• $147 million (3 projects) publicly announced before final approvals were granted
• TPC has recouped a paltry 2.58% of $947 million in outstanding loans over 6 years
• Over 57% of all $1.7 billion in authorizations destined for Quebec companies
• TPC practices 'March Madness'- spend it or lose it spending
• No annual report released since 1998/1999
• 26 projects worth $378 million have not been announced
• CTF seeks answers from Industry Minister; Asks Auditor General to investigate

CTF Study (415 KB)



OTTAWA: During a news conference held on Parliament Hill in Ottawa this morning, the Canadian Taxpayers Federation (CTF) released an audit of Industry Canada's flagship business subsidy program, Technology Partnerships Canada (TPC) which raises fundamental questions of accountability and transparency. Entitled Peeling Back the Onion: A Taxpayers Audit of Technology Partnerships Canada, the CTF audit uses information derived from publicly available and Access to Information documents to expose TPC's questionable operations and accountability framework.

"This audit shows that TPC is violating its own accountability framework with an alarming and disquieting frequency," stated CTF federal director Walter Robinson, "We challenge the Minister of Industry to come clean on this thinly veiled business subsidy program and we believe the irregularities that we've uncovered warrant immediate attention from the Office of the Auditor General."

Peeling Back the Onion explores 11 key audit themes which yield 17 questions of disclosure which have been forwarded to the Minister of Industry for response. The CTF has also forwarded a copy of its audit to the Auditor General, Ms. Sheila Fraser, and is pressing her office to conduct a comprehensive audit of TPC.

Main Findings

• Three projects worth $147 million were announced before final approvals were granted
• TPC has only recouped $24.4 million on a loan portfolio of $947 million over six years
• Ontario and Quebec companies have received over 90% of all funding commitments with 57% destined for Quebec alone
• An average of 56% of all TPC approvals occur in March of each fiscal year
• TPC is violating several sections of its own Accountability Framework including requirements for periodic audits, a comprehensive four-year audit, and release of its annual reports
• Job creation estimates (not verified) mean taxpayers fleeced for $58,891per job

"Auditing TPC is like peeling an onion, each layer brings another tear to your eye not to mention its less than pleasant odour," concluded Robinson. "The Minister has an opportunity to clear up the stench of corporate welfare once and for all by shutting down TPC and similar programs."