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Standing Committee on Access to Information, Privacy and Ethics ETHI Ï NUMBER 038 Ï 1st SESSION Ï 41st PARLIAMENT EVIDENCE Thursday, May 10, 2012 Chair Mr. Pierre-Luc Dusseault 1 Standing Committee on Access to Information, Privacy and Ethics Thursday, May 10, 2012 Ï (1100) The Old Port of Montréal Corporation is a wholly owned [Translation] subsidiary created in 1981. It has the status of a parent Crown corporation, but only under certain specific provisions of the The Chair (Mr. Pierre-Luc Dusseault (Sherbrooke, NDP)): We Financial Administration Act. As a result, it reports directly to the are going to start in a few minutes. I would first ask the media to appropriate minister. It is an agent crown corporation. The Auditor leave so that the members of the committee can do their work. General of Canada is its designated auditor. Its share capital is held Good morning and welcome, everyone. Thank you for joining us. by the Canada Lands Company. Its directors are appointed by the CLC. The board of directors appoints the chair of the board and the Mr. Del Mastro has a point of order. CEO. [English] The Old Port is not the Montreal Port Authority, as many people Mr. Dean Del Mastro (Peterborough, CPC): Thank you, Mr. mistakenly assume. We occupy a territory covering 40 hectares, 60% Chairman. of which is parkland, public space, and access and traffic routes along the Saint Lawrence River, in the southern part of Montreal's Might I ask that the witness be sworn in for this morning's historic district. testimony? [Translation] The Corporation's mandate, since it was created 30 years ago, is to The Chair: Since the clerk is usually in charge of this procedure, I develop and manage assets that are today valued at $500 million, and would like to ask him to ensure that the witness takes an oath. administer an annual budget of $48 million, while respecting the objectives set for us by the government. Ms. Claude Benoit (President and Chief Executive Officer, Old Port of Montréal Corporation Inc.): I, Claude Benoit, do The government has the following objectives: to preserve and solemnly, sincerely, and truly affirm and declare the taking of any promote Canada's heritage; to improve urban living conditions and oath is, according to my religious belief, unlawful. I do also facilitate public access to the shores of the St. Lawrence; to solemnly, sincerely, and truly affirm and declare that the evidence I contribute to regional economic development efforts; to maintain shall give on this examination shall be the truth, the whole truth, and some port operations suitable to an urban and historic environment; nothing but the truth. and to assert the federal presence in a dynamic manner. The Chair: Thank you, Ms. Benoit. Thank you for making this The corporation is the custodian of a heritage site of great urban, trip today. historical and commercial value. The development of the Old Port Without further delay, I will give you 10 minutes for your was guided by the community, following a major public consulta- presentation. We will then move to the first question and answer tion, which resulted in a report in 1986 that led to the development period for seven minutes, followed by five-minute periods. guidelines, the relevance of which was reiterated at an examination of the corporation's mandate in 2002. So the floor is yours and you have 10 minutes. So what are those principles? They are: to maintain free, Ms. Claude Benoit: Thank you, Mr. Chair. unrestricted access at all times; to implement a product and service Members of Parliament, I would like to begin by thanking you for offering that complements the wider downtown area, supported by your invitation, which will allow the Old Port of Montréal adjacent sectors and in response to collective needs; to maintain an Corporation to attest to the rigour and transparency of its manage- overall vision for the development of the port, architectural and ment, to set the record straight and dispel any doubts sparked by the shoreline heritage by preserving the views; and to remain under the recent allegations of the Journal de Montreal and QMI Agency, and control of public powers by encouraging participation by all levels of to attest to the fact that the corporation respects all the rules and government to do so. regulations to which it is subject, as will be determined in a special examination by the Auditor General's office, an initiative we In addition, when we invest in major projects we do it in a applaud. responsible manner. When choosing projects, we are guided by the following criteria: user safety, environmental protection, direct But first, I would like to explain what the Old Port of Montréal revenue opportunities for the corporation and economic benefits Corporation is. for the district and the city, and creating value for these assets. 2 ETHI-38 May 10, 2012 To achieve these objectives, the corporation supports a team of Our corporation's collaboration with the office of the Auditor 425 employees in peak season, divided into two business units: the General of Canada is one of our obligations, and our relationship Quays of the Old Port of Montréal and the Montreal Science Centre. with this office is very important to us. The AG's office conducts an Our teams are motivated and committed. We provide high-quality annual audit of the corporation's financial statements, after which it training to ensure optimal delivery of services. Our team is stable, systematically issues an unqualified opinion. Our collaboration with with a turnover rate comparable to that in our industry. the AG's office, which could be described as exemplary, as well as the implementation of its instructions and recommendations, coupled By reorganizing our staff over the past dozen years, we have with the regular internal audits, have improved the corporation's managed to adapt our teams to deal with various challenges, i.e. business processes over the years. increasing our revenues, reducing our expenses, and taking charge of assets of more than $500 million, since 2009. The Old Port Corporation of 2012 is a far cry from what it was in Our labour relations are constructive and harmonious. For 2004. We must therefore see our corporation's management as an example, when the collective agreement expired in 2010, a new example of ongoing improvement with a view to the accountable contract was signed on the same day. management of public funds. Our corporation manages its budget responsibly, in order to make Today, in addition to being the city's only vantage point on the wise investments in the public interest and also to generate the river, the Old Port of Montréal is also the most popular recreational maximum possible revenues to ensure self-funding. and popular tourist site in Quebec. With 6.6 million visitors in 2011, the Old Port is indeed a major tourist attraction. In 2010, the Old Port The corporation therefore operates the Science Centre and the of Montréal joined the list of the world's 15 most beautiful IMAX theatre. We sign and manage annual commercial agreements waterfronts. If the Old Port is today as popular with the public, it is with more than 45 concessionaires. More than 20 sponsors invest in because, over the years, it has been able to develop its individuality, promoting the destination and its programs. More than 200 compa- its uniqueness and its brand. It is unquestionably the Government of nies rent our facilities for events such as product launches, and client Canada's pride and joy in Montreal and Quebec. and employee meetings. We sign contracts for the production of activities and events with more than 30 creative, innovative firms. Unfortunately, the reputation of this major institution has now The annual economic impact of all these activities is nearly been unfairly tarnished by misleading allegations made out of $60 million in added value for the region, as well as 900 jobs in all context, put together in an attempt to malign the corporation and of its activities and those of its partners. spark outrage. Ï (1105) Following these allegations, the corporation's books were opened In 30 years, the federal government's investment, coupled with to the AG's office for the purposes of a special audit requested by our investments by municipal and provincial governments, has con- minister. We welcome this initiative, which will confirm the tributed to the development of the historic district and resulted in scrupulous management of the Old Port of Montréal, just as we investments of more than $2.4 billion. An entire district of the city welcome any recommendations from the Office of the Auditor was thus revitalized. General that could improve our management and our practices so they reflect the best standards of the federal government. All of our activities are managed scrupulously, in strict compliance with the rules in effect. Our books are open and our I thank you for your attention and am ready to answer your management is transparent. All of our management decisions are questions. made on the basis of two main principles: making the best possible use of taxpayers' money, which we receive from the Government of Ï (1110) Canada, and developing a product of the highest quality, in keeping The Chair: Thank you, Ms. Benoit. with our mission. The corporation respects the management framework and the control required under Canada's Financial Without further delay, I will give the floor to Mr. Boulerice, who Administration Act. Its policies and procedures are based on the has seven minutes.