Evidence of meeting #17 for Bill C-2 (39th Parliament, 1st Session) in the 39th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was make.

On the agenda

MPs speaking

Also speaking

Jenefer Curtis  Independent Journalist, As an Individual
René Villemure  President, Institut québécois d'éthique appliquée
Pierre F. Côté  Former Chief Electoral Officer of Québec, As an Individual
Michel Quintal  Project Manager, Institut québécois d'éthique appliquée
Paul Cantor  Chairperson, Public Sector Pension Investment Board
Gordon Fyfe  President and Chief Executive Officer, Public Sector Pension Investment Board
Assunta Di Lorenzo  First Vice-President, General Counsel and Corporate Secretary, Public Sector Pension Investment Board
Clerk of the Committee  Ms. Miriam Burke

6:05 p.m.

Conservative

The Chair Conservative David Tilson

We're going to convene the meeting. Order, please.

This is the Legislative Committee on Bill C-2, meeting 17. The orders of the day, pursuant to the order of reference of Thursday, April 27, 2006, are for the study of Bill C-2, an act providing for conflict of interest rules, restrictions on election financing, and measures respecting administrative transparency, oversight, and accountability.

We have with us as our witness and guest an independent journalist by the name of Jenefer Curtis.

Good evening to you.

Jenefer Curtis Independent Journalist, As an Individual

Good evening, Mr. Chairman.

6:05 p.m.

Conservative

The Chair Conservative David Tilson

You're going to be seeing members eat during the meeting. I know that appears rude; however, we don't have any time, so we have to eat while we're working. We don't mean to offend you.

6:05 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

That's fine.

6:05 p.m.

Conservative

The Chair Conservative David Tilson

As you know, Ms. Curtis, you have a few moments to make some introductory comments. The caucuses will then have seven minutes each to ask you questions and make statements.

Thank you for coming. You may proceed.

6:05 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

Good evening.

I thank you very much for the opportunity to speak to this bill. I'm here in my capacity as an independent journalist winding up a laborious book on lobbyists, specifically consultant lobbyists. Its main title is The Hired Guns. It's published by Penguin Books Canada Limited. In my career I've also been a lobbyist.

I'm not here to promote my book but to make a few comments based on many years of researching and interviewing the three points of a lobbying triangle: lobbyists, clients of lobbyists, and the people lobbied--public office holders.

I have some proposed changes to this bill. I will review these very soon.

I'd first like to make some general comments. My general feeling about the bill is that it is too extreme in its solutions, while at the same time ignoring other larger issues of which lobbying is symptomatic.

My feeling is that lobbyists are a legitimate part of the system but that they're at the line beyond which their activities are questionable. That line varies for everybody. I assure you, they often go beyond that line in many ways. One place to draw the line is when they aren't selling their expertise but rather their relationships.

I have a few comments about the three points of the lobbying triangle. First, lobbyists provide substance and access in varying proportions. Some most certainly are door-openers, some are very political, and some have never set foot in a political campaign but lobby with considerable expertise.

The second point is clients. If you talk to the thousands of organizations and companies that hire lobbyists, as I have over the last four years, you will hear how grateful they were to have help with the labyrinth that they say is Ottawa. I would say that 60% to 65% of clients are quite happy with their lobbyists. That's not a lot, but it's considerable.

The third point is public office holders. They always talk about the access and substance talents with a bias, of course, for the latter, but whether it is politicians or bureaucrats, many public office holders appreciate the information, the summing-up of an issue, and the industry updates that a lobbyist brings.

This applies to bureaucrats as well, who people often assume are not interested in hearing from lobbyists. Many bureaucrats actually rave about lobbyists. Of course, there are those who refuse to meet with them, too.

My point is that lobbyists have some value to the system. I want to stress the information flow role. Good public policy gets as many channels of information flowing into it as possible. A good public office holder can see a lobbyist's bias and distinguish a lobbyist who is bringing value-added from one who is just trying to earn his or her retainer and go home.

Those are my general comments.

One big picture item that your bill won't fix is the pervasiveness of lobbying, and I don't see it looking at this. The range of organizations and bodies hiring hired guns is incredible. They include hospitals, zoos, universities, ice cream companies, and stores. Lobby associations hire hired guns as well, amounting to something that I'm calling layered lobbying.

Why? This likely reflects the feeling of entitlement that probably started with the charter, but it is very much a sense of feeling cut off from government. I think your bill should try to address this better.

Now, as far as the specifics in the bill are concerned, I think banning contingency fees is an excellent idea. There is no need for a consultant lobbyist to have an incentive to help their clients.

The five-year ban should be reduced to three years, with no loopholes whatsoever. As you likely know, there are loopholes that allow a minister to use a list so that junior staffers are not subject to this ban. Political aids, no matter what their level, are privy to all kinds of information, so you need a rule that is hard and fast. In my opinion, you should eliminate these loopholes.

The ban should not apply to industry associations. There is a long tradition of cross-collaboration between associations and government. These industry associations are themselves not for profit.

Public office holders have told me how much they value the sector-specific input of associations. I've argued with the hired guns about this, but I feel the mindset and approach of associations is different and a long cooling-off period is not necessary.

Five years, I feel, is too long. It will drive the industry underground. People will find more ways to get their message across without registering, which is something that occurs today, as I'm sure you know, but not frequently. And it will prevent politically attuned people from working in politics. If you want average Joes on the Hill doing government relations, pass this bill.

Regarding the recording of names of public office holders by lobbyists, I understand that you want to set up a second registry. I can guarantee this will really tee-off public office holders and put a chill on lobbying entirely. Look at it from the point of view of a public office holder, who will see his or her name popping up on a registry just because he or she agreed to meet with a lobbyist. I suggest, instead, that you use the current lobbyist registry and have a section where the lobbyist fills in two boxes, indicating the number of political people they met with and the number of bureaucrats they met with, and perhaps the dates. That way, no names are recorded. This should be done within two weeks of a meeting.

I also suggest that a 1-800 number be incorporated into the lobbyist registry, and operate weekdays from 9 a.m. to 9 p.m., with live bodies willing to assist people who are having trouble with the registry. It is pretty user-friendly, but there are definite difficulties with it. Considering this is your only tool for transparency, this would be a good investment of money.

I have two more comments and then I'm finished.

The second big-picture problem is that one of the things that your proposals in this bill is trying to solve is that there is no real way to track how decisions are made in our federal government. I'm not the first to make this point. Recording meetings with lobbyists may help a bit, but one should not overestimate their role. Lobbyists do not make things happen; politicians do. Lobbyists alert, inform, and try to influence politicians, but it's the politicians who move the chess piece across the board, so to speak. Yet our mechanisms for seeing this are very weak.

Lastly, I suggest you amend the lobbyist registry, so that “hybrid” lobby firms—those who lobby on one floor, and do work for government on another floor—are required to declare the latter. This is a huge problem.

6:10 p.m.

Conservative

The Chair Conservative David Tilson

Thank you, Ms. Curtis.

Mr. Murphy.

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Thank you, Mr. Chair.

Thank you, Ms. Curtis. I was very impressed with your presentation and your point that we should avoid people selling their relationship, but more or less praise people who are selling their expertise.

A number of questions have been raised by this bill, and a number of amendments may come forward at the last minute, I hope. The question is, what is the difference between a former staffer for a political minister working as a lobbyist after leaving the minister's office, with the three- to five-year period, whatever it is, which are covered by this bill, and someone who leaves an opposition member's office and becomes a lobbyist when the government changes? These are real-life examples.

I have tried to illustrate, in questions in the House and other places, that it really doesn't matter where the money comes from, whether from government or the opposition or Parliament or political parties. What really matters is the relationship; if someone has been with a politician who is now a minister but who was an opposition member for ten years, as a campaign worker or a staffer, obviously they have a relationship that is important to the lobby firm. I would like to see something included in the bill that precludes that, for whatever period. I understand what you're saying about three to five years. That's very debatable, as well, I think

Do you agree with me that it's the relationship or connection that the putative lobbyist has with the now-cabinet minister, or the then-cabinet minister, that matters, and not where the money came from?

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

When you say where the money came from, what do you mean exactly?

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

A public office holder in this bill is a minister or a parliamentary secretary; they are not a member of the opposition. The real-life example is that we now have a Prime Minister and a number of ministers who are now public office holders but who weren't when they were in opposition. This has not been made up. Their executive assistants were with them for a number of years, left after the government was sworn in, and became registered lobbyists. I don't think that's right. It's a pox on both houses.

It's a matter of influence, and those people who worked for the Prime Minister and other people have influence. And that's what they're now selling to the lobby firms.

This would apply to us when we get back in government, folks.

Some hon. members

Oh, oh!

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Does the record show the laughter? I hope not.

Some hon. members

Oh, oh!

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

In any event, you know what I'm saying. I hope you do.

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

I agree 100%. I agree that they are, in that case.... They've had no cooling-off period, have they?

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

No, absolutely not, because it's not covered by this law. That's the point.

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

It's relationships, to some extent, 75% relationships, and it's also 25% knowledge of the process.

The history of cooling-off periods is that they don't want people to sell the insider knowledge they've had, immediately having been in government. I feel that a cooling-off period is necessary at some point. We all use our relationships in life to get ahead in many ways, so we can't penalize people for having relationships, but you have to find the line where private interest is not trumping public interest. Obviously the difference between public office and other aspects of life is that you're affecting public policy. So you don't want private interest trumping public interest, and you want to make sure that public policy is always done with the public interest in mind.

Am I not addressing your question?

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

I have a follow-up on that. Maybe I could go with you and say, yes, we're all about relationships to some degree, and it's all about expertise to some degree as well. But a number of suggestions have come up, and I'll put one to you. It comes from the legal profession, of which I'm part.

Let's say an executive assistant was working for a fisheries minister. Rather than the holus-bolus three- or five-year cooling-off period, what if they were precluded from working and lobbying for clients directly related to the work they'd done as a fisheries minister EA? They could still lobby government on....

Do you know what I'm talking about? Their experience is what counts. The fisheries EA might not know anything about agriculture or---

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

So they can still lobby other people, then; they're just precluded from lobbying their former minister, the place where they'd worked. Is that what you're saying?

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

That's the suggestion. Under the current bill, they're precluded--period--from being registered lobbyists for five years.

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

Yes, and my thinking is that this is too long.

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

I understand. So what about the suggestion that they be precluded--i.e., the Chinese wall in Martin v. Grey, the Supreme Court of Canada decision about conflicts--from lobbying on those topics on which they were privy to some very important knowledge?

6:15 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

I don't think that goes far enough. Anyone who's been in a minister's office comes out with not only expertise in some areas but an understanding of the process. If you talk to someone in government who was in opposition six months ago, they understand the mindset of that government. They understand how the process works and the dynamics between them.

So it's not just a question of exempting them from the area or the place that they were before. I think you have to go further than that.

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

What are these GR specialists going to do for the three years? In a way, what difference does it make if it's three years or five? What's somebody going to do--go back to university, sell cars...?

6:20 p.m.

Independent Journalist, As an Individual

Jenefer Curtis

As I say, I exempt associations from this. If someone is going to join a consultant lobby firm, they should have some cooling-off period. It's at the political level that these people operate, which is where political relationships come in. If somebody goes from an association to an association, they tend to deal mostly with sector-specific issues. So to answer your question, three years is a little less of an intrusion into somebody's career.

Also, one point that I didn't make in my presentation is that you have a process in a democratic system of parties. They operate on a partisan basis with people who have been partisan all their lives. If you take that five-year chunk out of their careers, you're going to have a real breakdown in the party process, I feel. Those people started out doing the grunt jobs--no offence--with MPs and so on. They worked themselves up, and they want to cash in on it. It happens all over the world.

So three years would be fine, but five, I think, is too long.