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The Special Joint Committee on a Code of Conduct of the Senate and the House of Commons has the honour to present its

SECOND REPORT
In March 1996, the Senate and the House of Commons adopted resolutions which included the following:

That a special committee of the Senate and the House of Commons be appointed to develop a code of conduct to guide Senators and Members of the House in reconciling their official responsibilities with their personal interests, including their dealings with lobbyists;
...
That the Committee be directed to consult broadly and review the approaches taken with respect to these issues in Canada and in other jurisdictions with comparable systems of government; ...
A similar committee had been appointed in the previous session of this Parliament, but its work was not completed at the time of prorogation. Accordingly, the resolutions directed that the papers and evidence received and taken on the subject during the First Session of the Thirty-Fifth Parliament be referred to the Committee.

The Committee heard from a variety of witnesses, including the federal Ethics Counsellor; parliamentary legal counsel; academics; private sector lobbyists; the media; consultants on ethical issues; parliamentary spouses; and others. A list of witnesses is annexed as an Appendix. We also consulted with a number of provincial commissioners of ethics and conflict of interest, and we surveyed provincial politicians.

In addition, the Committee considered the work that has been done in recent years regarding conflict of interest and codes of conduct. At both the federal and provincial levels, there has been considerable study and discussion of these issues.

There are several existing provisions regarding conflict of interest and conduct for Parliamentarians. These rules are not consolidated in a single statute, but are found in the Parliament of Canada Act, the Criminal Code, the Rules of the Senate, the Standing Orders of the House of Commons, the Conflict of Interest and Post-Employment Code for Public Office-Holders, as well as in other laws. Many of these provisions are rather antiquated, and deal only with specific situations. It is generally recognized that more up-to-date and relevant rules are required, both to guide politicians and to assure the Canadian public that high standards of conduct apply.

The Code of Official Conduct that we are proposing is the result of a great deal of consideration and discussion. We have listened to the witnesses who appeared before us, and reviewed the materials that have been prepared on this subject. We have consulted widely, and held discussions among ourselves and with our colleagues.

We believe that this Code is a strong but fair response to the need for clear rules. It will establish a regime and provide guidance and assistance to Senators and Members of the House of Commons, while assuring the public that allegations will be investigated and breaches dealt with.

Among the highlights of the Code are the following:

1. The Committee, therefore, recommends that the Senate and the House of Commons adopt the following Code of Official Conduct:

CODE OF OFFICIAL CONDUCT

We, the members of Parliament, individually and collectively agree to abide by the principles, rules and obligations of this Code of Official Conduct:

PURPOSES

The purposes of the Code of Official Conduct are:

PRINCIPLES

All Parliamentarians are expected to uphold the following principles:

1. Ethical Standards

Parliamentarians shallshould act with honesty and uphold the highest ethical standards, so as to maintain and enhance public confidence and trust in the integrity of each Parliamentarian and in the institution of Parliament.

2. Public Scrutiny

Parliamentarians shallshould perform their official duties and arrange their private affairs in a manner that will bear the closest public scrutiny, an obligation that is not fully discharged by simply acting within the law.

3. Independence

Parliamentarians shallshould take care to avoid placing themselves under any financial or other obligation to outside individuals or organizations that might influence them in the performance of their official duties. Particular vigilance should be exercised in dealings with paid lobbyists.

4. Public Interest

Upon election or appointment to office, Parliamentarians shallshould arrange their private affairs so that foreseeable real or apparent conflicts of interest may be prevented from arising, but if a conflict does arise, it shallshould be resolved in a way that protects the public interest.

5. Gifts and Personal Benefits

Parliamentarians shallshould not accept any gift or personal benefit connected with their office that may reasonably be seen to compromise their personal judgment or integrity.

APPLICATION

INTERPRETATION

RULES

A. FURTHERING PRIVATE INTERESTS

In the exercise of their duties and functions, Parliamentarians shall not take any actions, make any decisions, or participate in making any decisions in which they know, or reasonably should know, that there is the opportunity to further, directly or indirectly, their own private interests, the private interests of a member of their family, or improperly to further another person's private interest.

B. USING INFLUENCE

Parliamentarians shall not seek to use their position to seek to influence a decision made or to be made by another person so as to further, directly or indirectly, their own private interests, the private interests of a member of their family or improperly to further another person's private interest.

C. INSIDER INFORMATION

D. DECLARATION OF AN INTEREST

E. GIFTS AND PERSONAL BENEFITS

F. SPONSORED TRAVEL

G. GOVERNMENT CONTRACTS

H. DISCLOSURE OF PRIVATE INTERESTS

Confidential Disclosure

Public Disclosure

I. EVASION

Parliamentarians shall not sell or transfer any private interest on any terms or conditions that have as their purpose the circumvention of any of the rules in this Code.

2. The Committee recommends that the Rules of the Senate and the Standing Orders of the House of Commons be amended to provide for the appointment of a Jurisconsult and a Joint Committee on Official Conduct, as follows:

A. Jurisconsult

B. Joint Committee on Official Conduct

C. Duties and Procedures

3. The Committee recommends that:

4. The Committee recommends the following consequential changes:

A copy of the relevant Minutes of Proceedings of the Special Joint Committee on a Code of Conduct (Issue No. 1, which includes this Report) is tabled.

Respecfully submitted,

SENATOR DONALD H. OLIVER, Q.C.

PETER MILLIKEN, M.P.

Joint Chairmen

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