um i can
- 1:35:56clearly say
- 1:35:57that um up to the april 22nd
- 1:36:01announcement the prime minister
- 1:36:02where we announced a set-aside of up to
- 1:36:05900 million dollars
- 1:36:06for a canada student service grant
- 1:36:10that there was no recommendation
- 1:36:13about we and no recommendation to enter
- 1:36:17into a third party in fact the
- 1:36:19recommendation or the
- 1:36:20follow-up was that the department of
- 1:36:22employment and social development
- 1:36:24would have to bring in a proposal with
- 1:36:27the advice on how to do this
- 1:36:28and with whom the final decision
- 1:36:33of course when the government announced
- 1:36:36that it would
- 1:36:37be entering into a contribution
- 1:36:39agreement with we
- 1:36:41we the department of finance uh
- 1:36:43recommended this advice to
- 1:36:45our minister and in our
- 1:36:48note uh we do say we note that
- 1:36:52the we charity organization we have been
- 1:36:56told
- 1:36:56is in fact the only organization
- 1:37:00that could stand up the proposal as is
- 1:37:02described
- 1:37:04with the um you know sort of the
- 1:37:06magnitude and the ambition
- 1:37:08and the volume of the service placements
- 1:37:10desired and
- 1:37:11most importantly in the time required
- 1:37:14um you'll recall that you know april
- 1:37:1722nd when the prime minister made the
- 1:37:18announcement
- 1:37:19very high level announcements still
- 1:37:21worked to be done by the department of
- 1:37:22esdc
- 1:37:23to figure out how to implement this and
- 1:37:26with whom
- 1:37:28you know university and college students
- 1:37:30were just about to finish their spring
- 1:37:31semester so there was
- 1:37:33uh real pressure to do things uh quickly
- 1:37:36and to get this off the ground thank you
- 1:37:40and um and do you know anything like
- 1:37:42what type of due diligence is
- 1:37:44done on um organizations in
- 1:37:48in a normal process so would that have
- 1:37:49been the responsibility of
- 1:37:52um finance to have done sort of the due
- 1:37:54diligence on
- 1:37:56third-party organizations before
- 1:37:58contracts are cyber would that have been
- 1:37:59the responsibility of whoever was
- 1:38:01responsible for the program
- 1:38:04thank you for the question well there's
- 1:38:06many kinds of due diligence and it's not
- 1:38:08for me
- 1:38:09to speculate on how well due diligence
- 1:38:11was executed
- 1:38:12what i can say is that the lead on
- 1:38:16the negotiation of the contribution
- 1:38:17agreement it's not the department of
- 1:38:19finance it in fact is the department of
- 1:38:20esdc
- 1:38:21so choosing the organization and
- 1:38:24anything
- 1:38:24you know the accountability is up to the
- 1:38:28department of esdc
- 1:38:29now the department of finance of course
- 1:38:32uh
- 1:38:32approved the 900 million dollar
- 1:38:34set-aside so
- 1:38:35we are we are looking at the fiscal
- 1:38:38framework and making sure that
- 1:38:41whatever esdc recommends and puts
- 1:38:43forward
- 1:38:45actually abides by and is in keeping
- 1:38:48with the broad parameters
- 1:38:49of what we put in the funding decision
- 1:38:52um
- 1:38:53you know to spend up to 900 million
- 1:38:55dollars we're going to have to end it
- 1:38:56there because mr forten
- 1:38:58hasn't got a lot of time mr fortan the
- 1:39:00floor is yours
- 1:39:01for four minutes
- 1:39:10uh
- 1:39:24is
- 1:39:38yes
- 1:39:44uh sure to best my recollection
- 1:39:48mr chair there was myself of course
- 1:39:52my associate deputy minister susie
- 1:39:54mcdonald
- 1:39:55uh rachel wernick um um
- 1:39:59who is the senior assistant deputy
- 1:40:01minister at esdc
- 1:40:02and she may have been joined by somebody
- 1:40:04but i have to check the record i'm not
- 1:40:21found is that possible
- 1:40:24it would be my pleasure sir and indeed
- 1:40:26um
- 1:40:27the committee has ordered um for us to
- 1:40:30produce uh
- 1:40:31all kinds of documentation which we are
- 1:40:33gathering and we will be submitting
- 1:40:47four or five
- 1:40:50no sorry sir i said that i can recollect
- 1:40:53for sure this is a teleconference at
- 1:40:55like 10 o'clock at night i think or late
- 1:40:57in the evening uh
- 1:40:58me susie and rachel for sure beyond that
- 1:41:02my recollection um
- 1:41:06how many people were with you one
- 1:41:10susie no susie rachel
- 1:41:24that's what i don't know this is a
- 1:41:26teleconference so i don't know if there
- 1:41:27was anybody else on the phone
- 1:41:29okay i don't i don't is
- 1:41:51to be more transparent in attributing
- 1:41:53the contract
- 1:41:57the decision to choose we
- 1:42:01and to enter into a contribution
- 1:42:02agreement whether sole source
- 1:42:05or open tender was a recommendation put
- 1:42:08forward by minister chagar
- 1:42:11the department of finance considers that
- 1:42:14proposal
- 1:42:15and made our recommendation which was
- 1:42:17favorable
- 1:42:18at no time would i have been in in a
- 1:42:20discussion
- 1:42:21at all negotiating this contribution
- 1:42:24agreement that is solely
- 1:42:26uh the responsibility of the department
- 1:42:28of esd
- 1:42:30yes
- 1:42:40uh
- 1:42:53i don't recall exactly what was
- 1:42:55discussed but i
- 1:42:56i can say that we were in agreement with
- 1:42:59the proposal is put forward
- 1:43:01recognizing all the work and policy that
- 1:43:04we had done
- 1:43:04upstream in terms of the capacity and
- 1:43:07the timing for delivery
- 1:43:09and we were in agreement and fully
- 1:43:11supportive of the
- 1:43:12proposal as it was put forward thank you
- 1:43:15uh
- 1:43:15thank you both uh all the best at your
- 1:43:17next committee mr forte
- 1:43:19uh go on the list uh mr
- 1:43:23uh angus uh we'll go with a four minute
- 1:43:26round and then after you mr cooper
- 1:43:30mr angus well thank you so much and
- 1:43:32thank you
- 1:43:33so much for participating in our
- 1:43:35hearings um
- 1:43:37who was the the key point person for we
- 1:43:40when you discussed the proposal
- 1:43:44the key point person where in the
- 1:43:47department of finance
- 1:43:49per week well
- 1:43:52discussions with we who was the point
- 1:43:54person that you discussed with
- 1:43:56so i only had one discussion with we
- 1:43:59uh on april the 24th and this is a
- 1:44:02discussion
- 1:44:03um but there was a proposal
- 1:44:08back around april 7th april 9th that was
- 1:44:10circulating and it was a different
- 1:44:12proposal
- 1:44:13and then we uh changed their proposal to
- 1:44:16meet the guidelines
- 1:44:17so who in your department spoke with
- 1:44:20like someone was speaking with we they
- 1:44:23weren't coming up with this
- 1:44:24from the ouija board so who was the
- 1:44:26person that we that was the point person
- 1:44:29pardon me i understand your question now
- 1:44:31so i can tell you that on april 20th
- 1:44:34my minister's office amit singh
- 1:44:38had connected with somebody at wii i'm
- 1:44:42not sure who
- 1:44:43and they were talking about volunteer
- 1:44:45opportunities and that is the part that
- 1:44:47i read in my opening statement
- 1:44:49but they enhancing from 8 000 to double
- 1:44:53charlie move the microphone a little
- 1:44:54closer to your mouth too please
- 1:44:56okay i will there boss i guess what i'm
- 1:44:59finding really surprising here is we
- 1:45:01have a proposal
- 1:45:02and it's not the the real the one that
- 1:45:05the government needs but then
- 1:45:07another proposal gets written that's
- 1:45:08much more close
- 1:45:11there had to be negotiations back and
- 1:45:12forth with we
- 1:45:14to in order to make this thing credible
- 1:45:16or was this just done on the back of a
- 1:45:18napkin was there work done
- 1:45:19so that this proposal the second
- 1:45:21proposal
- 1:45:22met the requirements so that you could
- 1:45:25then go and and say this is as close as
- 1:45:27we can get this is a group that can do
- 1:45:28it so
- 1:45:30who was that point person so i can't
- 1:45:33speculate and i don't know
- 1:45:34who would have been talking to we if
- 1:45:36anybody it certainly was not
- 1:45:38uh certainly not me or the department of
- 1:45:41finance officials
- 1:45:42um i would i would clarify for the
- 1:45:44committee that
- 1:45:46this second proposal which was building
- 1:45:48on the first one
- 1:45:49which in in addition to social
- 1:45:51entrepreneurship and business service
- 1:45:53placements
- 1:45:54there was a service placement stream so
- 1:45:56covered
- 1:45:57the arts um that is still uh not
- 1:46:01the ultimate proposal in what the
- 1:46:03government agreed to do
- 1:46:04third party administrator okay so how
- 1:46:07many other proposals
- 1:46:09were we were brought forward by
- 1:46:10charities in between
- 1:46:12the first proposal by we and the second
- 1:46:14how many other
- 1:46:16proposals came across the desk at
- 1:46:18finance from
- 1:46:19other groups so
- 1:46:22the proposals that came to me uh none of
- 1:46:26these actually came to me
- 1:46:27i am aware that there was a proposal
- 1:46:30from u15
- 1:46:31with respect to universities you'll
- 1:46:32recall this is an entire student package
- 1:46:35not just a student no no but for this
- 1:46:37specific plan
- 1:46:38it seems odd that there's an original
- 1:46:40proposal it's not the same thing
- 1:46:42at all but then it begins a series of
- 1:46:44discussions and then a second proposal
- 1:46:46comes forward
- 1:46:48and that's very close and then we
- 1:46:49becomes the only group
- 1:46:51um like i i mean you guys don't do
- 1:46:54things on the fly we're talking about
- 1:46:56900 million dollars there had to be
- 1:46:58either a number of other proposals you
- 1:47:00looked at there had to be serious
- 1:47:01negotiations you were involved in
- 1:47:03um were there other proposals on the
- 1:47:06table besides we
- 1:47:07for this specific kind of program did
- 1:47:10you check other groups to say what could
- 1:47:11you deliver and how fast could you turn
- 1:47:13it around
- 1:47:14so what i could say sir is that um the
- 1:47:17pm's announcement on april 22nd was high
- 1:47:20level there was
- 1:47:21no identification of a party it was just
- 1:47:23a set-aside
- 1:47:25and esdc then was is and did
- 1:47:28follow up with respect to how how to
- 1:47:31deliver this and with whom
- 1:47:32so it would be uh esdc who would make
- 1:47:35the determination
- 1:47:36if i guess the issue and i got it
- 1:47:40here but it's it this program seems
- 1:47:43tailor made for we
- 1:47:45we've been involved in discussions
- 1:47:47politically exempt staff are involved
- 1:47:49you haven't named who they are
- 1:47:50the question we're asking and we're not
- 1:47:52blaming you but we're asked talking
- 1:47:54about your higher-ups
- 1:47:55was we given the inside track and we
- 1:47:57haven't seen anything that tells us
- 1:47:59that between the first and the second
- 1:48:01proposal
- 1:48:02that there was a whole bunch of other
- 1:48:04proposals on the table
- 1:48:05what we've seen is between the first and
- 1:48:07second proposals that we
- 1:48:08were certainly able to really refine
- 1:48:11their position so that when rachel
- 1:48:12werner called them
- 1:48:13they had all the right answers so i need
- 1:48:15to know who we was involved in the
- 1:48:17discussions and how much discussions
- 1:48:19went back and forth so that that second
- 1:48:21proposal was a lot closer
- 1:48:22to what you guys agreed to and that's
- 1:48:24the answer i'm not hearing
- 1:48:27i can only tell oh thank you i can only
- 1:48:30tell you the facts as i understand them
- 1:48:31and know them
- 1:48:32and that is that on april 20th there was
- 1:48:34one um
- 1:48:35one conversation between my minister's
- 1:48:37office and we which i have
- 1:48:39already discussed and outside of that
- 1:48:41other than my own conversation with
- 1:48:43rachel
- 1:48:44and we on the 24th i am unaware of any
- 1:48:47other
- 1:48:47um contact at all and i can't speak to
- 1:48:50that okay
- 1:48:50okay uh thank you uh we will uh
- 1:48:54go to the last round four minutes a
- 1:48:56piece
- 1:48:57uh the lineup will be mr cooper mr
- 1:48:59fragis goddess mr morantz and
- 1:49:02and miss kotrakus mr cooper okay
- 1:49:06uh thank you uh mr chair i want to thank
- 1:49:08uh the witness i want to just
- 1:49:10get a better understanding of
- 1:49:13how we came up you had mentioned as i
- 1:49:18understood your
- 1:49:19timeline that the possibility of
- 1:49:23we came up in an email discussion
- 1:49:26on april 16th from esdc
- 1:49:30am i right you are correct
- 1:49:33and who raised that
- 1:49:37from esdc
- 1:49:40that would have been my colleague rachel
- 1:49:42wernick
- 1:49:44rachel wernick and prior to that time
- 1:49:46you had never
- 1:49:47heard anyone bring up we
- 1:49:50other than on april 9th when you said
- 1:49:54there was
- 1:49:54some stakeholder feedback in which 12
- 1:49:58charities were identified is that
- 1:50:01correct
- 1:50:02that's correct april 16th according to
- 1:50:04my records is the first time that we
- 1:50:07enters into a broad-ranging discussion
- 1:50:11uh we have not even uh settled on a
- 1:50:13grant we are talking about
- 1:50:15tuition credit fine fine i i got that
- 1:50:19but on april the 9th
- 1:50:23during that the same day as the
- 1:50:26stakeholder
- 1:50:27feedback session we submits a proposal
- 1:50:30is that right
- 1:50:32well i became aware of that proposal on
- 1:50:35april 19th
- 1:50:36when esdc that's not my question my
- 1:50:39question is
- 1:50:40the there was a proposal from we
- 1:50:42submitted on that date april 9
- 1:50:45right yes and who was it sent
- 1:50:48from i don't have anything
- 1:50:52to find out what do you undertake to
- 1:50:54find out
- 1:50:55i can do my best to do that sir all i
- 1:50:57can say is that
- 1:50:58i received no that's fine i understand
- 1:51:00that who was it sent to
- 1:51:02i presume you don't know that either i
- 1:51:04don't but it was sent
- 1:51:06to finance the ministers
- 1:51:11that's right the minister said that
- 1:51:12himself
- 1:51:14were you aware of any other proposals
- 1:51:16that had been submitted on april 9
- 1:51:18prior to that i am not aware of any sir
- 1:51:21you're not aware of any
- 1:51:22okay so we have this proposal
- 1:51:26from we and uh now
- 1:51:29uh in terms of um what happened after
- 1:51:34that you briefed
- 1:51:35the actually maybe backtracking a little
- 1:51:37bit you talked about
- 1:51:39the fact that you considered a number of
- 1:51:41organizations this is before
- 1:51:43april 9th in in broad terms
- 1:51:47of potentially administering some sort
- 1:51:50of student program
- 1:51:51correct uh april 6th
- 1:51:54uh 7th 8th the very early days i get
- 1:51:57that thank you thank you for that
- 1:51:59will allow and allow the adm to answer
- 1:52:02that uh
- 1:52:03mr cooper go ahead uh miss kobich
- 1:52:06so the records will show that those
- 1:52:08early days uh
- 1:52:10were about describing an entire frame
- 1:52:12for the student package which turned out
- 1:52:14to be the 9 billion dollars
- 1:52:15thank you for that now you had mentioned
- 1:52:17a series of organizations one of which
- 1:52:19was
- 1:52:20volunteer canada now president of
- 1:52:22volunteer canada
- 1:52:23came here before the committee and
- 1:52:27said that they had never been approached
- 1:52:31by your department by any
- 1:52:34department regarding a student package
- 1:52:38and when i asked the president of
- 1:52:41volunteer canada to explain
- 1:52:44ms wernick's testimony namely that
- 1:52:47volunteer canada had been considered she
- 1:52:49was unable to explain
- 1:52:51how possibly volunteer canada could have
- 1:52:53been considered when they never even
- 1:52:54were contacted
- 1:52:55how do you explain that that'll be the
- 1:52:57last question
- 1:52:58sure thank you for the question so all
- 1:53:01those companies that i mentioned
- 1:53:02in my organizations that i mentioned in
- 1:53:04my opening statement
- 1:53:06this is all a part of the broad ideas
- 1:53:08that we are considering
- 1:53:10leading up to the april 22nd
- 1:53:12announcement and decision by the
- 1:53:14government
- 1:53:14to the only organization
- 1:53:18mr mr cooper the the adm has the floor
- 1:53:22go ahead mr kobovich thank you leading
- 1:53:25up to the
- 1:53:26uh april 22nd announcement in fact the
- 1:53:28department of finance had not contacted
- 1:53:30any of those on any of those
- 1:53:32organizations including we
- 1:53:34the officials had not contacted and they
- 1:53:36never did call a volunteer camp i'm so
- 1:53:38i'm
- 1:53:38i'm you're at a time mr cooper
- 1:53:42uh okay we'll go to mr fragis goddess
- 1:53:45i'm not sure whether it's going to be mr
- 1:53:46marantz or mr
- 1:53:48uh they'll have to let me know
- 1:53:50when we get there
- 1:53:51and uh and we'll conclude with uh
- 1:53:54miss kutrakus uh peter
- 1:53:58thank you mr chair uh thank you for
- 1:54:00being here ms kovachevic
- 1:54:01and for your outstanding work in
- 1:54:05this entire experience you and so many
- 1:54:07other public servants have
- 1:54:08really gone to bat for the entire
- 1:54:10country i'm sure spending
- 1:54:12a lot of time away from loved ones from
- 1:54:14uh family members
- 1:54:16specifically and and others as well so
- 1:54:18thank you for your contributions
- 1:54:19my question relates to contribution
- 1:54:22agreements
- 1:54:24that that go ahead we've heard
- 1:54:27at the committee before that we had
- 1:54:31quite an extensive network connected to
- 1:54:35000 schools connected to 2.4 million
- 1:54:38students
- 1:54:39one of the reasons that they were chosen
- 1:54:41was because
- 1:54:42of that extensive reach that they had
- 1:54:45we've worked as a government
- 1:54:47as well with the united way with food
- 1:54:49banks canada always on the premise it
- 1:54:51seems
- 1:54:52that the network and reach of a
- 1:54:54particular
- 1:54:55entity qualifies it to be
- 1:54:58the to take the lead in a contribution
- 1:55:01agreement
- 1:55:02is that in fact the case in your
- 1:55:03experience are you in a position to
- 1:55:05speak to that
- 1:55:06is is that one of the key criteria the
- 1:55:08the ability of an organization
- 1:55:10to to reach many different entities
- 1:55:13uh and help the government deliver vital
- 1:55:16programming and services
- 1:55:20that's a pretty broad question thank you
- 1:55:21for it um
- 1:55:23i'm not sure i can generalize i think in
- 1:55:26some cases that may be the case but what
- 1:55:28i can say with respect to the decision
- 1:55:30by the government to enter into
- 1:55:32a contribution agreement with we in fact
- 1:55:35the capacity to reach
- 1:55:38students wherever they were in canada
- 1:55:40was certainly
- 1:55:42you know foremost in our mind being able
- 1:55:44to ramp up quickly
- 1:55:46being able to support not just students
- 1:55:48um you know volunteer matching isn't
- 1:55:50you know a hot dog stand outside a
- 1:55:52hocking arena that needs to be
- 1:55:53structured you need to be supportive
- 1:55:56but also the the not-for-profit and
- 1:55:58charity sector who would be
- 1:56:00offering volunteer placements who they
- 1:56:02themselves were in the middle of a
- 1:56:03pandemic
- 1:56:05facing financial issues many of them and
- 1:56:08more importantly what a typical
- 1:56:11volunteer experience was given the
- 1:56:13social distancing
- 1:56:15scenario in the middle of the pandemic
- 1:56:17made the whole thing very precarious and
- 1:56:19so there were not a lot of organizations
- 1:56:21quite frankly
- 1:56:22in our estimation that could could cough
- 1:56:26up
- 1:56:27all these criteria and all these skills
- 1:56:30in the short order and the enormously
- 1:56:32aggressive timeline in which we were
- 1:56:34working
- 1:56:35was there an organization that was
- 1:56:36comparable or
- 1:56:38was did we have the sort of reach that
- 1:56:41that just you know put set it aside as
- 1:56:44as
- 1:56:45the organization i mean as i said before
- 1:56:47the numbers we've heard are
- 1:56:49almost two and a half million students
- 1:56:51seven thousand schools
- 1:56:53uh was there another organization that
- 1:56:55rivaled that
- 1:56:56at all or or did we really have that
- 1:56:59ability uh unique unto itself
- 1:57:01to my knowledge i don't think i can i
- 1:57:04can answer that because i'm not an
- 1:57:05expert in social policy
- 1:57:07uh necessarily i'm in the department of
- 1:57:10finance
- 1:57:11but from what we understood from our
- 1:57:13colleagues at esdc
- 1:57:14they were the best placed um given um
- 1:57:18given everything that was to be expected
- 1:57:19and the ambition of the government
- 1:57:21last question peter sure i've asked this
- 1:57:24question before but i think it's
- 1:57:26worth raising one more time when the
- 1:57:29consideration was being taken as to who
- 1:57:31could best deliver the canada student
- 1:57:33service grant
- 1:57:34some have posed the the canada
- 1:57:38service corps should have been chosen uh
- 1:57:41why not the canada service corps uh ms
- 1:57:44kobachevik what
- 1:57:45uh what was it uh about them that uh
- 1:57:48that prevented that from from going
- 1:57:50ahead
- 1:57:52that option going ahead yes thank you
- 1:57:54for that question
- 1:57:55in fact uh the records will show that
- 1:57:57the canada service corps
- 1:57:59was in fact the place where esdc started
- 1:58:01and they actually submitted a proposal
- 1:58:03to us
- 1:58:04to ramp up um its uh its capacity to
- 1:58:07offer microgrants
- 1:58:08uh and in fact uh there was one initial
- 1:58:11proposal where they ramped up to seven
- 1:58:13thousand
- 1:58:13and there will be a record of me saying
- 1:58:15that isn't that's too modest
- 1:58:16and then they came back with a second
- 1:58:18proposal of 15 000.
- 1:58:20i know that esdc also looked at the
- 1:58:22administrator taking it global
- 1:58:24to see if it had uh you know two-factor
- 1:58:28authentication if it had you know
- 1:58:29sophisticated ways to volunteer match
- 1:58:31and whether um whether you know in
- 1:58:33partnership with esdc that
- 1:58:35this is something we could leverage in
- 1:58:37the end uh
- 1:58:39the capacity obviously was funded for
- 1:58:41for canada service corps
- 1:58:42but that was sort of the maximum and the
- 1:58:44ambition
- 1:58:45and the need was still greater than what
- 1:58:47the canada service corps
- 1:58:48in our estimation and in esdc's
- 1:58:50estimation could deliver okay
- 1:58:52thank you uh thank you both are we going
- 1:58:54to you mr
- 1:58:56uh we going to from the conservative
- 1:58:58camp mr
- 1:58:59or mr marantz oh you're going to me okay
- 1:59:02thank you good thank you
- 1:59:03sir when you start to get into your more
- 1:59:06detailed discussions about
- 1:59:08we it sounds like it was on around the
- 1:59:1020th
- 1:59:1122nd who and you said they were looking
- 1:59:15at capacity
- 1:59:16so who is looking at the capacity of
- 1:59:19this organization
- 1:59:20their financial capacity their their
- 1:59:23ability to deliver
- 1:59:24more than just statements from them
- 1:59:27about their reach
- 1:59:28reaches you know it could be facebook
- 1:59:31likes it could be their social media
- 1:59:33exposure but that doesn't necessarily
- 1:59:35deal with capacity
- 1:59:37so who was looking at their actual
- 1:59:39physical capacity
- 1:59:40because it sounds like they had to hire
- 1:59:42a raft of people before the contract or
- 1:59:44the contribution agreement was even
- 1:59:46signed
- 1:59:47and they've had to since lay them off so
- 1:59:49was that your department or was that
- 1:59:50esdc
- 1:59:53so that that is not that is not my
- 1:59:56department
- 1:59:57you'll recall that leading up to the
- 1:59:59prime minister's announcement there was
- 2:00:00no decision
- 2:00:02on a third party administer and so any
- 2:00:05discussion that happened with we
- 2:00:07was it was potential it's can you do
- 2:00:09social mobilization can you do a public
- 2:00:11awareness campaign can you be a partner
- 2:00:13in volunteer matching
- 2:00:14um as uh as the announcement was made
- 2:00:18the high level announcement for
- 2:00:19up to 900 million on the 22nd
- 2:00:22effectively the baton
- 2:00:23gets tossed from finance department to
- 2:00:26esdc
- 2:00:27and it is now esdc who was responsible
- 2:00:30to develop
- 2:00:31a proposal for consideration of cabinet
- 2:00:34on how to
- 2:00:36meet the criteria for a canada student
- 2:00:38services grant so
- 2:00:40the the further questions as you have
- 2:00:44asked would be carried out
- 2:00:46on the second end the latter end as
- 2:00:48opposed to the front end when it was
- 2:00:50more
- 2:00:51policy elucidation deliberation and what
- 2:00:53we were really trying to do is make sure
- 2:00:55that there were credible organizations
- 2:00:58not just we anything so that when the
- 2:01:01prime minister announced the canada
- 2:01:02student service grant
- 2:01:04we could with some assuredness say there
- 2:01:06are options that we can deliver on
- 2:01:08whatever those options may be esdc will
- 2:01:11have to elucidate and determine
- 2:01:13and recommend um there will be options
- 2:01:15so that we can deliver these grants to
- 2:01:17students
- 2:01:18who needed them within weeks the
- 2:01:21ambition of the government was initially
- 2:01:23for a may launch
- 2:01:25understand all that but it to me it
- 2:01:28strikes me
- 2:01:29it's finance you're you're you're
- 2:01:32sending out a program that is 900
- 2:01:34million dollars
- 2:01:36surely someone in your department if
- 2:01:38you're going to sign a contribution
- 2:01:39agreement even at csdc
- 2:01:41who takes responsibility to making sure
- 2:01:45that that the organization that you're
- 2:01:47going to sign a contribution agreement
- 2:01:49has
- 2:01:49the financial wherewithal the proper
- 2:01:52governance
- 2:01:53everything that you would expect to
- 2:01:55taking public sector
- 2:01:57dollars to execute the program i i i
- 2:02:00there must be somebody whether it's estc
- 2:02:02but surely finance must have a role in
- 2:02:04that
- 2:02:06go ahead ma'am oh i was just going to
- 2:02:09say
- 2:02:09thank you i was just going to say that
- 2:02:11you know again
- 2:02:12i repeat that there was no
- 2:02:14recommendation on who to deliver
- 2:02:16uh up to the 22nd when the funding
- 2:02:19decision and the decision of the
- 2:02:20government
- 2:02:20is made and so after that it really
- 2:02:23really is
- 2:02:24uh the department of esdc to negotiate
- 2:02:27the contribution agreement
- 2:02:28and all the trappings that come with it
- 2:02:31in terms of
- 2:02:32being satisfied that uh everything is in
- 2:02:35order
- 2:02:36last question james
- 2:02:39if if this was within your department so
- 2:02:41let's say you were the approving
- 2:02:43department the process that you go
- 2:02:44through
- 2:02:45in the administration would you delve
- 2:02:48into
- 2:02:48uh capacity financial capacity
- 2:02:51governance like
- 2:02:52what level of due diligence would you do
- 2:02:54within your department if you were
- 2:02:56charged with it
- 2:02:58um so i mean i can't i can't speculate
- 2:03:01on what i would have done or what i
- 2:03:02might do but i certainly what would be
- 2:03:04your normal practice what would your be
- 2:03:05your normal practice
- 2:03:07for this side of that agreement
- 2:03:10i imagine it would be very similar to
- 2:03:12the practice that my colleagues have
- 2:03:13already used dc
- 2:03:14exercised and it's you know there are
- 2:03:16terms and conditions that guide
- 2:03:18um entering into contribution agreements
- 2:03:21and and we would follow them
- 2:03:23in the same fashion okay uh miss
- 2:03:26cutrakas you'll have to wrap it up uh
- 2:03:28any
- 2:03:30thank you mr chair thank you for your
- 2:03:32testimony uh ms
- 2:03:34kovachevitz i hope i pronounced your
- 2:03:36name uh correctly
- 2:03:38and for appearing before the finance
- 2:03:40committee today
- 2:03:41and for your testimony and i also want
- 2:03:43to
- 2:03:44echo and add my voice to thank you for
- 2:03:47the great work that you and your
- 2:03:48department have done
- 2:03:50with all the work that you have done we
- 2:03:53have helped millions of canadians and
- 2:03:54hundreds of thousands of canadian
- 2:03:56businesses
- 2:03:57and we've helped our economy from a deep
- 2:04:00recession
- 2:04:01and possibly in a very incredibly short
- 2:04:04time and
- 2:04:05possibly worse than a recession um
- 2:04:09you probably have said this before but i
- 2:04:12think it's worth mentioning again so i
- 2:04:14will raise it again
- 2:04:15um could you please walk us through the
- 2:04:17process of how typically the various
- 2:04:20programs
- 2:04:20arising from the pandemic making up the
- 2:04:23canada
- 2:04:24emergency response plan or program
- 2:04:27were put together and got through the
- 2:04:29idea generation
- 2:04:30analysis and decision making process
- 2:04:34and in cases of working with third
- 2:04:36parties such as we
- 2:04:38was the process significantly different
- 2:04:41and if it was
- 2:04:43why and how
- 2:04:46thank you for the question i mean i
- 2:04:48guess i would start by saying
- 2:04:50the department of finance and myself in
- 2:04:53the current situation that we're
- 2:04:55describing i'm
- 2:04:56not involved the department of finance
- 2:04:58is not involved in negotiating the
- 2:05:00agreement
- 2:05:01and we're not involved in notioning the
- 2:05:02agreement with um
- 2:05:04with with we charity so those uh
- 2:05:07questions uh are are questions for
- 2:05:10uh esdc and and not for finance
- 2:05:13in terms of the process thank you for
- 2:05:15that question
- 2:05:16uh yes this has been a um
- 2:05:20wow a whirlwind over the last couple of
- 2:05:22months in terms of the number of
- 2:05:23programs we've put in place
- 2:05:24as assistant deputy minister for social
- 2:05:26policy i have been involved in you know
- 2:05:29in the serb in the student package
- 2:05:31persons with disabilities indigenous you
- 2:05:34know essential
- 2:05:35workers wage top up it's been very very
- 2:05:38busy given the time given the
- 2:05:40unprecedented
- 2:05:42you know sort of circumstances canada
- 2:05:44and the world has found itself in
- 2:05:46it is not unusual and it is not even
- 2:05:48unusual before covert times for there to
- 2:05:50be
- 2:05:51upstream policy deliberation um you know
- 2:05:54the government says we want to do
- 2:05:55something or you know we have money or
- 2:05:58there's a real need that people need
- 2:06:00something
- 2:06:00so we work with esdc with my minister's
- 2:06:03office
- 2:06:03how can you know what are the real needs
- 2:06:05who should we talk to what can we put in
- 2:06:07place
- 2:06:08and quite frankly almost everything in
- 2:06:10my purview in the social policy
- 2:06:12realm um kind of worked that way there's
- 2:06:14a lot of
- 2:06:16massive amounts of discussions and
- 2:06:17emails ideas
- 2:06:19fecund ideas kind of rolling off the
- 2:06:21tongue
- 2:06:22trying to land on what ultimately will
- 2:06:25be the best
- 2:06:26best program service or support to put
- 2:06:28in place to help
- 2:06:30canadians who needed it during the
- 2:06:31pandemic and
- 2:06:34how would you say you and your
- 2:06:35department were feeling during these
- 2:06:37times i know for
- 2:06:38many of us for myself i can only speak
- 2:06:41for myself but these are unprecedented
- 2:06:43times this is the first time that i've
- 2:06:45had to
- 2:06:46primarily work from home it's been quite
- 2:06:48stressful we all have families we all
- 2:06:51have
- 2:06:51you know uh we need to be careful and
- 2:06:54take care of our own health
- 2:06:56what would you say was the environment
- 2:06:58how was the morale of
- 2:06:59of your department and other departments
- 2:07:01that were working
- 2:07:02on this to make sure that we deliver the
- 2:07:05programs
- 2:07:06that canadians uh look to us for
- 2:07:09and especially the youth
- 2:07:12thank you for that question i guess i
- 2:07:14really i can't you know i can't
- 2:07:15speculate on how other people in other
- 2:07:17departments were feeling
- 2:07:19but um you know we are the public
- 2:07:20service we stand here to execute the
- 2:07:22will of the government and to help
- 2:07:24canadians who needed help
- 2:07:25we do it proudly and we do it fairly we
- 2:07:28provide our advice independently
- 2:07:31but right now i would tell you i'm tired
- 2:07:35okay we will have to end it at that
- 2:07:38thank you uh miss katraka as we're
- 2:07:40starting to run up against uh
- 2:07:43giving uh parliamentary staff time to
- 2:07:45clean up the the room before the next
- 2:07:47panel starts uh uh i just should mention
- 2:07:51to committee before i release meskovic
- 2:07:55the
- 2:07:56the prime minister has accepted the
- 2:07:58invitation to appear at the finance
- 2:08:00committee
- 2:08:01uh arrangements will be made regarding
- 2:08:04that date and time i think we'd re
- 2:08:08asked him uh for the 28th
- 2:08:12uh but i'm sure we'd all be in agreement
- 2:08:14that uh giving his schedule that
- 2:08:17uh that uh the clerk will have to
- 2:08:20uh negotiate a time and place we still
- 2:08:22will be meeting on the 28th there is
- 2:08:25already uh
- 2:08:26witnesses uh scheduled uh for that day
- 2:08:29so that's for the committee
- 2:08:30invitation uh uh point of order mr
- 2:08:34chair yeah who is that coming from early
- 2:08:37angus
- 2:08:38okay just quickly i'm wondering because
- 2:08:40we have uh
- 2:08:42representatives from we coming next week
- 2:08:44we're talking about the agreement but we
- 2:08:46don't really know what it looks like is
- 2:08:47it possible we can get the contribution
- 2:08:49agreement
- 2:08:50so we're just more efficient when we're
- 2:08:52meeting because it's hard to talk around
- 2:08:54something unless you know exactly what
- 2:08:56the terms are
- 2:08:57uh well we can
- 2:09:00we can certainly make a request to the
- 2:09:03clerk of the uh
- 2:09:04privy council he was at the meeting the
- 2:09:06other day and i think he said he would
- 2:09:08provide that to us
- 2:09:09uh and so i will ask the clerk to
- 2:09:14quickly draft a little note to the clerk
- 2:09:16of the privy council to see if we can
- 2:09:18get that contribution agreement before
- 2:09:21uh we appears thank you i will ask the
- 2:09:24clerk on behalf of the committee to do
- 2:09:25that uh miss
- 2:09:27kobovich i think you said that
- 2:09:30it right you said it's been a whirlwind
- 2:09:33uh
- 2:09:33three months uh and
- 2:09:37we've said it numerous times at this
- 2:09:40committee
- 2:09:40we do i know today's today's hearings
- 2:09:44and these hearings
- 2:09:46sometimes don't look appreciative of the
- 2:09:49of the work that you all do but i want
- 2:09:50to tell you that we are
- 2:09:52very appreciative as canadians as
- 2:09:55members of parliament
- 2:09:57uh on the work that the the public
- 2:09:59service
- 2:10:00does we always run into some snags in
- 2:10:02the road but that goes with the process
- 2:10:04so
- 2:10:05uh on behalf of the the committee i
- 2:10:08sincerely want to thank you for
- 2:10:09appearing here today uh but even more so
- 2:10:13you and your colleagues for all the work
- 2:10:15that you've done the long hours you put
- 2:10:17in the time away from family
- 2:10:19different working conditions etc etc etc
- 2:10:23uh that you guys that you folks have
- 2:10:25faced
- 2:10:26uh in order to put out the programming
- 2:10:28to benefit canadians in canadian
- 2:10:30business so we want to thank
- 2:10:32you for that and your colleagues as well
- 2:10:35uh with that
- 2:10:35uh you're welcome and uh do take care
- 2:10:39uh so with that we will uh adjourn the
- 2:10:42meeting and we will see
- 2:10:43uh everyone on tuesday and we'll send
- 2:10:45that note to the uh
- 2:10:46to the clerk thank you all meeting
- 2:10:54adjourned
- 2:10:56[Music]
- 2:11:15you
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