Minister Bernier Announces New Technology Partnerships Canada Transparency and Accountability Standards to Protect Taxpayer Interest

OTTAWA, August 11, 2006 — The Honourable Maxime Bernier, Minister of Industry, today announced increased transparency and accountability requirements for all future projects to be funded under Technology Partnerships Canada (TPC). Aimed at better ensuring company compliance with the terms of their TPC contribution agreements, these new contractual requirements will help protect the interests of Canadian taxpayers by providing the government more leverage to act on behalf of the public should any breaches of these improved contribution agreements occur.

The government has taken action to amend the contribution agreement for future TPC projects to ensure that the priorities of accountability and transparency were brought to TPC as the government continues with the consultation process on the future of the program. The new government has committed to honour obligations and any legal commitments regarding submissions received under the program. However, the government will only honour these obligations and legal commitments using an improved contribution agreement that will better protect the taxpayer's interest.

“Investments made by TPC are investments made on behalf of the Canadian public,” said Minister Bernier. “The improvements we have made to the contribution agreement will ensure that Canadians will be aware of any breaches of the agreements that companies have entered into, and that companies that behave inappropriately will be held publicly accountable for their actions.”

Previously, companies found in breach were protected from public scrutiny. The action of the new government will help ensure that the contractual obligations made to the taxpayer by new contribution recipients are treated with the seriousness they demand.

In a departure from previous practice, if a company defaults on its obligations under the improved contribution agreement, its name will be published on Industry Canada 's website. The improvements to the agreement also allow the Minister of Industry the right to disclose specific information on any remedies exercised by him against any company that is found in breach of the conditions of this amended contribution agreement.

Most importantly, and for the first time in the history of TPC, the improved contribution agreement will allow the Minister to publish the amount of each repayment made by recipient companies that have received investments under the improved agreement.

As well, an improvement to the contribution agreement will hold recipient companies more accountable for lobbying activities that they may undertake. The contribution agreement now requires a company to continually affirm its ongoing compliance with the terms of its agreement, including those terms relating to lobbyists, when submitting claims for payment. This applies to consultants contracted to lobby on behalf of recipient companies, as well as company representatives who undertake lobbying activity directly. Previously, companies were not required to reaffirm their compliance as frequently and as explicitly.

“We have always agreed with the criticism of TPC's lack of transparency with respect to repayments made on the taxpayer's investment,” said Minister Bernier. “With these key changes to future TPC contribution agreements, our new government has ensured that Canadians will be aware of the current status of their investments and the progress that is being made on individual projects. We have made long-overdue changes to make TPC contribution agreements more open and transparent.”

In announcing the improvements to the TPC contribution agreement, the Minister reiterated his intention to discuss with his Cabinet colleagues the most appropriate role and mechanisms for the federal government to effectively support commercialization of Canadian technology.

See the attached backgrounder for further details on the new transparency and accountability standards in the TPC contribution agreement.

For more information, please contact:

Isabelle Fontaine
Office of the Honourable Maxime Bernier
Minister of Industry
(613) 995-9001

Media Relations
Industry Canada
(613) 943-2502