Study of the Auditor General's report on Sustainable Development Technology Canada (SDTC) – Briefing documents prepared for NRC President Mitch Davies
Table of contents
Opening remarks from President Mitch Davies
House of Commons
Standing Committee on Public Accounts (PACP)
Opening Remarks
National Research Council of Canada
Meeting Date: September 3, 2024
Check against delivery
Introduction
Thank you, Mr. Chair for the invitation to speak with you today about the National Research Council of Canada as part of this Committee's study of the Auditor General's report on SDTC.
I would like to begin by acknowledging that the NRC's activities take place across the country from the unceded, shared, current and traditional territories of First Nations, Inuit and Metis People.
Nous sommes conscients du privilège qui nous a été accordé d'entreprendre des recherches et d'alimenter l'innovation sur ces terres, et nous rendons hommage aux peuples qui nous ont précédés.
I am here today with David Lisk, the Vice-President of NRC IRAP.
General NRC info
As Canada's largest federal research organization, the NRC advances scientific knowledge, supports business innovation, and provides science-based policy solutions. With nationwide facilities and collaborations, the NRC unites scientists, industry, academia, and global partners.
Le CNRC emploie plus de 4 300 personnes réparties sur le territoire canadien dans le but de rendre notre pays et le reste du monde meilleurs par l'excellence en recherche et en innovation.
NRC IRAP
In addition to conducting research, for more than 75 years, the NRC has provided key support to innovative Canadian small and medium-sized businesses through the NRC Industrial Research Assistance Program (or NRC IRAP) to develop innovations that drive the growth of these businesses and Canada's economy.
NRC IRAP has been instrumental in ensuring SMEs have the support they need to grow, innovate and contribute to Canada's economic growth, job creation and professional opportunities for students and recent graduates.
Rien qu'au cours de l'exercice 2023-2024, le PARI CNRC a aidé plus de 9 000 clients et financé environ 3 000 entreprises, ce qui a engendré autour de 12000 emplois. Les entreprises qui figurent parmi sa clientèle ont vu leurs revenus grossir de 35 % et leurs effectifs de 21 %.
This support is provided through a nation-wide network of more than 273 Industrial Technology Advisors, who are located in communities across Canada, working closely with companies by providing technical and business advice as well as research and development funding, and referrals, for an evolving portfolio of SME clients.
With a longstanding record of successfully supporting SME growth, NRC IRAP has become a cornerstone of Canada's innovation ecosystem and one of the flagship Government of Canada programs given an important role in helping Canadian businesses grow and thrive.
SDTC transition to NRC IRAP
On June 4, 2024, following the tabling of the Auditor General's Audit Report on Sustainable Development Technology Canada (SDTC), the Government of Canada announced that it will transition SDTC to the NRC to enhance accountability, transparency, integrity and restore public confidence in the program.
Cette transition assurera un soutien continu aux innovations liées aux technologies propres qui sont essentielles à l'atteinte des objectifs climatiques du Canada, tout en assurant la stabilité des projets en cours et des employés de TDDC.
Due to its extensive experience and track record supporting innovative tech-focused SMEs, NRC IRAP was selected to take on SDTC's existing programming to ensure the economic and environmental goals previously set by SDTC continue to be met, working under NRC IRAP's governance and due diligence processes and practices.
All NRC employees, including SDTC staff who will join NRC IRAP, must adhere to the NRC Conflict of Interest Policy and the Public Sector Values and Ethics Code. Under our policy, NRC IRAP employees are required to provide annual declarations of outside activities.
Pour l'instant, le CNRC coopère étroitement avec l'équipe de direction de TDDC afin que la transition s'effectue harmonieusement pour les intervenants, les clients et l'effectif de TDDC, et que les programmes de l'organisme continuent de se dérouler de façon homogène. Selon nous, une année suffira pour terminer la transition. Nous sommes prêts à agir aussi rapidement que possible, tout en reconnaissant la nécessité de stabiliser la situation pour les intervenants de TDDC et les employés concernés.
Mr. Chair, thank you once again for the invitation to appear today, and I look forward to responding to your questions.
House of Commons
Standing Committee on Public Accounts (PACP)
Opening Remarks
National Research Council of Canada
Meeting Date: September 3, 2024
Check against delivery
Introduction
Thank you, Mr. Chair for the invitation to speak with you today about the National Research Council of Canada as part of this Committee's study of the Auditor General's report on SDTC.
I would like to begin by acknowledging that the NRC's activities take place across the country from the unceded, shared, current and traditional territories of First Nations, Inuit and Metis People.
We recognize our privilege to be able to conduct research and drive innovation on these lands, and we pay respect to the peoples who were here before us.
General NRC info
As Canada's largest federal research organization, the NRC advances scientific knowledge, supports business innovation, and provides science-based policy solutions. With nationwide facilities and collaborations, the NRC unites scientists, industry, academia, and global partners.
With over 4,300 employees located across the country, the NRC's vision is to bring about a better Canada and a better world through excellence in research and innovation.
NRC IRAP
In addition to conducting research, for more than 75 years, the NRC has provided key support to innovative Canadian small and medium-sized businesses through the NRC Industrial Research Assistance Program (or NRC IRAP) to develop innovations that drive the growth of these businesses and Canada's economy.
NRC IRAP has been instrumental in ensuring SMEs have the support they need to grow, innovate and contribute to Canada's economic growth, job creation and professional opportunities for students and recent graduates.
In the fiscal year 2023-2024, NRC IRAP supported over 9,000 clients and provided funding to around 3,000 firms. This assistance contributed to the creation of approximately 12,000 jobs, with client firms experiencing a 35% increase in revenue and a 21% growth in employee numbers.
This support is provided through a nation-wide network of more than 273 Industrial Technology Advisors, who are located in communities across Canada, working closely with companies by providing technical and business advice as well as research and development funding, and referrals, for an evolving portfolio of SME clients.
With a longstanding record of successfully supporting SME growth, NRC IRAP has become a cornerstone of Canada's innovation ecosystem and one of the flagship Government of Canada programs given an important role in helping Canadian businesses grow and thrive.
SDTC transition to NRC IRAP
On June 4, 2024, following the tabling of the Auditor General's Audit Report on Sustainable Development Technology Canada (SDTC), the Government of Canada announced that it will transition SDTC to the NRC to enhance accountability, transparency, integrity and restore public confidence in the program.
This transition will ensure continued support for clean technology innovations which are critical for meeting Canada's climate targets, while providing stability for current projects and SDTC employees.
Due to its extensive experience and track record supporting innovative tech-focused SMEs, NRC IRAP was selected to take on SDTC's existing programming to ensure the economic and environmental goals previously set by SDTC continue to be met, working under NRC IRAP's governance and due diligence processes and practices.
All NRC employees, including SDTC staff who will join NRC IRAP, must adhere to the NRC Conflict of Interest Policy and the Public Sector Values and Ethics Code. Under our policy, NRC IRAP employees are required to provide annual declarations of outside activities.
Today, the NRC is working closely with SDTC leadership team to support a smooth transition for SDTC stakeholders, clients, employees, and continuity of SDTC programming. We anticipate this transition will be completed within one year of the announcement. We are ready to move as quickly as is feasible, recognising the need to stabilise the situation for SDTC stakeholders and the affected employees.
Mr. Chair, thank you once again for the invitation to appear today, and I look forward to responding to your questions.
House of Commons Standing Committee on Public Accounts (PACP)
Prepared by: Policy, Strategy and Performance
Prepared on: August 21, 2024
Biographies of PACP Committee Members
John Williamson, M.P. Chair
Riding: New Brunswick Southwest
Province: New Brunswick
Affiliation: Conservative Party of Canada
Elected: 2011
Education: BA at McGill University, MA at London School of Economics
Professional Background: Journalism and Commentator
Preferred Language: English, French
Biography
Prior to entering federal politics, John Williamson joined the National Post as an editorial writer and was a founding member of the newspaper's editorial board (1998-2001). He moved on to the Canadian Taxpayers Federation in September 2002 where he established Canadians for Affordable Energy. After opening up the organization's Toronto office as provincial director for Ontario, he was promoted to federal director in January 2004, acting as Ottawa spokesperson until his departure in September 2008. In 2009 he was hired as Stephen Harper's Director of Communications, before going on to run himself, and being elected, as a Member of Parliament in 2011. In the 2015 election, Williamson was defeated by Liberal candidate Karen Ludwig. He reclaimed the seat in the 2019 Federal election.
During his time in Parliament, John has served as a member of the House of Commons committee investigating all aspects of the Canada-China relationship. In 2023, he was one of four MPs appointed to a special committee charged with examining classified government documents related to the firing of two scientists at Canada's high-security National Microbiology Laboratory.
House of Commons Standing Committee Roles:
- Chair – Standing Committee on Industry and Technology
- Chair – Subcommittee on Agenda and Procedure of the Standing Committee on Industry and Technology
- Member – Liaison Committee
- Member – Subcommittee on Committee Budgets of the Liaison Committee
NRC Presence in Riding:
- NIL (Nearby Fredericton 46 Dineen Drive facility)
Jean Yip, M.P. Vice-Chair
Riding: Scarborough—Agincourt
Province: Ontario
Affiliation: Liberal Party of Canada
Elected: 2017
Education: University of Toronto
Professional Background: Insurance and Education
Preferred Language: English
Biography
After completing her degree at the University of Toronto, Jean Yip pursued a career in insurance and underwriting. Jean holds the Fellow Chartered Insurance Professional Designation. Prior to becoming an MP, Jean taught Sunday school at her church for over 13 years, and has been involved with the STEM Fellowship Board of Directors which promotes computer literacy and programming capacity among youth.
Jean Yip was born in Scarborough, and raised in Agincourt. Jean's mother and father immigrated to Canada. She is the widow of her predecessor as MP for the riding Arnold Chan, and first became prominent in the riding when she took time to assist her husband with constituency political duties during his cancer treatment.
Since being elected, Jean has spoken in the House of Commons on many issues including student employment, pension security, National Daffodil Day, the Anniversary of Armenian Independence, and removing barriers to STEM. Jean is also a member of the Liberal Party's Caucuses on Immigration, and Mental Health as well as Women's and Scarborough Caucuses. Jean is a member of the Canada-China Legislative Association, as well as the Canada-Armenia, Canada-Philippines Parliamentary Friendship Group, and the Commonwealth Parliamentary Association.
House of Commons Standing Committee Roles:
- Vice-Chair – Standing Committee on Industry and Technology
- Member – Special Committee on the Canada-People's Republic of China Relationship
- Member – Standing Committee on Public Accounts
- Member – Subcommittee on Agenda and Procedure of the Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL
Nathalie Sinclair Desgagné, M.P. Vice Chair
Riding: Terrebonne
Province: Quebec
Affiliation: Bloc Québécois
Elected: 2021
Education: MA from Oxford University and BA from McGill
Professional Background: Economist
Preferred Language: French
Biography
Nathalie Sinclair Desgagné is the daughter of the economist Bernard Sinclair Desgagné and lawyer Gilda Villaran-Calderon. She speaks five languages, and has worked for the European Investment Bank. She later returned to Quebec working for the city of Montreal, the Centre interuniversitaire de recherche en analyse des organisations (CIRANO), and as an economist for the non-profit Ouranos. She has also worked for Deloitte and PwC in similar capacities.
Since her election in 2021 she has served as the critic of public finances and pandemic programs, Canada Economic Development for Quebec Regions in the Bloc Québécois Shadow Cabinet.
House of Commons Standing Committee Roles:
- Vice-Chair – Standing Committee on Industry and Technology
- Member – Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL
Valerie Bradford, M.P.
Riding: Kitchener South—Hespeler
Province: Ontario
Affiliation: Liberal Party of Canada
Elected: 2021
Education:
Professional Background: Public Service
Preferred Language: English
Biography
Valerie Bradford has spent the last 15 years supporting small businesses and bringing jobs and investments to Waterloo Region as an economic development professional for the City of Kitchener. She is the former Chair of the Workforce Planning Board, serving in that role for eight years.
With extensive knowledge of the local economy and experience with workforce development, she is well-equipped to help the region recover from the hardships caused by the COVID-19 pandemic.
Valerie Bradford has been a volunteer with multiple local organizations. She is dedicated to public service and is committed to being a strong voice for residents of Kitchener South-Hespeler as their Member of Parliament.
Ms. Bradford received a Diploma in Travel and Tourism from Humber College before completing a certification in Economic Development from the University of Waterloo and completing the Ontario Management Development, Supervisory Studies program at Mohawk College.
House of Commons Standing Committee Roles:
- Chair – Standing Committee on Science and Research
- Member – Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL
Blake Desjarlais, M.P.
Riding: Edmonton Griesbach
Province: Alberta
Affiliation: NDP
Elected: 2021
Education: University of Victoria
Professional Background: Public Policy, Community Organizing
Preferred Language: English
Biography
Blake Desjarlais was born on December 29, 1993 in Edmonton and grew up in the Fishing Lake Métis Settlement in northern Alberta. He is of Cree and Métis descent. His biological mother Brenda was a victim of the Sixties Scoop and his father was a carpenter who had died when Desjarlais was twelve.
Mr. Desjarlais attended MacEwan University studying political science and indigenous studies. However, he received racially motivated death threats and transferred to the University of Victoria. As a university student, Blake Desjarlais was involved in student politics, and served as firekeeper of the Native Student Union (NSU). When Mr. Desjarlais completed his studies, he was appointed the national director of the Métis Settlements General Council in 2016.
After being elected, Blake Desjarlais was selected to be the New Democratic Party's deputy caucus chair for the 44th Parliament. He is also the NDP's Critic for Indigenous Housing, Treasury Board, Diversity & Inclusion, Youth, and Sport. He is part of the NDP's negotiation team for the 2022-2025 Supply and Confidence Agreement between the NDP Opposition and Liberal Government. He is also the inaugural co-chair of the Canadian Pride Caucus, a multi-partisan group of 2SLGBTQIA+ MPs and Senators in Parliament.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Member – Subcommittee on Agenda and Procedures of the Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL (Nearby 11421 Saskatchewan Drive facility)
Iqra Khalid, M.P.
Parliamentary Secretary to the Minister of National Revenue
Riding: Mississauga—Erin Mills
Province: Ontario
Affiliation: Liberal Party of Canada
Elected: 2015
Education: BA York University, Cooley Law School
Professional Background: Lawyer
Preferred Language: English/French
Biography
Iqra Khalid was born in Pakistan in 1985 and in 1998 her family immigrated to Canada, where her parents started a small family business in Mississauga. Ms. Khalid attended York University, where she graduated with a degree in criminology and professional writing in 2007. As a student, she served as the media ambassador for the York University Student Alumni Program.
Following her graduation, she began working at an immigration firm. She then went on to pursue a Juris Doctor degree at Cooley Law School. She wrote her final thesis on a comparative analysis of the effects of culture on the governance and regulation of a nation, using business law in the USA, Canada, India and China as case studies. She graduated with honors distinction in 2012. She then returned to Canada and began working as an articling clerk for the city of Mississauga.
Ms. Khalid currently serves as Vice-Chair of the Standing Committee on Access to Information, Privacy, and Ethics (ETHI), as well as a member of the National Security and Intelligence Committee of Parliamentarians (NSICOP). She has previously served as chair on the Standing Committee of Justice and Human Rights and sat on the Foreign Affairs and International Development Subcommittee on International Human Rights (SDIR). In addition to these roles, she also served as Chair of the Liberal Women's Caucus and the All-Party Women's Caucus.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Member – Standing Committee on Access to Information, Privacy and Ethics
- Vice-Chair – Canadian Branch of the Commonwealth Parliamentary Association
NRC Presence in Riding:
- Advanced Materials Research Facility at 2620 Speakman Drive, Mississauga
John Nater, M.P.
Riding: Perth—Wellington
Province: Ontario
Affiliation: Conservative Party of Canada
Elected: 2015
Education: MPA at Queen's University and BPAPM at Carleton University
Professional Background: Municipal Politics, Advocacy
Preferred Language: English
Biography
John Nater was raised on his family pig farm in Logan Township (now West Perth), Ontario.
From 2010 until 2014 Mr. Nater was councillor for the West Perth municipal council, where he served as chair of the Environmental Services Committee. Additionally, from 2012 to 2015, John Nater worked as a Lecturer at King's University College.
On November 9, 2021, Mr. Nater was named Shadow Minister for Canadian Heritage. During this time Nater has voiced criticism of the Liberal Government's Online Streaming Act. Mr. Nater was also involved in the Heritage Committee work on the Hockey Canada sexual assault scandal.
From March 2022 to May 2023, Mr. Nater worked with Ontario Senator Robert Black to pass Bill S-227, the Food Day Canada Act, in honour of Wellington County food activist Anita Stewart.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Member – Subcommittee on Agenda and Procedures of the Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL
Brenda Shanahan, M.P.
Riding: Châteauguay—Lacolle
Province: Quebec
Affiliation: Liberal Party of Canada
Elected: 2015
Education: MBA, BA in Social Work and BA in History
Professional Background: Banker and Social Worker
Preferred Language: English/French
Biography
A long-time resident of Châteauguay and mother of three adult children, Brenda Shanahan has been involved in a number of organizations such as Amnesty International and the Canadian Federation of University Women.
During Ms. Shanahan's career as a banker, social worker and financial educator, she provided counsel in financial management and developed financial literacy workshops and materials as well as being a commentator on financial issues for various media outlets.
Elected as the Member of Parliament for Châteauguay-Lacolle in 2015, Brenda Shanahan served on the Special Joint Committee on Physician-Assisted Death, the Standing Committee on Public Accounts and the Standing Committee on Government Operations and Estimates. She was then appointed to the Committee of Parliamentarians on National Security and Intelligence. She has also served as the Vice-Chair of the Quebec Liberal Caucus, Vice-Chair of the Liberal Women's Caucus and Co-Chair of the Multiparty Global Health Caucus.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Member – Canadian NATO Parliamentary Association
NRC Presence in Riding:
- NIL
Jake Stewart, M.P.
Riding: Miramichi—Grand Lake
Province: New Brunswick
Affiliation: Conservative Party of Canada
Elected: 2021
Education:
Professional Background:
Preferred Language: English
Biography
Jake Stewart entered municipal politics in 2008, having run for the office of councillor in his hometown of Blackville, New Brunswick. In 2010, he entered provincial politics, and defeated incumbent Liberal MLA Rick Brewer, who at that time was the Minister of Human Resources.
In the NB provincial government, Mr. Stewart was a member of the Standing Committees on Education, Private Bills, Procedure, Public Accounts, and Chaired the Standing Committee on Legislative Officers. He was also appointed by Jody Carr, then current Minister of Education, to sit on the Ministerial Advisory Committee on Positive Learning and Working Environment (Anti-Bullying).
Jake Stewart made the move to federal politics in 2021, being elected to the riding of Miramichi—Grand Lake.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Member – Standing Joint Committee on the Library of Parliament
NRC Presence in Riding:
- NIL
Arnold Viersen, M.P.
Riding: Peace River—Westlock
Province: Alberta
Affiliation: Conservative Party of Canada
Elected: 2015
Education:
Professional Background: Auto Mechanic
Preferred Language: English
Biography
Born and raised in Northern Alberta, Arnold Viersen attended Covenant Canadian Reformed School in Neerlandia from Grade 1 through Grade 12, and currently resides near his childhood home on an acreage in Westlock County. Before entering politics, Mr. Viersen worked as a journeyman auto mechanic. He identifies as a social conservative.
Arnold Viersen previously served on the Indigenous and Northern Affairs Committee, and was named the Official Opposition's Deputy Critic of Rural Affairs. He now serves exclusively on the PACP committee.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
NRC Presence in Riding:
- NIL
Patrick Weiler, M.P.
Riding: West Vancouver—Sunshine Coast—Sea to Sky Country
Province: British Columbia
Affiliation: Liberal Party of Canada
Elected: 2019
Education: UBC Law and McGill University
Professional Background: Environmental and natural resource management Lawyer
Preferred Language: English
Biography
Patrick Weiler was born and raised in the Vancouver area, with his father a UBC law professor and his mother a former Sechelt, BC municipal councillor.
Prior to entering politics, Mr. Weiler's work included working with governments to improve the management of aquatic ecosystems, and improving governance of natural resource sectors on behalf of the United Nations and other international development agencies. He also represented First Nations, municipalities, small businesses and non-profits on environmental and corporate legal matters within his riding, throughout British Columbia, and around the world.
During the 2019 election, he referred to himself as a champion of the Liberal government's Pan-Canadian Framework on Clean Growth and Climate Change and promised to build on this plan to ensure that Canadian business will seize the economic opportunities in the transition to a clean economy of the 21st century and that Canada meets its obligations under the Paris Agreement.
House of Commons Standing Committee Roles:
- Member – Standing Committee on Public Accounts
- Chair – Standing Committee on Indigenous and Norther Affairs
NRC Presence in Riding:
- NIL
NRC 2023-24 Fact sheet
People
- 4,323 total NRC full‑time equivalent staff including 2,248 scientists, engineers and technicians and 273 ITAs (NRC IRAP)
- 549 students, postdoctoral fellowships and research associates
- 40.3% women in NRC workforce (relative to Canadian market availability of 37.7%)
- 92 nationalities in our workforce
- 24 laboratory sites
- 113 NRC IRAP points of service
Scientific achievements
In 2023, NRC researchers published a total of 1,277 peer-reviewed publications, which represented 57 publications per 100 scientists/engineers/technicians.
The NRC field-weighted citation score on a 3‑year average (2021‑2023 calendar years) was 1.28 relative to world average.
In 2023, the co-authorship rate with external partners was 86.8% including:
- United Kingdom: 10.8%
- Germany: 10.5%
- Japan: 4.2%
Patents
In 2023-24, the NRC:
- filed 300 new patent applications
- had a portfolio of 1,971 active patents (issued or pending)
- 579 under license
- 462 patent families
R&D clients and collaborators
- According to the Client Satisfaction Survey, 84% of respondents said the NRC helped them achieve results such as increased jobs, sales and R&D capacity.
- In 2023-24, the NRC had 956 research and development clients.
- In 2023-24, the NRC had 569 active collaborative research and development CSTIP funded projects and worked with 142 funded collaborators.
Industrial Research Assistance Program (NRC IRAP)
- 9,410 clients
- 3,262 firms funded
- 6,148 firms received advisory services only
- 12,719 jobs supported
- 35% total revenue growth of client firms – as an average compound annual growth rate (2020 to 2022)
- 21% employee growth of client firms – as an average compound annual growth rate (2020 to 2022)
Financials (unaudited results)
Figure 1. Total expenditures (operating, capital, grants and contributions)
Figure 1. Total expenditures - Text version
Total: $1,526M
- Research centres $936.3M
- NRC IRAP $589.7M
Figure 2. Funding programs $625.3M (grants and contributions expenditures)
Figure 2. Funding programs - Text version
Total: $625.3M
- NRC IRAP $468M
- TRIUMF $60.1M
- Collaborative Science, Technology and Innovation (CSTIP) $40.2M
- Telescopes $36.7M
- Biologics Manufacturing Centre $18.7M
- Other G&Cs $1.5M
Figure 3. Total revenue
Figure 3. Total revenue - Text version
Total: $175.9M
- 37% Industry
- 11% Other (e.g., academia, non profits)
- 52% Other government departments
PACP - Evidence - June 13, 2024
Evidence - PACP (44-1) - No. 131 - House of Commons of Canada
PACP - Evidence - June 20, 2024
Evidence - PACP (44-1) - No. 133 - House of Commons of Canada