October 29, 2003 - HOUSE OF COMMONS
Statement by Dr. Martin Godbout, President and CEO, to the Standing Committee on Government Operations and Estimates
- Martin Godbout, President and CEO -
Thank you, Mr. Chairman
And thank you, members of the Committee, for this opportunity to appear before you today.
As you know, in Budget 2000, the government announced its intention to create Genome Canada. Its mandate was to develop - and implement - a national strategy in genomics and proteomics research for the benefit of all Canadians and to become a world leader in key industrial areas of research in health, agriculture, fisheries, forestry and the environment.
Genomics was viewed as a field offering tremendous opportunities - to gain insights into the very foundations of life itself and to help position Canada on the leading edge of what many experts believe will be one of the truly transformational sectors of the world economy.
Mr. Chairman, Genome Canada is governed by a comprehensive conditional funding agreement which we signed with the Government of Canada in 2000, and which was amended this year to include the new accountability measures outlined in the 2003 budget. These include, for example, provisions for independent compliance audits and evaluation, the annual submission of corporate plans, default provisions and the possible return of unused funds in the event of winding up.
To fulfill its mandate, Genome Canada has contractually committed to the following actions:
- Bring together researchers from industry, governments laboratories, universities, hospitals research institutes in support of a national genomics and proteomics research strategy.
- Establish five regional Genome Centres across Canada, so that every part of the country will benefit from the investments.
- Support large-scale genomics and proteomics projects that draw on existing Canadian strengths and whose scale and scope could not be funded at nationally and internationally competitive levels under existing Canadian mechanisms.
- Put in place research infrastructure to support the major science and technology platforms necessary for the large-scale projects.
- Provide leadership in addressing the ethical, environmental, economic, legal issues related to genomics and proteomics research and their impact on society.
- Communicate the results of genomics and proteomics research to the public and assist in public education and awareness.
- Facilitate Canadian participation in large international genomics and proteomics research.
- Encourage investment in genomics and proteomics research by others, and finally;
- Create and realize economic, industrial and social benefits to Canada.
Mr. Chairman, I am pleased to report this afternoon that each and every one of these objectives has been met.
In just three short years, Canada has established a prominent place on the world stage and developed the research capacity to lead the discoveries of tomorrow. We saw evidence of this newfound research strength when Canadian scientists were the first in the world to sequence the SARS virus using technology funded by Genome Canada.
From an operational level, we are determined to be prudent stewards of public funds; to ensure the highest levels of accountability and transparency. Furthermore, we have determined to do so in every aspect of our operations - from the selection of projects to their ongoing management; from the evaluation of research results to our own corporate governance. Let me just briefly touch on each of these.
To date, we have held two competitions and are in the process of conducting a third, related to projects in applied human health.
The process we have established for selecting projects is both comprehensive and rigorous.
Proposals are first approved by the respective Boards of each of the regional centres before being submitted to Genome Canada. A that time, a financial and managerial due diligence is also performed by independent experts.
The proposals are then subjected to peer review by an international panel of scientists, which makes a recommendation to Genome Canada’s Board based on the quality of the science. The Board of Directors of Genome Canada makes the final selection.
The selected projects are then publicly announced in collaboration with each of the respective regional centres. Financial agreements pertaining to the disbursement of funds are negotiated between Genome Canada and each of the regional Genome Centres who, in return, negotiate their own financial agreements with the host institutions.
As a project proceeds, it is closely monitored and carefully managed. Regular scientific progress reports are required by the Genome Centres, and quarterly financial reports are submitted to Genome Canada. We also conduct regular on-site visits and conference calls with the regional centres in order to monitor progress.
At the midway point of a project, which is after 18 months, another international science review composed of representatives from such leading institutions such as Oxford, Harvard and Institut Pasteur carries out a detailed progress assessment. If results are as expected, funding will continue to flow. If a project is not meeting its targets, corrective measures are undertaken and funding can be reduced or even eliminated.
One of the important safeguards that we have built into our funding arrangements is the distribution of monies on a quarterly basis. This allows for very tight control over the management and flow of funds.
In terms of our own corporate governance, the Board of Directors of Genome Canada is composed of independent experienced and knowledgeable individuals from the scientific community, universities, granting councils as well as the biotech and venture capital industry. The Deputy Minister of Industry, or his designate, also attends our Board meetings as an observer. Genome Canada also benefits from the advice of a Scientific and Industry Advisory Committee. The full membership of our Board and the Advisory Committee are presented in our Annual Report.
Genome Canada’s organizational performance is evaluated based on Treasury Board’s Results-based Management & Accountability Framework (better known as RMAF), which, as this Committee knows, is both rigorous and extensive. Results of this evaluation will be presented to the Minister responsible for our agreement and ultimately made public.
To further ensure operational excellence, we have developed a corporate governance manual, covering everything from practices that are going on in the organization and membership rules, to responsibilities of directors; from corporate policies to financial management systems.
Genome Canada and each of the five regional centres practice accrual accounting, prepare quarterly financial statements that are presented to an audit committee composed of financially literate members and approved by the Board. We are also subject to an external independent audit annually.
And as you know, an annual report is submitted to the Minister of Industry Canada and tabled in the House of Commons. To ensure transparency and accountability to the public at large, the report is written in a clear and comprehensive language and distributed to more than 5000 people, including all Members of Parliament and Senators. It is also posted, as are all of our key documents, on Genome Canada’s website (www.genomecanada.ca)
Let me turn now to the funds received and committed by Genome Canada.
The first $300 million received by Genome Canada has been committed to 57 large-scale genomics and proteomics research projects in universities, biotech companies and governmental laboratories across Canada. There are 11 projects in British Columbia, 6 in the Prairies, 18 in Ontario, 16 in Québec, 5 in the Atlantic Provinces and one large international research consortium. As noted, these funds are advanced quarterly. As a result, we have distributed more than $171 million to date, with the remaining balance to be distributed by the end of March 2005.
Under the conditional funding agreement signed with Industry Canada, Genome Canada was required to raise an additional $320 million from other partners. We are pleased to report to the committee today, that we have in fact raised, within our first 3 ½ years, more than $320 million from partners in provincial governments, international organizations, Canadian and American biotech companies and not-for-profit foundations. We expect to leverage this amount to more than $400 million by March 2005.
It should also be noted that the $75 million recently received by Genome Canada under the most recent federal budget will be significantly committed by the end of this fiscal year, once the current competition in Applied Genomics and Proteomics Research in Human Health is completed.
Mr. Chairman, at Genome Canada we believe that every dollar we receive should be well spent, prudently managed and clearly accounted for. The measures we have put in place ensure that these goals are met.
Thank you again for this opportunity to appear today, and I look forward to answering any questions you may have.
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