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

Just Posted

(THE CANADIAN PRESS/Jonathan Hayward)
AHS: Immunization is our greatest protection against COVID-19

Everyone is at risk of getting sick with COVID-19. As we’ve seen… Continue reading

Alberta is now below 3,000 active cases of COVID-19, as the province reported 2,639 Wednesday. (NIAID-RML via AP)
Red Deer below 100 active COVID-19 cases for first time since March

69.7 per cent of Albertans 12 and over have at least one dose of the COVID-19 vaccine

Premier Jason Kenney says the provincial government is doing everything it can to encourage Albertans to get vaccinated. (Photo by Chris Schwarz/Government of Alberta)
Travel prizes added to Alberta’s vaccine lottery

More than 40 travel rewards available for those who are fully vaccinated

Three calves were recently shot dead in Lacombe County near Mirror. (Photo from Facebook)
Calves shot and left for dead in central Alberta

Bashaw RCMP investigating three shootings

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

The Sylvan Lake Gulls show off the home jerseys (white) and their way jerseys at the Gulls Media Day on June 17, before the season opener. Following the media day, the team took to the field for their first practise. (Photo by Megan Roth/Sylvan Lake News)
Sylvan Lake Gulls ready to throw first pitch as construction continues

The Gulls inaugural season kicks off June 18 with a game against the Edmonton Prospects

The Calgary skyline is seen on Friday, Sept. 15, 2017. THE CANADIAN PRESS/Jeff McIntosh
2 deaths from COVID-19 Delta variant in Alberta, 1 patient was fully immunized

Kerry Williamson with Alberta Health Services says the patients likely acquired the virus in the hospital

A vial containing the Moderna COVID-19 vaccine is shown at a vaccination site in Marcq en Baroeul, outside Lille, northern France, Saturday, March 20, 2021. THE CANADIAN PRESS/AP/Michel Spingler
mRNA vaccines ‘preferred’ for all Canadians, including as 2nd dose after AstraZeneca: NACI

New recommendations prioritizes Pfizer, Moderna in almost all cases

House Majority Whip James Clyburn, D-S.C., center left, reaches over to Rep. Maxine Waters, D-Calif., joined by Speaker of the House Nancy Pelosi, D-Calif., center, and members of the Congressional Black Caucus as they celebrate the Juneteenth National Independence Day Act that creates a new federal holiday to commemorate June 19, 1865, when Union soldiers brought the news of freedom to enslaved Black people after the Civil War, at the Capitol in Washington, Thursday, June 17, 2021. It’s the first new federal holiday since Martin Luther King Jr. Day was created in 1983. (AP Photo/J. Scott Applewhite)
Biden to sign bill making Juneteenth a federal holiday

New American stat marks the nation’s end of slavery

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

A plane is silhouetted as it takes off from Vancouver International Airport in Richmond, B.C., May 13, 2019. THE CANADIAN PRESS/Jonathan Hayward
Report calls for airlines to refund passengers for flights halted due to COVID-19

Conclusion: federal help should be on the condition airlines immediately refund Canadian travellers

Green party Leader Annamie Paul speaks during a news conference on Parliament Hill in Ottawa on Tuesday, June 15, 2021. Paul has survived another day of party strife after a planned ouster shifted course, leaving her with a tenuous grip on power ahead of a likely federal election this year. THE CANADIAN PRESS/Justin Tang
Green Leader Annamie Paul blasts ‘racist,’ ‘sexist’ party execs who sought ouster

Fallout has continued, with two of the federal council’s members resigning

Most Read