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

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

moved 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.

Mr. Speaker, I would like to thank my colleague, the Minister of Public Safety, for seconding this landmark piece of legislation.

On January 23, Canadians elected a new government because they wanted change. Canadians said loudly and clearly that they wanted an open, honest and accountable government. They want their taxpayer dollars spent wisely and well.

I am proud of the efforts of my Treasury Board colleagues; my cabinet and caucus colleagues; the government House leader; my hard-working parliamentary secretary, the member for Nepean—Carleton; the many public servants across government led by Susan Cartwright; and the policy specialists and legal drafters who worked so hard to get the bill prepared for Parliament. I am also very proud of the leadership that the Prime Minister took in making big commitments and delivering to Canadians.

I am equally proud to see the bill go forward for second reading as the first item of business after the throne speech. The federal accountability act is about moving from a culture of entitlement to a culture of accountability. It is about making everyone in government more accountable to Canadians.

It has been said before by my leader, the Prime Minister, and I will say it again. As Conservatives we believe in public service, both in the ideal and in the institution. As Conservatives we believe in entrepreneurship and free spirit and we celebrate the critical role that the private sector and the profit oriented business play in the generation of wealth in the country.

However we also understand that our success as a nation depends on the critical role that must be played by government, especially by our national government. We need an effective federal government that is capable of getting things done for ordinary working Canadians and their families.

The goal of the federal accountability act is to improve the level of trust that Canadians have in their government and in their elected officials. We know that we have a long way to go to rebuild the public trust that was so egregiously violated by a slew of scandals that culminated in the Gomery commission.

A recent poll measured the level of trust that Canadians have in different professions. I am not surprised that at the top of the list were firefighters, nurses and farmers but politicians placed dead last right behind used car salesmen. We need to make real and concrete actions to address this problem head on and I believe that relationships are based on trust, and the federal accountability act is about rebuilding that trust.

Our government, the Prime Minister and me personally, believe and recognize that a strong and effective government requires strong and effective public servants. Already our government has brought a new approach to its relationships with the public service and it all starts with respect. Let me be clear that neither the Prime Minister nor any member of this caucus have blamed public servants for the political scandals that engulfed the previous administration.

The plan we are putting in place today for the Federal Accountability Act is comprised of several important components. We want to reform the financing of political parties, strengthen the role of the Ethics Commissioner, toughen the Lobbyists Registration Act and provide real protection for whistleblowers.

My colleague, the hon. parliamentary secretary, has worked hard on this. As members of Parliament from the national capital region, we are well aware of our public servants' need to be protected when they report certain situations.

We want to strengthen the access to information legislation and the power of the Auditor General. This is all very important.

These supports for whistleblowers are particularly important, and this is not to blame public servants. As we have seen far too often, members on the other side do. Because no public servant--

[Derek Lee]

Get out of here. Stick to the issue.

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

It happened three times. Three times when I spoke on the federal accountability act, three Liberal members got up and blamed the public service. The blame game is over when it comes to our public service. I say for members opposite that no public servants woke up one day and dreamed of and decided how they would funnel money to the Liberal Party in Quebec. Those were political actors, not bureaucratic actors. No public servant had an interest in that. Those were political scandals. They were not bureaucratic scandals.

[Derek Lee]

You don't know what you're talking about. Go back to Queen's Park.

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

It is very clear that the Liberals still do not get it. One of the members from Kitchener, one of the members from Scarborough and the member from Markham got up in this place and were bashing public servants, and I can tell members that workers in the capital are noticing that.

[An hon. member]

Why do they not like public servants?

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

What have they got against public servants?

I am looking forward to members opposite having a chance to speak on this legislation because Canadians know where we stand on accountability and they want to know where the Liberals stand too.

[Some hon. members]

Oh, oh!

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

Mr. Speaker, I hope those members will get a chance to speak. It is very interesting.

In drafting this important piece of legislation, we were very mindful of two important factors. First, we did not want to establish more red tape, more bureaucracy and add to the increasingly significant web of rules. Many of the new offices created in our bill simply replaced or strengthened the independence of existing ones, while many of the new rules are more simple, straightforward and, we hope, more effective.

Second, the government does not want a bill that stifles innovation, nor do we want to create a culture in the public service that is overly risk-averse. In running an enterprise with a budget approaching one-quarter of a trillion dollars, we must always recognize that human beings are not infallible. It is true in business, it is true in the voluntary sector, and it is equally true in government.

I want to say how fortunate we are in this country to have an Auditor General like Sheila Fraser. The Auditor General is a national hero.

[Some hon. members]

Hear, hear!

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

I should say for the record that I believe it was the member for Winnipeg Centre who started the clapping.

[Some hon. members]

Oh, oh!

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

The Auditor General is a national--

[The Deputy Speaker, Bill Blaikie]

Order, please. I wonder if members of the official opposition could keep in mind that we have a question and comment period after speeches so that they can make their remarks at that time. Perhaps we could listen to the hon. minister and not engage in this sort of form of barracking that we pledged ourselves not to do at the beginning of this Parliament.

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

The Auditor General, Sheila Fraser, has uncovered some of the most egregious violations of financial mismanagement this country has ever seen. Canadians are very lucky to have her on the job, working hard for them.

We want to strengthen the new powers vested in the Auditor General to enable her to inquire into the use of funds that individuals and organizations receive from the federal government.

We will be legally required to subject contribution programs to ongoing corporate review. We will also establish an independent blue-ribbon panel to identify barriers to accessing grants and contributions programs. That is very important.

There are a lot of methods about election financing. We believe that money should not have the ear of government, and the federal accountability act will help take government out of the hands of the big corporations and the big unions and give it back to ordinary Canadians. Our act will limit donations to $1,000 a year. It will ban contributions by corporations, unions and organizations.

I believe the primary concern of our debate on this subject should be what we can do to increase the transparency of the political process so that Canadians can feel more confident in the integrity of our democratic system.

The changes I discussed about whistleblower protection are real. The men and women of the public service deliver important programs and services each and every day, services that touch the lives of Canadians from coast to coast to coast. A key component in our legislation provides real protection for whistleblowers. Public servants who expose criminal wrongdoing and wasteful spending should have the full confidence that they will not face reprisals for standing up and doing what is right.

Allan Cutler spoke up and helped expose the Liberal sponsorship scandal and he lost his job. This type of action is wrong. This type of action will no longer be tolerated by the Government of Canada. The government will provide real protection for whistleblowers by giving an independent officer of Parliament the power to stand up and protect those who blow the whistle on wrongdoing.

Bill C-11, which was passed by the previous Parliament, was inadequate, insufficient and light. Federal public servants told the parliamentary secretary and they told me that they wanted real protection, not someone within the executive branch but someone who was more independent to stand up to fight for them. Bill C-11 was going downhill fast in the previous Parliament and it was only at the last minute that the previous government caved in to some modest demands. We are giving a real voice to those who wanted stronger whistleblower protection. All public servants should congratulate and thank the parliamentary secretary, the member for Nepean—Carleton, for those efforts.

The level of trust Canadians have in their government is directly related to the degree to which they feel there is equitable access to decision makers in government. To help maintain the trust of Canadians in government, it is important to know that lobbying is done in an ethical way.

We believe that two principles are important in this regard. First, people should not get rich bouncing between government and lobbying jobs and, second, lobbyists should not be allowed to charge success fees, whereby they get paid only if they deliver the policy change or the grant their clients want. That is why our government will extend the ban on lobbying activities to five years for former ministers, their aides and senior public servants. We will also ban success fees.

Plus, we will create a new commissioner of lobbying with the power to investigate violations and enforce the rules. Our proposal is to take this out of the executive branch, out of the Treasury Board, and make this commissioner an officer of the House so that all Canadians will know that this commissioner has genuine independence from government.

We also want to deal with some changes to the access to information laws. Canadians deserve better access to government information. The Government of Canada belongs to the people and the government should not unnecessarily obstruct access to information. We are absolutely committed to making government more open while balancing legitimate concerns for personal privacy, commercial confidentiality and national security.

We will change access to information legislation to promote a culture of increased openness and accessibility. Our reforms will extend this law to include seven crown corporations, seven agents of Parliament, and three foundations with $1 billion budgets created under federal statute, organizations like the CBC, Canada Post and the Privacy Commissioner's office. We remember our friend Radwanski and the Radwanski affair in the previous government. These reforms will go further than any government has gone in Canadian history.

We also want to take additional steps to further reform the access law, in collaboration with parliamentarians, Canadians and stakeholders. I have had the privilege of meeting on a number of occasions with John Reid, the Information Commissioner. I look forward to receiving his advice and his input and seeing if he can help strengthen our bill and if he can contribute to the draft bill and discussion paper. We look forward to working with him. He is a champion for access to information and Canadians should consider themselves lucky to have him on the job. We will ask Parliament to consider even more reforms and will report back with additional measures.

There is another important issue I would like to raise before concluding. Our goal, our commitment, simply put, is to make government more accountable. As I said at the outset, government also needs to be effective and efficient, not bogged down in a web of rules that prevents individuals, organizations and even small businesses from doing business with the federal government and prevents public servants from doing their jobs effectively.

The message of the web of rules created in haste by the previous government has been heard. For example, I heard a story from the Auditor General who told me of a charity, a non-profit group, that received a $5,000 grant and now has to complete a 75 page contribution agreement. That is 75 pages for a $5,000 grant; we would probably have to spend $10,000 to administer a $5,000 grant. No charity should have to go through 75 pages of rules, regulations and red tape.

We want strong and effective measures of accountability, but this should be based on what is good value for the taxpayers and what is fair and reasonable for all involved. We hope to come back in short order to deal with that.

I also talked to a small businessman who has 13 employees and who bid on government work. The good news is that he won. He sharpened his pencil and put in a low bid with the one confidence that he at least could expect to get paid in short order by the federal government for the work his firm did.

Six months of invoice passing, contacting the government eight times looking for payment, and he still does not have his payment. Because of the web of rules put in by the previous government, this small business person simply cannot afford to do business with the Government of Canada any longer. We want to strengthen this and fix that problem for small business people and for the hard-working public service. We will be making an announcement in short order to address this challenge.

The changes I have highlighted today focus on fixing problems, on rewarding merit, on achieving value for money, and on building more honest and more effective government. To instill confidence, the government must be open and it must be more accountable. It must ensure that Canadians and parliamentarians have the right controls in place and it must provide them with the information they need to judge its performance.

Confidence is all about trust and the trust we place in our elected officials and public service employees to act in the best interests of Canadians. That trust must be earned every day and it starts with making government more accountable.

The measures I have highlighted today signal a dramatic change in how federal politics and the federal government will work in this country. When the Prime Minister made this announcement, he said that this will change how business is done in Ottawa forever. I agree. We would all like to see speedy passage of this important piece of legislation.