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Industry Canada

Industrie Canada

MEMORANDUM TO THE DEPUTY MINISTER

NOV 0 2 2011

G8 Legacy Fund: Discussion with Tom Dodds on October 30, 2011

The purpose of this note is to convey to you the key points of Iny discussion with Tom Dodds relating to his involvement with the 08 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, RegionaJ 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.

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(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 o'f 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 infonnation 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 FeclNor 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.
(3) 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

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FW: Infrastructure Canada request for 08 Project Proposal Infonnation

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Tilley, Melanie: IC-DM-IC-SM


From:
Halucha, Paul: IC-DM-IC.sM

Sent:
To: Subject:

Tuesday, September 20,201118:44


Titley, Melanie: IC-DM-IC-SM

Fw: Infrastructure Canada request for G8 Project Proposal Information

Attachments: Annex A FedNor CatalogUed Projects.xls


can you print and we can connect on binder again in AM?

From: Milon, Russell: RO-oR

sent: Tuesday, september 20, 201105:13 PM


To: Halucha, Paul: IC-DM-IC-SM
Subjea: FW: Infrastructure canada request for G8 Project Proposal Information

Paul, below Is the spreadsheet of catalogued projects.

From: Dodds, Tom: fedNor'

sent: Wednesday, January 13, 2010 8:28 PM


To:

ce:

Pegeot, France: Ro-oR HeseItine, Nick: Ro-oR; Perreault, Lucie: FedNor; Milan, Russell: Ro-oR; Henley, David: FedNor; Paquette, Louise: FeclNor
Infrastructure Canada request for G8 Project Proposal Information

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 ofproposals, for projects funded through the 08 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 infonnation to ensure their files are complete in preparation for an audit by the Auditor <;Jenera! on their Economic Action Plan and Infrastructure Stimulus Fund projects. The 08 Infrastructure and Legacy Fund is expected to be part of this audit.

Mr. Conrad advised me that he met with Minister Baird's and Minister Clement's staff about this matter before Christmas. During that meeting, MINO staff advised that they were quite comfortable having FedNor share its information on 08 project proposals with Infrastructure
staff.

Tomorrow, I will be sending Infrastructure staffthe attached spreadsheet by email and mailing a disc containing copies of the G8 Infrastructure and Legacy Fund project proposals-that we have
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2011-11-14

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on hand. In light of your recent appointment to the ADM position you may wish to review the backgrounder below for further infonnation. You may also wish to advise MINO that this infonnation has been requested by Infrastructure Canada and that FedNor is providing it.
Cheers,

Tom
Annex A FedNor Catalogued Projects.xls

Baekgrounder:
FedNor has had limited involvement in the planning and preparations for the 2010 08 Summit in Muskoka. Tom Dodds, Director, International Business, was designated by Nick HeseltiiJ.e as the Industry CanadalFedNor lead for the Summit. To date FedNor has:
o Served as a member of the 08 InvestmentIBranding Committee Advisory Board, chaired by DFAIT's 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 08 Youth Summit, Branding Strategy, and associated media tours. o Processed three offour OS-related funding applications to the Northern Ontario Development Fund (FedNor established and the Minister approved a 52.6 million notional allocation in support ofthe 08 Summit with $1.1 million approved thus far). o At the request ofthe Minister, I have participated in meetingS and made presentations at events organized by his office in the Muskoka District regarding FedNor's involvement in 08. Shortly after the Prime Minister announced the 2010 08 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 of08 directly to his office.
On February 27, 2009, during a meeting of key locally elected officials in his riding, the Minister advised that FedNor would review all 08 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 ofthese projects). Staffreviewed these proposals simply to categorize them,
not to assess their merits.

Ofthese projects, 32 received funding through the 08 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 &: Legacy Fund (Approved) Projects worksheet for a list ofthese projects. It is my understanding that MINO advised Infrastructure Canada which projects should be supported under the 08 Infrastructure & Legacy Fund and their staff prepared the contribution agreements for them accordingly.
Tom Dodds

Director - International Business I Directeur, Affaircs intemationales

2011-11-14

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FedNor I FedNor, Regional Operations I Operations regionales
Industry Canada I Industrie Canada

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70 Foster Drive, Sault Ste Marie ON P6A 6V4170t rue Foster, Sault 8te Marie ON P6A 6V4 Tom.Dodds@ic!gc.ca Telephone I Telephone 705-941-2074 Facsimile I T616copieur70S-941-2078 Toll-ftee I SaDs his 1-877-333-6673 Teletypewriter I Te16imprimeur 1-866-694-8389 Government ofCanada I Gouvernement du Canada

2011-11-14

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