Transport Committee on March 28th, 2007

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

More than a lot will come out.

Mr. Chair, I wonder if you would allow me a point of clarification for the edification of all members. I think it's important for all members to declare a personal interest in something and to advise all others that there may be a colouring of the questions that might be asked and the observations that will be made.

For the purposes of transparency in government, if you'll allow me to do that before I begin my questioning, Mr. Chairman, I would be eternally grateful.

[The Chair, Conservative, Merv Tweed]

It's your time.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

It's not a question of time, I'm asking you to give me a couple of moments to make the clarification. Then I'll proceed with the questions.

[The Chair, Conservative, Merv Tweed]

Go ahead.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

Thank you.

Some members around the table may know that I was the political minister responsible for Toronto. One of the issues for which I was responsible was the Toronto Port Authority. I was part and parcel of that negotiation of the non-construction of a bridge and the settlement that led to a $35 million expenditure in lieu of a $20 million bridge.

I note that one of the other parties has now been replaced by the former city councillor in that area and was an advocate of the non-construction of the bridge and the elimination of the Toronto Port Authority, and an advocate of the lands administered by the port authority being transferred to the municipality.

I think it's important to understand that, because the questions I might ask Mr. Tassé will indeed be coloured by the experience I've had. I would further add that I'm also a member of Parliament from Toronto, one of two around the table, which makes the issue rather narrow.

Do you feel comfortable with that?

[The Chair, Conservative, Merv Tweed]

Please.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

Thank you.

Monsieur Tassé, I note in your report--and you've repeated it in your presentation--that you think everything seems to be just fine with this port authority, other than some of the internal administrative issues. Is that an accurate perception?

[Roger Tassé]

I've been asked, Mr. Chair, to review the decisions that have been made by the port authority in regard to certain matters. I have come to a conclusion that they behaved well and managed their responsibility well.

I have noted a number of points that appear to me to be lacking, to be weaknesses in the administration and in the law, and I think there's room for improvement. For example, I have recommended that they should have a program to reach out to the people in Toronto, the community, the users, and to be more forthcoming.

Also, I mentioned that they should comply with their obligations regarding the preparation of plans to be made public and annual reports be made public. There's nothing perfect, but I must say it is a far cry from what the people were alleging or what the people told me. And I am not blaming anybody.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

You'll leave that to me. But I don't want to revisit some political history.

[Roger Tassé]

Yes, I'll leave it to you.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

Mr. Tassé, was your law firm commissioned by the Government of Canada to assess its liabilities vis-à-vis the non-construction of that bridge?

[Roger Tassé]

The result of the non-construction?

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

Yes.

[Roger Tassé]

To my knowledge, the firm has not been retained.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

Okay.

[Roger Tassé]

I myself have been retained, and I could go over that. I have been retained to assess whether or not principles of good governance had been complied with. For that purpose, I had a lot of discussions with lawyers and I looked at advice that was given. But I have not been asked formally to give an opinion.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

No, Mr. Tassé, what I meant was that in 2004 the bridge was not built. You're quite right in your report. You pointed out that city council had agreed and voted upon the building of that bridge not once, not twice, but three times.

[Roger Tassé]

Exactly.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

The mayor ran a campaign saying they had to not build this bridge.

Because the Government of Canada, on the urging of the mayor, decided not to be a part of a tripartite group in building this, there were court cases initiated. The Government of Canada sought legal opinion. What I asked was whether or not your firm had been commissioned to offer some of that opinion. Your answer, I gather, is no.

[Roger Tassé]

Not to my knowledge.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

So the $35 million settlement that you studied came as a result of three parties coming together to agree—the three parties being the city, the federal government, and the TPA—to deal with the court cases that were being launched, the suits that were being launched, against the City of Toronto.

I know you've read the document, which said to hold safe, harmless, both the city and the federal government from further litigation. Is that an accurate reflection?

[Roger Tassé]

Yes, except that I would just point out that while their representative came to earlier meetings, I think it was in June 2004 that the City of Toronto eventually informed the other parties that they could not go any further because they could not get any instructions as to further negotiations. In effect, they were ready to discuss the disbandment of the airport, and the Department of Transport had been instructed that this was not part of their mandate.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

But in the final analysis, the settlement that led to $35 million in order to keep the city and the federal government safe, harmless, from further liability was accepted by the City of Toronto.

[Roger Tassé]

They didn't have to pay anything, and they were getting a complete waiver of any claim that might exist against them. It was a good deal.

[Joe Volpe, Liberal, Eglinton—Lawrence, ON]

I'm being very precise, Mr. Tassé, because I know you were very precise in your analysis, from what I read.

The City of Toronto had to sign off on that; otherwise the money would not have and could not have been paid?