Farm Credit Canada CEO Justine Hendricks approved a $44,521 cocktail reception for directors at a Québec City hotel after the federal government ordered departments and Crown corporations to reduce travel spending, according to Access to Information records.Blacklock's Reporter says the October 2023 event included $506-per-night hotel rooms, 19 bottles of wine, Bombay gin and $1,368 worth of canapés for 10 directors and 15 staff and consultants. The total did not include airfare, including Hendricks' $1,809 business-class flight.The gathering took place months after the March 28, 2023 federal budget directed departments and Crown corporations to reduce travel spending by 15%.At the time, then-finance minister Chrystia Freeland said the savings were achievable and necessary to ensure the government remained fiscally responsible.Despite that directive, Hendricks later told employees there were no plans to reduce her travel.“If you’re asking me, ‘Justine, is there a plan to cut travel?’ No,” Hendricks said during a Nov. 19 staff videoconference.She also told employees she had been asked to help explain her travel to the federal government, Farm Credit Canada's sole shareholder.“One of the first things I would often hear is, ‘Oh, okay, Justine, I hear you live in Ottawa but you’re going to travel a lot, like, can you help us in terms of conveying our message when we’re talking to the shareholder?’” Hendricks said. “And I said, ‘Oh, yes, sure, no problem.’ That’s definitely something I’m going to do.”.Hendricks acknowledged that a previous directive had required Farm Credit Canada and other federal organizations to reduce travel.“A couple of years back we had a specific directive that asked us to reduce travel across Farm Credit Canada, but it wasn’t just Farm Credit Canada,” she told staff. “It was across all departments.”Financial records show the Crown corporation reduced overall employee travel spending by 24% that year, from $9,399,592 to $7,189,533.However, Hendricks' own expenses did not decline.Audit committee reports indicate her annual expenses climbed to the equivalent of $141,000 — roughly four times those of her predecessor — in addition to her annual salary of $458,000.Internal emails also show Farm Credit Canada's finance staff questioned some of the hospitality expenses associated with the Québec City event.In an Oct. 23 email, Hendricks' assistant defended charges for alcohol.“I wanted to provide a bit of context around the alcohol expenses as I know these can sometimes prompt questions,” the email said.The assistant noted that Farm Credit Canada's impairment policy and hospitality guidelines allow alcohol to be reimbursed in moderation at approved events, including internal functions, board dinners and Christmas parties, provided safeguards are in place.At the same time, internal guidance from Farm Credit Canada managers urged employees to limit travel and hospitality costs.Managers advised staff to “consider options to avoid or minimize travel, meeting, event and hospitality costs” and reminded executives submitting expense claims to ensure spending was cost-effective and able to withstand public, media and stakeholder scrutiny.
