Canadian businesses grappling with the repercussions of American tariffs will now have Lorraine Audsley at the helm of the Canada Enterprise Emergency Funding Corporation (CEEFC). The experienced risk management professional has been appointed as the new CEO, effective from February 24. This role places her in charge of overseeing a substantial $10-billion loan facility designed to support large enterprises adversely affected by international trade disputes.
CEEFC’s Role in the Economy
Established as a subsidiary of the Canada Development Investment Corporation (CDEV), CEEFC was created to help mitigate the financial strain on companies affected by U.S. tariffs, particularly those introduced during the trade tensions initiated by former President Donald Trump. Since its inception, the facility has disbursed just two loans, totalling $515 million—$400 million to Algoma Steel Inc. and $115 million to Arctic Canadian Diamond Company Ltd. This represents a mere 5 per cent of the available funds, raising concerns about the programme’s efficacy and reach.
Audley, who previously served as the chief risk officer at Export Development Canada and Canada Mortgage and Housing Corp., believes that the success of the programme should not solely be measured by the speed of fund distribution. In an interview, she stated, “We want to look back in time and say that success was we maintained employment, we kept plants open, because of this funding. If the money is not deployed, it is because companies didn’t need it.”
Addressing Industry Concerns
The loan programme faced initial criticism from industry leaders, who deemed its terms too stringent. Notably, Barry Zekelman, a significant stakeholder in Algoma, likened the government’s approach to that of a “loan shark,” citing high fees and interest rates. In response to this backlash, CEEFC made significant revisions to the loan terms in July, reducing the proposed interest rate by two percentage points and extending the loan maturity period from five to seven years.
Audley’s commitment to responsible fund management underscores the importance of ensuring that public money is utilised effectively. “It is much more nuanced than getting the money out the door or not getting the money out the door,” she remarked. “It is how we do it, how we get the outcomes, and it is public money, so we have to look after that public money.”
Transitioning Leadership
Audley takes the reins from Bruno Lemay, who led CEEFC for less than two years after a lengthy career at Bank of Montreal. CDEV CEO Elizabeth Wademan noted that Lemay’s expertise was initially aligned with pandemic-era financing, but the evolving needs of CEEFC required a shift in leadership style and skill set. “It really was his decision. Ultimately, the needs of CEEFC changed and the talent requirements changed as well,” Wademan explained.
An important aspect of Audley’s new role involves building a dedicated team to facilitate the effective deployment of funds. July saw the recruitment of Mike Woodward, former CFO of Lynx Air, as CEEFC’s CFO, and Audley emphasised the need to attract skilled financial professionals. “It is very technical, hard, disciplined work,” she shared. “It will be important for CEEFC to have its own dedicated team so we can deploy those funds at the speed of business.”
A Personal Commitment to Purpose
Audley’s personal journey adds a unique dimension to her professional ethos. The daughter of a British air force nuclear bomber pilot, she moved to Canada at the age of ten. Her attraction to public service stems from a desire to engage in purpose-driven work. “I found that purpose matters to me,” she said. Looking ahead, she envisions a future where CEEFC is recognised for its contributions to stabilising the Canadian economy during turbulent times, all while responsibly managing public funds for the greater good.
Why it Matters
As the Canadian economy navigates the complexities of international trade and the ongoing impact of tariffs, Audley’s leadership at CEEFC represents a crucial pivot towards ensuring that support reaches the businesses that need it most. The effectiveness of this programme could play a significant role not only in preserving jobs and sustaining vital industries but also in shaping the future of Canada’s economic landscape in an increasingly competitive global marketplace.
