PPAL 6120 Ethics, Privacy and Access to Information March 25, 2009 Ian Greene

Conflicts of interest (case studies) independent ethics commissioners, undue influence and lobbyists Greene & Shugarman, Ch 4: Alex Sirianni Greene & Shugarman, Ch 5 & 6: Ian Greene Greene & Shugarman, “Commission of Inquiry into the Sponsorship Program and Advertising Activities, phase I Report and Phase II Report.” 49 (2) Canadian Public Administration (Summer 2006), : Peggy Lau Excerpts from Janet Hiebert, Ed., Political Ethics: A Canadian Perspective. Vol. 12 of Research Studies of the Royal Commission on Electoral Reform and Party Financing, 1992: Angela Yenssen Lobbyist regulation legislation federally, provincially & municipally – excerpts from legislation: Keith Ramdial

Honest Politics Ch 5: Undue Influence Undue influence is an attempt to influence a policy decision by taking advantage of privileges not available to the general public Undue influence is inacceptable because it violates the equality principle – some claim special privileges because of their position

Party financing limits to contributions: Ontario

Limits to contributions: Canada

Canada limits (cont’d)

Patti Starr Case 1989: In Ontario limit of $500 annually single-source contributions to prov & municipal candidates No federal limit in 1989, but charities could not donate to parties Starr arranged for donations of about $150,000 to candidates or fund-raising dinners. She gave $500 allotments to people working for her charity, who distributed these to candidates “strategically.” $$ was from Tridel (dev’t company) that paid the charity for “consulting services.” Starr convicted in 1991 and spent time in jail. “It wasn’t sinister. It wasn’t sleazy. It wasn’t political.” (Starr)

Payments from political parties Parties often give their leaders a “salary supplement.” (Current salary of PM: $301,600) “Mulroney's former chief of staff Norman Spector testified that Mulroney was reimbursed for more than $100,000 in personal expenses from his party while he was at 24 Sussex Drive.” (CBC News, Feb 5/08)

Mike Harris 1994: Harris received $18,000 from constituency assoc to cover upgrading residence, meals, golf club & dry cleaning Evans asked to investigate in 1996: disclosure of such payments not covered by Members’ Integrity Act, but perhaps it should be. No evidence that donations were made to constituency assoc and then to Harris in return for public office favours

Municipal politics Some of worst abuses here because of large amounts of donations from development industry (1988: ¾ of all campaign contributions in GTA from developers) Bill Hawrelak: re-elected as mayor in 1963 & 1974 after twice being forced to resign for benefitting from conflicts of interest

Lobbyists Pearson Airport Deal – 1987: Mulroney gov’t policy to delegate control over municipal airports to local airport authorities except in Toronto. 1992: Terminals 1 & 2 to be privatized. RFP: financial viability just 5%. Preferred bidder: company owned by Mulroney’s former campaign manager. Eventual joint proposal. Involvement of high-paid lobbyists. – One lobbyist also worked on Campbell’s transition team: advised her to sign deal. – Result: PC party lost 93 election (2 members elected)

Airbus Affair Frank Moores (former Premier of Newfoundland) strong supporter of Mulroney’s leadership bid in 1983 Mulroney PM in 1984, appointed Moores to Board of Air Canada. Moores at the time a paid lobbyist for Airbus (hired by Schreiber) Airbus awarded contract for new Air Canada fleet. Keep posted for new results from current Schreiber inquiry

Appointment of independent ethics commissioners Ontario1988 British Columbia1990 Nova Scotia1991 (designated judge) Alberta1992 Newfd/Lab1993 Saskatchewan1994 NWT1998 PEI1999 New Brunswick2000 Nunavut2000 Manitoba2002 Yukon2002 Quebec2002 (jurisconsult) House of Commons2004 Senate2005

Conflict of Interest Events Index Pre- and Post-Commissioner Total number of substantiated “events”

Ethics commissioners Canadian innovation dating from recommendations of John Black Aird in 1987/88 Major role: educative Secondary role: investigative Ideal background: retired judge Commissioners are invited to explain Canadian system around world