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Liberal Patronage: $330 Million in Questionable Allocations at Canada’s Green Tech Agency

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The Opposition with Dan Knight

What we learned from the committee is as clear as it is disturbing: Liberal ministers and appointees at SDTC have been funneling taxpayer dollars to friends under the guise of green technology funding.

In a damning House of Commons Public Accounts Committee (PACP) meeting, details emerged that Canada’s flagship “green” agency, Sustainable Development Technology Canada (SDTC), funneled hundreds of millions of taxpayer dollars into companies connected to Liberal insiders. An Auditor General’s report shed light on the staggering scale of this apparent Liberal patronage scheme, revealing that $330 million was awarded to projects with board members tied to the SDTC itself. Another $59 million found its way into initiatives that didn’t even meet SDTC’s green-tech mandate, fueling accusations of political favoritism and cronyism within Prime Minister Trudeau’s government.

Opposition MPs, led by Conservatives Rick Perkins and Michael Cooper, along with Bloc MP Nathalie Sinclair-Desgagné and NDP MP Richard Cannings, took turns dissecting former Liberal Minister Navdeep Bains’ role in appointing Annette Verschuren as SDTC’s board chair. Testimony from the hearing, corroborated by statements from SDTC’s CEO, revealed that Bains reached out to Verschuren multiple times about her appointment, despite his claims of following an “open, transparent, and arm’s-length” process. Yet, when grilled by the opposition, Bains repeatedly invoked “process” and shifted blame onto the Privy Council Office (PCO), claiming he merely encouraged a diverse pool of applicants.

But the evidence doesn’t line up with the former minister’s narrative. Witnesses testified that Assistant Deputy Minister Noseworthy had informed SDTC CEO Leah Lawrence of Verschuren’s appointment even before it was finalized, indicating a behind-the-scenes process driven by Liberal influence. These revelations throw the credibility of the appointment process into question, suggesting it may have been less about selecting qualified candidates and more about ensuring loyal Liberal allies held key positions.

The committee’s findings, sparked by the Auditor General’s investigation, expose a serious issue of conflicts of interest within SDTC’s funding operations. This is a public agency with a mission to advance sustainable development, yet the Liberal government’s management seems to have turned it into a cash machine for insiders. The Auditor General’s report has revealed a troubling pattern of funding allocations going to companies with board connections, undercutting the government’s credibility on environmental stewardship and transparency.

What we learned from the committee is as clear as it is disturbing: Liberal ministers and appointees at SDTC have been funneling taxpayer dollars to friends under the guise of green technology funding. This isn’t just a lapse in oversight; it’s a systematic approach that prioritizes insider deals over real environmental progress, putting the Trudeau government’s commitment to transparency and sustainability squarely in doubt.

Opposition MPs Call Out Lack of Accountability

During this pivotal Public Accounts Committee meeting, opposition MPs went on the offensive, exposing a deep pattern of evasion and mismanagement in how taxpayer dollars were funneled into the hands of Liberal insiders under former Liberal Minister Navdeep Bains. Conservative MPs Rick Perkins and Michael Cooper led the charge, calling out Bains’ deflections and demanding straight answers. They pointed to the $330 million awarded by Sustainable Development Technology Canada (SDTC) to projects connected to its own board members, questioning why this blatant conflict of interest was permitted under Bains’ watch.

Perkins and Cooper’s approach was blunt. They challenged Bains on his repeated reliance on vague, bureaucratic defenses, pointing out that as minister, he had a duty to exercise oversight on SDTC’s operations. Perkins in particular questioned Bains about his involvement in appointing Annette Verschuren as chair of SDTC’s board. Despite Bains’ claims that he couldn’t “recall” specific discussions with Verschuren, evidence surfaced that he contacted her multiple times prior to her appointment. For Perkins and Cooper, this level of involvement, coupled with Bains’ repeated refusal to acknowledge conflicts of interest within SDTC, painted a damning picture of a Liberal minister who prioritized insider appointments over accountability to Canadian taxpayers.

Bloc MP Nathalie Sinclair-Desgagné and NDP MP Richard Cannings focused their questioning on the government’s failure to ensure responsible oversight of SDTC’s environmental funds. Sinclair-Desgagné highlighted Bains’ “arm’s-length” defense as an excuse, given the testimony indicating that senior officials had preemptively informed SDTC’s CEO about Verschuren’s appointment, suggesting an internal network of influence rather than a transparent, merit-based process. She called out the apparent detachment of Bains from SDTC’s operations, underscoring how his office either ignored or bypassed red flags.

NDP MP Cannings raised critical points about the hypocrisy of a government that claims to champion green innovation while allowing SDTC to devolve into a taxpayer-funded favor bank. Cannings pointed out that SDTC’s funds, meant for real environmental progress, were instead granted to projects with questionable ties and little sustainability impact. For Canadians concerned with climate action, Cannings’ questions laid bare the truth: the Liberal government’s commitment to “green” initiatives is far weaker than their dedication to keeping insiders funded.

This unified front by Conservative, Bloc, and NDP MPs highlighted the same disturbing trend: a Liberal government that talks about accountability and climate action but delivers neither, choosing instead to use taxpayer funds to benefit those closest to the party.

Bains’ Defense: Hiding Behind “Process” and Arm’s-Length Excuses

When faced with tough questions on SDTC’s mismanagement, former Liberal Minister Navdeep Bains clung tightly to procedural defenses, repeatedly deflecting responsibility to the Privy Council Office (PCO) and downplaying his role as minister. Bains insisted that the PCO alone was responsible for vetting board members, suggesting his involvement was “hands-off” and strictly procedural. Yet, opposition MPs saw right through this tactic, viewing it as a clear attempt to dodge accountability.

Throughout the hearing, Bains deflected pointed questions by portraying SDTC’s oversight as out of his hands, claiming his office only followed standard processes. He avoided addressing why his appointee, Annette Verschuren, landed the SDTC board chair role despite potential conflicts of interest, with millions later flowing to companies linked to board members. By painting himself as a mere bystander to PCO’s vetting process, Bains sidestepped responsibility for ensuring taxpayer funds went to projects with genuine environmental merit, rather than those benefiting Liberal insiders.

When pressed about specific discussions surrounding Verschuren’s appointment, Bains leaned on what can only be described as selective memory. Asked about his personal involvement, he claimed he “couldn’t recall” multiple key conversations — a response that only raised eyebrows among committee members. Testimonies from SDTC’s CEO and other witnesses indicated Bains contacted Verschuren several times, yet his failure to acknowledge this directly cast doubt on his narrative of impartial oversight.

Opposition MPs argued that Bains’ procedural evasions were thinly veiled attempts to cover for what looks like a Liberal patronage pipeline. His refusal to answer clearly and his dependence on “I don’t recall” responses drew sharp criticism, with opposition leaders labeling it as a standard Liberal tactic to avoid admitting responsibility. The result? A testimony that shed little light on how SDTC was run but spoke volumes about the government’s willingness to dodge accountability whenever insiders are involved.

Inclusion and “Transparency” Won’t Save Liberals from Accountability

Throughout the Public Accounts Committee hearing, Liberal MPs Jean Yip and Francis Drouin took on a clear mission: protect Navdeep Bains at all costs. Instead of addressing the mountain of allegations around SDTC’s blatant cronyism and taxpayer waste, Yip and Drouin turned the hearing into a platform for Liberal talking points, spinning tales of “transparency” and “diversity” that conveniently dodged the actual corruption in front of them. Let’s be clear: hiding behind “inclusivity” doesn’t make the Liberals less corrupt, nor does it absolve them of responsibility when taxpayer money is at stake.

Jean Yip’s questioning gave Bains endless opportunities to recite the “open and competitive” process that supposedly led to Annette Verschuren’s appointment as SDTC board chair. Yet she never asked about Verschuren’s Liberal ties, or why so many millions were awarded to companies connected to SDTC board members. Yip’s focus on “inclusion” and “diverse voices” on the board was a distraction — a slick attempt to shift attention away from the Auditor General’s findings and avoid the reality that those “diverse voices” are well-connected Liberal insiders benefiting from your money.

Francis Drouin was right there to keep the narrative going, pivoting to SDTC’s supposed “green mandate” and giving Bains a platform to tout his government’s commitment to sustainability. But let’s call it what it is: a cover. By talking up sustainability and diversity, Drouin helped Bains avoid explaining why SDTC mismanaged $330 million on projects tied to its own board members, and why an additional $59 million went to ineligible initiatives. This wasn’t accountability — it was damage control, plain and simple.

Yip and Drouin’s interventions were textbook Liberal tactics: deflect, divert, and dilute the discussion. They may have repeated “transparency” and “inclusivity” all they wanted, but these buzzwords are nothing more than a smokescreen for taxpayer-funded favoritism. For Canadians watching, it was an unmistakable display of damage control — the Liberals doing everything they can to dodge real accountability while your tax dollars keep flowing to their inner circle.

Broader Implications: A Systemic Liberal Culture of Avoiding Accountability

The revelations from this Public Accounts Committee meeting show us something far darker than the mismanagement of a single agency. They expose a deeply entrenched system where Trudeau’s Liberal government doesn’t just waste taxpayer money — they use it to reward political cronies and shield insiders from accountability. This isn’t just negligence; it’s the Trudeau Swamp in action, a well-oiled machine funneling your money to friends and allies under the thin cover of bureaucratic “process.”

At the center of this scandal is a strategy the Liberals have perfected: hide behind procedural jargon and “arm’s-length” defenses to dodge any responsibility. The moment former Minister Navdeep Bains took the stand, you could see the tactics at work. Facing questions on how Sustainable Development Technology Canada (SDTC) turned into a cash cow for Liberal insiders, Bains and his fellow Liberal MPs defaulted to the same tired script — insisting every questionable allocation, every insider appointment, was just “routine process.” They claim “independence,” they claim “transparency,” but the evidence paints a different picture: Liberal insiders filling key roles and pulling the strings to channel your money into their pockets.

This scandal isn’t an isolated incident. It’s a glimpse into a troubling pattern, where taxpayer funds — meant for genuine public service — have become Trudeau’s political currency, up for grabs to those with the right connections. And make no mistake: Navdeep Bains’ refusal to answer real questions isn’t just about protecting himself. It’s about preserving a whole Liberal network that thrives on government patronage, hidden behind bureaucratic red tape. The Liberals have turned “process” into a shield, protecting ministers from facing the consequences of their actions.

The stakes couldn’t be higher for Canadians. This isn’t just about misusing a few dollars — it’s about a government prioritizing loyalty over public good, rewarding insiders while millions of Canadians wonder where their taxes are actually going. Under Trudeau’s watch, the promise of accountability has become a punchline, replaced with cronyism and evasion. So here’s the real question: Is Canada governed for its citizens, or for an elite network of well-connected Liberal insiders? Because after this committee meeting, the answer seems painfully clear.

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Massive government child-care plan wreaking havoc across Ontario

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From the Fraser Institute

By Matthew Lau

It’s now more than four years since the federal Liberal government pledged $30 billion in spending over five years for $10-per-day national child care, and more than three years since Ontario’s Progressive Conservative government signed a $13.2 billion deal with the federal government to deliver this child-care plan.

Not surprisingly, with massive government funding came massive government control. While demand for child care has increased due to the government subsidies and lower out-of-pocket costs for parents, the plan significantly restricts how child-care centres operate (including what items participating centres may purchase), and crucially, caps the proportion of government funds available to private for-profit providers.

What have families and taxpayers got for this enormous government effort? Widespread child-care shortages across Ontario.

For example, according to the City of Ottawa, the number of children (aged 0 to 5 years) on child-care waitlists has ballooned by more than 300 per cent since 2019, there are significant disparities in affordable child-care access “with nearly half of neighbourhoods underserved, and limited access in suburban and rural areas,” and families face “significantly higher” costs for before-and-after-school care for school-age children.

In addition, Ottawa families find the system “complex and difficult to navigate” and “fewer child care options exist for children with special needs.” And while 42 per cent of surveyed parents need flexible child care (weekends, evenings, part-time care), only one per cent of child-care centres offer these flexible options. These are clearly not encouraging statistics, and show that a government-knows-best approach does not properly anticipate the diverse needs of diverse families.

Moreover, according to the Peel Region’s 2025 pre-budget submission to the federal government (essentially, a list of asks and recommendations), it “has maximized its for-profit allocation, leaving 1,460 for-profit spaces on a waitlist.” In other words, families can’t access $10-per-day child care—the central promise of the plan—because the government has capped the number of for-profit centres.

Similarly, according to Halton Region’s pre-budget submission to the provincial government, “no additional families can be supported with affordable child care” because, under current provincial rules, government funding can only be used to reduce child-care fees for families already in the program.

And according to a March 2025 Oxford County report, the municipality is experiencing a shortage of child-care staff and access challenges for low-income families and children with special needs. The report includes a grim bureaucratic predication that “provincial expansion targets do not reflect anticipated child care demand.”

Child-care access is also a problem provincewide. In Stratford, which has a population of roughly 33,000, the municipal government reports that more than 1,000 children are on a child-care waitlist. Similarly in Port Colborne (population 20,000), the city’s chief administrative officer told city council in April 2025 there were almost 500 children on daycare waitlists at the beginning of the school term. As of the end of last year, Guelph and Wellington County reportedly had a total of 2,569 full-day child-care spaces for children up to age four, versus a waitlist of 4,559 children—in other words, nearly two times as many children on a waitlist compared to the number of child-care spaces.

More examples. In Prince Edward County, population around 26,000, there are more than 400 children waitlisted for licensed daycare. In Kawartha Lakes and Haliburton County, the child-care waitlist is about 1,500 children long and the average wait time is four years. And in St. Mary’s, there are more than 600 children waitlisted for child care, but in recent years town staff have only been able to move 25 to 30 children off the wait list annually.

The numbers speak for themselves. Massive government spending and control over child care has created havoc for Ontario families and made child-care access worse. This cannot be a surprise. Quebec’s child-care system has been largely government controlled for decades, with poor results. Why would Ontario be any different? And how long will Premier Ford allow this debacle to continue before he asks the new prime minister to rethink the child-care policy of his predecessor?

Matthew Lau

Adjunct Scholar, Fraser Institute
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Canada Caves: Carney ditches digital services tax after criticism from Trump

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From The Center Square

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Canada caved to President Donald Trump demands by pulling its digital services tax hours before it was to go into effect on Monday.

Trump said Friday that he was ending all trade talks with Canada over the digital services tax, which he called a direct attack on the U.S. and American tech firms. The DST required foreign and domestic businesses to pay taxes on some revenue earned from engaging with online users in Canada.

“Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,” the president said. “We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.”

By Sunday, Canada relented in an effort to resume trade talks with the U.S., it’s largest trading partner.

“To support those negotiations, the Minister of Finance and National Revenue, the Honourable François-Philippe Champagne, announced today that Canada would rescind the Digital Services Tax (DST) in anticipation of a mutually beneficial comprehensive trade arrangement with the United States,” according to a statement from Canada’s Department of Finance.

Canada’s Department of Finance said that Prime Minister Mark Carney and Trump agreed to resume negotiations, aiming to reach a deal by July 21.

U.S. Commerce Secretary Howard Lutnick said Monday that the digital services tax would hurt the U.S.

“Thank you Canada for removing your Digital Services Tax which was intended to stifle American innovation and would have been a deal breaker for any trade deal with America,” he wrote on X.

Earlier this month, the two nations seemed close to striking a deal.

Trump said he and Carney had different concepts for trade between the two neighboring countries during a meeting at the G7 Summit in Kananaskis, in the Canadian Rockies.

Asked what was holding up a trade deal between the two nations at that time, Trump said they had different concepts for what that would look like.

“It’s not so much holding up, I think we have different concepts, I have a tariff concept, Mark has a different concept, which is something that some people like, but we’re going to see if we can get to the bottom of it today.”

Shortly after taking office in January, Trump hit Canada and Mexico with 25% tariffs for allowing fentanyl and migrants to cross their borders into the U.S. Trump later applied those 25% tariffs only to goods that fall outside the free-trade agreement between the three nations, called the United States-Mexico-Canada Agreement.

Trump put a 10% tariff on non-USMCA compliant potash and energy products. A 50% tariff on aluminum and steel imports from all countries into the U.S. has been in effect since June 4. Trump also put a 25% tariff on all cars and trucks not built in the U.S.

Economists, businesses and some publicly traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from U.S. families, and pay down the national debt.

A tariff is a tax on imported goods paid by the person or company that imports them. The importer can absorb the cost of the tariffs or try to pass the cost on to consumers through higher prices.

Trump’s tariffs give U.S.-produced goods a price advantage over imported goods, generating revenue for the federal government.

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