Industry Canada

Industrie Canada

MEMORANDUM TO THE DEPUTY MINISTER

^OV 0 2 2011

G8 Legacy Fund; Discussion with Tom Dodds on October 30.20II

The purpose of this note is to convey to you the key points of my discussion with Tom Dodds relating to his involvement with the G8 Legacy Fund during 2009 while he was an employee of Industry Canada working for FedNor. It should be noted that Mr. Dodds has twice committed his recollections to paper. First in a document entitled "The Role of FedNor in G8 Legacy Fund" and again in a January 18,2011 email to the then Assistant Deputy Minister (ADM) for the Regional Operations Sector, France Pegeot. His recollections during this discussion were entirely consistent with these earlier documents. (1) Local Action Committee Network Mr. Dodds explained his participation at meetings of the Local Action Committee (LAC) generally and specifically the meeting of February 27, 2009 as follows. Minister Clement's office requested that FedNor be present at LAC meetings Mr. Dodds was asked to attend by then ADM, Regional Operation Sector Nick Heseltine Other FedNor employees also attended LAC meetings with him.

He also explained that in the context of the Northern Ontario Development Program (NODP), FedNor had begun to explore how to maximize the tourism benefits of hosting the G8. A study of tourism opportunities was ultimately completed and provided to Minister Clement's office; no response was received. At the February 27 meeting, Minister Clement also noted that Fednor would evaluate projects proposals for the G8 Legacy Fund. Minister Clement also indicated that all of the project submissions, current and future, would be transferred to FedNor for this purpose. Mr. Dodds indicated that further to the meeting it was agreed to with Minister Clement's office that, given Transport Canada's responsibility for the administration of the G8 Legacy Fund, FedNor's 'evaluation' would be limited to the cataloguing of projects.
...2

Canada

000001

-2(2) Projects Proposals and Decision Making With regards to the decision making process, Mr. Dodds noted that FedNor did not provide any advice, analysis, or project ranking which could be mistaken for a due diligence process. As noted above, FedNor's involvement was limited to the cataloguing of projects, by which was meant the following: - digital scanning of the project proposals - recording of the project proponent, date of project submission, size of project proposal, and other tombstone data - basic classification of projects by type of projects (for example tourism versus infrastructure projects) To assist Minister Clement's office, this information was organized in a spread-sheet which was updated and provided to the Minister's office when requested. Importantly, Mr. Dodds noted that FedNor officials catalogued only what was provided by Minister Clement's office. No follow-up was undertaken with proponents to clarify or validate information or to seek additional detail. FedNor also assisted the Minister's office in the preparation of letters to advise unsuccessful applicants that their projects would not be forwarded to Minister Baird for his consideration. A list of unsuccessful applicants was provided by the Minister's office to FedNor officials and letters were prepared in accordance with the direction received from the Minister's Office. Finally, once Minister Clement's office provided the list of recommended projects to Minister Baird's office, FedNor officials transferred the catalogue of projects to Infrastructure Canada officials. All 242 project proposals were sent; this included the 32 projects which were recommended by Minister Clement (31 Interaction with Minister Clement's Office Mr. Dodds advised that all of his interactions with Minister Clement's office were with David Pierce. He also indicated that he did not provide advice or support to Mr. Pierce on the G8 Legacy Fund outside of the activities described above. This concludes key summary points of my discussion with Mr. Dodds.

Paul Halucha Chief of Staff to the Deputy Minister

000002

FW: Infrastructure Canada request for G8 Project Proposal Information

Titley, Meianie: IC-DM-IC-SM
From: Sent: To: Halucha, Paul: IC-OM-iC-SM Tuesday, September 20,2011 18:44 Titley, Meianie: IC-OM-IC-SM

Page 1 of 3

Subject

Fw. Infrastructure Canada request for G8 Project Proposal Information

Attachments: Annex A FedNor Catalogued Projecte.xls Can you print and we can connect on binder again in AM?

To: Halucha, Paul: IC-DM-IC-SM

From: Mlton, Russell: RO-OR Sent: Tuesday, September 20,201105:13 PM

Subject: FW: Infrastructure Canada request for G8 Project Proposal Information

Paul, below Is the spreadsheet of catalogued projects.

Doddty Tonrc fodNor

Wedrwsday, Jwawry 13, 2010 8:28 PM TK CB PSgert, France: RC-Oft IhMMne, Nkfc RQ-Ofc Perrwult, LudK FwMor, Won, RusseS: WXJR; Henley, Davte FMNor, Paquette, Louise: FMNo

Good Evening France, Yesterday I have received a phone call from Bryce Conrad, Assistant Deputy Minister, Infrastructure Canada-Programs Operations Branch, requesting information on G8 project proposals, which FedNor originally received directly from Minister Clement's office (MINO). This includes: o Copies of proposals, for projects funded through the G8 Infrastructure and Legacy Fund and administered by Infrastructure Canada; and, o A FedNor list (spreadsheet) of all project proposals submitted to the Minister's Office. Infrastructure staff advised me that they urgently require this information to ensure their files are complete in preparation for an audit by the Auditor General on their Economic Action Plan and Infrastructure Stimulus Fund projects. The G8 Infrastructure and Legacy Fund is expected to be part of mis audit Mr. Conrad advised me mat he met with Minister Baud's and Minister Clement's staff about mis matter before Christmas. During that meeting, MINO staff advised that they were quite comfortable having FedNor share its information on G8 project proposals with Infrastructure staff. Tomorrow, I will be sending Infrastructure staff the attached spreadsheet by email and mailing a disc containing copies of the G8 Infrastructure and Legacy Fund project proposals that we have 2011-11-14 0001

EW: Infrastructure Canada request for G8 Project Proposal Information

Page 2 of 3

on hand. In light of your recent appointment to the ADM position you may wish to review die backgrounder below for further information. You may also wish to advise MINO that this infoimation has been requested by Infrastructure Canada and that FedNor is providing it Cheers,
Tom
Annex A FedNor Catalogued Projecis.x!s

Backgrounder: FedNor has had limited involvement in the planning and preparations for the 2010 G8 Summit in Muskoka. Tom Dodds, Director, International Business, was designated by Nick Heseltine as the Industry Canada/FedNor lead for the Summit To date FedNor has: o Served as a member of the G8 Investment/Branding Committee Advisory Board, chaired by DFATFs Summits Management Office, which includes representatives from the Canadian Tourism Commission, Ontario Tourism Marketing Partnership Corporation, and regional tourism organizations. o Assisted with specific initiatives including the coordination of the G8 Youth Summit, Branding Strategy, and associated media tours. o Processed three of four GS-related funding applications to the Northern Ontario Development Fund (FedNor established and the Minister approved a $2.6 million notional allocation in support of the G8 Summit with $1.1 million approved thus far). o At the request of the Minister, I have participated in meetings and made presentations at events organized by bis office in the Muskoka District regarding FedNor's involvement in G8. Shortly after the Prime Minister announced the 2010 G8 Summit would be held in Huntsville, Ontario (located in the Minister's Parry Sound - Muskoka riding), the Minister encouraged local organizations to develop and submit funding proposals in support of G8 directly to his office. On February 27,2009, during a meeting of key locally elected officials in his riding, the Minister advised mat FedNor would review all G8 project proposals submitted to his office. In response, FedNor staff catalogued 242 project proposals totalling almost $264 million (Annex A - Project Submissions worksheet is a detailed list of these projects). Staff reviewed these proposals simply to categorize them, not to assess their merits. Of these projects, 32 received funding through the G8 Infrastructure and Legacy Fund, totalling approximately $45.7 million. Fednor has had no direct involvement with this fund. FedNor staff catalogued project proposals for all but four of these projects. Please refer to Annex A-G8 Infrastructure A Legacy Fund (Approved) Projects worksheet for a list of these projects. It is my understanding that MINO advised Infrastructure Canada which projects should be supported under the G8 Infrastructure & Legacy Fund and their staff prepared the contribution agreements for them accordingly.
TomDoddi Director - International Business | Directeur, Affaires Internationales

2011-11-14

0002

EW: Infrastructure Canada request for G8 Project Proposal Information

FedNorjFedNor, Regional Operations | Operations regionalea InduatxyOmada | Indwtrie Canada 70 Foater Driw, Sault Ste Mine ON P6A 6V4170, rue Porter, Sault Ste Marie ON P6A 6V4 Tom.Dodds@k.gc.ca Tek^hooe | T&6pboae 705-941-2074 Facsimile I TOfcopiour 705-941-2078 ToU-ftee | Sans &w 1-877-333-6673 Teletypewriter | Teleimprimeur 1-866-694-8389 Government of Canada | Ooovtmement du Canada

Page 3 of3

2011-11-14

000003