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What's driving Canada's big bet on EV batteries

 

'We either remain competitive in this race to electrification or we get left behind,' policy analyst says.

Prime Minister Justin Trudeau was in Montreal on Thursday to announce government funding for Northvolt, a Swedish company, to build a new electric vehicle battery manufacturing plant east of the city. 

Standing before a backdrop that declared Quebec's commitment to a clean economy, Prime Minister Justin Trudeau and Premier François Legault outlined the details of what they both described as a "historic" project.

The numbers are eye popping. A new manufacturing facility to be built by Northvolt, a Swedish battery giant, will occupy 170 hectares — an area the size of more than 300 football fields — on Montreal's South Shore, in a parcel of land spanning two communities.

Eventually, it is projected to have an annual battery cell manufacturing capacity of up to 60 gigawatt-hours (GWh), which is enough to power roughly one million electric vehicles a year.

This first phase, set to be complete by the end of 2026, will also include facilities to produce cathode active materials (a component of the batteries used in electric vehicles) and recycle batteries.

The government says the project will create as many as 3,000 jobs.

It comes at a high cost: The federal and provincial governments are putting a combined $2.7 billion in taxpayer money toward the project.

There will also be government production incentives totalling up to $4.6 billion — one-third of which will come from Quebec — as long as similar incentives remain in place in the U.S.

An artist's rendition of the planned Northvolt battery plant, to be built in McMasterville, Que.

'We paid a big price'

The deal is the latest in a series of announcements supporting the burgeoning electric vehicle industry in Canada.

Such projects have faced questions, given the amount of public money involved, but experts say public financing is crucial to compete against cut-throat international competition. 

Last month, Ottawa and Quebec announced an investment of more than $640 million for a new Ford EV plant in Bécancour, Que.

The federal government has also committed billions in Ontario to save the Stellantis-LG electric vehicle battery plant in Windsor and subsidize the Volkswagen battery plant in St. Thomas.

It will take 20 years for the federal and Ontario governments to break even on the pledge to give $28 billion in production subsidies for those two plants, the Parliamentary Budget Officer concluded.

The auto industry has a long history of being propped up by the government, said Greig Mordue, the chair of advanced manufacturing policy at McMaster University's school of engineering, and a former Toyota executive.

"We'll see where this shakes out, but we paid a big price," Mordue said of this week's Quebec announcement.

"Our industrial policy now consists of one tool and that is a chequebook, and that's where we are today."

Levelling the playing field

Trudeau and Legault pushed back on that idea. During Thursday's news conference, Legault likened the investment to the billions spent on hydro-electric dams in northern Quebec 50 years ago under premier Robert Bourrassa.

People called Bourrassa crazy, too, he said.

"For the next 50 years, what's going to be important is the green economy," said Legault.

"So we're building on what Bourassa and company did in Quebec."

Paolo Cerruti, the CEO and co-founder of Northvolt, said the company was drawn to the cheap, clean hydro power on offer and the raw materials that could soon be available. A lithium mine is ramping up production in La Corne, Que., 550 kilometres north of Montreal.

The financial incentives played a big role, too.

"Canada put itself on a level playing field with what the United States has been doing," he said.

The Inflation Reduction Act, viewed as the most ambitious climate action bill in U.S. history, was also an international "game changer," spurring competition between countries to be part of the growing green economy, said Meena Bibra, a senior policy analyst at Clean Energy Canada, a think tank based at Simon Fraser University.

Prime Minister Justin Trudeau arrives to make an announcement on a Volkswagen electric vehicle battery plant in St. Thomas, Ont., earlier this year. The plant will receive billions in federal and provincial funding. 

"We're at a point where we either remain competitive in this race to electrification or we get left behind," she said. "The rest of the world, the EU and the U.S. and other economies like China, are moving forward with strong industrial policy on electric vehicles."

A 2022 report from Clean Energy Canada estimated the country has the potential to build a domestic EV battery supply chain that could support up to 250,000 jobs by 2030 and add $48 billion to the economy annually.

'Biggest transition in 100 years'

Globally, a surge in demand for electric vehicles is already underway.

Since 2021, there has been a 240 per cent increase in electric car sales around the world, according to a report this week from the International Energy Agency that highlighted a sharp increase in clean energy.

A total of 14 per cent of all new cars sold in 2022 were electric, up from around nine per cent in 2021 and less than five per cent in 2020, according to the IEA.

Dozens of battery plants are already planned in the U.S. By 2030, North America's manufacturing capacity for electric vehicle batteries is projected to be 20 times greater than a decade prior.

"This is the biggest transition in 100 years," said Maria Kelleher, a Toronto-based consultant who specializes in clean energy projects.

"We are at a very pivotal point in history and the history of the auto sector, and you just have to put your hand deep in your pocket and take out a big whack of cash to get the thing off the ground."

2023 is now officially the most expensive, most destructive wildfire season on record in B.C.

 

No new fires in past 24 hours as cool weather reduces risk: B.C. Wildfire Service.

Destroyed homes and vehicles are pictured in Scotch Creek, B.C., in August. 

The 2023 wildfire season is officially the most expensive and most destructive on record.

According to the B.C. Wildfire Service (BCWS), a total of 2,217 fires have been detected this year, burning almost 25,000 square kilometres of trees, bush and grassland. That makes it B.C.'s worst season by land burned, easily surpassing the previous record of 13,540 square kilometres in 2018.

The cost of fighting those fires is also significantly up, to approximately $770 million so far this year, more than the $649 million spent in 2017.

On Thursday, the B.C. government said higher-than-projected costs to fight wildfires had contributed an additional $2.5 billion to the province's projected deficit for this fiscal year.

The government is projecting the total spend for the 2023/24 fiscal year to be $966 million.

The majority of this year's fires — approximately 71 per cent — have been sparked by lightning, while 23 per cent are human-caused, the fire service says.

Claire Larose and her husband lost their home of 36 years near West Kelowna, B.C., in the McDougall Creek fire this August.

Underlying conditions of drought made B.C. particularly susceptible to wildfires this year, as tinder-dry conditions made it easier for flames to spread.

Many fires are still burning, though the service says cooler temperatures are helping ease pressure on crews.

Bans and evacuations lifting

Across most of B.C., the fire danger rating has dropped to low or very low as cool, damp fall weather arrives.

The BCWS says there have been no new fires in the last 24 hours, and of the 384 active fires burning in B.C., roughly three-quarters are ranked as under control or "being held," meaning they are not likely to spread.

Wetter and cooler fall weather is reducing the fire risk in B.C. 


Six wildfires of note — highly visible or potentially threatening blazes — are still listed, with four of them either in or straddling the Prince George Fire Centre spanning B.C.'s northeast quarter.

The two others are the 174-square-kilometre Kookipi Creek fire just north of Boston Bar in the Fraser Canyon, and the 168-square-kilometre Hell Raving Creek fire in the west Cariboo.

Cooler conditions mean all open fire prohibitions, including a ban on campfires, lifted on Wednesday in the Coastal Fire Centre and Cassiar, Skeena and Bulkley zones of the Northwest Fire Centre, while the Kamloops Fire Centre is set to remove its campfire ban on Thursday.

Bans remain in place in parts of the Prince George Fire Centre.

Evacuation orders lifted in West Kelowna

Evacuation orders and alerts have also been lifted for all but one property in West Kelowna, B.C., about five weeks after thousands were forced out of their homes by the fast-moving McDougall Creek wildfire.

Central Okanagan Emergency Operations says BCWS crews are now patrolling the fire's edge, working to extinguish any remaining hot spots, but it warns that nearby communities can expect to see smoke within the perimeter in the coming weeks.

A firefighter with the British Columbia Wildfire Service, left, works with a colleague from an Alaska smoke jumper unit to set a planned ignition to help contain a fire burning near a highway in northern B.C. (Jesse Winter)

The 139-square-kilometre McDougall Creek fire swept down on West Kelowna on the evening of Aug. 17, engulfing residential streets that were evacuated with little time to spare.

A provincewide state of emergency was declared the next day, as the same winds that fuelled that blaze fanned fires in the Shuswap region.

About half of the 400 structures or homes destroyed in B.C.'s record-breaking fire season have been lost in the Kelowna area.

The Central Okanagan centre also announced it is rescinding evacuation alerts and downgrading evacuation orders for the 11-square-kilometre Glen Lake wildfire west of Peachland.

The Thompson-Nicola Regional District Emergency Operations Centre announced it has rescinded all 124 remaining evacuation alerts in the vicinity of the 456-square-kilometre Bush Creek East wildfire, which destroyed almost 200 structures in the Shuswap.


Trudeau apologizes after a Nazi veteran was praised by parliamentarians at Zelenskyy event

 

Yaroslav Hunka was a member of the 1st Galician division, a unit of Adolf Hitler's war machine.

Prime Minister Justin Trudeau answers a question during question period in the House of Commons in Ottawa on Wednesday, Sept.27, 2023. (Sean Kilpatrick/The Canadian Press).

Prime Minister Justin Trudeau has apologized on behalf of Canada's Parliament after a veteran of Adolf Hitler's Nazi forces was included in an event last week honouring Ukrainian President Volodymyr Zelenskyy.

"This was a mistake that has deeply embarrassed Parliament and Canada. All of us who were in this House on Friday regret deeply having stood and clapped even though we did so unaware of the context," Trudeau said in a brief statement to reporters.

"It was a horrendous violation of the memory of the millions of people who died in the Holocaust," he said, adding the celebration of ex-soldier Yaroslav Hunka was "deeply, deeply painful" to Jewish people, Poles, Roma, the LGBT community and other racialized people in particular — some of the groups that were targeted by the Nazi regime in the Second World War.

Trudeau also said that "Canada is deeply sorry" for involving Zelenskyy, who was pictured applauding Hunka — an image that has been exploited by Russian propagandists.

Canada has sent an apology to Zelenskyy and the Ukrainian delegation through diplomatic channels, Trudeau added.

Liberal caucus sources have told CBC News that Trudeau told MPs Wednesday they should avoid speaking to the press about Hunka's invitation and the subsequent fallout, and that the media frenzy would die down if they stayed tight-lipped.

Trudeau's remarks come after Conservative Leader Pierre Poilievre said inviting Hunka to attend Zelenskyy's historic address to Parliament is the "biggest single diplomatic embarrassment" in the country's history.

Poilievre is blaming Trudeau for the mishap, despite outgoing Speaker Anthony Rota's assertion that he alone was responsible for inviting Hunka.

Rota called the Ukrainian veteran a "Canadian hero" in the Commons and prompted a standing ovation.

Hunka was part of the First Ukrainian Division, also known as the Waffen-SS Galicia Division or the SS 14th Waffen Division — a voluntary unit that was part of Hitler's forces.

Conservative Leader Pierre Poilievre arrives at West Block in Ottawa on Wednesday, Sept. 27, 2023. (Sean Kilpatrick/Canadian Press)

Speaking to reporters before a Conservative caucus meeting on Parliament Hill, Poilievre said Trudeau was responsible for making Zelenskyy's visit to Canada a success — and Hunka's inclusion in the event has sullied Canada's reputation on the global stage.

"Every single person ought to have been vetted for their diplomatic and security sensitivities if the prime minister and his massive apparatus were doing their jobs," Poilievre said.

In question period, Poilievre again hammered Trudeau over the incident, saying it's not enough for the prime minister to apologize on behalf of Canada or Parliament. He said Trudeau should wear this personally.

"This prime minister allowed for a monumental, unprecedented and global shame to unfold in this chamber," Poilievre said. "Will he take personal responsibility for this shame and personally apologize on behalf of himself?"

Trudeau stopped short of a personal apology, saying it's not appropriate for the Prime Minister's Office to police who can enter the House of Commons.

He said it would be a "grievous attack" on the rights and privileges of MPs to have his office vet everyone invited to the Commons galleries.

Trudeau said that, as a long-time MP and a former minister of democratic institutions, Poilievre should know how Parliament works — that the Speaker is independent of the Prime Minister's Office and free to invite whoever they want.

"To demonstrate such little knowledge for how Parliament functions to make a partisan attack is truly disgraceful," Trudeau said.

German politician Christine Anderson, centre, poses with a group that includes Niagara West–Glanbrook MP Dean Allison (fourth from right), Oshawa MP Colin Carrie (third from left) and Haldimand–Norfolk MP Leslyn Lewis (fourth from left). (Twitter)


During a particularly testy exchange, Trudeau pointed out that some of Poilievre's Tory MPs dined earlier this year with Christine Anderson, a far-right German politician who has downplayed the Holocaust and pushed anti-Muslim ideology.

"To this day, the leader of the Official Opposition has not apologized — no recognition, no apologies, no consequences for those three MPs who engaged with a far-right German politician," Trudeau said.

"If the leader of the Opposition wants the government to help him vet who his MPs meet with, we'd be more than happy to give him some better advice."

As for who vetted Hunka, Rota's spokesperson has said that the Speaker's guest list for the event was not shared with the Prime Minister's Office.

Rota's picks to be in the gallery were sent to the House of Commons protocol office and the confirmed list of attendees was then shared with corporate security, which is partly responsible for security in the parliamentary precinct, including the Commons chamber in West Block.

Rota resigned from his post Tuesday.

Regardless, Poilievre said Trudeau and his team should have had some oversight of who was on hand.

"What has he done with that responsibility? He's been hiding out in his cottage," the Tory leader said.

Trudeau has been on Parliament Hill this week but, until Wednesday, he'd been notably absent from question period.

Unlike some of his ministers, including Government House Leader Karina Gould and Foreign Affairs Minister Melanie Joly, Trudeau did not explicitly say Rota should resign over the recognition of a former Nazi soldier.

Yaroslav Hunka, right, waits for the arrival of Ukrainian President Volodymyr Zelenskyy in the House of Commons in Ottawa on Friday. Several Jewish advocacy organizations condemned members of Parliament on Sunday for giving a standing ovation to a man who fought for a Nazi unit during the Second World War. (Patrick Doyle/The Canadian Press)

The shockwaves from the 98-year-old's appearance in Parliament are still being felt.

Poland's education minister has said he wants Hunka be extradited to face criminal penalties for his role in the Galician division, a unit that committed atrocities against Poles in the Second World War. Przemysław Czarnek said he has "taken steps" to get Hunka to Poland.

The Friends of Simon Wiesenthal Centre (FSWC), a Jewish rights group, said Rota's action "compromised all 338 MPs" and "handed a propaganda victory to Russia."

The FSWC is also calling on the Commons' Procedure and House Affairs Committee (PROC) to hold public hearings, investigate what took place and examine "vetting process failures."

B'nai Brith, another Jewish group, said the government must make the Deschenes Commission's 1980s-era report public in its entirety so the country can learn the true extent of Ukrainian Nazi activities in post-Second World War Canada.

Reports suggest as many as 2,000 Ukrainian members of Hitler's Waffen-SS were admitted to Canada after the war — after some British prodding. The commission said the number is likely lower than that.

But Jewish groups have long been critical of how these collaborators have been allowed to live in peace in Canada after voluntarily serving in Hitler's forces.

Historians have documented how soldiers like Hunka were trained at SS facilities in Germany, swore an oath to Hitler and received an education in Nazi doctrine.

"We cannot move forward as a country from Friday's humiliating debacle without the government committing to finally opening its wartime records," said Michael Mostyn, B'nai Brith Canada's CEO.

Asked if the Deschenes report should be unsealed, Justice Minister Arif Virani did not give a clear answer.

One part of the commission's work was made public while a second, with the names of alleged Nazis in Canada, was kept secret.

"I will always support ensuring that people who have perpetrated war crimes or crimes against humanity or crimes like genocide are brought to justice," Virani told reporters.

New blockade goes up at Winnipeg's Brady Road landfill as protesters demand search for women's remains

 

Poll, CBC Manitoba focus group suggest voters are split on issue of landfill search ahead of Oct. 3 election.

Protesters calling for a search for the remains of two First Nations women at the Prairie Green landfill, north of Winnipeg, set up new blockade at the Brady Road landfill in south Winnipeg on Wednesday.

WARNING: This story contains distressing details.

A new barricade has gone up at Winnipeg's Brady Road landfill, as calls continue for a search for the remains of two First Nations women believed to be in another Winnipeg-area landfill.

Protesters gathered on the main entrance road to the city-owned Brady landfill, at the south end of Winnipeg, on Wednesday, setting up a row of chairs in front of a car parked in the middle of the road.

 An "Every Child Matters" flag and a sign calling for a landfill search were also nearby.

Winnipeg police say they are aware of the blockade and are communicating with protesters.

Calls have been growing for months for a search of the privately owned Prairie Green landfill, north of Winnipeg. Police believe the remains of Morgan Harris and Marcedes Myran — two First Nations women suspected to have been victims of an alleged serial killer — were taken to that landfill last year.

The blockade set up Wednesday comes after an earlier blockade at the Brady Road landfill was dismantled in July. 

An earlier blockade was set up at the Brady Road landfill on July 6, after Premier Heather Stefanson announced her government would not fund a search of Prairie Green.

City of Winnipeg crews and police dismantled that barricade on July 18, after serving a temporary injunction a few days earlier ordering it to come down. A new protest camp was then set up near the Canadian Museum for Human Rights in Winnipeg.

In the last week, the Progressive Conservatives — who are running for a third term in next week's provincial election — have been actively campaigning on their opposition to a search at Prairie Green landfill, which a feasibility report suggested could take up to three years and cost up to $184 million.

A full-page ad from the party in Saturday's Winnipeg Free Press highlighted Stefanson's opposition to a search, which she has repeatedly said would be too dangerous for searchers. 

A portion of a Progressive Conservative advertisement that ran in the Winnipeg Free Press on Saturday, Sept. 23. (Progressive Conservative Party of Manitoba)

Stefanson also raised the landfill search during the first opportunity she had to ask NDP Leader Wab Kinew a question during last week's televised party leaders' debate. 

Gerry (Gramma) Shingoose, an Anishinaabe elder and community activist, was at Brady Road on Wednesday. She said the blockade was put up again because of Stefanson's refusal to fund a search and the ad the PCs ran over the weekend.

"She's bringing harm to families. They're grieving. It's a huge loss for them," Shingoose told CBC. "Where's her heart?"

Shingoose said she doesn't know how long the barricade will stay up, but that it would come down if the provincial government committed to a search.

Winnipeg police say they are aware of the blockade and are communicating with protesters.

"The election's coming up, and it's … an important time here in Manitoba and Winnipeg, but it's really an important time for the families. That focus should be on the families only," Shingoose said.

People who want to access the landfill can use another entrance, she added.

Search shouldn't be campaign issue: AMC grand chief

In an interview earlier Wednesday, the leader of the Assembly of Manitoba Chiefs said she's disappointed that the debate over a potential search of Prairie Green has become a campaign issue.

"For certain parties to make it an issue, that's not right," AMC Grand Chief Cathy Merrick said, adding the question of a landfill search for the women's remains is not a First Nations issue, but a moral one. 

"I don't think anybody rightfully would not support to bring them home because we all have relatives, we all have daughters, we all have granddaughters," she said. 

"And if it was you in that position, what would you … think if the government said that we will not search for your daughter in the landfills?"

Assembly of Manitoba Chiefs Grand Chief Cathy Merrick says new ads from Manitoba's Progressive Conservatives saying the party won't support a landfill search are hurtful.

A recent poll suggested Manitobans are split on whether to search the landfill. 

A focus group of nine voters run for CBC Manitoba this week by Probe Research seemed to reflect that as well. 

Two voters in the focus group said they thought the PCs' refusal to search the landfill was "disgusting," while two others said they weren't "100 per cent" on board with a search. 

However, none said the landfill search was a deciding factor in how they planned to vote. 

"I feel like there's a lot bigger issues than that kind of working first," said Cole Stocki, a focus group participant who lives in the Kirkfield Park riding in Winnipeg. 

Nigel Moore from the River Heights riding in Winnipeg said he found it "remarkable" that the search was becoming a campaign issue at all. 

The focus group was a collaboration between CBC Manitoba and Probe Research to learn more about voters' opinions and get a sense of where they stand on issues. The polling company identified potential participants from its panel and then randomly selected nine people to ensure a mix of people reasonably representative of Manitoba's demographics. 

Important to be clear on stance: PC candidate

Protesters calling for a search also gathered Wednesday morning outside the constituency office of Kirkfield Park PC candidate Kevin Klein, who made a campaign announcement regarding domestic violence there. The incumbent said the issue is one that "all parties are making divisive."

"It shouldn't be that way. But we are seeing all parties make this a divisive issue and that's unfortunate," Klein said following his announcement.

Protesters calling for a search of Prairie Green landfill gathered outside the campaign headquarters of Kirkfield Park PC candidate Kevin Klein earlier Wednesday. 

Asked about the PC ads, Klein said Stefanson has held steadfast on her position on the landfill search. 

"She felt that it was very important to be clear and transparent about our stance on that," he said.

The Manitoba election takes place Oct. 3. Advance voting is open now and continues until Saturday.

Retiree 'in shock' after Canada Post finds missing $300K inheritance cheque

 

With his cheque in hand after more than 6 weeks, Louis Kavaratzis plans to deposit it as soon as possible.

Louis Kavaratzis retrieved on Monday a missing certified cheque sent by registered mail that contained more than $300,000 inheritance from his late father. 

Louis Kavaratzis was in shock when he got a phone call from Canada Post Monday telling him that a piece of registered mail — which contained a certified cheque for $301,560 — turned up weeks after it had gone missing.

"I felt a big sense of relief, yet I'm still frustrated, very much. Last night I didn't sleep one bit," Kavaratzis said Tuesday. "[But] I won't rest until the cash is actually in the bank."

The missing envelope contained money left for Kavaratzis in his late father's will. It was sent from his father's estate by his brother, George Kavaratzis, through registered mail on July 25 from Campbellford, Ont., to Ayer's Cliff, Que. But the cheque has seemingly vanished, with the brothers spending nearly every day since trying to track it down with Canada Post.

After CBC News reported on his story last week, Kavaratzis says the local post office in Ayer's Cliff rang him up at 6:30 p.m. on Monday saying they searched the office again and found the missing envelope behind a drawer reserved for registered mail.

"When they removed the drawer, they found my registered mail … [that] supposedly had fallen on the back of the drawer," Louis said.

He says he rushed to the post office as soon as he received the call to retrieve the envelope.

"I was in shock, I didn't know what to say. I looked at it, I opened it in front of them to make sure it was the cheque."

Missing cheque found Monday

In an email to CBC News Tuesday, Canada Post confirmed the cheque was delivered to Louis late Monday afternoon but did not provide any further details on why it had gone missing.

Canada Post had said when the issue was brought to their attention, it conducted a "thorough search" of its facilities.

The Crown corporation previously apologized to the brothers in a statement for the "unfortunate and frustrating delivery experience."

In Ayer's Cliff, mail is delivered to residents' mailboxes located inside the Canada Post office. Louis got a notice in his mailbox on Aug. 3 that he had registered mail to retrieve, but had said when he went to the counter to pick it up, it was missing. 

Thinking he was out more than $300,000 when the piece of registered mail seemingly vanished, Kavaratzis, 57, said the then-missing inheritance would ruin his retirement plans.

But with the cheque finally in hand now, he says he plans to deposit it as soon as possible.

'Why didn't they look there before?'

His brother, George, says while he is happy to learn that the cheque had been located, he wondered why it wasn't spotted in the initial searches of the facilities.

"Unbelievable, what a relief," he told CBC News Tuesday. "I am extremely happy for my brother, that he's getting his money.

"It seems a little fishy to me to be honest. Why didn't they look there before?"

In Ayer's Cliff, Que., mail is delivered to residents' mailboxes located inside the Canada Post office. Louis got a notice in his mailbox that he had registered mail to retrieve, but says when he went to the counter to pick it up, it was missing.

Before finding out the cheque was found, he said Canada Post sent him a cheque refunding him $12.22.

"I guess that was their way of apologizing."

George, who is the executor of his father's estate, said he initially chose to send the cheque through registered mail because it provides confirmation Canada Post received the item and proof of delivery by requiring a signature by the recipient. Now, he says he is reconsidering using the delivery method to avoid future situations like this one.

Federal probe of employee complaints about billion-dollar green fund now complete

Ottawa preparing 'action plan' for foundation that subsidizes green tech.

Minister of Innovation, Science and Industry Francois-Philippe Champagne's department commissioned a report on the operations of Sustainable Development Technology Canada (SDTC). (Justin Tang/The Canadian Press)

The federal government now has the results of a probe it launched into a federal agency tasked with funding early-stage green technology — an agency that has been the target of employee complaints about hundreds of millions of dollars paid to the green tech sector.

Radio-Canada has learned the final report, drafted by an outside firm, will be presented soon to Industry Minister François-Philippe Champagne, who is responsible for funding and overseeing Sustainable Development Technology Canada (SDTC).

Before presenting the report to Champagne, officials at Innovation, Science and Economic Development Canada will prepare an "action plan" to respond to the investigation's findings, sources said.

"If there are decisions to make, we will make them," said a federal official.

Little known to the general public, SDTC is at the heart of Ottawa's efforts to foster a technological transition toward a greener economy. It focuses its efforts on small and medium-sized businesses.

According to its current agreement with Ottawa, SDTC has $1 billion to spend between 2021 and 2026. SDTC is managing a budget of $170 million this year. The amount of available funding rises every year to reach $320 million in 2025-2026.

In a written statement, Innovation, Science and Economic Development Canada said it received "allegations of wrongdoing" last February in relation to SDTC funding decisions and human resources management.

Sustainable Development Technology Canada is part of Ottawa's efforts to foster a technological transition toward a greener economy. 

The department called on an external firm, Raymond Chabot Grant Thornton, "to examine the situation and validate the alleged facts." Its report is expected to be made public in coming weeks.

The department said it "will not hesitate to take all necessary measures in response to the findings of the report to remedy any deficiencies or problems identified."

A SDTC spokesperson said the foundation is continuing its activities in the meantime.

"SDTC is fully cooperating with the fact-finding exercise undertaken by Innovation, Science and Economic Development Canada in response to allegations made by a small group of former employees," said Janemary Banigan. "We eagerly await the findings, so that we can put this matter behind us and focus on serving Canadian entrepreneurs."

She said SDTC hired external counsel to look into the allegations and they "found no evidence to substantiate any of the allegations made."

The foundation has provided $1.6 billion in funding to more than 500 businesses since its inception in 2001.

Whistleblower complaints

A group of former and current SDTC employees has filed a formal complaint about the agency's management with the federal government.

The group initially took its allegations to the Office of the Auditor General last year but was told to direct its complaint to the Privy Council Office before ending up at Champagne's department. A spokesperson for the Office of the Auditor General said that while it is not conducting an audit, it continues to follow the matter.

Sources said Raymond Chabot Grant Thornton examined several elements of SDTC's operations, such as its management of internal policies and expenditure approval process.

External investigators analyzed contribution agreements with more than a dozen companies that received $100 million from SDTC from 2017 to 2022.

One of the issues raised by the whistleblowers was SDTC's decision to offer a 5 per cent boost in funding to all previous funding recipients at the end of the 2020 and 2021 fiscal years. The additional payments — which SDTC said were necessary to help firms deal with the COVID-19 pandemic — cost the organization nearly $40 million.

"The government granted SDTC additional financial flexibility during the pandemic to support the Canadian small businesses in our portfolio through an uncertain time," said Banigan.

Minister praised SDTC's 'crucial' work

In a video message last year, Champagne praised SDTC's "substantive contribution" to Canada's economic development.

"As the country's leading source of funding for small and medium-sized clean technology companies, you truly play a crucial role in ensuring a low-carbon future," he said.

SDTC has been led since 2015 by CEO Leah Lawrence, an expert in the clean technology field. She is an engineer by training and has a master's degree in economics from the University of Calgary.

Annette Verschuren, a well-known figure in the Canadian business world, has been SDTC's board chair since 2019. She joined several businesspeople on a 2017 visit by Prime Minister Justin Trudeau to Washington, D.C., where the Canadian delegation met with then-U.S. president Donald Trump.

President of Home Depot's Asian and Canadian operations Annette Verschuren, left, looks at U.S. Commerce Secretary Carlos Gutierrez being fitted with an apron at a Home Depot, GE Aviation and VeriSign event announcing deals with Chinese companies during a ceremony at the Grand Hyatt hotel in Beijing on Dec. 13, 2006. (Elizabeth Dalziel/AP)

She previously led operations at Home Depot and Michael's in Canada. Since 2012, she has been president of NRStor, which works in the field of energy storage.

The foundation was created by the Liberal government of Jean Chrétien to provide funding for clean technology projects in Canada.

Projects funded by SDTC — usually at the initial stage of development of new technologies — receive an average of $4 million.

In all cases, the funding is linked to the development of technologies that are expected to have a positive impact on the environment.

Military's former HR head pleads not guilty to charge related to alleged inappropriate relationship

 

Defence says Lt.-Gen Steven Whelan is a 'victim of politics'

Lt.-Gen Steven Whelan arrives at court in Gatineau, Que., on Monday. (Sean Kilpatrick/The Canadian Press)

The military's former head of human relations has pleaded not guilty to a service offence related to an alleged inappropriate relationship with a subordinate. 

Lt.-Gen. Steven Whelan is accused of changing the performance evaluation report of a female military member based on an improper motive or consideration in June 2011 in Jerusalem. On Monday, the first day of his court martial, he pleaded not guilty to "prejudice of good order and discipline."

The prosecution dropped a second count of that service offence for alleged improper communication or advances toward a subordinate between January 2010-June 2011, the charge sheet said.

Civilian defence lawyer Phillip Millar, who is representing Whelan, said his client is a "victim of politics."

Millar argued the military's leadership is drowning in sexual misconduct allegations and is "scurrying" to "please" the Prime Minister's Office by adopting a policy of believing alleged victims. Millar called that an "illogical premise" adopted by senior Canadian Armed Forces generals in private meetings.

"This is a case of credibility and the effects of a system gone wild," Millar said. 

"We're here at a huge cost to the taxpayer because politics is at play within the halls of [national defence headquarters.]"

Millar said Whelan made "a mistake" by developing a "personal relationship" with a female subordinate. They were friends and nothing sexual ever occurred, said Millar. The defence accused the female military member during the court martial of sending Whelan photos, calling him late at night and "manipulating" him to get what she wanted. 

Whelan is the highest-ranking military member to have his case tried in the military's judicial system and to face this type of military service offence charge, the defence department confirmed.

Charged in 2022

Whelan stepped aside from his post as the commander of military personnel in October 2021 amid an investigation. He was charged in July 2022 under the National Defence Act, according to the defence department.

Whelan's case is going through the military's judicial system because the investigation did not "reveal any evidence" to support laying criminal charges, the defence department has said. 

Whelan, right, and his lawyer, Phillip Millar, arrive at court on Monday. (Sean Kilpatrick/The Canadian Press)

Military prosecutor Maj. Max Reede said Whelan allegedly was involved in a personal relationship with a female subordinate that developed in 2010. Reede said Whelan went to great lengths to ensure that subordinate was deployed with him on Operation Proteus in Jerusalem.

Reede said Whelan was involved in "flirtatious email exchanges over several months" with the subordinate. According to Reede, the relationship changed when they were deployed together and the female military member refused Whelan's invitations to dinner at his private quarters.

Whelan was the commander of Task Force Jerusalem while deployed. That mission helped to train Palestinian Authority security forces, according to the Defence Department's website.

Reede said the female military member learned she was going to receive a lower score than she expected on her annual performance evaluation report (PER) in 2011. He said she was told by now retired Col. Ron Ubbens at the time that he felt she deserved an "outstanding" report, but Whelan disagreed.

'This will destroy my career'

"The accused, for fear of damage of his personal life and his career, directed Col. Ubbens to give her an outstanding PER to reduce the likelihood she would come forward," said Reede. 

Ubbens testified that he told Whelan that the female military member intended to report her relationship with Whelan to a superior officer. 

Ubbens kept an email chain from June 13, 2011, that was submitted to court showing the conversation they had in writing.

"Listen man," wrote Whelan on June 13, 2011. "I need you to do something. I am with the General. [Operation] Proteus is walking on water brother. I would hate for [the female subordinate] to wreck this. Make her go away [please]. The Ambassador came back from the israelis and I cannot say how well we are thought of. We cannot allow this crazy person [to] muddy this mission. Make it your mission to appease this person. Understand?"

In his response, Ubbens said he would try but added "she has stability issues as you know" and described her "seeing red and crying uncontrollably" that morning. Ubbens testified that the female military member's reaction was in response to seeing an updated version of the performance evaluation review she wasn't happy with.

Whelan responded by asking if he could talk to her and see if she had changed her mind. 

"This will destroy my career and marriage," wrote Whelan. "No one wants this. Most of all me."

Whelan also expressed remorse and said he knew he had "made a mistake with those emails."

"I apologize for failing you as a leader," wrote Whelan. "I can admit now all this time away from home weakened my marriage. I should not have done it.

"Anyway if she decides to go forward there is nothing I can do except get used to [being] a divorced pariah in the CF."

Ubbens said he never saw the emails to which Whelan was referring. He testified the female subordinate told him the emails were "sexually inappropriate."

"I had you on a pedestal," Ubbens wrote to Whelan. "This is certainly an ethical dilemma for me as I am questioning everything we have done with [the female subordinate] and why you asked me to get involved in the first place."

Ubbens testified that he changed the draft of the PER based on Whelan's approach, which opted to overlook some of the challenges the female military member faced during her tour and focus on her positive performance.

Ubbens said he agreed with Whelan and felt it was a reasonable and fair adjustment to the draft of the PER that recommended the female military member for a promotion.

"I think he was trying to protect the mission," Ubbens said.

Millar said the complainant demanded an outstanding performance evaluation report and "actively manipulated the chain of command" to get it.

Millar also alleged that news of the investigation was "leaked" to the media, leading to his client's charges and his removal from his job.

Dozens of military police, Millar said, had their hands on Whelan's file and this court martial is a result of their "incompetence" to "conduct a proper investigation or they were prevented from doing so" because of politics.

"His life was destroyed by that leak," said Millar.

Whelan's lawyer said he will call Chief of the Defence Staff Gen. Wayne Eyre to testify. (Justin Tang/CP)

Millar said he will be calling the Chief of Defence Staff General Wayne Eyre and Vice-Chief of the Defence Staff Lt.-Gen. Frances Allen to testify as witnesses.

Since 2021, roughly a dozen senior Canadian military officers — current and former — have been sidelined, investigated or forced into retirement from some of the most powerful and prestigious posts in the defence establishment.

Whelan replaced now retired vice-admiral Haydn Edmundson, who was charged in 2021 with sexual assault and committing indecent acts stemming from allegations dating back to 1991.

Edmundson pleaded not guilty in civilian court.

As the commander of military personnel, Whelan had authority over career consequences for military members found to have engaged in sexual misconduct.

The government's website says a top issue at Whelan's office was also complying with a class action sexual misconduct settlement. The government reached a $900-million settlement in 2019 and more than 18,000 people came forward to submit claims in 2021. 

Military judge Cmdr. Martin Pelletier is presiding over the standing court martial for Whelan's case. A standing court martial is a military court that a military judge presides over alone without a panel of military members. 

Millar told reporters outside the court martial that his aim is to rehabilitate Whelan's reputation. Millar said his client can't go back to a senior leadership role in the military because the forces have "thrown him to the dogs."

The court martial is scheduled to run two weeks.