Parliamentary Budget Officer Yves Giroux waits to appear before the Commons Finance committee on Parliament Hill in Ottawa, Tuesday March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Parliamentary Budget Officer Yves Giroux waits to appear before the Commons Finance committee on Parliament Hill in Ottawa, Tuesday March 10, 2020. THE CANADIAN PRESS/Adrian Wyld

Liberals’ ‘supercluster’ program falling short of promised jobs, economic growth

The Liberals said Tuesday that the program had created more than 6,100 jobs

The parliamentary spending watchdog says a government program to fuse public and private money to promote innovation appears to be well shy of its promise.

The Liberals created their “supercluster” program in 2018, putting in $918 million over five years to bring business, academic institutions and other non-profits together for research projects that could have economic benefits.

The private and academic partners in the endeavour were expected to spend over $1 billion over the same time.

The federal spending was supposed to create 50,000 jobs and boost the country’s gross domestic product by $50 billion over a decade, through advances in everything from supply-chain management to fisheries.

But the parliamentary budget officer said Tuesday that spending has lagged and it’s not clear how many jobs have actually been created.

Yves Giroux’s latest report said it is unlikely that the government will meet its economic growth expectations for the programs.

Giroux also said the department overseeing the program couldn’t provide specific ways to measure the boosts in innovation that the spending is to provide, echoing a concern from the Council of Canadian Innovators about clear metrics and a strategy to commercialize any developments.

“This program has been ineffective in building national prosperity for all Canadians and has not lived up to the stated expectations of government or the drivers of Canada’s innovation economy, therefore requiring an important pivot in the time of COVID,” the council’s executive director, Benjamin Bergen, said in a statement.

The report is based on information collected before the COVID-19 pandemic struck Canada, and Giroux suggests parliamentarians may want to get more details about how the pandemic has affected the supercluster program.

One effect the government does note is that three of the clusters shifted their focus to respond to the pandemic, trying to come up with solutions and retool to provide health-care supplies, equipment and technology.

What Giroux found in his report was that the government could only account for 2,594 jobs expected to be created from 24 of the 45 projects announced, roughly 14 jobs for every $1 million of combined federal and private funding.

Absent other information, Giroux’s team estimated the same job creation rate for the remaining programs, meaning there could be almost 4,000 jobs created as a result.

Whether they are full-time, part-time, permanent or temporary, Giroux couldn’t say. He did say there could be a positive impact on the labour market, noting that one of the projects seeks to train workers.

The Liberals said Tuesday that the program had created more than 6,100 jobs since the first projects launched about a year and a half ago, and argued that internal projections put the government on track to hit its 50,000-jobs promise.

“We are seeing the five superclusters live up to their promise in terms of leveraging industry contributions, and supporting collaborative projects with small and medium-sized enterprises which are having a national impact,” Industry Minister Navdeep Bains said in a statement.

Giroux’s office questioned whether the impact on the economy would be as large as the Liberals said.

Similar initiatives studied elsewhere in the world suggest that funding of research and development can have an economic impact between three and eight times overall spending, well below the 25-fold effect from the $2 billion in federal and private funding through the program.

Giroux’s report said it seems “highly unlikely” the government will hit its GDP target.

Conservative industry critic James Cumming said the findings from the spending watchdog show the program is more focused on buzz words than supporting workers.

“The PBO report released today makes it clear that the Liberals’ supercluster program will not grow the economy or increase innovation in Canada,” he said in a statement. “The Trudeau Liberals have actually spent more money on administrative costs than on job-creating projects. That is ridiculous.”

Giroux’s report noted that the government had only funded programs to the tune of $30 million by March, when it had planned to provide $104 million in funding. Of the amount spent, more than half — $18 million — was for “operational and administrative” costs.

Jordan Press, The Canadian Press


Like us on Facebook and follow us on Twitter.

Want to support local journalism during the pandemic? Make a donation here.

Liberals

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

New electric buses are coming to school districts. (Submitted photo)
New electric school buses will drive North Island forward

Travel on electric school buses is smoother, quieter, and healthier than traditional diesel buses

North Island Gazette file photo of Port McNeill council.
Port McNeill average priced home to pay $12 more in taxes

Residential property taxes in Port McNeill are going up

A B.C. Centre for Disease Control map showing new COVID-19 cases by local health area for the week of April 25-May 1. (BCCDC image)
Vancouver Island’s COVID-19 case counts continue to trend down

Fewer than 200 active cases on the Island, down from highs of 500-plus earlier this spring

Opening ceremony in remembrance of Missing and Murdered Indigenous Women and Girls Awareness Day hosted by Quatsino First Nation. (Quatsino First Nation Facebook video screenshot)
VIDEO: Quatsino First Nation goes live for Missing and Murdered Indigenous Women and Girls Day

May 5 is when the message behind all the red dresses hanging comes into sharpest focus

North Island Gazette file photo of Port Hardy council.
Port Hardy council to send RCMP officer a letter of congratulations

Mayor Dennis Dugas said Corp. Chris Voller ‘obviously earned it and he did a great job up here’

(The Canadian Press)
Trudeau won’t say whether Canada supports patent waiver for COVID-19 vaccines

‘Canada is at the table to help find a solution’

A map showing where the most number of cases were recorded from April 23 to 29. This map, revealing a breakdown of infections by neighborhood, was pulled from a data package leaked to the Vancouver Sun last week (and independently verified).
36 Abbotsford schools flagged for COVID-19 exposures in the last 2 weeks, shattering record

Clearbrook Elementary recorded an ‘exposure’ on all 11 school days

Island Health has confirmed COVID-19 exposures at Ecole des Deux Mondes in Campbell River on May 4 and 5, and at Mill Bay Nature School in Mill Bay on April 28, 29, 30 and May 3. (Metro Creative photo)
Two new COVID-19 school exposures confirmed by Island Health

Health authority contacting anyone exposed at Ecole des Deux Mondes, Mill Bay Nature School

Canada’s chief public health officer is reminding Canadians even those who are fully vaccinated are not immune from transmitting the COVID-19. THE CANADIAN PRESS/Adrian Wyld
Canada’s top doctor warns full vaccination does not equal full protection from COVID-19

Post-inoculation, Theresa Tam says the risk of asymptomatic infection and transmission is far lower but not obsolete

The dash cam footage, taken May 7 at 8:18 a.m. belonged to the driver of a southbound vehicle that recently travelled out of the tunnel. (Reddit/Screen grab)
VIDEO: Dash cam captures dramatic rollover crash on Highway 99

Only one person sustained injuries from the collision, says B.C. Ambulance Services

Chevy stranded on a ledge above a rocky canyon at Mimi Falls near Logan Lake, April 28, 2021. (Photo credit: Margot Wikjord)
Police officer and fire chief team up in risky rescue of stranded dog near Logan Lake

Chevy, a rescue dog, needed rescuing again after getting stuck on a ledge above rocky canyon

Police were on the scene of a fatal shooting in Abbotsford. (Black Press Media files)
B.C. government to give more than $8 million for programs to curb gang violence

221 not-for-profit projects led by local governments and school districts among others will receive a one-time grant

Gord Judson steers his log truck down a forest service road, using two-way radio and call signals to mark his position for oncoming traffic. (B.C. Forest Safety Council)
Planning some B.C. wilderness fishing? Don’t catch a log truck

Remote recreation areas bracing for heavy pandemic pressure

Most Read