I do not know the details or the politics of the situation, but given the number of sizable disasters in Canada this past year this decision seems short sighted to me. See: Canadian disaster research institute closes after funding cut; The University of Manitoba has closed its Disaster Research Institute because it no longer has funding. It has studied floods, forest fires and storms.
I would be interested in hearing from some of my Canadian readers on this matter.
I don’t know details or politics either, but ICLR http://www.iclr.org/home.html still exists