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

[The Acting Speaker, Andrew Scheer]

(Amendment agreed to)

[David Anderson, Conservative, Parliamentary Secretary (for the Canadian Wheat Board) to the Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board]

Mr. Speaker, it is a pleasure today to talk to Bill C-2. I want to address a couple of specific issues.

In the last few minutes, we have heard the member for Malpeque attacking the member for Winnipeg Centre. We also heard him on a rant about the Canadian Wheat Board and his beliefs on that. I want to quote him a couple of times. He said in his speech in talking about political fundraising that he wants the inclusion of everyone. He wanted to have everyone treated equally in terms of fundraising for political parties. He also said that exclusions hurt democracy, but it is interesting that when it comes to his position toward the Canadian Wheat Board, he wants it excluded from the access to information provisions of this bill. We need to say that it would a tragic thing if that were to happen in this House.

I want to thank the member for Winnipeg Centre for having brought forward the amendment in the committee and for standing strongly behind it, because we believe it is an important amendment.

For 13 years the Liberal Party was in power and for 13 years the Liberals have hidden things. We know that they have hidden things because, in the end, we saw the results of them hiding one thing after another. Finally there was the scandal and the corruption was revealed, which everyone in Canada is familiar with, but I do not think there was any place in this country where they hid things more than they did in terms of the Canadian Wheat Board.

Mr. Speaker, I know you are fairly young, but in the 1990s you must have heard this. All of Saskatchewan is familiar with the fact that at one point the present House leader of the Liberal Party was in charge of the Canadian Wheat Board. There was a time when the Canadian Wheat Board, the RCMP, the customs department and Revenue Canada banded together to come up against individual farmers. There is a litany of times when farms were raided in the middle of the night. There was one story of people who got home from the hospital in the afternoon and this conglomeration of government officials invaded their farm in the middle of the night, trying to seize their trucks and their grain because these farmers had had the courage to actually take a load of grain across the border.

It ended badly. It ended with a dozen farmers in jail. The problem with the whole situation was that no one could find out what happened. There was no access to information as to what had happened in that whole scenario. Farmers still do not know who was doing what, how the whole thing was put together, and why they ended up in jail.

Not only that, but farmers have questioned the Canadian Wheat Board's spending over the years. They have not been able to find virtually any information about the spending. The member for Malpeque mentioned that the Wheat Board has annual reports. It is true that it does have annual reports, but each one of them has become harder to dig through to find out the information as to how it is spending farmers' money.

I need to point out that it is all farmers' money that is being spent by the Canadian Wheat Board. It takes the grain, it sells the grain, and it takes off what it needs. It now has $70 million a year in administration costs. Then it delivers the rest of the money, or it is supposed to, back to the farmers. Farmers have no way of knowing if that is in fact what happens, because there is no way of finding out what is going on behind the scenes at the board.

Farmers have questioned things like the cost of administration, which has risen to the point where it is at $70 million a year. They have questioned how the special funds and the contingency funds are being put together and managed. I do not know if members know this, but there is a fund of farmers' uncashed cheques. The board keeps these farmers' uncashed cheques set aside, and after six years they are put into another fund. The board has been spending that money. There is no way that farmers can find out how that money is being spent. Actually, I do not think there is even any way for farmers to find out if they have money in that fund.

It is very important for farmers in western Canada to have access to information for the Canadian Wheat Board. It is a government agency. It is legislated and mandated by the Canadian government. We have a Canadian Wheat Board Act. We have a minister in charge of the Canadian Wheat Board. Certainly it is a government agency. For a long time, the Liberals have stopped farmers from finding out what is going on there. We need to have access to that information.

I again want to thank the member for Winnipeg Centre for having the courage to bring forward the inclusion of the Canadian Wheat Board in the provisions of the access to information sections of this bill. Obviously anyone who is concerned about fairness and accountability would be willing to support those provisions.

One of the things that really bothers me is this. What is it that the Liberals are afraid of here? Why is it that the member for Malpeque would be so paranoid about farmers actually finding out about what is happening within the Canadian Wheat Board? I think that probably it is because they know that after 13 years it is just as well that farmers do not find out what has been going on there and what role the Liberals have had to play within the Canadian Wheat Board. We know that it has been significant. We know that they have had a lot of influence on it over the years. We also know that where they have had influence throughout this country in the past 13 years, it generally has not been a good thing for Canadians.

My question, then, is this. What is it that they are so afraid of? What is it that they are afraid farmers will find out if farmers have access to the Canadian Wheat Board's general information?

I want to point out that this access to information provision protects commercially sensitive information. It is not that farmers, competitors or whoever are going to be able to go in and find out what is going on with the commercial contracts. That is not a part of this. It is about the general information and the work that is being done there.

I again want to congratulate the member for Winnipeg Centre, thank him for including the Canadian Wheat Board in the access to information provisions and encourage him to continue to support that provision.

[Wayne Easter, Liberal, Malpeque, PE]

Mr. Speaker, I understand that we are still on Group No. 1. This topic does not come up until Group No. 2, but seeing as it was mentioned, I have to ask the member opposite to keep in mind that he took an oath when he became parliamentary secretary.

I find it remarkably strange that the Parliamentary Secretary to the Minister of Agriculture and Agri-Food with responsibilities for the Canadian Wheat Board is standing in the House today to argue that it is fine for people to break the law. Because the fact of the matter is, in regard to the farmers he talked about earlier, that the Canadian Wheat Board operates as a single desk selling agency. One of the reasons it operates as a single desk selling agency is so that it can maximize returns to primary producers. If people were to sell around that and basically bootleg grain to the United States, they could be undercutting the ability of the Canadian Wheat Board to do its job for producers collectively.

That is the law of the land. I would ask the member opposite to answer. As for why they could not apply under access to information, it is the same reason used if there is a criminal investigation, which this was, a criminal investigation involving the RCMP and other security agencies. One cannot apply access to information to the RCMP because it is a criminal matter.

Will the parliamentary secretary, who took an oath, stand in the House and tell us whether or not the charges were laid because those farmers were alleged to be in violation of the laws of the land?

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, the member knows better than this, because he knows full well that when the government went to court, it was defeated in court. The present opposition House leader changed the regulations that day in order to put these farmers in a situation that they could not get out of. The government was found to be the one that was pushing the edges of the law in that situation.

I just want to mention that I think it is passing strange as well that these folks wanted to make sure there is no access to information by the farmers when the farmers are the ones who are paying all the bills of this agency and this organization.

[Paul Szabo, Liberal, Mississauga South, ON]

Mr. Speaker, I know the members are interested in the Wheat Board, which is going to come up, but Motion No. 6 was of some concern to members. Just to remind the hon. member, Motion No. 6 deals with the deleting of lines 4 to 8 on page 80, which is actually deleting a clause.

I think I understand what the amendment is seeking to do, but I wonder if the member could simply confirm to the House the reason the government has decided to move Motion No. 6.

[David Anderson, Conservative, Cypress Hills—Grasslands, SK]

Mr. Speaker, that will have to be dealt with in further debate. My point in getting up was to address the issue that the member for Malpeque raised. He said that it will come up again in Group No. 2. He raised these issues about the Canadian Wheat Board in Group No. 1. My point was that for the sake of farmers in western Canada we need to include the Canadian Wheat Board in the access to information provisions in this bill.

[John Baird, Conservative, Ottawa West—Nepean, ON]

Mr. Speaker, I rise on a point of order. We have had discussions with all parties about grouping Motion No. 5, which was ruled inadmissible with respect to the part on future transition teams. I think you were to seek it you would find unanimous consent to group Motion No. 5.

[The Acting Speaker, Andrew Scheer]

Does the hon. minister have the unanimous consent of the House?

[Some hon. members]

Agreed.

No.

[Paule Brunelle, Bloc, Trois-Rivières, QC]

Mr. Speaker, it is with pleasure that I take the floor in this chamber. Perhaps I shall succeed, as women often do, in restoring a little moderation to all these discussions.

Let us look first of all at the evolution of this bill. As it is a bill on accountability, one cannot help but be struck by the way that certain powers have been removed from the parliamentary committee by hastening the debate and ending up with certain amendments that will reduce the power of parliamentarians.

As a parliamentarian, I take my responsibilities to heart. The citizens of Trois-Rivières have placed their trust in me. For me, it is important to guarantee democracy in this Parliament. The committees are an important mechanism for achieving that goal.

The Bloc Québécois is in favour of the principle of this bill. For some months now, it has proposed numerous recommendations for improving the current accountability framework.

The Bloc Québécois did its homework and tabled 72 recommendations in the wake of the Gomery commission. Those 72 recommendations were made necessary by all the ethical problems that have been encountered. We wanted to locate the sponsorship money, assign powers and resources to officers of Parliament, amend the Access to Information Act and the Lobbyists Registration Act, and protect whistleblowers. All of these subjects are addressed in this bill—unfortunately, some not so successfully.

For example, consider ethics. Ethics was certainly at the heart of the last election campaign. The sponsorship scandal was revealed by the Bloc Québécois. The Bloc was constantly alerting the public on this subject, and so helped to oust the Liberals from power.

What did the public tell us in electing a minority Conservative government? It told us that this government had to clean up political practices and establish accountability in this Parliament. However, one can wonder why it is necessary to do this so quickly, in such a rush.

The Bloc Québécois has some major criticisms to make about the passage of this bill, which is crucial and much awaited by the population, and which deserved more extensive review. Why the urgency? We have the right to ask the question.

The Gomery commission produced a set of recommendations which have to be implemented: that is certain. However, given all the abuses we have seen, it is clear that the problem is not caused by a lack of rules, but by the fact that those rules are not being followed. Now what does this bill propose to us? It proposes new rules.

In the opinion of the Bloc, the bill has certain weaknesses in this regard, insofar as the process is not clear. This amendment calling for a review every five years, to which the Bloc has just given its support, can certainly provide the beginning of a solution.

In five years, perhaps we will be having the same discussions, to the effect that we have a lot of rules, but no means of preventing the rules from being circumvented and that a review is needed.

Accountability demands a great deal of transparency. One wonders how an abuse can be denounced if it is not known. That is why the Bloc called for a reform of the Access to Information Act. Information is power. For the Bloc, it is important for all information to be accessible. It is also important for all the foundations and crown corporations to be subject to this Access to Information Act.

One cannot be halfway transparent or a quarter or an eighth of the way transparent. When we talk about transparency, we must be sure that everything is on the table so that parliamentarians, and parliamentary committees in particular, can debate it and come up with solutions. Human nature being what it is, we know full well that there will always be individuals who will sneak through the back door. That is how we end up with such significant abuses.

There is another crucial aspect that is very little talked about and that is the real will of the government caucus and all parliamentarians in this House to intervene and change things. I have been a member here in this House for two years now. Judging by a number of bills and committee reports, we find that political will is lacking. Things do not change. Another election is called and we end up dealing with the same problems.

What is more, in this bill, the government refused to increase the penalties for those who contravene the Ethics Act. We feel this lacks transparency and this certainly would have been a way to prevent abuse. It is important for this bill to be debated in this House. It is a shame it is being debated so quickly. Even elected officials from France, on their recent visit to Canada, said they were watching what was going on this House and mentioned that they, too, were having challenges with respect to accountability and that our work could, perhaps, have been used as a model. Nonetheless, it seems we are missing a good opportunity to get to the bottom of things because we are only skimming the surface and moving far too quickly.

[The Acting Speaker, Andrew Scheer]

The hon. President of the Treasury Board on a point of order.

[John Baird, Conservative, Ottawa West—Nepean, ON]

Mr. Speaker, I seek unanimous consent for Motion No. 5, which had been ruled as inadmissible, to be included in the first batch.

[The Acting Speaker, Andrew Scheer]

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

[Some hon. members]

Agreed.

No.

[The Acting Speaker, Andrew Scheer]

There is no agreement.

The hon. member for Mississauga South on the same point?