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Good afternoon, everyone. Welcome to the 64th hearing of the Standing Committee on Access to Information, Privacy and Ethics.
Today, we have with us three representatives from the Office of the Conflict of Interest and Ethics Commissioner, the commissioner, Ms. Dawson, and her two assistants, Ms. Robinson-Dalpé and Ms. Bélanger. We thank them for being here with us. As you know, we were unable to meet with them during a previous meeting. We are pleased to have them with us today.
As usual, there will be a 10-minute presentation. There will be time for questions and comments from the members of the committee afterwards. We are continuing our review of the Conflict of Interest Act.
Without any further ado, I will give the floor to Ms. Dawson, who has 10 minutes.
Mr. Chair, I would like to thank the committee for inviting me to appear before you today. With me this afternoon are Lyne Robinson-Dalpé, Assistant Commissioner, Advisory and Compliance, and Nancy Bélanger, General Counsel.
I am pleased to contribute to the five-year review of the Conflict of Interest Act. This is an excellent opportunity to explore how well the act is working and ways in which it might be strengthened.
As the committee is aware, I was previously scheduled to appear before you on January 30, and had provided the committee with a written submission recommending various changes to the act. Although my appearance was rescheduled, the submission was made public on my office website, with the approval of the chair.
[English]
The committee has already heard from some witnesses who have commented on my recommendations, and I'm pleased to have this opportunity to discuss them with you myself.
My written submission reflects my five years of experience in administering the act and the conflict of interest code for members; it is therefore comprehensive and quite detailed. It includes a large number of recommendations, based on a thorough analysis of the act and its administration. However, I do not mean to suggest by the number of recommendations I have made that the regime is not at its core functioning relatively well.
The format of my submission mirrors the structure of the act, but my presentation today will be more thematic. I want to talk about eight broad priority areas that are supported by many of my individual recommendations.
The first priority area involves increasing transparency around gifts and other advantages through increased disclosure and public declaration. There's a fairly common misconception that a gift's value determines its acceptability under the act. In fact, an acceptability test applies in all cases, irrespective of the value. Public office holders are prohibited from accepting any gifts that may reasonably be seen to have been given to influence them. According to the act, the value of the gift is simply a threshold for public declaration by reporting public office holders. Acceptable gifts worth $200 or more must be disclosed to my office and publicly declared. I recommended lowering the $200 threshold for disclosure to the commissioner to a minimal amount and requiring that all disclosed gifts that relate to a public office holder's position be publicly declared.
A second priority area involves strengthening the post-employment provisions by introducing reporting obligations for public office holders during their cooling-off period after they leave public office. I recommend requiring former public office holders to report to the commissioner any firm offers of employment received during their cooling-off period, including offers of service contracts, appointments to boards of directors, and partnerships—which is an increase from the current rule—and to report on their duties and responsibilities in relation to their new employment.
The third and fourth priority areas involve narrowing the act's overly broad prohibitions against engaging in outside activities and holding controlled assets. With limited exceptions, the act prohibits reporting public office holders from engaging in a range of outside activities. I've seen cases where restricting some of these activities goes beyond the purposes of the act. I propose that the commissioner be given discretion to grant an exception from the general prohibition in such cases if the activities in question are not incompatible with the reporting public office holder's official duties.
With respect to controlled assets, I recommend that the broad prohibition against holding these assets be restricted to those who have a significant amount of decision-making power or access to privileged information, such as ministers, ministers of state, parliamentary secretaries, chiefs of staff, and deputy ministers. The prohibition, and its related requirement to divest, would only apply to all the other reporting public office holders if holding the controlled assets would constitute a risk of a conflict of interest.
A fifth priority area involves establishing some disclosure and public reporting requirements for non-reporting public office holders in relation to outside activities, recusals, gifts, and other advantages. However, I would not go so far as to recommend that we require them to make the initial disclosure of their assets and liabilities. I believe that introducing some limited reporting obligations would help to ensure compliance with the act.
A sixth priority area involves addressing misinformation put into the public domain in relation to investigative work. I generally refrain from making public comments about an ongoing examination, choosing instead to correct any misinformation once the examination is completed and a report is issued. However, if I do not conduct an examination, or if I discontinue an examination without issuing a report, I do not necessarily have an opportunity to correct the public record. I therefore recommend that the commissioner be given express authority to comment where appropriate, especially to correct misinformation.
A seventh priority area involves extending the administrative monetary penalties provisions to cover obvious breaches of the act's substantive provisions. At present, penalties may only be imposed for failures to meet certain reporting deadlines. I note that of all my recommendations, penalties have received the most attention to date. I'd like to clarify that I am proposing the extension of the administrative monetary penalties regime as a means of dealing with some substantive contraventions under the same expedited process that exists for procedural contraventions where an examination under the act is not warranted, generally because the facts are clear and undisputed. I'm also suggesting that for cases where the commissioner undertakes an examination and finds that a contravention of the act has occurred, consideration be given to whether penalties should be imposed as a result of that finding. I recognize that there are differences of opinion on whether it's necessary or desirable to impose penalties in such cases. My view is that issuing a public report in which a contravention is found is itself a significant adverse result and that the imposition of monetary penalties is not necessary.
An eighth and final priority area involves harmonizing the act and the members' code to ensure consistency of language and processes where appropriate. Although the two regimes have similar provisions, there are substantive and procedural differences between them. Those differences have led to a lack of clarity for individuals who are subject to both regimes—namely, members who are also ministers or parliamentary secretaries. For example, I recommend harmonizing the processes for launching an investigation. Unlike the code, which provides for a preliminary review stage before an inquiry is launched, the act requires me to launch an examination immediately upon receiving a written request for investigation from a senator or a member. I propose that the act also provide for a preliminary review of examination requests so that the commissioner can determine whether an examination is warranted before proceeding.
As the members' code is also under review by the Standing Committee on Procedure and House Affairs, it would appear to be timely to examine both instruments for opportunities to harmonize the two regimes.
[Translation]
Mr. Chair, these and other recommendations that I have presented for the committee's consideration seek to increase the act's effectiveness in preventing conflicts between public and private interests.
I believe that my recommendations would help to clarify the rules, ensure transparency and fairness, and above all, strengthen the means by which the act's objectives might be achieved. I hope that the committee will see fit to recommend that Parliament adopt some or all of them.
I will be happy to answer the committee's questions.
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There is a balance. Certainly I'm very conscious of protecting people's reputations when they shouldn't be attacked needlessly.
I've had several cases, for example, where an MP has gone out and said they had taken something to the Ethics Commissioner and she said it was just fine, and I haven't. I think it should be within my power to say “No, I did not say that.”
I'm not even sure that the act as it stands right now doesn't allow me to make some public comment. The provision in the act is restricted to once an examination has begun, but there's a general philosophy in the act that I keep things confidential, and also in the Parliament of Canada Act.
So all I'm really suggesting is that there be some kind of a provision to make it clear that I can cover off misleading information.
Good afternoon, Commissioner, and to your colleagues.
Following up on your comment, I'm one who would agree, unlike my colleague, that the damage or impact on reputations, I believe, is significant. For anybody living this life, our reputation, who we are, what we are doing, and why we're doing it here, representing our constituents, is very important to us. I for one believe that the impact on one's reputation of a judgment of that nature is very great, so I would agree with you on that.
I want to cover a couple of different areas. With regard to gifts, etc., and not to the numbers so much, but I recall in one of your earlier visits before this committee that you talked about the strain on resources in your organization. One of the thoughts I have as I read some of these recommendations is that while I agree with you with regard to tightening up some of the gaps and filling in where a greater definition is required...have you quantified the financial impact on your organization and what that might look like?
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I would say that's an overstatement.
I have several pages in my report where I point out that in fact the apparent conflicts and the potential conflicts are covered, to some extent, in the definition of “conflict of interest” and in certain other provisions. I go into the details of the provisions I give as examples.
I note that there are a number of provincial jurisdictions, at least a few, that have special provisions for apparent conflicts of interest—I think of British Columbia, for example—but their primary section on conflict of interest isn't identical to ours. The caution I put out is that you can't just stick words into an act because somebody else has them in there. You have to look at the provision you're sticking them into and whether it's really necessary.
I don't really care if you put an extra provision in there on apparent conflict of interest, because I think it's covered. But it will create some confusion in those sections where the “apparent” is very obviously covered, and it's building on that concept of conflict of interest.
All I'm saying is that if you put in an amendment to add “apparent”, you'd better take a look at all the sections it's going to affect and make sure it makes sense.
I don't think it's necessary, but I'm not militant against it.
:
Thank you very much, Mr. Chair.
Thank you very much, Commissioner and associates, for being here today.
I wasn't a member of Parliament when this legislation was brought forward, but I'm certainly proud to be a member of a government that did decide, five years ago or longer, that we needed such accountability legislation and we needed this type of an office. I remember that during my orientation shortly after the May 2011 election, you and your staff were there. You provided, I think, a very comprehensive overview of the legislation so that we, as new members of Parliament, understood the rules, even though as backbench MPs we weren't necessarily affected directly by the act—and that's one of the questions.
The first question I have for you concerns the definition of designated public office holder as far as the act is concerned. Is that broad enough? Are we covering enough people? You mentioned you're responsible for 3,000 people. Are we covering enough people in that? Should we be covering people like me, and opposition MPs, and others who have influence around here on how public policy is developed? Is the definition in the act as we currently see it strong enough so that really we're getting at cabinet ministers and parliamentary secretaries and deputy ministers and others who are covered under the current definition?
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I'd like to follow up on some questions Mr. Angus asked.
We run for this office to represent our community. We get elected. We don't know if we're going to be in government or in opposition until all the votes are in and we find out who forms the government. Then some of us get phone calls from the Prime Minister of the day saying, congratulations, you're a member of cabinet. But you're still a member of Parliament representing your local community.
I know you've made some rulings. You've made some comments about someone who might be a cabinet minister or a parliamentary secretary, but they're also acting as a local member of Parliament in sending a letter of support for something. I write support letters all the time for my constituents who have an issue with a government department or something. I'm trying to be helpful and supportive, as their local member of Parliament. I would hate to think that just because the Prime Minister of the day said I'm now a parliamentary secretary or a cabinet minister that I wouldn't be able to operate with the same level of independence as a member of Parliament in standing up for my community.
Where do you find that balance, or is there any balance? Is it your view that the day you're in cabinet you can no longer do any of that to represent your own constituency? I can understand if you're the Minister of Industry writing a letter to the CRTC to support an application. I get that. I can see that's a clear conflict because you're the minister who oversees that. But if you're a minister who has nothing to do with that area or that branch of a government, I would find it difficult. I would find it difficult, as a member of Parliament, not to represent my constituents on an issue they were concerned about and say to them, sorry, I can't help you because I happen to be a cabinet minister.
Where do we draw that distinction? Where do we draw that line to have more clarity around this?
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First of all, there are lots of things you can still do. You can pass on factual information or help direct your constituents as to where they ought to go for help and give them lots of information and advice. But I don't think you can have your cake and eat it too. Once you've stepped into the executive, you have a different role that you're playing, and I think there have to be some distinctions.
Again, I feel your pain when one is a cabinet minister and your next door neighbour is out there putting in their recommendations and the voter is happy with him and is not happy with you.
I actually question how useful those letters to tribunals are, in any event. I think they're just kind of there. I don't think the tribunals take them terribly heavily. All they are is a letter that an MP has written to say this guy is in my constituency and I support him.
I guess the bottom line is that there are many, many things that the minister, as MP, can still do, and his office can certainly help with a number of questions.
I think there are some lines to be drawn, and this is an obvious one.
:
Thank you, Chairperson.
Thank you to Ms. Dawson and her staff for coming today.
I have a couple of questions. First of all, obviously to do this review is very important.
As a bit of a comment, I think one of the most important criteria is to have rules that are strong and clear and well understood, and the less ambiguity the better. You've talked a bit about the discretion you have. I don't know how many cases you've dealt with overall, but you must have a general sense of how MPs, public officer holders, and even how the public view this process.
Would you say there is a good understanding of what the process is about, say, by public office holders and MPs? Do we understand it properly?
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I hope so. I mean, I'm doing everything I can to explain it. My annual reports are very fulsome. I try to be very transparent as to what has gone on in the previous year.
Now, not every MP or minister or whoever.... I'm talking about the act, of course, which is only ministers and parliamentary secretaries—I don't know if there are actually any of them in this room—but the same goes for the code.
I try to be very transparent in my reports. I try to be fulsome in my investigation reports. We do put up advisories and guidelines in certain areas for the act.
We have a bit of a problem in the code, because we can't put guidelines up unless they're approved by the procedures committee. That has slowed that process down significantly. That's one of my recommendations to the procedures committee, that we don't have to get their approval to put some guidelines up.
We also do our educational work. Every year we offer a briefing to every caucus so that people feel free to talk amongst their own caucus.
I don't know what else we could do really.
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The reason I ask is that I recall, in one instance, just how much questioning and even confusion there was over this issue of the gifts and the $30. I think it was at the procedure and House affairs committee. It didn't matter which side of the House it was on; there was confusion.
So it does seem to me that with regard to the whole protocol of laying a complaint—what happens when a complaint has been laid, what our responsibility is in terms of the code—it's very important to make that strong and clear and well understood, over and over again.
That leads me to another question. I do know that in B.C. there has been a system in place for the conflict of interest legislation. When you speak about harmonization of the code and the act, I know that in B.C. the code.... It's actually within the legislated code, and it seems to me they're having some success there in terms of penalties and maybe giving some better clarity.
I'm wondering if you could comment on the following. If, when you talk about harmonization, you're not suggesting that the code be put in the act, why not? And have you looked at what's happening in B.C.? Do you see that as potentially a model that should be followed federally?
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I just wanted to make sure that I still felt that I was doing the right thing.
You were saying you have about 3,000 people who would fall under your jurisdiction. Of course, MPs report and go through all of this.
I remember when we were first elected in 2008, going to the orientation. Of course, at that time it was like drinking water from a fire hose, there were so many things coming at us.
One of the things you talk about is the educational aspect of this. I'm just wondering whether you have produced any products online that people could take a look at and say, all right, here's where my situation is now, but there are changes of this type, and this is something you would anticipate being contacted over in your office, but this doesn't really make any difference because it's still part of the ordinary process of some operation you might have been involved with.
Do you have that? Are there some examples? I think really the key issue is that a lot of people have really no idea whether they're going offside on some of the smaller things that take place, and before they get into big trouble, it would be nice to know whether you have some tools there that can help.