Evidence of meeting #10 for Access to Information, Privacy and Ethics in the 39th Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was mulroney.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Hon. Brian Mulroney  P.C., As an Individual

11:50 a.m.

P.C., As an Individual

Brian Mulroney

Against the retainer, yes.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Yes, but these were expenses and not a fee. Right?

11:50 a.m.

P.C., As an Individual

Brian Mulroney

That's right.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So you could deduct these expenses from the $225,000?

11:50 a.m.

P.C., As an Individual

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

But you didn't do that.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

No, sir. I decided to pay tax on everythin, including expenditures. I declared everything; I didn't claim any expenses.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

You were generous with the tax department.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

Yes, I was generous.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

It was only in the case of this client that you were generous with the tax department.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

No, no, it was not because of that. I was generous because I wanted to ensure that there would never be any question whatsoever—but God knows that there are now!—and that everything would be resolved in favour of the Canadian and Quebec tax department. That is why I decided to declare all expenses as income and I paid the bill.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Yes, but you do realize, Mr. Mulroney, that in the eyes of ordinary citizens, when a person keeps cash, when a person does not want to deposit it at the bank and takes out the amounts in cash, it's because this individual wants to hide something, generally from the tax department, but also from other people.

11:50 a.m.

P.C., As an Individual

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

But with your experience, you were aware of that.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

But you have the proof that this is false: I declared everything to the tax department, including my...

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

But you did that very late.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

Let's be clear about this, this was a retainer. Under tax law, disbursements from a retainer are not taxable. No tax is payable until the individual has completed his invoice.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Mr. Mulroney, the fundamental question remains. In the case of this money, described by you as being perfectly legitimate, why did you not treat it the same way that you did with other legitimate money paid to you, namely, deposit it in the bank and then subsequently prepare invoices related to services rendered?

11:50 a.m.

P.C., As an Individual

Brian Mulroney

Mr. Ménard, I told you that this was a mistake. I made an error.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

But this was an error that you repeated over two years.

December 13th, 2007 / 11:50 a.m.

P.C., As an Individual

Brian Mulroney

Yes, an error is not divisible. This was a complete error, and I have apologized for it.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

One of my friends said: “Errare humanum est, perseverare diabolicum”. I would say: “perseverare in errare est diabolicum”.

11:50 a.m.

P.C., As an Individual

Brian Mulroney

A chap from Baie-Comeau had an answer to that. He said: “Lex Rhodia de jactu”.

11:50 a.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Mr. Mulroney, I would like to understand your initial reaction to the cash amount you were offered.

You had been the leader of the party, and I imagine that like all party leaders, you had to keep some discipline amongst your members. If you had heard that a member had received $75,000 in cash and that he was keeping this amount in a safety deposit box in his home, supposedly for future needs, would you have sought any explanations from him?

11:50 a.m.

P.C., As an Individual

Brian Mulroney

Yes, and if the explanation...