Ocean Supercluster: A super-subsidy to corporations
Federal Minister Navdeep Bains recently published a commentary titled: “Ocean Supercluster another win for Atlantic Canada.” A more truthful title would have been: “Feds give $200 million super-subsidy to corporations.” The federal government deserves credit for masterfully selling news of a $200 million gift to corporations as a “win” for ordinary Atlantic Canadians. By announcing back in October 2017, that the ocean supercluster bid from Atlantic Canada had made the short-list in a national competition, the government created an “underdog” narrative and a latent public hope that the Atlantic Canadian bid might win. So, when the ocean supercluster was declared a winner on Feb. 15, 2018, there was an immediate flurry of euphoric public statements from businesses, universities and provincial governments (the MacLauchlan government’s release described the news as “tremendous”) inciting us all to celebrate our winning team’s great accomplishment.
But, like the annual ritual of cheering for a super bowl team, few of us knew a single player. Now that the rah-rah has subsided, let’s take a closer look at exactly who won what.
The national supercluster competition wasn’t designed to help ordinary Canadians or small businesses: each supercluster bid required a minimum of two large firms (500 employees or more) and any federal dollars had to be matched on a 1:1 basis (e.g., to get millions, you needed to invest millions).
Enter huge corporations. The lead applicant for the ocean supercluster was Petroleum Research Newfoundland and Labrador comprised of five oil companies [Chevron Canada Resources; Exxon-Mobil; Husky Energy; Statoil-Canada; and, Suncor-Energy] with three other core partners (Emera, Clearwater Seafoods, and Cuna del Mar) each investing $15 million.
Other corporate powerhouses included J.D. Irving; Canada Steamship Lines; Microsoft; Ocean Choice Inc.; Siemens; and Cooke Seafood. Smaller businesses and universities are also involved, but the key question is “who gets to own and control what is developed?” Program guidelines make two things clear: (1) the federal government (the “public”) retains no rights over new products or discoveries despite contributing half the money; and, (2) the largest matching contributions can exclusively own and control the intellectual property rights over new products and/or discoveries: “...greater contribution to the Entity entitles a Member to greater intellectual property access, including the right to sell or otherwise commercialize the intellectual property or an aspect of it. (Section 5.8.1.1)”
Small fish in the ocean supercluster (local businesses and universities) aren’t really “partners” at all, but “subcontractors,” where their expertise is bought and paid for by corporate investors who will own and control the work product.
It saddens me to think how $200 million could have been used to create a far-more sustainable, self-reliant and vibrant future for Atlantic Canada (less dependent on profit-hungry global corporations) if only those federal innovation funds had been made available to young people wanting to farm organically; or entrepreneurs keen to launch small-scale musical and artistic ventures; or craftspersons longing to establish local metal and wood fabrication businesses; or young inventors needing funds to launch renewable-energy companies; etc.
Small may be beautiful, but when it comes to federal and provincial economic development strategies, big and ugly always seems to get our money.