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.

Motions in amendment

[Yvon Godin, NDP, Acadie—Bathurst, NB]

moved:

Motion No. 8

That Bill C-2, in Clause 89, be amended by adding after line 15 on page 85 the following:

“(2) However, the Commissioner shall not refuse under subsection (1) to disclose any record that contains information that was created by the Commissioner or on the Commissioner’s behalf in the course of an investigation conducted by, or under the authority of, the Commissioner once the investigation and all related proceedings, if any, are finally concluded.”

[Marlene Jennings, Liberal, Notre-Dame-de-Grâce—Lachine, QC]

moved:

Motion No. 13

That Bill C-2, in Clause 143, be amended by replacing line 1 on page 117 with the following:

“(b) any parent Crown corporation, and any wholly-owned”

[Yvon Godin, NDP, Acadie—Bathurst, NB]

moved:

Motion No. 14

That Bill C-2, in Clause 146, be amended by replacing lines 3 to 31 on page 118 with the following

“16.1 (1) The following heads of government institutions shall refuse to disclose any record requested under this Act that contains information that was obtained or created by them or on their behalf in the course of an investigation, examination or audit conducted by them or under their authority:

(a) the Auditor General of Canada;

(b) the Commissioner of Official Languages for Canada;

(c) the Information Commissioner; and

(d) the Privacy Commissioner.

(2) However, the head of a government institution referred to in paragraph (1)(c) or (d) shall not refuse under subsection (1) to disclose any record that contains information that was created by or on behalf of the head of the government institution in the course of an investigation or audit conducted by or under the authority of the head of the government institution once the investigation or audit and all related proceedings, if any, are finally concluded.”

Motion No. 17

That Bill C-2, in the English version of Clause 165, be amended by adding after line 24 on page 124 the following:

“Atlantic Canada Opportunities

Agency Agence de promotion économique du Canada atlantique”

[John Baird, Conservative, President of the Treasury Board]

moved:

Motion No. 18

That Bill C-2, in Clause 165, be amended

(a) by deleting, in the French version, lines 38 to 40 on page 124.(b) by adding, in the French version, after line 44 on page 124 the following:

“Centre de recherches pour le développement international

International Development Research Centre”

[Yvon Godin, NDP, Acadie—Bathurst, NB]

moved:

Motion No. 19

That Bill C-2, in the French version of Clause 165, be amended by adding after line 44 on page 124 the following:

“Centre de recherches pour le développement international

International Development Research Centre”

[Wayne Easter, Liberal, Malpeque, PE]

moved:

Motion No. 20

That Bill C-2 be amended by deleting Clause 165.1.

[John Baird, Conservative, President of the Treasury Board]

moved:

Motion No. 21

That Bill C-2, in Clause 172.1, be amended by replacing, in the English version, line 5 on page 128 with the following

“Corporation's mandate, the Minister shall review”

Motion No. 22

That Bill C-2, in Clause 190, be amended by

(a) deleting, in the French version, lines 5 to 7 on page 135; (b) adding, in the French version, after line 11 on page 135, the following:

“Centre de recherches pour le développement international

International Development Research Centre”

[Pierre Poilievre, Conservative, Parliamentary Secretary to the President of the Treasury Board]

Mr. Speaker, I am proud to rise today to address very succinctly the motions that we have before us in the Group No. 2 package of amendments to the accountability act. I will list very quickly the government's position on those amendments.

First is Motion No. 8 by the NDP. We are open to considering this amendment. This would provide a permanent exemption for information obtained during an investigation and an exemption for information created during the investigation until that investigation is complete for the commissioner of lobbying. This allows, for example, the commissioner of lobbying to carry out an investigation without being harassed by access to information requests. It seems to me to be a reasonable amendment. We will consider it and are open to be persuaded on it.

Second is Liberal Motion No. 13. We will support the amendment because it amends the definition of a government institution to include only wholly owned subsidiaries of crowns. The subsidiaries of crown corporations that are majority owned include private sector ownership. Under the ATI we do not want private sector owned organizations to be subject. As a result, we think Liberal Motion No. 13 is very reasonable and we can support it.

Motion No. 14 by the NDP removes the permanent ATIA exemption for records created by the Auditor General. We will oppose this amendment. We do not believe the Auditor General should have to reveal all of the documents and notes that she creates in the course of her investigation. She clearly operates in the spirit of transparency and is willing to release all relevant information when she tables her report to the House of Commons. It is not, therefore, necessary for all her notes to be made public. As well, it might inhibit open discussion within her office, when that office is carrying out audits, if it knows that those discussions may be subject to access to information. As a result, we will oppose NDP Motion No. 14.

Motion No. 17 by the NDP adds ACOA to the English version of clause 165. The government's Motion No. 18 accomplishes the same objective, but does so in a more legislatively eloquent fashion. Therefore, we do not believe that NDP Motion No. 17 is necessary.

Finally, I will address Motions Nos. 18 and 22, amendments to schedule 1 of the Privacy Act and the Access to Information Act, resulting from the adoption of previous motions. These motions are worthy of some discussion. During the legislative committee's review of Bill C-2, motions were made by the NDP with respect to the definition of “government institution” under the Access to Information Act. Those were adopted.

The definition of “government institution” was amended to include parent crown corporations and their subsidiaries, which made listing them in the schedule of these acts duplicative and no longer necessary. To remove them from the schedules of these acts, the NDP put forward motions that contained the list from crown corporations to be removed. At this point, we will be looking for some commentary from the NDP on these matters. I suspect we will want to speak to Motions Nos. 18 and 22.

That is a very quick summary of the government's response to the motions in Group No. 2. By and large, we look forward to a vigorous debate and prompt passage of the accountability act.

[Stephen Owen, Liberal, Vancouver Quadra, BC]

Mr. Speaker, could the parliamentary secretary provide a little more elaborate explanation of the amendments to the schedules where ACOA seems to be deleted and IDRC is added? Could he tell us why that is necessary? It was not clear to me in his remarks.

For the most part, the Liberals agree with the government's statements on these amendments, as well as those proposed by the NDP. I think there may still remain some confusion around the amendments to the schedule, both recommended by the NDP and by the government. Perhaps the parliamentary secretary could give me a little more detail on that.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Yes, Mr. Speaker, I would be delighted. I see our time is evaporating now, but in the brief time that we have left the NDP Motion No. 17 adds ACOA to the English version of clause 165.

We believe the government's motion, Motion No. 18, accomplishes that objective, but does so in a fashion that is more eloquent and drafted more correctly. As such, it is our hope, respectfully, that the NDP would consider withdrawing Motion No. 17 in favour of government Motion No. 18. However, in the event that the NDP does not withdraw Motion No. 17, we will vote against it.

[Benoît Sauvageau, Bloc, Repentigny, QC]

Mr. Speaker, I just want to be sure that I understood correctly what the parliamentary secretary just said.

Did he say that Motions Nos. 17 and 19 could be withdrawn to give Motion No. 18 precedence over the other two? If such is the case, I humbly suggest to him that he ask the unanimous consent of the House to withdraw Motions Nos. 17 and 19 because we agree with him.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Mr. Speaker, the member is not correct. It is not possible for the government to withdraw Motion No. 17 because it is an NDP motion. Theoretically, we can only withdraw our own amendments.

However, we encourage members of the House to oppose Motions Nos. 17 and 19 and then support the government's Motion No. 18. We believe this would lead to the best legislative outcome and the best final product, from a drafting point of view.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, I think we are coming to a consensus on what we are trying to achieve with Motions Nos. 17, 18, and 19. The NDP is willing to cooperate with the idea to simplify things. I understand the motion is in the name of my colleague from Acadie—Bathurst. Therefore, I do not believe I am authorized to withdraw Motion Nos. 17 and 19. Perhaps after question period the House can have our assurance that we will do that to expedite the process.

[Pierre Poilievre, Conservative, Nepean—Carleton, ON]

Mr. Speaker, I thank the member for making this promise. I also thank him for the work he does in committee as well as in the House.

[Benoît Sauvageau, Bloc, Repentigny, QC]

Mr. Speaker, I have a question to ask of the parliamentary secretary. Since this second group of amendments deals mainly with the reform of the Access to Information Act, why did the Conservatives refuse to undertake a quick and efficient review of that act when they had promised to do so on page 12 of their document entitled “Stand up for Canada”?