The department of Industry revealed that less than half of the billions of dollars paid under a corporate subsidy program will be recouped. . Navdeep Bains – Wikipedia .The Strategic Innovation Fund, which started six years ago by former Industry Minister Navdeep Bains, was based on a misleading assumption that it would generate 56,000 jobs..In a submission to the Senate National Finance committee, the Industry department disclosed that most funds spent under the program were categorized as non-repayable, amounting to less than half of the total expenditure..“To date of the total Strategic Innovation Fund investments, approximately 40% are repayable and nearly 60% are non-repayable,” said the Industry department..According to Blacklock’s Reporter, the figures showed a disproportionate amount of funding went to Québec..“Of the 110 agreements so far, the Fund is supporting 31 projects in Québec, over a quarter of the program’s portfolio,” wrote the Industry department. .“Investments have been directed to key sectors such as aerospace where funding is aiding recovery.”.The submission was made in response to inquiries during a committee hearing held on April 25..“Dividing up the funds among all the provinces and territories in Canada is a constant concern,” Jean-Philippe Lapointe, director general responsible for the Innovation Fund, told senators at the time..“As a rule, we only make contributions which may or not be repayable,” testified Lapointe. .“There can also be conditions as to the amounts to be repaid.”.“The terms are fairly flexible on the whole,” said Lapointe. .“I would say the non-repayable portion is based on the public benefit to the country.”.According to Lapointe, companies, including those who committed to loan repayment, could lower their payments if they successfully met climate change targets..“We concluded agreements on greenhouse gas reduction,” said Lapointe. .“The companies under contract that meet their targets will be eligible for a non-repayable contribution for a portion set out in the contracts.”.In 2017, the cabinet introduced the Strategic Innovation Fund, promising the creation of 56,000 jobs..“Putting Canada at the forefront of innovation will equip Canadians with in-demand skills they need for well-paying, middle-class jobs now and into the future,” Bains said at the time. .The Fund was “helping to create nearly 56,000 jobs,” the department said in a statement..Access to Information records uncovered that the figure had been made up..“Recipients are not required to report on the number of jobs,” said a 2019 memo. .A spokesperson for Bains attributed the false jobs claim to a typographical error..“The department made a mistake,” said Danielle Keenan, now-communications director for the Liberal Research Bureau..The 2020 Industrial and Technological Benefits Policy Evaluation Report from the department of Industry recognized that its job claims were based on guesswork..“While one can assume the policy led to economic activity in Canada, it is not known to what extent the Policy alone actually increased the economic activity in Canada,” said the Evaluation Report.
The department of Industry revealed that less than half of the billions of dollars paid under a corporate subsidy program will be recouped. . Navdeep Bains – Wikipedia .The Strategic Innovation Fund, which started six years ago by former Industry Minister Navdeep Bains, was based on a misleading assumption that it would generate 56,000 jobs..In a submission to the Senate National Finance committee, the Industry department disclosed that most funds spent under the program were categorized as non-repayable, amounting to less than half of the total expenditure..“To date of the total Strategic Innovation Fund investments, approximately 40% are repayable and nearly 60% are non-repayable,” said the Industry department..According to Blacklock’s Reporter, the figures showed a disproportionate amount of funding went to Québec..“Of the 110 agreements so far, the Fund is supporting 31 projects in Québec, over a quarter of the program’s portfolio,” wrote the Industry department. .“Investments have been directed to key sectors such as aerospace where funding is aiding recovery.”.The submission was made in response to inquiries during a committee hearing held on April 25..“Dividing up the funds among all the provinces and territories in Canada is a constant concern,” Jean-Philippe Lapointe, director general responsible for the Innovation Fund, told senators at the time..“As a rule, we only make contributions which may or not be repayable,” testified Lapointe. .“There can also be conditions as to the amounts to be repaid.”.“The terms are fairly flexible on the whole,” said Lapointe. .“I would say the non-repayable portion is based on the public benefit to the country.”.According to Lapointe, companies, including those who committed to loan repayment, could lower their payments if they successfully met climate change targets..“We concluded agreements on greenhouse gas reduction,” said Lapointe. .“The companies under contract that meet their targets will be eligible for a non-repayable contribution for a portion set out in the contracts.”.In 2017, the cabinet introduced the Strategic Innovation Fund, promising the creation of 56,000 jobs..“Putting Canada at the forefront of innovation will equip Canadians with in-demand skills they need for well-paying, middle-class jobs now and into the future,” Bains said at the time. .The Fund was “helping to create nearly 56,000 jobs,” the department said in a statement..Access to Information records uncovered that the figure had been made up..“Recipients are not required to report on the number of jobs,” said a 2019 memo. .A spokesperson for Bains attributed the false jobs claim to a typographical error..“The department made a mistake,” said Danielle Keenan, now-communications director for the Liberal Research Bureau..The 2020 Industrial and Technological Benefits Policy Evaluation Report from the department of Industry recognized that its job claims were based on guesswork..“While one can assume the policy led to economic activity in Canada, it is not known to what extent the Policy alone actually increased the economic activity in Canada,” said the Evaluation Report.
