Federal Accountability Act

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

This bill is from the 39th Parliament, 1st session, which ended in October 2007.

Sponsor

John Baird  Conservative

Status

This bill has received Royal Assent and is now law.

Summary

This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.

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.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-2s:

C-2 (2021) Law An Act to provide further support in response to COVID-19
C-2 (2020) COVID-19 Economic Recovery Act
C-2 (2019) Law Appropriation Act No. 3, 2019-20
C-2 (2015) Law An Act to amend the Income Tax Act
C-2 (2013) Law Respect for Communities Act
C-2 (2011) Law Fair and Efficient Criminal Trials Act

Votes

Nov. 21, 2006 Passed That the motion be amended by: 1. Deleting from the paragraph commencing with the words “Disagrees with” the following: 67; 2. Inserting in the paragraph commencing with the words “Agrees with”, immediately after the number “158”, the following: “and 67”; and 3. Deleting the paragraph commencing with the words “Senate amendment 67”;.
Nov. 21, 2006 Failed That the motion be amended by: 1. Deleting from the paragraph commencing with the words “Disagrees with” the following: 118, 119; 2. Inserting in the paragraph commencing with the words “Agrees with”, immediately after the number “158”, the following: “and 118 and 119”; and 3. Deleting the paragraph commencing with the words “Amendment 118” and the paragraph commencing with the words “Amendment 119”..
Nov. 21, 2006 Passed That the amendment be amended by deleting paragraphs “A” and “B”.
June 21, 2006 Passed That Bill C-2, in Clause 315, be amended by replacing lines 19 to 25 on page 207 with the following: “provincial government or a municipality, or any of their agencies; ( c.1) a band, as defined in subsection 2(1) of the Indian Act, or an aboriginal body that is party to a self-government agreement given effect by an Act of Parliament, or any of their agencies;”
June 21, 2006 Passed That Bill C-2, in Clause 315, be amended by adding after line 27 on page 206 the following: “( e) requiring the public disclosure of basic information on contracts entered into with Her Majesty for the performance of work, the supply of goods or the rendering of services and having a value in excess of $10,000.”
June 21, 2006 Failed That Bill C-2, in Clause 123, be amended by (a) replacing line 43 on page 105 to line 6 on page 106 with the following: “selected candidate is referred for consideration to a committee of the House of Commons designated or established for that purpose. (5) After the committee considers the question, the Attorney General may recommend to the Governor in Council that the selected candidate be appointed as Director, or may refer to the committee the appoint-” (b) replacing lines 12 and 13 on page 106 with the following: “for cause. The Director”
June 21, 2006 Failed That Bill C-2 be amended by deleting Clause 165.1.
June 21, 2006 Passed 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.”
June 21, 2006 Passed That Bill C-2, in Clause 78, be amended by deleting lines 4 to 8 on page 80.
June 21, 2006 Passed That Bill C-2, in Clause 2, be amended by replacing line 1 on page 33 with the following: “(2) Subject to subsection 6(2) and sections 21 and 30, nothing in this Act abrogates or dero-”
June 21, 2006 Passed That Bill C-2, in Clause 2, be amended by replacing line 12 on page 6 with the following: “(2) No minister of the Crown, minister of state or parliamentary secretary shall, in his or her capacity as a member of the Senate or the House of Commons, debate or vote on a question that would place him or her in a conflict of interest.”

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

The Deputy Speaker Bill Blaikie

I shall now proceed to put the motions in Group No. 4

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

Ottawa West—Nepean Ontario

Conservative

John Baird ConservativePresident of the Treasury Board

moved:

Motion No. 28

That Bill C-2, in Clause 315, be amended by replacing, in the French version, lines 16 and 17 on page 206 with the following:

“b) concernant la corruption ou la collusion au”

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

NDP

Yvon Godin NDP Acadie—Bathurst, NB

moved:

Motion No. 29

That Bill C-2, in Clause 315, be amended by adding after line 27 on page 206 the following:

“(e) requiring the public disclosure of basic information on contracts entered into with Her Majesty for the performance of work, the supply of goods or the rendering of services and having a value in excess of $10,000.”

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

Ottawa West—Nepean Ontario

Conservative

John Baird ConservativePresident of the Treasury Board

moved:

Motion No. 30

That Bill C-2, in Clause 315, be amended by replacing lines 19 to 25 on page 207 with the following:

“provincial government or a municipality, or any of their agencies;

(c.1) a band, as defined in subsection 2(1) of the Indian Act, or an aboriginal body that is party to a self-government agreement given effect by an Act of Parliament, or any of their agencies;”

I want to speak very briefly to the amendment put forward by the New Democratic Party. The member for Ottawa Centre does have a strong commitment, and we should acknowledge that, to reforming the National Capital Commission.

As a member representing one of the ridings in the national capital I think I can speak for all of us. The member for Pontiac is here as well as the member for Nepean—Carleton. I know the member for Ottawa—Vanier and the member for Gatineau would also agree that the NCC is in need of reform. One of the essential elements there though is consultation, that the public be involved in that process.

The good news is that all the members and all parties support reform. The minister responsible for the National Capital Commission, one of the most capable representatives in the federal cabinet, is seized with the issue and I think he will be speaking to that in short order.

Given that this is an amendment, we have received no public consultation on it. I am not saying I disagree with components of it. I do think there is a lot of value to what the member for Ottawa Centre spoke about in committee. It would be certainly the government's view that, while there is great merit in some of the suggestions, it would be better dealt with when there would be an opportunity for the public to be consulted on this amendment before it goes forward.

We did open up the National Capital Commission Act for one purpose, to separate the chair and the CEO which is going to be done. The position is up for renewal in short order and before that happened we felt we wanted to fast track that one small change. However, I would underline the appreciation that I have, and I know all members in the capital would have, for the member for Ottawa Centre's desire to see reform on this issue.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

Bloc

Benoît Sauvageau Bloc Repentigny, QC

Mr. Speaker, I would like the President of the Treasury Board to explain the background of his Motion No. 30.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 6:55 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Mr. Speaker, I am very happy to speak to Motion No. 30. This motion addresses the issue with respect to following the money, the authority of the Auditor General and the exclusion of aboriginal organizations.

In committee, a motion was approved that excludes the council of a band as defined in the Indian Act as well as other aboriginal bodies. The motion before us today replaces the words “the council of a band” by “a band” to properly reflect the institution that receives the grant or contribution. In other words, funding agreements are made between the Crown and a band as opposed to the council of a band.

We very much see these amendments as technical. Of course the strong view of the government caucus and members on this side of this House would be that the follow the money provisions should extend to these organizations and I will put that on the record. The purpose of the amendment is to clarify an amendment that was brought in by the opposition.

I want to assure the member for Repentigny, and through him to anyone outside the House, that there is certainly no attempt whatsoever in any way, shape or form to get around the decision taken at committee. I am very happy to put that on the record for his benefit.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7 p.m.

Liberal

Stephen Owen Liberal Vancouver Quadra, BC

Mr. Speaker, I am grateful to have the opportunity to speak to this group of amendments. Motion No. 28 is very much in order as far as we are concerned, but I would like to say a few words about Motions Nos. 29 and 30.

Motion No. 29 talks about a requirement to post and disclose all contracts entered into by the government over the amount of $10,000. This would codify something that is the practice. It was brought in by the previous Liberal government as a policy, but was not in legislation. For the past year and a half, and I know because I was public works minister at that time, the government has posted contracts over $10,000. This amendment would codify that, and we agree it is a good thing to do. This has been done invariably in any event over the last time by policy of the previous government.

It is immensely important that this public information be seen by the public and appreciated. If any unfairness on procurement or questions come to light, there is full knowledge of where that concern lies and people can bring up their concerns at an appropriate time. We have no difficulty with that being codified in the legislation. We think it is an appropriate step forward, even though it was invariably done by the last government.

With respect to the exclusion of aboriginal people, first nations, we agree the technical amendment to the committee's amendment is appropriate. We have had a chance to discuss this with government lawyers as well as parties opposite. This is appropriate in terms of cleaning up the language to ensure that aboriginal groups, first nations, that have first nations self- government agreements with the government, which are recorded in legislation, as well as bands under the Indian Act be at this time excluded from the legislation.

It is important to understand our constitutional order. Section 35 of the Constitution, as it has been increasingly interpreted and explained by the courts as well as in its wording itself, continues the rights of aboriginal people.

The jurisprudence on this has made very clear that there is a duty to consult and, indeed, to accommodate first nations when we take actions of government. In this case, a parallel series of discussions went on with first nations organizations, with the Auditor General, so an aboriginal auditor general could be created. This would give us the opportunity to also house that aboriginal auditor general. The current Auditor General has offered to house the new office in her office for a period of a year or two to add to capacity-building to get it up to speed.

The important thing is we are not asking municipal or provincial governments to be subject to direct audits by the Auditor General. Therefore, it is not appropriate that we would ask self-governing first nations be subject to this.

This is an important exclusion at this time. The President of the Treasury Board has expressed the overall concern that money emanating from the federal government be followed by the Auditor General. We have heard evidence from the Auditor General that the appropriate way to go forward is to help first nations work toward a first nations auditor general and she will be in full partnership with that auditor during the capacity-building transitional period.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:05 p.m.

Conservative

John Baird Conservative Ottawa West—Nepean, ON

Mr. Speaker, I rise on a point of order. The capable and hard-working whip of the New Democratic Party, with whom I spoke about the National Capital Commission, pointed out that it should be Motion No. 27 and not Motion No. 29 that should be debated.

I apologize and appreciate the wise counsel of the member from Bathurst.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:05 p.m.

Bloc

Benoît Sauvageau Bloc Repentigny, QC

Mr. Speaker, I noticed that the President of the Treasury Board spoke mostly about the amendment on the National Capital Commission, but I thought—this did not surprise me—he was saying kind words about the hon. member for Ottawa Centre and that was why he talked about it.

That being said, I will now speak to amendments 28, 29 and 30, the last three amendments of the fourth group. I want to tell my hon. colleagues that for amendment 29, the amendment introduced by the hon. member for Acadie—Bathurst, it will be our pleasure to support it. Once again we have a meeting of the minds. I will be pleased to see how they intend to specify, with dollar amounts, which communications will be required in order to enhance transparency. We believe that, in the context of a bill on transparency, it would be a very good idea to enhance this transparency. I hope that the government will be in favour of this amendment.

We do, however, have a bit of a problem with Motion No. 30. I think that the member of the Liberal Party who spoke before me has explained very well the reality and the problem. At present, negotiations are underway between the office of the Auditor General and aboriginal communities to establish a position of aboriginal Auditor General. The intention is to ensure accountability from those aboriginal communities who receive grants. Members will recall that, two or three years ago, the Auditor General told us that these are the communities that have to produce the largest number of reports. This means that there is already accountability. It should be improved, not increased. In addition, the office of the Auditor General is currently discussing with these groups to ensure that efficient accountability is in place.

It is also very pertinent and important to remind the House that aboriginal communities must ensure effective accountability. However, the Department of Indian and Northern Affairs must also be entirely transparent in terms of truly effective accountability. Year after year, the Auditor General reminds us that the most problematic department with respect to accountability is the Department of Indian and Northern Affairs. We then meet the various deputy ministers on the Standing Committee on Public Accounts. Curiously, this reminds me of a bank manager. Every time we hear from a deputy minister about their problems, he or she replies that they have only been in the position for a month or two, and that their predecessor did not do a good job, but the next time they come before us, they will have corrected the situation. Two years later, there is another deputy minister responsible for Indian and Northern Affairs, who will in turn say that his or predecessor did not do a good job, but when we meet them again in two years, the situation will be corrected. The same thing is repeated over and over.

Thus, following the money trail is a good thing in this case, but greater accountability is needed from the Department of Indian and Northern Affairs.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

Fundy Royal New Brunswick

Conservative

Rob Moore ConservativeParliamentary Secretary to the Minister of Justice and Attorney General of Canada

Mr. Speaker, there have been some conversations with all parties. I believe if you seek it, you would find unanimous consent for the following motion. I move:

That Bill C-2, in Clause 181(2) be amended by replacing line 26 on page 132 with the following:

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

This is to bring in line changes that were made under Motion No. 13 to the Access to Information Act, bringing the Privacy Act in line.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

The Acting Speaker Andrew Scheer

Does the hon. parliamentary secretary have the unanimous consent of the House to move the motion?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

Some hon. members

Agreed.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

The Acting Speaker Andrew Scheer

Is it the pleasure of the House to adopt the motion?

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

Some hon. members

Agreed.

Federal Accountability ActGovernment Orders

June 20th, 2006 / 7:10 p.m.

The Acting Speaker Andrew Scheer

(Motion agreed to)

Resuming debate.

The hon. member for Acadie—Bathurst.