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

teach
Smooth start to Christ King Catholic School’s year in unprecendented times

Students and staff at Christ-King Catholic School continue to adapt to pandemic’s impact on learning

"We are looking seriously at the spread and determining what our next steps should be," says Alberta’s chief medical officer of health, Dr. Deena Hinshaw, as the daily number of COVID-19 cases continues to climb.
427 new COVID cases is highest in Alberta ever

Central zone has 126 active cases of COVID-19

Stettler’s Dakota Derr wins ‘Youth Citizen of the Year’

Derr has long demonstrated a passion for volunteering in the community

office
MH Enterprises set to help both employers and those hiring connect with each other

Services run the gamut from education about labour market trends to direct job placement services

Local emergency crews responded to an early morning fire on Oct. 20th in the Grandview area of Stettler. Two residences on Spruce Park Crescent were damaged in the blaze, which crews are still investigating. Mark Weber/Stettler Independent
PHOTO: Early morning blaze damages two homes in Stettler’s Grandview area

Officials were still on site by mid-morning and crews are investigating

Alberta Premier Jason Kenney arrives for an announcement at a news conference in Calgary, Alta., Tuesday, Sept. 15, 2020.	Kenney is isolating at home after one of his ministers tested positive for COVID-19. THE CANADIAN PRESS/Todd Korol
Alberta premier tests negative for COVID-19 but will isolate for a week

Kenney said he will isolate until Oct. 29 and, in the meantime, work from home

JJ Collett Natural Area Foundation held its AGM on Oct. 19 at the Ponoka Legion. (Emily Jaycox/Ponoka News)
De-listing Alberta parks creates ‘risk’ for coal mining: CPAWS

Canadian Parks and Wilderness Society speaks at JJ Collett AGM

COVID-19. (Image courtesy CDC)
Temporary COVID-19 testing sites coming to Wetaskiwin and Ponoka

The Wetaskiwin location will open Oct. 23, 2020 and the Ponoka location will open Oct. 29.

ACC President and CEO Ken Kobly spoke to Ponoka Chamber of Commerce members over Zoom on Oct. 20. (Image: screenshot)
Alberta chambers are ‘411’ to members, government: ACC president

Changes to government supports, second wave and snap election

Smartphone showing various applications to social media services and Google. (Pixabay photo)
National media calling for level playing field with Google, Facebook

In Canada, Google and Facebook control 80 per cent of all online advertising revenues

RCMP. (Black Press File Photo)
Calgary man dies in two-vehicle collision near Sylvan Lake

A semi truck collided with a SUV just east of Hwy. 781 on Hwy 11.

RCMP. (Phil McLachlan - Black Press Media)
British Columbia man dies during ski trip near glacier west of Calgary

Kananaskis Public Safety and Alpine Helicopters responded around 2:30 p.m.

Prime Minister Justin Trudeau arrives on Parliament Hill in Ottawa on Monday, Oct. 19, 2020, following a week-long break for the House of Commons. THE CANADIAN PRESS/Sean Kilpatrick
One crisis after another for Trudeau since last federal election one year ago

It has been a year of unprecedented calamity and crisis

Most Read