Federal records have disclosed that the National Research Council has written down a substantial $12.7 million in subsidies provided to companies that have since declared bankruptcy, according to a recent inquiry tabled in the House of Commons. The figures, which cover the period since January 2022, were released following a request by Conservative MP Dane Lloyd, who sought transparency on grants and contributions to firms that have ceased operations.
Lack of Parliamentary Oversight in Grant Awards
The subsidies were distributed under the Industrial Research Assistance Program, which is designed to support research, development, adoption, or innovation within Canadian small and medium-sized enterprises. However, the council acknowledged in an Inquiry Of Ministry that these grants were awarded without any parliamentary oversight, raising concerns about accountability and the use of taxpayer funds.
Examples of Bankrupt Recipients
The write-downs encompass a diverse range of businesses across the country, highlighting the broad scope of the program's recipients. Notable cases include:
- An Alberta shrimp hatchery, Grand Rocky Shrimp Farm Inc. in Calgary, which received $63,000.
- A brewery in Prince Edward Island, Upstreet Craft Brewing in Charlottetown, which was awarded $45,695.
These examples underscore the variety of industries that benefited from the subsidies before facing financial insolvency.
Program Challenges and Staff Workload
During the pandemic, the National Research Council expanded its efforts by offering wage subsidies to companies engaged in research and development. This initiative allowed corporations to "stack" subsidies from other federal schemes, covering up to 100% of their payroll costs. However, this surge in activity placed significant strain on council staff.
Impact on Employee Well-being
A 2023 report titled "Evaluation Of The Innovation Assistance Program" detailed the challenges faced by employees. The document noted that delivering the program created unexpected work volumes, leading to overtime and compromising staff mental health, well-being, and work-life balance. The report emphasized that the absence of additional surge capacity exacerbated these issues, with employees complaining about the overwhelming workload.
MP Dane Lloyd, representing Parkland, Alberta, emphasized the importance of accountability in his inquiry, stating, "With regard to all grants and contributions provided by any department, agency or Crown corporation since January 1, 2022 to companies that have since ceased operations, what is the total amount?" This question prompted the tabling of the $12.7 million figure, shedding light on the financial implications of the subsidy program.
The revelation of these write-downs comes amid broader discussions about federal spending and oversight, particularly in the context of economic support measures implemented during the pandemic. As taxpayers assess the effectiveness of such programs, the lack of parliamentary scrutiny in grant awards remains a point of contention, prompting calls for enhanced transparency and accountability in future subsidy allocations.
