SUBCOMMITTEE REPORT

INTENDED APPOINTMENTS
EDA KRANAKIS

ROYAL POULIN

CONTENTS

Wednesday 19 April 2000

Subcommittee Report

Intended Appointments
Dr Eda Kranakis
Mr Royal Poulin

STANDING COMMITTEE ON GOVERNMENT AGENCIES

Chair / Président
Mr James J. Bradley (St Catharines L)

Vice-Chair / Vice-Président

Mr Bruce Crozier (Essex L)

Mr James J. Bradley (St Catharines L)
Mr Bruce Crozier (Essex L)
Mrs Leona Dombrowsky (Hastings-Frontenac-Lennox and Addington L)
Mr Bert Johnson (Perth-Middlesex PC)
Mr Morley Kells (Etobicoke-Lakeshore PC)
Mr Tony Martin (Sault Ste Marie ND)
Mr Joseph Spina (Brampton Centre / -Centre PC)
Mr Bob Wood (London West / -Ouest PC)

Substitutions / Membres remplaçants

Mr David Christopherson (Hamilton West / -Ouest ND)
Mr Garry J. Guzzo (Ottawa West-Nepean / Ottawa-Ouest-Nepean PC)
Mr David Ramsay (Timiskaming-Cochrane L)

Clerk pro tem / Greffier par intérim

Mr Tom Prins

Staff / Personnel

Mr David Pond, research officer, Research and Information Services

The committee met at 1004 in room 228.

SUBCOMMITTEE REPORT

The Chair (Mr Jim Bradley): We'll open the meeting for Hansard purposes and other purposes today. The first item is the report of the subcommittee on committee business dated Thursday, April 13, 2000. It says "see attached." I believe there were no appointments asked for, for that period of time.

Mr Bob Wood (London West): I move its adoption.

The Chair: Moved by Mr Wood. Any discussion? All in favour? The motion is carried.

INTENDED APPOINTMENTS
EDA KRANAKIS

Review of intended appointment, selected by official opposition party: Eda Kranakis, intended appointee as member, Ontario Graduate Scholarship Selection Board.

The Chair: Under appointments review, we begin our half-hour review of intended appointments as follows from a certificate received on March 24, 2000, a selection of the opposition party. The first at 10 am is Dr Eda Kranakis, who is the intended appointee as member, Ontario Graduate Scholarship Selection Board. You may come forward, please, and you will correct my pronunciation if I have mispronounced your name.

What happens is, as you will probably have been briefed, there is an opportunity for you to make an initial statement, should you wish to do so, and then we commence questioning from the political parties for 10 minutes each. If you'd like to make a beginning statement, you're welcome to do so.

Dr Eda Kranakis: I'll just review briefly my qualifications, which I gather you want to know about.

My basic qualifications for this position are, first of all, that I have served on an OGS panel, which means I've done the process of actually having to read through huge piles of applications and selecting the most meritorious; second, that I have served as the director of graduate studies in my department, which was one of the largest graduate programs in the faculty of arts at the University of Ottawa; and third, that I direct graduate students. That's all.

The Chair: Very good. I'm going to commence with the government caucus today, I'm told, because I've had some advice that the last day the NDP commenced. If it's all right, I'll start with the government caucus.

Mr Wood: We'll waive our time.

The Chair: You're going to waive your time. OK. That means I will go the official opposition. Mr Ramsay.

Mr David Ramsay (Timiskaming-Cochrane): I have no comments at this time.

The Chair: Ms Dombrowsky.

Mrs Leona Dombrowsky (Hastings-Frontenac-Lennox and Addington): You indicated that you have served on a panel of Ontario Graduate Scholarship previous to this. For how long? I know this is in the background.

Dr Kranakis: You always serve for one term.

Mrs Dombrowsky: For one term. We are always interested to know about any political affiliations you would have had.

Dr Kranakis: I don't have any.

Mrs Dombrowsky: You don't have any. Oh, very good. Well, not so very good, but it's always interesting when we get that information. Those are all the questions.

The Chair: Any further questions from the official opposition? If not, we'll move to the third party.

Mr David Christopherson (Hamilton West): Thank you for your comments. Thank you for coming in. I think you'll do an excellent job; I'll be pleased to support your nomination.

Dr Kranakis: Thank you.

The Chair: I should tell you that this is one of the easiest ones I've ever seen, so you must be pleased at that.

Dr Kranakis: This is all there is?

The Chair: Yes, that's all there is. The members have no further questions. They must be very impressed with your credentials and with your initial statement. If you like, I'll give you time for any wrap-up statement you'd like now.

Dr Kranakis: Increase the funding to OGS?

Mr Christopherson: They're not going to say yes.

Dr Kranakis: Well, that's my statement. There is some talk about increasing funding to OGS, and I think it would be a good thing. There are a lot of financial difficulties for students, and I think those grants have to keep up with the cost of living.

The Chair: Perhaps as Chair, I can exercise my prerogative of asking some informational questions. One of the very good things about this committee, in addition to finding out about the appointees, is finding out about the area in which they are involved and getting some indication of how programs work. Perhaps you could help us out. We don't have our next appointee here at this time and I'd be interested in knowing how the Ontario graduate scholarship works, if you would give us a little bit of background.

Dr Kranakis: There's a deadline in your department by which you apply and the students prepare their proposals, their packages. They focus a lot on-actually your GPA is extremely important. That has good aspects because with high GPAs you are definitely getting top students. It doesn't mean that a person with a somewhat lower GPA is not a top student. For example, one of the-

The Chair: What does GPA stand for again?

Dr Kranakis: Grade point average.

The Chair: OK.

Dr Kranakis: That's the bottom line in academia.

The Chair: See, we politicians are notorious for using acronyms and everyone wonders what they are. I always ask our members-in the Legislature, for instance, when we're asking questions of the government-not to use "CCAC" or something like that because the public doesn't know what it is.

Dr Kranakis: Sorry.

The Chair: Thank you very much. Keep going.

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Dr Kranakis: There are cases where even when a student has a lower grade point average, it's due to completely other circumstances. For example, one of my graduate students was actually trained to be a classical pianist, and at the same time was doing an undergraduate degree. It's an impossible combination, and because of that her undergraduate degree grade point average was lower and probably she would never have gotten an OGS. But she was actually an excellent student, did a thesis considered worthy of a prize and has gone on to a very good job based on her thesis.

They get their files together. Then what happens is that they have to get the letters of recommendation or these confidential reports from the professors who know their work. Then a committee of the department that's linked with the graduate studies committee meets and has to rank all the candidates. This is called the departmental ranking. This is extremely important because we're the people who know all the students, and since it's a committee, you can't have favouritism, where one person favours their students over everybody else's, because it's a committee.

I actually chaired that committee when I was a chairman of graduate studies. You have to write a little blurb about each candidate that tells their particular strength if you want to help to maximize the number of your students who get the OGS. You're trying to say something positive, but you have to rank-order them from the one you consider the top, down to the bottom.

That all goes off and then the panels are formed, of people like myself, professors who do graduate teaching. We have to adjudicate all the people applying from all over Ontario. You adjudicate by discipline for the most part, except in one case, which is the case of the international scholarships. That's the actual panel I served on. There you don't adjudicate by discipline. You get a whole package of a lot of different disciplines. Adjudication by discipline is important because different disciplines have different approaches, different methodologies, different ways of thinking about the world, and you have to be judged by people in your field.

The panel members meet. They have to read through this huge pile of applications and then they rank-order them. They meet and discuss who should go first and who should get the grant and who shouldn't. Finally, in the spring, I can't remember exactly what date it would be, the results go out.

The Chair: What kind of dollars are we talking about for students on this?

Dr Kranakis: On the OGS?

The Chair: Yes.

Dr Kranakis: It was something on the order of $11,000. That, as I understand, is supposed to be like-that is the flagship of support from the province of Ontario. Part of the problem is that the national one, the SSHRC, has gone up and OGS has stayed the same. That has a couple of negative impacts.

First of all, if you want to make a really positive statement about Ontario, you don't want to have your scholarship considered second-best, which is clearly what it is now. Part of the problem with the OGS, as I see it is, that it is single-year funding, whereas the SSHRC has gone over to multiple-year funding. A real problem students have is that they're on a very short funding leash and they never know. You need to get continuity of funding. They're starting a long program of study. If they don't know whether they're going to have any funding next year, it creates anxiety. It actually can interfere with their studies.

This is why if you have won the award, to have to go back to the whole process again for the second year I find to be a bit counterproductive. You've already established that they are qualified for the scholarship. To give them continuity, you could set conditions such that they can't fall below a certain grade point average or something. That's one area where the OGS might want to consider strengthening it to make it more attractive and give that continuity of funding that students need.

The Chair: That's very interesting to hear. Is it all right if we allow members a question or two? I think this is more informational right now.

Mr Wood: I have no problem with that. I was going to say that we hope Mr Poulin may arrive early. We're working on that right now, so we'll let you know as soon as he arrives on the scene.

The Chair: That would be fine.

Mrs Dombrowsky: This has been excellent conversation and your comments have raised some questions for me. I was interested in the statement you made when you indicated it's your understanding that there may be some increased resources coming to OGS, that you would be looking forward to that.

Dr Kranakis: I would look forward to it if they would-

Mrs Dombrowsky: Did I understand you to say, though, that you had been given that impression, that there would be some additional resources coming to OGS?

Dr Kranakis: I don't know. I know we want it.

Mrs Dombrowsky: All right.

Dr Kranakis: I don't know that it has been increased. I know we want it to be increased.

Mrs Dombrowsky: Indeed, and understandably so. I understood you to say that you had heard there were going to be some additional resources available and that you would be looking forward to-

Dr Kranakis: No, I haven't heard anything of that. I haven't heard that there's going to be. I know that our graduate school wants additional resources. I know other graduate schools want additional resources. I know the faculty wants additional resources. I know the students want additional resources. But what's going to be done with that, I don't know.

Mrs Dombrowsky: So there would be a need for additional resources and, additionally, for a commitment over a period of years.

Dr Kranakis: That's as important, for the reasons I've explained. If the students have no continuity of funding, it's demoralizing, particularly if you're starting a PhD. You know you're going to be there for four years. What if you put in two years of the work and suddenly your funding just drops out? It puts a big stress on students.

Mr Garry J. Guzzo (Ottawa West-Nepean): Good training for politics.

Dr Kranakis: Yes, well-

Mr Guzzo: I apologize.

Dr Kranakis: There is another thing I could say about the issue of increased funding. I know you guys probably hear this all the time: "We want more funding for this, we want more funding for that." But the issue with higher education is particularly unique. The whole function and social role of higher education is really changing. Much more than previously, it's becoming a direct productive force.

I'd like to give you an example of my own students. This was the one who was training as a classical pianist. This student came and took a course from me. I teach the history of European integration; it's one of the things I teach. I always indicate what topics they could do for graduate work. She chose to do a topic that has to do with standardization in Europe. They have the European Commission, the European Community, and they're working on European-level standards. The question is, how does that affect access for Canadian companies to the European market?

She started to work on that topic. She went to interview some of the Canadian companies. They were so impressed with the fact that she had done this topic that she is now the standards analyst for one of these companies-she works in England-who does relations with the European Community. She got that job directly out of her thesis topic in the history department.

Twenty years ago, to see such a thing would have been much rarer. You had the idea that the humanities in particular were the ivory tower. Now you're training people who actually can make a direct contribution to innovation, to economic growth, because regulation is a whole big part of the technological development.

The whole area of growth of jobs is in fact in a more highly skilled sector. It's important to maximize Canada's chances in the world, to try to maximize the opportunities for students to get that higher education, because it leads them to jobs they wouldn't otherwise be able to do. There's no way she could have gotten this job if she hadn't done that work.

It's a new world we're entering and I think the funding programs we have to do have to reflect that changed reality.

The Chair: I'm at the committee's mercy. Mr Poulin has arrived at this time. However, if Mr Spina would like to ask a question, he can do so; if not, I'm going to call it to a conclusion. The committee has been kind enough to have a little bit of flexibility this morning, and I appreciate that.

Thank you very much for your appearance before the committee. A decision will be rendered today on whether your appointment is endorsed by the committee or not. I think you've got a pretty good hint of whether it will be. Thank you very much.

Dr Kranakis: Thank you.

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ROYAL POULIN

Review of intended appointment, selected by official opposition party and third party: Royal Poulin, intended appointee as chair, Ontario Northland Transportation Commission.

The Chair: Our next candidate is Royal Poulin, who is the intended appointee as chair, Ontario Northland Transportation Commission. Mr Poulin, please come forward. Our practice is that if you wish to make an initial statement, you are welcome to do so. We welcome you to the committee. Thank you for making the trip to Toronto for these purposes.

Mr Royal Poulin: Thank you for having me here. It's always fun to come to Toronto, always fun to go back north. I would just like to give you a quick overview of my career. You all have a copy of it, so I won't bore you with facts, but I just want to say that I was born and raised in northern Ontario, educated in northern Ontario, and worked all my career in northern Ontario. I have worked for the private sector and also the public sector.

I started my career as a social worker for the Nipissing District Social Services Board, and that board covered all of Nipissing district. Then I moved on to being a municipal adviser in North Bay for five years, at which time my area of coverage was from Hearst to Parry Sound, Timiskaming district. Then I moved on to being the manager of municipal affairs in the Sudbury office, and then I covered the rest of northeastern Ontario. In 1991 I was appointed the director of economic development in the Ministry of Northern Development and Mines, and that covered all of northern Ontario. In 1996 I was appointed the general manager of the northern Ontario heritage fund and also was given the responsibility for the administration of the northern highways.

I just want to impress upon the members that I'm very familiar with the issues in northern Ontario, very familiar with economic development. My job has given me the opportunity to meet with the mayors and reeves, elected municipal politicians and businesspeople over the last 30 years, so I'm very familiar with the issues in northern Ontario.

I also served on various volunteer boards. I was chairman of the Nipissing Board of Education. I was also the chair of the west Nipissing hospital and a member of the Laurentian Hospital in Sudbury. So as you can see, I've done a lot of volunteer work in the area.

The Chair: Thank you very much, sir. I will commence with the official opposition this time.

Mr Ramsay: Welcome, Mr Poulin. Nice to see you. I guess officially you're a constituent of mine. It's very nice to have you down here, although I know you work out of the Soo a lot at the heritage fund office, and Sudbury, I guess. I would just say right off I support your appointment to the ONTC. When I found out yesterday from Bruce Crozier that you were going to be here, I took this as an opportunity to start to discuss some of the areas of concern that probably you and I would share about the commission, and the minister also. Actually, I sent you a letter about a week ago about the railway with some ideas on how I thought maybe we should go about reinventing that Northlander train. As I said in the letter, I would like to work with you on that.

Over the years I've been critical of the organization that you're now going to head, and I hope you bring a breath of fresh air to it and start to look at in a new way. When I look at all the different functions that the ONTC carries out, from telecommunications and the challenges there to the train service-there's no longer an air service-that the private sector could carry out, I almost have to ask, do you think you might be the last chair of the ONTC?

Mr Poulin: I can't answer your last point, but I want to thank you very much for your letter and also your kind words. I certainly want to work with all the customers and the residents of northern Ontario, the corridor, and to listen to them. I've heard some of the same complaints that you've heard, Dave. I've read in the papers some of the same complaints. I've read some of the comments you've made about privatization, maybe, or partnership. I guess I have to go in there with an open mind and work with my board to try to find solutions that will meet the needs of our customers. The mandate is to look at the services, how they can best be provided. I guess all options are open.

Mr Ramsay: That's very refreshing to hear. I think the key words there are certainly "an open mind," because in my dealings over the last 15 years with the ONTC, there are very good, well-intentioned people, but they have a very bureaucratic mindset. There have been various administrators in the past who basically ran the thing like an empire, like it was their personal empire. That has changed over the last few years, for sure.

To me, one of the areas of most narrow mindset has to do with passenger rail service. It seems to me there has been the prejudice that we should just get out of that. It's very refreshing to hear the minister say he would like you to look at it again and see if we can improve it. As you know, I've been kind of-pardon the pun-railing about the train service for the last couple of years, in a positive way, trying to make some positive suggestions to basically convert this train service into some sort of tourist attraction by modernizing it, putting in very attractive amenities and attractions.

I know the Chair of this committee won't be too pleased to hear it, but I've proposed a casino in that train, snowmobile cars, and to really get back to the idea of providing people here a northern adventure. We have a mechanism here. It probably should be run by the private sector; maybe he would pull it. There would be some partnership there, but we should really get back to the excitement of coming north to all the wonderful things we have to offer, especially with the rejuvenation of snowmobiling over the last few years, and make the trip an entertainment itself, make it into an income-generator, a profit centre. For the needs of the elderly and others who have to come to Toronto for medical care, there would be a whole range of class of services and accommodations that would be affordable, because this train could generate some revenue.

This would be very different thinking from what the ONTC has had in the past. At least it's worth a look, I would hope. Maybe we would get not just some rail consultant but a first-class tourism consultant. I would be interested to hear your ideas and what your approach might be on this.

Mr Poulin: I read with interest the comments you made a month or so ago about the passenger train and a casino. Since I've been named the chair-not appointed, but named-I've received a lot of letters and faxes from the mayors of the area. As you know, I know them very well, and they are very supportive of my name being put forward for chairing it. I've listened at great length to some of their comments, and a lot of what you've said, I've heard.

I certainly intend to have consultation with the people in the north. A lot of people have a lot of emotion about the passenger train, and the mandate is to look at the customer service, how we can improve it, and if we improve customer services maybe we'll improve the bottom line, the revenue line, at the end of the day. We all want to make sure that the best possible service is offered to the customers of that corridor. So I hear you, and the municipal politicians have certainly got to me since my name has appeared in the paper, so I'm open to suggestions. I look forward to working with these people and hopefully we can come back with the right solution.

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Mr Ramsay: I would hope from that that you have some sort of formalized process to involve all those partners up the corridor, to initially get their ideas and then maybe sit down and say, "Are you willing to be part of this?" I think that's where we need to put it back in their court too and say, "OK, I'm willing to work with you; let's form some partnerships."

Mr Poulin: Consultation will be a very key and important issue, to make sure that people are heard. We need to do that in order to come up with the right solution.

Mr Ramsay: One of the biggest frustrations the people of the northeastern corridor have with the ONTC is in regard to the competition of long-distance rates. They see the ONTC as an impediment to the opening up of those rates. We're one of the last areas of the country that doesn't have competitive long-distance rates. The CRTC keeps extending it, and every time Northern Telephone wants to make some moves, it's usually the only TC that comes before the CRTC that makes an objection. I've really got to ask you, do you think government should be in the telephone business today? Shouldn't we get this cleaned up and let the private sector run this?

Mr Poulin: I can't give you a fast and straight answer here because I don't have all the facts in front of me. It would be very premature for me to say yes, I agree that it should be privatized, but certainly we're going to look at the service. We want to provide the best service to the customers. We've heard from the customers saying exactly what you said. They've said it publicly. Not only have they said that for telecommunication, but they've said that for freight, they've said that for passengers, they've said that for the ferry. So I hear you. We have to address these issues during the review process.

Mr Ramsay: Chair, how much time do I have left?

The Chair: You still have three minutes left.

Mr Ramsay: It seems to me, looking down the list at some of the services you provide, that the agency is an IBM business partner offering IT planning and consulting services and marketing IBM computer systems. I believe the government should be there when the private sector can't do things-I fully believe that-but when the private sector is there and can deliver, why are we doing stuff like this?

Mr Poulin: I can't give you the answer because I don't have all the facts in front of me, but certainly the point you're making, at first hand, makes sense. Why should we be in there when the private sector is in there? Maybe the private sector doesn't want to be there. I don't know. I don't have the answer, David, but I certainly intend to review all of the comments you've made.

Mr Ramsay: Do you have a sense about air service? Do you think we'll ever see some regional air service in some of the smaller centres in the northeast again?

Mr Poulin: There is some air service now being provided by various carriers. I'm not familiar with where it's at now because it's not under my responsibility, but I've read documents since being named as the chair-not appointed but named-and I know this has raised a lot of questions. But I can't give you a yes or no answer here.

Mr Ramsay: There were some subsidies after the cancellation of norOntair but they've all gone by the board now, so the nine centres that used to have some air service no longer have it. You see much better air service in the northwest. I think there are some ideas there, to look at the companies and have them make some suggestions about where air service should properly run out of the northeast. Rather than dictate that it's got to be Earlton or Kirkland, let's bring in those partners and say: "Let's design and work together on providing some regional air service. How do you people in the industry believe it should be done?"

Mr Poulin: I've been talking with some mayors, especially the one from Elliot Lake, Mr Farkouh. He has advised me that they have a working group looking exactly at air service and how it can be delivered. He's asked me to meet with him as soon as I'm confirmed, and I said I would, so I'm looking forward to meeting with him.

Mr Ramsay: Good luck.

The Chair: I think we're out of time for the official opposition. We now have the third party.

Mr Christopherson: Thank you very much for coming in. Let me say at the outset that as much as I'm here representing the NDP caucus, specifically I'm here expressing some of the views of Gilles Bisson, Shelley Martel, Tony Martin and my leader, Howard Hampton, in terms of their concerns as northern representatives. They were unable to be here.

I note when we look at the background, the news release of March 8 that was put out by the Ministry of Northern Development and Mines, it says, "HUDAC announced that the Northlander train will continue to run while the board considers options for improving passenger train service in all other ONTC operations. The minister said, `I believe the Northlander can and should be improved and I will not be satisfied until every possible avenue for providing better service for the people of northeastern Ontario has been explored.'" Not a lot of comfort, I wouldn't think, to the people of the north when all the minister's really saying is that until we make a final decision on the recommendations of the committee that was struck, it'll continue, but no sense that it's going to be there in any shape or form after the review.

I further note in the background material that clearly the primary reason they're running a deficit is that the operating grants for the operation of the ONTC have been slashed dramatically. When I go back to the beginning of the last decade, there was $21 million in operating grants. As we all know, all train service-GO, for instance-is subsidized. There's nothing unique about that.

For the first three years of the last decade, it hovered around $21 million, give or take a few hundred thousand. As the depths of the recession took hold, it dropped to $16 million in 1993-94 and to $15.8 million in 1994-95, which was the absolute bottoming out of the recession. As we came out of the recession, the grant level reflected the economy starting to come back. In 1995-96, which was half under the NDP and half under the current government, it shot up to $24 million, the highest of the decade. Then in the first full year of the Harris government, it was slashed from $24 million to $8 million. Then it dropped to $4 million again, back up to $8 million, and the estimates for this year are $4.171 million. Obviously the reason there's a financial problem is because the government has pulled the financial underpinning out from underneath the Northlander.

First of all, I guess, your thoughts on that, your comments just on that history and what that says to you.

Mr Poulin: The mandate has been clearly stated by the minister that it's a service review for the customers. We have to listen to the customers, and the customers have said to us that they have some issues regarding the service that's being provided; the cost too. That's what the board and myself will undertake to review. If I'm confirmed today, I will start the process immediately.

Mr Christopherson: I appreciate that, but we're still not getting to the crux of it. There's a financial problem, a crisis, if you will. That's why the special committee was struck. They're reviewing what to do about it. But when we look at the dollars, when you go from $24 million in 1995-96, initially at least under the NDP estimates for that year, and then drop to $8 million the next full year of the Harris government, it's pretty hard to avoid the argument and the reality that the crisis was caused because the government pulled the funding out.

Then the government steps in and says, "Now we've got to find a way to solve the crisis." Just like in health and education, I think most objective people would argue, "There's your problem."

Mr Poulin: All I can say is that I don't have with me all the information that you've just quoted, but part of the review will be the cost of delivering the service, how it can be delivered, and customer service. That's what the review will be.

Mr Christopherson: I have to tell you, that's not very satisfying. I appreciate what you're saying, and I understand the dilemma you're in, that you've got to step into this position. The government has a majority and it will probably carry the day, but that's not a lot of comfort. I say that as a southerner. I imagine northerners wouldn't feel really comfortable.

You're currently the general manager of the northern Ontario heritage fund. Do you report to the minister?

Mr Poulin: No.

Mr Christopherson: That heritage fund comes under the responsibility of which minister?

Mr Poulin: The Ministry of Northern Development and Mines, Tim Hudak.

Mr Christopherson: That's where you now work. That would be the same minister who's responsible for the Ontario Northland Transportation Commission.

Mr Poulin: That's correct.

Mr Christopherson: Here's our dilemma. I'll tell you right up front that all of my colleagues had very complimentary things to say about the public service that you've provided in the north. They're very up front about that. That's not our issue.

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We've got two problems that we can't seem to get past. One is that you're already working in a department that ultimately answers directly to a minister, the same minister where you're going to be the chair of another commission. Arguably there is an inherent structural conflict there. If that minister is giving off signals that he doesn't want you, as the chair, to be pointing the finger at grant money, there's an argument that it would be difficult for you, and not in your best interests or those of the organizations you work for, to bell that cat, to say, "Well, it's the minister's grant-cutting that's caused all the problems." You're going to be a little reluctant to do that. That's problem number one.

Number two: It's possible that even if the ONTC made a recommendation that the money be found and one of the options was from the northern Ontario heritage fund, like a transfer in terms of the northern interests, and you shift priorities, then again you have a conflict in terms of one entity you're responsible for can be helped, but only at the expense of another entity that you represent.

So there are these two inherent structural conflicts where you're tied to the minister on both ends of what you're doing, both your regular job and then this appointment. Secondly, you're also responsible for an entity that may indeed be looked at to cough up some of the money to try and keep this important transportation service available to people in the north.

I have to say to you, sir, that unless you can totally alleviate all of our concerns about that, we're not going to be able to support your appointment. I don't think that's going to block it, but it's enough to prevent us from being able to say we're supportive of this. It's not personal; it's about the structure. But please comment on what I've described and perhaps you can alleviate those concerns.

Mr Poulin: It's a good question, and ever since Mr Bisson raised it at the time my name was put forward I have been giving a lot of thought to that. In my 33 years of experience working for the public sector, I've worked with various MPPs, and I've always looked at a service that I'm providing to the elected officials.

I've also looked at my career in the past, where I served as mayor of Cache Bay in my younger days and on the board of education. I was also working for a district social services board and working for the Ministry of Municipal Affairs at that time. I was always able to keep my integrity. I made the right decision for the hat I was wearing that day. So yes, I've given it a lot of serious thought, but I feel that with my years of experience I've been able to handle both sides. I feel I can do the same with the ONTC.

Mr Christopherson: Let me just say, sir, that I believe you'll do that. Again, I want to emphasize that my colleagues speak very highly of you as an individual and as a public servant, all of them. I believe that you will reach in and use the wealth of integrity that I believe you have and they believe you have, but we're all still human, and at the end of the day there are sometimes conflicts. That's why we have some laws about arm's length and not building in conflict. Sometimes there are just things that we can't overcome as humans. To that degree, this is not a good appointment. Keeping both of those entities-for reasons I won't repeat, we just think it's not good government.

I think you'd be an excellent fit perhaps in another role. I think you're a benefit to the north. My colleagues believe you're a benefit as an appointee and a representative of the public service, but this fit doesn't work, with this potential for conflict. Please don't believe for one second that I'm suggesting we think you're going to do anything untoward; quite the opposite. But we think it's beyond reasonable expectation that a human being can assume both of these roles and not find that conflict in some way getting in the way of the best decisions. For that reason, we will be opposing it.

Please understand that my colleagues emphasized very strongly that it was not personal, that they had the highest personal regard for you, but this is a bad appointment. The government has made a bad fit. We're sure there is somewhere else where your experience and background and integrity could be put to use without this shadow of doubt that exists.

Assuming that the majority will carry here today, we do wish you the best on behalf of the citizens of northern Ontario, sir.

Mr Poulin: Thank you.

The Chair: For the government caucus, Mr Spina.

Mr Joseph Spina (Brampton Centre): Mr Poulin, thank you for coming here today. You understand that I have to work hard to call you Mr Poulin, since I know you better than that.

Mr Christopherson: I didn't know that part.

Mr Spina: In my previous role as parliamentary assistant to the Minister of Northern Development and Mines, I was certainly very familiar, and still am very familiar, with the operations of MNDM.

I wanted to address a couple of things first, if I may. I wanted to address some of the issues that Mr Ramsay spoke of that I think had some validity. That had to do with economic development opportunities that perhaps the ONTC could capitalize on or perhaps has missed capitalizing on because of-I'm using Mr Ramsay's words-the "bureaucratic mindset" of management.

Do you feel there are enough economic development issues that are now coming forward from industry, in northeastern Ontario particularly? I know that even though the members from northwestern Ontario may have an interest, essentially ONTC has virtually no interest in the northwest. I'm talking about financial interest. Do you think there are enough economic development initiatives, Royal, in the northeast to help pull the ONTC into a better, more independent operating body?

Mr Poulin: Well, being involved in economic development over the last 33 years in my career, we certainly see the ONTC as a vehicle for economic development. There's certainly sufficient interest in that service from an economic development point view that, yes, I do believe the rail passenger and all the other services that the ONTC is providing are very important to the community. There is certainly economic benefit to be had.

Mr Spina: I appreciate that you probably have not been really briefed on the actual inner workings of the corporation and the financial statements, but there were some structural changes to ONTC that made it a more accountable corporation. What it did was it divided the corporate accounting system, clearly identifying the different segments of ONTC, because it is really a conglomerate that is not just into rail service, passenger and freight; it's into the ONTel, as Mr Ramsay indicated, and it's into shipping, going into the Chi-Cheemaun, the Pelee Island ferry and those other elements. Frankly, I was surprised that Mr Ramsay would support the norOntair, because I think that was a good move and, in fact, if there is any shortage of service from the air side right now, I would suggest that it's probably just a matter of time before smaller airways like Bearskin or Georgian will move in to fill that gap and take some of the pressure off northern ONTel, or at least ONTC, to provide additional service, if you will, for passengers.

I don't know how familiar you are with that structural change, but do you think that is a positive element towards identifying which portions of the corporation might be better able to support other parts of the corporation?

Mr Poulin: I've had a few conversations with Dick Grant, the present chair of ONTC, and he has certainly pointed out to me the changes they have made. You see some very positive signs in this. I tried to identify which divisions are supporting themselves and which are not, one that's making profit and the one that's not making profit. Dick Grant has really given me the impression that the restructuring they've done is starting to pay off. I look forward to getting more familiar with it so I can understand it better, and this will help in our review process.

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Mr Spina: I'm going to shift over now to some of the comments Mr Christopherson made that, frankly, were not entirely accurate. His numbers may have been accurate but I guess it was, with all due respect, David, the way it was presented.

Mr Christopherson: The facts are the facts.

Mr Spina: Let me shed some light on it, if I may, for a minute. You talked about a $24-million grant dropping down to $8 million. The reality is you conveniently left out that that's when norOntair was sold, which reduced the amount of liability on the part of the government that was owed to subsidize that service. In addition to that, there was $11 million in proceeds from the sale of assets that went to the corporation, which reduced the necessity of grants needed from the provincial government. I just wanted to set that-

Mr Christopherson: It's just a coincidence that the grants were cut at the same time there's a deficit crisis.

Mr Spina: The grants were not-

Mr Christopherson: Meanwhile, we get the same thing at the Henderson hospital in Hamilton.

Mr Spina: Come on, you're way off base.

The Chair: Order, please. Questions must go from Mr Spina to Mr Poulin.

Mr Spina: The reality is that there was no longer a need for that subsidy, which is why it was reduced.

But I want to get to the question of your integrity. I am pleased to see that the northern members actually endorse you as an individual; however, they think you're human and you could be prey to some sort of problem. I am thinking of the structure of what exists at this point, and I don't think there will ever be a problem, in my mind, for these specific reasons: The NOHFC is a crown corporation, correct?

Mr Poulin: Correct.

Mr Spina: You are employed by the NOHFC?

Mr Poulin: Correct.

Mr Spina: As the general manager, you report to a board of directors?

Mr Poulin: Correct.

Mr Spina: The funding philosophy of the NOHFC is fundamentally different today than it was when Mr Christopherson's party was in government. Is that correct?

Mr Poulin: Correct.

Mr Spina: So when the NOHFC puts funding out, it seeks a public-private sector partnership, generally speaking, and it must meet fairly stringent criteria before dollars are let out.

Mr Poulin: Correct.

Mr Spina: OK. The ONTC is also a crown corporation reporting to an independent board of directors.

Mr Poulin: Yes.

Mr Spina: So the reality is that before there is any consideration for dollars to cross from one corporation to the other, it has to be essentially approved by two boards, fundamentally controlled by the private sector. Is that not right?

Mr Poulin: Correct.

Mr Spina: So as chair of one board or general manager of the other, you really don't have the personal authority to transfer those funds. It's up to the decision of those private sector board members, is it not?

Mr Poulin: That's correct.

Mr Spina: Thank you. And I say that because it's not just Mr Poulin's integrity. I think it's very clear that these two corporations would be more than enough check and balance to ensure that that kind of situation does not exist.

Mr Poulin, thank you for coming. I fully endorse your appointment and I look forward to nothing but positive things to come from your role as chair of ONTC.

The Chair: The time has expired for the government caucus, Mr Spina. In fact, I think it's over, but you were going in such an interesting direction.

Mr Poulin, we're pleased to have you before the committee to answer questions. You may now step down.

Mr Poulin: Thank you.

The Chair: We have had opportunity to interview and hear from the two applicants.

I'll deal first of all with the intended appointee as member, Ontario Graduate Scholarship Selection Board, Dr Eda Kranakis. I'll accept a motion.

Mr Wood: I move concurrence.

The Chair: Any comments?

Mr Guzzo: If I could just make one declaration, being from the nation's capital, I'd like you to note that the good doctor commenced her teaching career in the United States at Yale University in the United States. She moved to Harvard University in 1989, and in the last eight years she has been at Carleton University and the University of Ottawa. We in Ottawa, particularly alumni of both those places, feel that she is moving in the right direction and that this is a positive progression. I simply wanted to put that on the record in defence and support of Ottawa's two locations of higher learning.

The Chair: Thank you very much, Mr Guzzo. Any other comments?

Mr Guzzo: There may be some who don't agree with me, but I would like to tell you that in Ottawa we'd certainly adhere to that.

The Chair: We're glad to hear of your patriotism. Notice I didn't say "parochialism"; I said "patriotism."

Any other comments? No? I'll put the motion then.

All in favour of the motion? Opposed?

The motion is carried.

Next is Royal Poulin, intended appointee as chair, Ontario Northland Transportation Commission.

Mr Wood: I move concurrence.

The Chair: Mr Wood has moved concurrence. Debate? No one wishes to comment?

Mr Christopherson: Recorded vote.

The Chair: A recorded vote will be the order of the day for the motion for Mr Poulin by Mr Wood.

AYES

Dombrowsky, Guzzo, Kells, Ramsay, Spina, Wood.

NAYS

Christopherson.

The Chair: The motion is carried.

Any other business before the committee? If not, the committee meeting is adjourned.

The committee adjourned at 1056.