Bill C-2 (Historical)

Federal Accountability Act

An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability

Part 1 enacts the Conflict of Interest Act and makes consequential amendments in furtherance of that Act. That Act sets out substantive prohibitions governing public office holders. Compliance with the Act is a deemed term and condition of a public office holder’s appointment or employment. The Act also sets out a detailed regime of compliance measures to ensure conformity with the substantive prohibitions, certain of which apply to all public office holders and others of which apply to reporting public office holders. The Act also provides for a regime of detailed post-employment rules. Finally, the Act establishes a complaints regime, sets out the powers of investigation of the Commissioner and provides for public reporting as well as a regime of administrative monetary penalties.
Amongst other matters, the consequential amendments to the Parliament of Canada Act provide for the appointment and office of the Conflict of Interest and Ethics Commissioner along with his or her tenure, expenses, duties and other administrative matters.
Part 1 also amends the Canada Elections Act to
(a) reduce to $1,000 the amount that an individual may contribute annually to a registered party, and create a distinct $1,000 annual limit on contributions to the registered associations, the nomination contestants and the candidates of a registered party;
(b) reduce to $1,000 the amount that an individual may contribute to an independent candidate or to a leadership contestant;
(c) reduce to $1,000 the amount that a nomination contestant, a candidate or a leadership contestant may contribute to his or her own campaign in addition to the $1,000 limit on individual contributions;
(d) totally ban contributions by corporations, trade unions and associations by repealing the exception that allows them to make an annual contribution of $1,000 to the registered associations, the candidates and the nomination contestants of a registered party and a contribution of $1,000 to an independent candidate during an election period;
(e) ban cash donations of more than $20, and reduce to $20 the amount that may be contributed before a receipt must be issued or, in the case of anonymous contributions following a general solicitation at a meeting, before certain record-keeping requirements must be met; and
(f) increase to 5 years after the day on which the Commissioner of Canada Elections became aware of the facts giving rise to a prosecution, and to 10 years following the commission of an offence, the period within which a prosecution may be instituted.
Other amendments to the Canada Elections Act prohibit candidates from accepting gifts that could reasonably be seen to have been given to influence the candidate in the performance of his or her duties and functions as a member, if elected. The wilful contravention of this prohibition is considered to be a corrupt practice. A new disclosure requirement is introduced to require candidates to report to the Chief Electoral Officer any gifts received with a total value exceeding $500. Exceptions are provided for gifts received from relatives, as well as gifts of courtesy or of protocol. The amendments also prohibit registered parties and registered associations from transferring money to candidates directly from a trust fund.
The amendments to the Lobbyists Registration Act rename the Act and provide for the appointment by the Governor in Council of a Commissioner of Lobbying after approval by resolution of both Houses of Parliament. They broaden the scope for investigations by the Commissioner, extend to 10 years the period in respect of which contraventions may be investigated and prosecuted, and increase the penalties for an offence under the Act. In addition, they empower the Commissioner to prohibit someone who has committed an offence from lobbying for a period of up to two years, prohibit the acceptance and payment of contingency fees and prohibit certain public office holders from lobbying for a period of five years after leaving office. They require lobbyists to report their lobbying activities involving certain public office holders and permit the Commissioner to request those office holders to confirm or correct the information reported by lobbyists.
Amendments to the Parliament of Canada Act prohibit members of the House of Commons from accepting benefits or income from certain trusts and require them to disclose all trusts to the Conflict of Interest and Ethics Commissioner. The amendments also authorize the Conflict of Interest and Ethics Commissioner to issue orders requiring members to terminate most trusts and prohibiting them from using the proceeds from their termination for political purposes. In cases where the trusts are not required to be terminated, the amendments authorize the Conflict of Interest and Ethics Commissioner to make orders prohibiting members from using the trusts for political purposes. An offence is created for members who do not comply with such orders. The amendments also provide that, in the event of a prosecution, a committee of the House of Commons may issue an opinion that is to be provided to the judge before whom the proceedings are held.
Finally, Part 1 amends the Public Service Employment Act to remove the right of employees in ministers’ offices to be appointed without competition to positions in the public service for which the Public Service Commission considers them qualified.
Part 2 harmonizes the appointment and removal provisions relating to certain officers.
Amendments to the Parliament of Canada Act establish within the Library of Parliament a position to be known as the Parliamentary Budget Officer, whose mandate is to provide objective analysis to the Senate and House of Commons about the estimates of the government, the state of the nation’s finances and trends in the national economy, to undertake research into those things when requested to do so by certain Parliamentary committees, and to provide estimates of the costs of proposals contained in Bills introduced by members of Parliament other than in their capacity as ministers of the Crown. The amendments also provide the Parliamentary Budget Officer with a right of access to data that are necessary for the performance of his or her mandate.
Part 3 enacts the Director of Public Prosecutions Act which provides for the appointment of the Director of Public Prosecutions and one or more Deputy Directors. That Act gives the Director the authority to initiate and conduct criminal prosecutions on behalf of the Crown that are under the jurisdiction of the Attorney General of Canada. That Act also provides that the Director has the power to make binding and final decisions as to whether to prosecute, unless the Attorney General of Canada directs otherwise, and that such directives must be in writing and published in the Canada Gazette. The Director holds office for a non-renewable term of seven years during good behaviour and is the Deputy Attorney General of Canada for the purposes of carrying out the work of the office. The Director is given responsibility, in place of the Commissioner of Canada Elections, for prosecutions of offences under the Canada Elections Act.
Part 3 also amends the Access to Information Act to ensure that all parent Crown corporations, and their wholly-owned subsidiaries, within the meaning of section 83 of the Financial Administration Act are encompassed by the definition “government institution” in section 3 of the Access to Information Act and to add five officers, five foundations and the Canadian Wheat Board to Schedule I of that Act. It adjusts some of the exemption provisions accordingly and includes new exemptions or exclusions relating to the added officers and the Crown corporations. It empowers the Governor in Council to prescribe criteria for adding a body or an office to Schedule I and requires Ministers to publish annual reports of all expenses incurred by their offices and paid out of the Consolidated Revenue Fund. It adds any of those same officers and foundations that are not already included in the schedule to the Privacy Act to that schedule, ensures that all of those parent Crown corporations and subsidiaries are encompassed by the definition “government institution” in section 3 of that Act, and makes other consequential amendments to that Act. It amends the Export Development Act to include a provision for the confidentiality of information. It revises certain procedures relating to the processing of requests and handling of complaints and allows for increases to the number of investigators the Information Commissioner may designate to examine records related to defence and national security.
Amendments to the Library and Archives of Canada Act provide for an obligation to send final reports on government public opinion research to the Library and Archives of Canada.
Finally, Part 3 amends the Public Servants Disclosure Protection Act to
(a) establish the Public Servants Disclosure Protection Tribunal and empower it to make remedial orders in favour of victims of reprisal and to order disciplinary action against the person or persons who took the reprisal;
(b) provide for the protection of all Canadians, not only public servants, who report government wrongdoings to the Public Sector Integrity Commissioner;
(c) remove the Governor in Council’s ability to delete the name of Crown corporations and other public bodies from the schedule to the Act;
(d) require the prompt public reporting by chief executives and the Public Sector Integrity Commissioner of cases of wrongdoing; and
(e) permit the Public Sector Integrity Commissioner to provide access to legal advice relating to the Act.
Part 4 amends the Financial Administration Act to create a new schedule that identifies and designates certain officials as accounting officers and, within the framework of their appropriate minister’s responsibilities and accountability to Parliament, sets out the matters for which they are accountable before the appropriate committees of Parliament. A regime for the resolution of issues related to the interpretation or application of a policy, directive or standard issued by the Treasury Board is established along with a requirement that the Treasury Board provide a copy of its decision to the Auditor General of Canada.
Part 4 also amends the Financial Administration Act and the Criminal Code to create indictable offences for fraud with respect to public money or money of a Crown corporation, and makes persons convicted of those offences ineligible to be employed by the Crown or the corporation or to otherwise contract with the Crown.
Other amendments to the Financial Administration Act clarify the authority of the Treasury Board to act on behalf of the Queen’s Privy Council for Canada on matters related to internal audit in the federal public administration. They also set out the deputy head’s responsibility for ensuring that there is an internal audit capacity appropriate to the needs of the department and requires them, subject to directives of the Treasury Board, to establish an audit committee. The Financial Administration Act, the Farm Credit Canada Act and the Public Sector Pension Investment Board Act are amended to require Crown corporations to establish audit committees composed of members who are not officers or employees of the corporation. Other amendments to the Financial Administration Act require, subject to directions of the Treasury Board, that all grant and contribution programs be reviewed at least every five years to ensure their relevance and effectiveness.
Amendments made to the Financial Administration Act and to the constituent legislation of a number of Crown corporations provide for appointments of directors for up to four years from a current maximum of three years.
Part 4 also amends the Canadian Dairy Commission Act, the Enterprise Cape Breton Corporation Act and the National Capital Act to require different individuals to perform the duties of chair of the Board of Directors and chief executive officer of the corporation.
Part 5 amends the Auditor General Act by expanding the class of recipients of grants, contributions and loans into which the Auditor General of Canada may inquire as to the use of funds, whether received from Her Majesty in right of Canada or a Crown corporation. Other amendments provide certain immunities to the Auditor General.
Amendments to the Department of Public Works and Government Services Act provide for the appointment and mandate of a Procurement Auditor.
Part 5 also amends the Financial Administration Act to provide for a government commitment to fairness, openness and transparency in government contract bidding, and a regulation-making power to deem certain clauses to be set out in government contracts in relation to prohibiting the payment of contingency fees and respecting corruption and collusion in the bidding process for procurement contracts, declarations by bidders in respect of specific criminal offences, and the provision of information to the Auditor General of Canada by recipients under funding agreements.

Federal Accountability Act

[Paul Zed, Liberal, Saint John, NB]

Mr. Speaker, I agree with the hon. member that transparency and openness are critical for leadership races. I note that members opposite, perhaps, have not always been as open and transparent about the expenses for leadership races that they might have incurred or who contributors might have been. The short answer is that I favour a full and open transparent disclosure for leadership races.

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Mr. Speaker, I wish to address the government's first bill introduced in the 39th Parliament, Bill C-2, the federal accountability act. It is in the interests of all Canadians to ensure that the federal government is accountable. As an accountant by trade, the people of Don Valley East elected me as their federal representative because they wanted someone deeply concerned about transparency and accountability.

There are aspects in the proposed legislation that I and my colleagues in the Liberal Party will support because it builds on many of the initiatives launched by the previous federal Liberal governments between 1993 and 2006. For example, everyone knows that it was a Liberal government that first introduced the office of the Ethics Commissioner.

It was a Liberal government that fostered the development of this office to make the Ethics Commissioner independent from the Prime Minister's Office and instead, directly accountable to Parliament.

It was a Liberal government that established a separate Senate ethics commissioner, an office, by the way, that will be eliminated under this proposed legislation.

It was a Liberal government that first established clear guidelines for public office holders and it was a Liberal government that restored the Comptroller General's functions for each department and subsequently instituted an internal audit policy.

Bill C-2 does attempt to build on these very important reforms, but many of the proposals contained in the legislation are just simple extensions of existing legislation.

I will comment on electoral reform, for example. It was a Liberal government that first introduced Bill C-24, the first dramatic reform of political financing in Canadian history. It placed strict limits on the amount of money that private companies and trade unions could contribute to a party or candidate.

Through the same bill, it was a Liberal government that first introduced public funding for political parties, an innovation that made political parties far less reliant on corporate or union financing as a source of revenue.

In many instances, I see many of these extensions as nothing more than a lame attempt to exaggerate a situation that simply no longer exists. In other words, as one prominent academic recently observed, we see here many solutions in search of problems resolved long ago.

To be fair however, let us look at what the Conservatives promised Canadians in their election platform and what the legislation actually delivers. According to the document entitled “Stand up for Canada”, the Conservatives promised on page 12 that they will “allow members of the public, not just politicians, to make complaints to the Ethics Commissioner”. Unfortunately, I see no reference to public access in this proposed legislation which, in effect, denies voters the right to complain about their elected officials. It appears to me that “Stand up for Canada” just fell flat on its face.

Here is another broken promise. On the very same page of the Conservative platform, the plan would “make part time or non-remunerated ministerial advisers subject to the ethics code”. Again, there is absolutely no reference to this promise whatsoever in the legislation that we have before us. Canadians do indeed feel stood up by the Conservatives.

Although the Prime Minister has promised to apply strict new rules to the conduct of lobbyists, one of his first acts was to appoint a lobbyist as the Minister of National Defence. A lobbyist, I might add, who represented the top suppliers of military hardware to the federal government and members on the opposite side of the floor wonder what is wrong. The problem is that the defence minister will be in a conflict of interest on too many files and he will be forced to remove himself from critical discussions.

Furthermore, the Prime Minister says that he will no longer allow political staffers to immediately jump into the lobbying business so they can profit from contacts with their former employers. However, we know of at least three Conservative staffers, who worked for current ministers, who are now suddenly and miraculously in the private sector and lobbying their former bosses.

What about accountability? The Prime Minister has made it clear for years that he believes in an elected Senate. Yet the first thing he did when he arrived in Ottawa was to appoint his campaign manager to the Senate and then made him the Minister of Public Works. Shame. As a senator and a minister of one of the largest departments in the federal government, he does not have to face the House of Commons during question period. What kind of accountability is that?

Let us look again on page nine of the Conservative platform. It says, “A Conservative government will ensure that all officers of Parliament are appointed through consultation with all parties in the House of Commons, not just simply named by the Prime Minister”. What was the first thing the Prime Minister did? He arbitrarily appointed a loyal Reform Party member as head of federal appointments with absolutely no consultation with Parliament. This is a person who has already managed to offend Canadians of Caribbean and Asian descent by referring to them as nothing more than “lawless immigrants”. This is the type of irresponsible, redneck comments which are abhorrent to people who believe in pluralism and civil societies. It is a very offensive comment and the Prime Minister has decided to make this person the head of appointments.

The Prime Minister has made it perfectly clear that he will stand up for his close friends and Conservative campaign workers, but the rest of Canadians no longer matter now that the election is over. It is precisely this kind of behaviour that fuels public mistrust of government institutions. If the Prime Minister is so concerned about accountability and transparency, why will he not disclose who donated to his leadership campaign? What does he have to hide?

In conclusion, my colleagues and I in the Liberal Party will be placing the legislation under close scrutiny in order to salvage genuine reforms. Canadians deserve better accountability and we in the Liberal Party will give it to them.

[Rod Bruinooge, Conservative, Parliamentary Secretary to the Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians]

Mr. Speaker, my hon. colleague from across the way referred often to how the Liberal Party had brought about measures throughout the last 13 years regarding accountability, almost as if there were no need for any new measures on accountability. Was the sponsorship scandal perhaps a good reason for bringing about some new measures on accountability?

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Mr. Speaker, when anyone says that accountability comes to an end when the context is not there, it is not fair. Basically nothing ends; it is an evolving process.

We put in many measures, and we will work with the government on those measures that will extend, for example, the lobbying law, which would ensure lobbyists including members who have been staffers of Conservative MPs are no longer in the lobbying business. It has to be equitable and it has to be egalitarian. In cases of third party advertising, we would like to know why the Prime Minister has not put that in the accountability legislation.

[Dan McTeague, Liberal, Pickering—Scarborough East, ON]

Mr. Speaker, I was very interested in the question that was put forward to my distinguished colleague from Don Valley East concerning the sponsorship scandal and the questions as to whether this legislation would be enough to cover lobbyists. I know the minister who was proposing the bill was himself a lobbyist in Ottawa, so I suspect he has a bit of experience in this.

However, without going further, it is interesting that while the sponsorship issue was brought forth for an inquiry, which the then prime minister, the member for LaSalle—Émard, had the intestinal fortitude to bring forward, the same is not true of the performance of the minister who is now proposing this legislation, Bill C-2, when he was minister of social services.

We all remember the Accenture scandal in which a quarter billion dollars of taxpayer money went missing. It went down basically a funnel into some company that came out of Bermuda. Here we have an example from the parliamentary secretary and others suggesting that scandal only goes one way.

It is important for us to recognize that when it comes to transparency and openness, the minister who is proposing this legislation is in no position to do so. I would like to get a comment from the hon. member on this. Knowing the reputation of the member of Parliament, the Treasury Board minister, does she not find it ironic that the individual, who himself was cited several times by the auditor general of the province of Ontario, is now going to teach this Parliament, this House of Commons, a lesson on ethics?

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Mr. Speaker, I was quite concerned about the fact that the President of the Treasury Board would be so sanctimonious in his presentation of the bill. The provincial auditor has constantly cited him for being negligent and responsible for scandals that took place, under his watch, in the ministry of community and social services. Instead of taking the blame for it, he was moved away.

However, we were very strong about our accountability and we brought in the Gomery inquiry despite the fact that it would not be politically wise. It is important to know that hypocrisy exists on the other side and the government members should not be so sanctimonious.

[Patrick Brown, Conservative, Barrie, ON]

Mr. Speaker, my question for the member for Don Valley East is this. I am a bit confused. If the measures the Liberal government took over the last 13 years were so strong, why was there a need for change? Why was there a verdict by Canadians that accountability was something lacking in the past government? Does the member really believe that the measures in this accountability act will not foster a new spirit in Ottawa? The question that has been asked numerous times throughout the day to Liberal members is, will they support the accountability act?

Will she support the accountability act, one of the toughest pieces of ethical legislation that the House has ever seen?

[Yasmin Ratansi, Liberal, Don Valley East, ON]

Mr. Speaker, my comments are that the bill comes from a minister who himself was responsible for $500 million of boondoggle. He brings in an accountability act, which is very selective and does not have enough teeth. If it goes to committee and comes forth with definite changes in terms of third party advertising, without the hypocrisy of do as I say and not do as I do, we will be there to work with it.

[Rob Nicholson, Conservative, Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, I am very pleased to have this opportunity to speak to the bill. I will be splitting my time with the member for Souris--Moose Mountain.

I do not know if one can continue to give maiden speeches every time one gets elected to the House of Commons. If that is possible, then this would be my maiden speech for this Parliament.

At the outset, I am pleased and proud to have the opportunity to once again be in the House of Commons. This is the fourth time that I have had the privilege of representing the people of Niagara Falls. I am very grateful to that community, which is also my home town. It includes the towns of Fort Erie and Niagara-on-the-Lake. Together they comprise the riding that I have the honour to represent.

On this debate, which is about the democratic process and how we conduct ourselves, what a privilege it is for me to have grown up in that community and to now represent it in the House of Commons. As all members of Parliament know, because of our great democratic process in Canada, this is something we cannot take for granted and we must continue to earn the trust of the voters, the individuals who have sent us here.

I want to take this opportunity as well to reiterate something that the Prime Minister has said, and that is to congratulate Her Majesty The Queen on her 80th birthday. I was thinking about that recently. I have been able to count very easily the number of years that the Queen has been on the throne, since I was born a couple of weeks after she acceded to the throne in 1952. It was very clear to me whenever it was her silver anniversary, or the 40th anniversary and recently her 50th anniversary, because they mark milestones in my own life. As a public servant, as a lawyer and as a parliamentarian, I have always been very proud to take the oath of allegiance to the Queen, as our head of state, and I have been very proud and pleased all my life to count myself as one of her loyal subjects. I join with I believe all members of the House in congratulating her on her 80th birthday.

I am very pleased to have the opportunity to talk about the bill, the federal accountability act. It is a major part of the Conservative government's platform. The new Government of Canada has indicated that it is something we believe this Parliament needs and deserves and it is what Canadians want. It will fundamentally change the way government operates by strengthening ethical rules and political institutions to ensure transparency and accountability to Canadians.

The objective of the bill is very clear. It will put in place the means to allow Canadians to once again place their trust in the Government of Canada.

Canada is a strong democracy. I point out to students who visit that this is one of the oldest democracies in the world. We think of Canada as such a young country and we sometimes forget that we are one of the oldest democracies. We could go right through that list. I think the United Nations has about 161 different countries and it is very difficult to come up with any country that has had a democracy longer than ours. Indeed, in constitutional discussions that took place in Parliament in the early 1990s, I used to say that perhaps we should have invited people from around the world to come and study the Canadian Constitution, or the British North America Act, now known as the Constitution Act. When people said to me that we should study other people's constitutions, I said it should be just the opposite. People should try to come to Canada to understand how we have governed ourselves so successfully.

However, there were serious problems that were unveiled by the Auditor General. I am always glad to get into the details of these things, but suffice it to say quite a mess was uncovered by the Auditor General and the subsequent Gomery commission. The federal accountability act is an important and essential component of restoring the trust that Canadians must have in their democratic institutions.

These democratic institutions cannot be taken for granted. We must continue to examine them to ensure we maintain the trust that Canadians place in us. We must start by reforming the process by which we are sitting in the House today, and that is the election process. The bill proposes a number of political financing reforms that would restore public confidence in the integrity of our system. These elements are very important. I have already had expressions of interest from outside this country after they heard what we were proposing to do.

What we are proposing is that only individuals can make political contributions; that those contributions be limited to $1,000; that cash donations over $20 be banned to dispel the negative images of brown envelopes being filled with cash and being passed around; require the disclosure of all large gifts to ensure the contributions, whether in money or in kind, are captured and accounted for; ban the receipt of gifts or trust funds that are meant to influence candidates or MPs so that no one has hidden or privileged access to power; and ban trust funds used for political purposes to keep soft money and secret donations out of politics.

Taken together, those reforms would help restore public trust in the electoral financing system in a number of ways. First, they would eliminate the undo influence of big institutional and secret contributors; second, they would bring the focus of the electoral system back on ordinary Canadians who are at the heart of our democracy; and third, they would provide an open and transparent political financing system through the elimination of loopholes and the setting of straightforward rules that are easy to follow and clear to enforce.

On the subject of eliminating undue influence, the bill would ensure that all candidates and indeed the parties are on a level playing field. It is fact that 99% of Canadians make donations to the political process of $1,000 or less. We are not eliminating people. We are keeping the large number of people who want to contribute in a meaningful way to the political system. By limiting those contributions to $1,000, ordinary Canadians would not be left to compete with wealthy donors to make their contributions count.

No longer will we allow corporations, unions and organizations to contribute to the political process in terms of donations. I think this is a step in the right direction. Elections are about individuals. They are not about corporations, unions or other organizations trying to influence the political system. The bill would eliminate the opportunities for undue influence and it would ensure that Canadians are be able to play on a level playing field.

Second, the bill promotes the democratic process. We have to keep in mind that it is our constituents who vote to bring us to Ottawa to represent them. The electoral system should reflect this primary democratic principle. Individuals and not corporations should be directly supporting the political process through their contributions and by tailoring limits to reflect the contribution patterns of the vast majority of Canadians it will require candidates and parties to strengthen their connection to the constituents whose trust they must earn and whose interest they intend to serve. Candidates, parties and MPs will need to reach out to the people who they want to represent and engage them in the political process rather than catering to a few.

Public trust and participation in the system will be difficult to maintain unless the system is open and transparent. Given some of the negative perceptions of our political institutions, it is important that Canadians are able to see that the political financing regime is comprised of a set of rules that are clear and easy to enforce, and that means closing the real and potential loopholes in the system, which, of course, is the third function of the federal accountability act.

I think this bill is a step in the right direction. As I said, there are even people outside the country who are looking with interest at what we are doing because they realize this is the way to go, this is the way to restore confidence in our political system. I am proud and pleased to be a part of that system and I am always pleased to be part of a process that will help to improve people's respect for our political institutions in Canada.

[Shawn Murphy, Liberal, Charlottetown, PE]

Mr. Speaker, on the larger issue of accountability, I want to ask the government House leader a question about the appointment of committee chairs.

This, as the government House leader is aware, is an institution of accountability. Our job here as members of the House of Commons is to hold the executive to account and we operate through 26 separate committees. The chair is supposedly appointed by the members of the committee to preside over the meetings and to provide direction but also to be the spokesman for every member of the committee as the government House leader is a representative of every constituent in Niagara Falls, including those who did not vote for him.

I will point out that this party was wrong. We allowed the executive, in our past, to appoint the committee chairs. However that was changed back in 2003 or 2002. One of the most active spokesmen who spoke very clearly on the issue was the Prime Minister who was totally against that and voted against it, like other people, including myself, and that was changed to the benefit of this House, and the chairman was the spokesman for the committee.

I am disappointed, as I believe are most people in this House, that the Prime Minister is now, despite what he said in the past, going to appoint the chairs. The chairs now are not the nominees of the committee members but the nominees of the Prime Minister.

Does this action by the Prime Minister comply with his vision of accountability in this institution?

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, the committee members themselves will be appointing the chair and the vice-chairs. There is no question about that.

One of the fascinating remarks made by the hon. member was when he referred to the fact that his government, or “our executive”, made a mistake in the way it went about appointing a committee chair. That is quite an admission. I guess I have seen some fascinating things over the years. Certainly the Liberal Party has a history of very heavy-handed tactics in committees. It has always surprised me and I believe it was unnecessary and, quite frankly, counterproductive.

I was a member when the first Canadian environmental protection act was introduced into this Parliament back in the eighties. I always remember how amazed a member of the New Democratic Party was when he suggested amendments to those of us who were on the Conservative side, when we were the government, and if they made sense we allowed them. He said that he had been here for a long time but had never had any amendments accepted because the former Liberal government had a policy that if amendments came from opposition members it would not accept them. He was quite taken, and it is part of the public record, and said that he had never in all his years as a member of Parliament had so many amendments. Why not? If members of Parliament, from whatever party, make amendments that make sense, I applaud and I welcome that.

When I was the parliamentary secretary to the justice minister, I was a part of all the justice legislation from 1984 through 1993 and we accepted amendments from the Liberal Party. If they made sense they made the bill. I think that is the way committees should work. They should work on a consensus and they should work on democratic principles.

[Peter Stoffer, NDP, Sackville—Eastern Shore, NS]

Mr. Speaker, accountability is the key word in this discussion but, unfortunately, when the Conservatives became government they threw that subject right out the window by appointing a person to the Senate, by taking a floor crosser and by putting some of their friends in prominent positions in various agencies throughout the country.

They also talked about accountability and fiscal responsibility. The Prime Minister is going to New Brunswick this weekend for a big fundraiser for the PC Party. He had said that the fundraiser was only for the PC Party of New Brunswick and not for the federal Conservatives. I just want to ask him, quite clearly, who will be paying for the Prime Minister's trip to New Brunswick, the taxpayers of Canada or the PC Party of New Brunswick?

[Rob Nicholson, Conservative, Niagara Falls, ON]

Mr. Speaker, I think one of the things the hon. member should know and should remember is that this Prime Minister is absolutely committed to bringing back accountability, fairness and transparency in government. He has done more already than has been done in decades in this chamber in the pursuance of that goal.

I was very proud and pleased to see legislation like this being introduced that would bring back accountability, transparency and fairness. The rules that are set out in this are very clear and they will be followed by all members of this government. That sort of thing should be applauded in this chamber because that is what is fair and right.

The House resumed consideration of the motion that Bill C-2, An Act providing for conflict of interest rules, restrictions on election financing and measures respecting administrative transparency, oversight and accountability, be read the second time and referred to a committee.

[Ed Komarnicki, Conservative, Parliamentary Secretary to the Minister of Citizenship and Immigration]

Mr. Speaker, this bill we are talking about is about changing the culture of politics. I want to begin by acknowledging that with the introduction of the federal accountability act both this House and the people of Canada are seeing at first hand the real and tangible steps that the Conservative Party of Canada is taking to clean up government in Ottawa and to return confidence both to Parliament and to the bureaucracy that runs government.

Such a bill is long overdue in view of the scandals, the corruption and the culture of entitlement that has permeated the Liberal Party and those well connected to it during the past 13 years. The federal accountability act represents our government's response to the Gomery inquiry, to years of wanton and unregulated excesses, to years of patronage appointments, to dealing with highly paid lobbyists who worked their trade in and around the halls and offices of Parliament Hill, and to the culture of political fundraising, which offers those with money access to government. The act now prohibits contributions from corporations and unions altogether and limits personal obligations and contributions to $1,000 so that big money no longer has the sole voice in Ottawa.

The federal accountability act is all about accountability for everyone, starting with the Prime Minister and extending to all parliamentarians and public sector employees, to those who receive government funding and to those who seek access to government officials and decision makers.

The act itself is lengthy and multi-faceted and affects some 28 other pieces of legislation. It is broader in scope than the recommendations of the Gomery inquiry, and while the act may amend scores of existing laws, its primary aim is to address the moral decay that has permeated every level of government.

Our government is unquestionably intent upon changing the culture of politics on Parliament Hill and ending the culture of entitlement that has existed under successive Liberal governments. This act will make this government work better for Canadians. It provides oversight, rules, restrictions and measures to ensure that public interest is preserved and individual opportunism curtailed, and that there is an administration that carries out the affairs of government in a way that is both transparent and accountable.

In the end, of course, only people of integrity and character can change the image the public has of politicians and those connected to them. The bottom line is that Canadians deserve to know that their hard-earned tax dollars are being spent and used wisely by those in government.

Part 1 of the bill deals with the conflict of interest and post-employment code for public office holders. Canadians rightfully expect their representatives and public office holders to make decisions in the public interest and without any consideration of personal gain and without taking advantage of information not available to the public. Public office holders must perform their duties and arrange their private affairs in a manner that will avoid real or perceived conflicts of interest. The bill specifies in clause 4 that:

--a public office holder is in a conflict of interest when he or she exercises an official power, duty or function that provides an opportunity to further his or her private interests or those of his or her relatives or friends or to improperly further another person's private interests.

It restricts the office holder from making those kinds of decisions.

The act deals with recusal from voting or debating on matters that would place an office holder in conflict. Other provisions of the act deal with the issues of preferential treatment, insider information, influence peddling, fundraising, cash donations and the acceptance of gifts and advantages. This is clear and unambiguous language. It is language that demands a much higher standard for public office holders than has been the experience and the custom in Ottawa to this point.

These conflict of interest rules are not merely guidelines or recommendations, as compliance with part 1 of the act itself will be deemed a term and condition of a public officer holder's appointment for employment.

Most important, the legislation provides the rules of the road for those office holders who have assets, are competent and do want to contribute to our country and our society, but who want to do it in a way that preserves their integrity and honour. It prescribes the means that may be used to resolve conflicts, which in some cases may even require the disposal or divestment of the offending assets.

The federal accountability act would combine the position of ethics commissioner and Senate ethics officer and create a new conflict of interest and ethics commissioner. This newly appointed commissioner shall be an individual with judicial experience, either a former judge or an individual with federal or provincial board, commission or tribunal experience.

The commissioner will have the same power to enforce the attendance of witnesses, to compel them to give evidence under oath or affirmation and to produce documents as would a court of record in civil cases. All decisions of the commissioner must be made on the balance of probabilities, the same test utilized by judges in all civil cases. This is coupled with a reasonable opportunity for the public office holder to present his or her case.

These are very real powers and responsibilities entrusted with the commissioner. It is further evidence of the government's commitment to provide the new commissioner with the power and authority to get the job done.

The federal accountability act will expressly make government accountable to the people by affording the opportunity to a member of the general public the ability to bring forward, through a member of Parliament, information to the commissioner of an alleged contravention of the act by a public office holder.

The act also provides for the appointment of a parliamentary budget officer, with a mandate to provide objective analysis to the Senate and to the House of Commons about the state of the nation's finances and trends in the national economy.

Additionally, the government will also provide quarterly updates to its fiscal forecasts. There is now to be an independent analysis on economic and fiscal issues. Gone are the days of unanticipated surpluses used to buy votes with reckless spending. It is time to ensure that we have truth in budgeting.

Another area of change is in the creation of a director of public prosecutions. Part 3 of the act creates the office of the director of public prosecutions and allows this office to initiate and conduct wholly independent investigations and prosecutions, including the decision to lay charges unless the federal Attorney General publicly directs otherwise. The proposed office of director of public prosecutions reflects the best features of those offices that currently exist in British Columbia, Quebec and Nova Scotia as well as those found in several countries around the world, including the United Kingdom, Australia and Ireland.

The federal accountability act also includes a number of real and sincere protections for whistleblowers, something that is long overdue.

People who see problems within the government need to have the confidence and the knowledge that they can speak up without intimidation or fear of recrimination. Too often we have learned that whistleblowers have been punished by their superiors for speaking the truth and taking courageous stands against instances of corruption and abuse.

The public service of Canada is a multi-faceted institution staffed by professional, dedicated and highly skilled individuals. Its employees play a crucial role in support of the government's agenda and they are essential in delivering programs and services to our citizens. This government will foster and champion an environment in which its employees may honestly and openly raise the alarm and express concerns without fear or threat of reprisal.

The bill would give real protection for whistleblowers by creating the position of public sector integrity commissioner and by making this individual an agent of Parliament. It will also give the commissioner the authority to deal with complaints from whistleblowers who feel they have suffered reprisals for identifying potential wrongdoing.

We shall see the creation of an independent tribunal, composed of judges or former judges, with the power to order remedies and to discipline wrongdoers. The remedies available to the commissioner include: the right to permit the complainant to return to his or her duties; the right to pay compensation in lieu of reinstatement; to rescind any measure or action; to cover expenses and other financial losses as a direct result of the reprisal; to provide up to $10,000 for any pain and suffering; and to order disciplinary action against a perpetrator.

It is fair to suggest that the actions of a handful of public servants involved in the ad scam scandal have tainted the image of the public service for many Canadians. This element of the act will reinforce the non-partisan and professional excellence of the federal public service and return it to the place of honour and dignity it has historically enjoyed.

I am reminded of the recent words of the President of the Treasury Board when he stated, “Today is about putting the legacy of political scandal behind us and restoring Canadians' trust in government”.

The federal accountability act will change the culture of politics and it will move Ottawa from a culture of entitlement to a culture of accountability and responsibility, one that is accountable and responsible to all Canadians equally.