:
Thank you. I do appreciate the opportunity.
Obviously those of us around this table find this incident to be absolutely unacceptable, completely unacceptable. I can tell you that the minister has made that clear. Obviously Canadians know that.
The Office of the Privacy Commissioner has been contacted with regard to this and has been made fully aware of it. As well, every one of the clients whose information was involved in the breach has been contacted. They have been offered all kinds of protection in terms of Equifax protection and the rest.
It's an important issue. I don't think anything is going to change in the next hour and a half, so I'd like to see that deferred to the end of the meeting. I think this is an important discussion that we need to undertake, but we do have witnesses waiting here, and I think it would be appropriate that we hear from them.
In an hour and a half's time, I think we can move to deal with this in future business, as it was pertaining to our committee's schedule. At that time I think we'd be able to have a good discussion, but be able to first honour our witnesses who are here. They have taken time out of their day to be here, and I don't want to squeeze them out.
:
Thank you very much.
Merci beaucoup. It's a great pleasure to be here today. I really appreciate the invitation. I'm particularly pleased, because there are at least two members of this committee from my home province of Alberta. I recently discovered that my dad was dentist for the member for Red Deer, as well as for me.
Advancing ethics legislation is a bit like pulling teeth. It almost always comes as a result of a scandal. Sometimes it comes as a result of thoughtful deliberation. I'm really hoping that the recommendations that are discussed today can be proactive and can prevent future scandals as a result.
I spent four years working for the Alberta government—three years as a middle manager for social services, and one year as an assistant to a cabinet minister. During these four years, Peter Lougheed was the premier. He set an example by having unimpeachable ethical standards. He was in large measure part of my inspiration for the study of ethics in the public sector.
There are two points I want to make today. First of all, the conflict of interest regimes in Canada that work the best are those that require elected members to meet in person with the Ethics Commissioner or someone in the commissioner's office on an annual basis to discuss the member's disclosure statement. Secondly, I think it's important for this committee to re-examine the recommendations of part III of the Oliphant commission report that are within the jurisdiction of this committee, and to consider implementing the recommendations that haven't already been implemented.
First of all, compulsory meetings with the ethics commissioner—what became known as the Canadian model of the prevention of conflicts of interest involving elected members—began with the creation of the position of an independent conflict of interest commissioner, now referred to as the integrity commissioner, in Ontario in 1988. The Ontario legislation provides that all MPPs must submit a confidential disclosure statement to the commissioner within 60 days of an election, and that they have to meet in person with the commissioner to discuss that statement within another 60 days. Usually it's a lot quicker than that on both counts. The disclosure statements have to be updated annually, and there are required annual meetings, once again, with the commissioner. The commissioner also has the power to investigate complaints about alleged violations of the rules. On average, there has been an inquiry about once every two years.
From its inception, the Ontario approach was meant to be primarily educative, and thus preventive, and only secondarily investigative. The approach has been highly successful. The number of serious allegations of breach of conflict of interest rules dropped on an average annual basis by 90% after the new regime came into effect. Because it has worked so well, it has been copied in every jurisdiction in every province and territory across Canada, and now for the Senate and the House of Commons with some varied approaches. Now we are getting into the municipalities as well.
In every instance where this Canadian model has been instituted, there has been a drop in the number of allegations of conflict of interest. The least successful regime in terms of reducing the need for inquiries about allegations of breach of the rules is unfortunately the House of Commons and the cabinet. More allegations of breach of the rules are investigated by the Conflict of Interest and Ethics Commissioner per member than for any other legislative body in Canada. I think this is because there is no requirement to meet with the commissioner or someone in the commissioner's office. Between 2004 and 2010, the commissioner conducted annually, on average, four inquiries into credible allegations of breach of the rules. This is far too many. It leads to negative publicity about the person being investigated. This isn't the fault of the commissioner. It's because of the weakness in the preventive part of the Conflict of Interest Act.
In my experience, the great majority of the elected members in every party are honest. They enter into politics to serve the public good.
Most of us think we're ethical so we don't need to pay close attention to the rules, but conflict of interest is not always an easy concept to understand in some situations. That's why it is useful to obtain the personal advice of the Ethics Commissioner or one of her staff. As well, once personal contact has been established, it's more likely that an elected member will go to the commissioner or the commissioner's office for advice when unusual situations arise.
In Ontario, MPPs request advice from the Office of the Integrity Commissioner five to seven times a year on average. From what I can understand from Commissioner Dawson's report, it might be once or twice a year for the House of Commons. These informal inquiries are part of the preventive approach of the Canadian model, and they're more frequent once you have these compulsory meetings that not only help prevent conflict of interest in individual situations but create a rapport, trust, and a willingness to use the system.
Up until 2012, Commissioners Shapiro and Dawson between them had issued 19 reports resulting from investigations into allegations that MPs or cabinet ministers had violated either the code or the act. I've read all of the reports that resulted from these inquiries, and I've concluded that many, if not most, of these 19 inquiries would have been unnecessary or would have been much shorter had there been a previous personal meeting between the commissioner and a cabinet minister or a staff member and the MP.
My second recommendation is with regard to the recommendations of the Oliphant commission. Part III of the commission's report contained a number of recommendations for the Conflict of Interest and Ethics Commissioner, Mrs. Dawson, who has implemented all of them, for the Prime Minister's Office, and for this committee. I contacted the Prime Minister's Office to find out if they are contemplating implementing these recommendations. I got an acknowledgement, and they said they would get back to me, but I'm still waiting.
A number of recommendations affect this committee and its jurisdiction. I'm not sure if any of the recommendations have been implemented yet, but if not, I'd like you to consider them.
With regard to the educational role of the commissioner, the commissioner's office runs voluntary training sessions on the Conflict of Interest Act and Code. Only about half of the MPs attend, according to Mrs. Dawson's annual reports. Very few ministers attend. Oliphant recommended that attendance at these training sessions be compulsory for ministers and that party leaders should make them compulsory for their MPs.
It was recommended that after the filing of disclosure statements under the act and the code, there should be compulsory in-person meetings between the staff in the commissioner's office and the ministers and MPs, as is the case in most Canadian jurisdictions, including the Senate. To date, there haven't been any inquiries conducted by the Senate Ethics Officer. I think it's because the required annual in-person meetings have an effect in terms of preventing behaviour that could lead to allegations of conflict of interest.
The conflict of interest and lobbying rules have improved greatly in Canada since 1993-94. They are now amongst the most rigorous in the world, but there are still some loopholes that I think need addressing.
What Oliphant recommended was that the definition of employment in the Conflict of Interest Act should be clarified:
employment shall mean...any form of outside employment or business relationship involving the provision of services by the public office holder, reporting public office holder, or former reporting public office holder...including, but not limited to, services as an officer, director, employee, agent, lawyer, consultant, contractor, partner, or trustee.
In regard to the Conflict of Interest Act, Oliphant recommended that the definition of conflict of interest should be broadened to include an “apparent conflict of interest”. For example, this is the case in British Columbia and some other jurisdictions. It simply ensures that the legislation goes a little bit further to require members to observe the highest standards.
The Conflict of Interest Act should be amended so that post-employment provisions clearly refer to work done in Canada or anywhere else, according to Oliphant.
The Conflict of Interest Act should be amended to prohibit public office holders from awarding contracts or benefits to persons who may be in violation of the code, and if these public office holders are uncertain, they must check with the Ethics Commissioner.
The act should be amended to make it a non-criminal offence to fail to meet disclosure obligations.
As well, there should be an appropriate appeal mechanism regarding post-employment decisions of the commissioner that involve procedural fairness and transparency.
In conclusion, I think the Conflict of Interest Act has done a lot of good. It's always a work in progress. In Ontario, the legislature, every once in a while, acts proactively to tighten up the rules, instead of doing that because of scandals. I very much hope this committee will consider doing the same thing.
I look forward to your questions.
The first thing I'd say is that I would endorse and echo what Professor Greene has just said to you. His recommendations make abundant sense to me.
Thank you for the chance to speak to you today.
The enactment of the Conflict of Interest Act was an important step in the evolution of an integrity and ethics system. While it's significant and welcome, there are ways in which it could be enhanced. Today I'd like to talk about a few of those ways in which it could be enhanced, including: the insertion of “apparent” conflict of interest; tightening post-employment restrictions; ethics education; and whether or not the enhanced use of administrative monetary penalties recently called for by the commissioner will transform the nature of the legislation, and whether or not that's appropriate.
Before looking at those issues, I'd like to make three general comments. One already has been made by Professor Greene. The first is that the Oliphant commission made several recommendations specifically aimed at the Conflict of Interest Act. To my knowledge, none of them have been implemented. I'll touch on two very briefly, but I think they all should be implemented.
The second general comment I have to make is about the approach of the act to the role of the commissioner. The commissioner is an adviser, a monitor, and an investigator. Unlike most of the provincial, territorial, and municipal commissioners, the commissioner has considerable power to order compliance, but not to penalize, except with administrative monetary penalties.
In her written submission as it appeared on her website, the commissioner now seeks enhanced penalty power, albeit in limited circumstances. As the act now stands, though, she's really more of a specialty ombudsman and is so as well under the members' code. In both contexts, this role is as a specialty ombudsman, similar to most other ethics commissioners in the country. As a general comment, I'd just say that if you're going to transform that role you ought not to do it lightly. I'm going to come back to that in a second.
The third broad observation is that the act deals with much more than conflict of interest. It's called the Conflict of Interest Act, but it deals with behaviours that are beyond conflict of interest: influence of office, misuse of insider information, inappropriate acceptance of gifts, and so on. Conflict of interest, classically defined, is about an opportunity, a potentiality, that is the opportunity or potential to make a decision in one's public role that will further one's private interests.
The act describes ways of avoiding that and so on, but other things, such as improperly influencing an action, for instance, are well beyond conflict of interest. It's misbehaviour. This goes to one of the things the commissioner has called for, and that's an enhancement of the purpose section of the act, which I would support.
I'd also suggest that it would be useful to do as Ontario's Members’ Integrity Act does, which is to have a preamble that clearly states the need for ethical behaviour in government and the aspirations to which the act applies. I don't know if it's necessary to change the name of the act, but I do think that guidance is useful.
I'd like to now comment on specific areas. The first, Professor Greene has already dealt with. The recommendation of the Oliphant commission that “apparent” conflict of interest be adopted and placed in the act I think is very important. I understand that there has been an argument which suggests that because perceptual language occurs in other parts of the Conflict of Interest Act, you need not define apparent conflict of interest. That's not correct, I respectfully submit.
We've had two commissions at the federal level, the Parker commission long ago, and the Oliphant commission, which have dealt with this and have called for the inclusion of this kind of standard. At the municipal level in Ontario now, both the Bellamy and Cunningham commissions have also called for it. I think it's just time to do it.
In terms of post-employment restrictions, again, Professor Greene has discussed this so I won't canvass it, but I think the definition of employment is one area that should be dealt with as Oliphant recommended.
The third area I wanted to talk about, which has been canvassed by Professor Greene much better than I could, is education and training. I would just say that I support the notion that there should be mandatory training. A requirement for public office holders to undertake ethics training and annual review of such training is not unreasonable.
I've dashed along here, but I'd just like to talk about administrative monetary penalties for a second. In general, there are limited consequences for breaching the rules in the act. It does contain administrative monetary penalties. It also contains order powers for the commission to enforce compliance, but it does not have any specified penalties for failure to meet the key substantive rules.
One senses that this is the case for two reasons. The commissioner is to report breaches to the Prime Minister, and it is presumed that the Prime Minister of the day would act in some way to deal with the person who has breached the rules. Also, the reports become public, and the light of day is its own cleanser, if you will.
In her written submission, the commissioner has called for an extended ability to levy administrative monetary penalties in limited circumstances, but also asks you to consider penalties for a more substantive breach. Part of her argument is about whether or not these matters become public.
I respectfully submit that this is a separate issue of how and when and what types of penalties should be in the act. For substantive breaches, I think there should be something beyond limited monetary penalties. It should include a range of possible sanctions. Remember, we're talking about public office holders here, so it could include things ranging from apologies to dismissal. I think it's appropriate that the Prime Minister do that and not the Ethics Commissioner.
Having said all of that, I'll say that if you do want to go to a model whereby the commissioner becomes the enforcer and the commissioner becomes like a tribunal, you will have to enhance the procedural protections in the act for people who will be subject to her penalties.
That's a whirlwind view. I'll stop it there.
Thanks.
:
I guess the question here—
Mr. Gregory J. Levine: Can I just say—
Mr. Charlie Angus: I only have a few minutes here, and I just want to be really clear on this.
Mr. Gregory J. Levine: I'm sorry.
Mr. Charlie Angus: The idea of going to some kind of tribunal is excessive, to me, but when rules are breached, I never, ever hear someone taking responsibility.
For example, the finance minister breached section 9 of the Conflict of Interest Act. He did. The commissioner found that. Yet day after day in the House, we see them trying to dodge around it, that, well, he was just acting like a backbencher. Well, he wasn't.
Are we to expect that they're going to take responsibility, or...? It seems to me the commissioner is frustrated. She's saying she's not getting compliance. Nobody fesses up when they do something. It just becomes a political game.
So if she did it, then it wouldn't be a political issue. She would make the decision—whether it's a public apology, whether it's restitution, whether it's a financial implication. Otherwise, I mean, within the context of the Parliament that we live in, do you really think we're going to be able to work this out?
On the speaking out, yes, I agree with that last point that Ian Greene made. I mean, part of this goes with the territory, doesn't it? She's not a debating club, she's an investigator who will provide a report at a certain point in time and speak her mind about it.
In terms of broad education, about how the act works, she has the opportunity to do that anyway. I would be kind of uncomfortable if she were seen to be getting drawn into debates and losing her objectivity. I think that's the point that Professor Greene just made.
On the apparent conflict of interest, there was only the one recommendation. It was recommendation six in the Oliphant recommendations. On the point that the commissioner has made several times, that this appears in other parts of the act, it sort of does. Again, I think that goes to the point of clarifying and making it clear that this is dealing with conflict of interest, which is one particular form of rules. The places that it comes up, in other parts, are about the actual, substantive misbehaviours. I think they're different.
So there are different sets of things that need to be dealt with.
Thank you to our witnesses.
Maybe I'll start with you, Mr. Levine, and then I'll move to you, Mr. Greene. I'd like to ask you both the same questions.
I guess I'm wrestling with the definition at this point of apparent versus definitive conflict of interest, as currently defined, to the best of my understanding.
When the commissioner is asked to contemplate any type of investigation, launching an investigation into a conflict situation, there's the potential for public or external factors to create a presumption of guilt prior to her conclusions being determined. I wonder if there is a way, from your perspective, that you could advise us: do you see any way to mitigate attacks on reputation for purely partisan purposes?
Mr. Levine, could we start with you on that one? I want to give you first crack here to get your word in edgewise.
I thank our two witnesses for being here. This is very interesting.
I want to address the issue of private meetings with the commissioner, her assistants or her employees. I must admit that I am favourable to this recommendation. I have been a member for close to two years. I know that when we arrive on Parliament Hill, we are given a mass of new information, paperwork and forms that appear on our desks, a considerable pile. So that is only one thing among others. Those meetings could allow the new members of parliament to get a better grasp of the rules. This could help them to avoid making blunders or foolish mistakes.
Also, there is another aspect to this matter. When we have been here for a long time, we may get a little too comfortable, and we may think that we are sheltered from criticism.
Of course, this means we will have to meet a lot of people, there will be a lot of meetings. My question is addressed to both of you. Do you think that the commissioner has, at this time, the necessary human resources to do good awareness-building work and to monitor what is going on?
:
That's a very good question.
I think I understood most of what you were asking. It seems to me that it's more efficient to prevent a breach of the rules from happening than it is to investigate afterwards and try to pick up the pieces.
When Greg Evans was the first ethics commissioner in Canada, I think his meetings with cabinet ministers were about half an hour long, sometimes longer if something was really complicated in terms of their business, and sometimes shorter if their personal holdings were very straightforward. The meetings were very quick. The great thing about them is that they created a rapport. The commissioner was seen as someone who was there to help them stay out of trouble, not someone who was there to investigate them and punish them afterwards, so they wanted to take advantage of that advice.
In the end, there wasn't a lot of work to do or a lot for the commissioner to investigate, so it seems to me that with an average of four investigations per year, which are time-consuming, expensive, and take a lot of staff time...if you could cut down on those, then there is going to be enough staff time available to have these personal meetings.
:
Thank you very much, Mr. Chair.
I want to thank both witnesses for being with us today. We appreciate your testimony.
The commissioner had intended to bring testimony to this committee at our last meeting, and unfortunately she wasn't able to do that, but she left her notes as to what she intended to say. Having read that testimony, I guess she believes that the system currently is functioning relatively well. She believes she has a system that's working well and that Canadians can trust, but obviously she has recommended some tweaks to assist in her work. Obviously, you gentlemen have some suggestions regarding that as well.
You've made some broad suggestions about post-employment for public office holders. Of course, when we're talking about public office holders, we're talking about staff members, MPs, former ministers, a whole host of folks, so we have to discuss the issues of what we're going to do to them when they're seeking employment after they've ended their public service. You made some suggestions with regard to post-employment, but it seems to me that the major issue is covered under the Lobbying Act. Obviously, there's a prohibition with regard to certain communications that they can undertake. In addition to limiting their ability to communicate—and the rules are provided in the Lobbying Act—what other provisions do you believe would be necessary? Or does the Lobbying Act cover the concerns you have? There have been some suggestions, and I'm not sure we've articulated what those would be.
Either of you can answer.
Mr. Levine, you can jump in.
:
Thank you, Mr. Chair. As I said, I think the issue of this motion is very important for our committee to discuss, because it's very rare that an issue of privacy and personal data affects.... Well, it's never happened in a way that has affected so many Canadians. This is the largest breach in our country's history. All of our offices—and I'm sure I am speaking for my Conservative colleagues when I say they're getting the same calls I am from people who are deeply concerned. I was just speaking with people from Matheson today, people from Englehart, people from Kirkland Lake, people from Timmins in my riding, all of whom have been affected.
I see my colleagues on the other side snickering about this. Well, the people who are calling me aren't laughing. They're taking this very seriously.
My colleague, Mr. Mayes, says he hasn't had one call. Well there are 583,000 Canadians. That's one in 60. So if he wants to diminish the concern of Canadians who are very concerned about what happened to their privacy data—and not just their own privacy data.... We're getting calls from people who are asking about their parents' data being affected, because they also signed on the loan applications.
We don't know. These are questions we are trying to reassure people about. I guess the issue here is that for two months the government sat on the breach. That is two months during which Canadians could have been exposed to all manner of fraud, because they can't assure us what happened to that data.
So when they finally admitted that there had been a breach, I know that, from talking to the many people in my riding and talking to other Canadians across the country who were phoning HRSDC, they were simply getting, “We're sorry it happened” but no commitments in terms of responding to the real threat that people faced.
I don't know how many people out there have been victims of identity fraud or have had their Visa cards compromised, but I have had mine compromised and it's a frightening situation, because you don't know how it happened and you don't know if it will happen again.
So it's incumbent upon government to be able to respond and to reassure Canadians.
Now we're at the stage of having four class-action lawsuits on this issue. This is serious business. This is what happens when you break trust with the public.
I think, given that our committee is the committee that deals with privacy and ethics, and given that we have been the committee that has looked at the issues of protecting personal privacy, and that we've just finished the social media study, we are the one committee that is in the best position to deal with what happened and to find out what steps were taken, what the internal culture was that allowed it to happen, whether there is a protocol—now that this has happened in one department—to look at other departments. Could this possibly happen at CRA? Is it possible that it could happen in other departments? We don't know, and that's who we need to hear from.
I think this is a motion we need to discuss.
I see that my honourable colleague from the Liberal Party has a motion with a number of names. I certainly think we can look at how we bring witnesses together, because it's in the interests of all of us to get to the bottom of this.