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

test tube with the blood test is on the table next to the documents. Positive test for coronavirus covid-19. The concept of fighting a dangerous Chinese disease.
Interior Health records third COVID-19 death

A new community outbreak was reported at Okanagan Men’s Centre in Lake Country

Cat found on Bain Road suffered trauma, said vet

An update has been provided by a veterinarian at the Animal Health… Continue reading

Clearwater Mayor Merlin Blackwell received the first poppy by Clearwater Legion 259 president Charlotte Cederholm marking the launch of the Royal Canadian Legion's National Poppy Campaign. (Stephanie Hagenaars photo)
Remembrance Day ceremony to be live streamed

The Clearwater Legion is open for business, starting November, 2020. This years’… Continue reading

Just over 50 per cent of voters cast their ballot.
Low voter turnout sadly nothing new

In the 2017 provincial general election for British Columbia, just over 61… Continue reading

Over the years, Janice Blackie-Goodine’s home in Summerland has featured elaborate Halloween displays and decorations each October. (File photo)
QUIZ: How much do you really know about Halloween?

Oct. 31 is a night of frights. How much do you know about Halloween customs and traditions?

FILE - In this Jan. 23, 1987 file photo, actor Sean Connery holds a rose in his hand as he talks about his new movie “The Name of the Rose” at a news conference in London. Scottish actor Sean Connery, considered by many to have been the best James Bond, has died aged 90, according to an announcement from his family. (AP Photo/Gerald Penny, File)
Actor Sean Connery, the ‘original’ James Bond, dies at 90

Oscar-winner was knighted by Queen Elizabeth II in 2000

This house at 414 Royal Ave. became notorious for its residents’ and visitors’ penchant for attracting police. It was also the site of a gruesome torture in August 2018. It was demolished in 2019. KTW
6-year sentence for Kamloops man who helped carve ‘rat’ into flesh of fellow gang member

Ricky Dennis was one of three men involved in the August 2018 attack

Cpl. Nathan Berze, media officer for the Mission RCMP, giving an update on the investigation at 11:30 a.m., Oct. 30. Patrick Penner photo.
VIDEO: Prisoner convicted of first-degree murder still at large from Mission Institution

When 10 p.m. count was conducted, staff discovered Roderick Muchikekwanape had disappeared

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Among the pumpkin carvings created this year by Rick Chong of Abbotsford is this tribute to fallen officer Cont. Allan Young.
Abbotsford pumpkin carver’s creations include fallen police officer

Rick Chong carves and displays 30 pumpkins every year

An online fundraising campaign in support of the six-year-old boy, Edgar Colby, who was hit by a car on Range Road Oct. 25 has raised more than $62,000 in a day. (Submitted)
$62K raised in 1 day for boy in coma at BC Children’s after being hit by vehicle in Yukon

The boy’s aunt says the family is “very grateful” for the support they’ve received from the community

Health care employees take extensive precautions when working with people infected or suspected of having COVID-19. THE CANADIAN PRESS/Chris Young
WorkSafeBC disallows majority of COVID-19 job injury claims

Health care, social services employees filing the most claims

Most Read