Evidence of meeting #14 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

Luc Lavoie  As an Individual
François Martin  As an Individual
Erica Pereira  Committee Clerk, , House of Commons

3:40 p.m.

As an Individual

Luc Lavoie

Pardon me?

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Continue.

3:45 p.m.

As an Individual

Luc Lavoie

That $5 million constituted kickbacks on the sale of aircraft by Airbus to Air Canada, on the sale of helicopters from MBB Helicopter to the Coast Guard and on the so-called Bear Head project. You have to look at things in context. I'm trying to answer your question; I'll conclude. In my opinion, the cash paid as a retainer after he left power, for other work, unrelated work, has nothing to do with that.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

So that lawyer was talking about a perfectly legitimate transaction.

3:45 p.m.

As an Individual

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

That legitimate transaction could explain the basis of certain rumours that were circulating; you no doubt understood that.

3:45 p.m.

As an Individual

Luc Lavoie

I don't want to make any assumptions on that point.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Why, at that point, didn't you advise that it should be stated publicly that that transaction with Mr. Schreiber had taken place? Why didn't you advise Mr. Mulroney to say that and to explain immediately that, if rumours were circulating that Mr. Schreiber had given him money, it was for a legitimate contract?

3:45 p.m.

As an Individual

Luc Lavoie

Why didn't I advise him to do that? You know, I had a lot of conversations with him. I never said I didn't advise that.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

All right.

3:45 p.m.

Bloc

Carole Lavallée Bloc Saint-Bruno—Saint-Hubert, QC

So you advised him to do that.

3:45 p.m.

As an Individual

Luc Lavoie

That scenario was considered, yes.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

When did you learn that Mr. Mulroney had not only received cash, but that he had also kept it in denominations of $1,000?

3:45 p.m.

As an Individual

Luc Lavoie

At the time of his testimony here.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Do you think that would have been harder to explain?

3:45 p.m.

As an Individual

Luc Lavoie

Pardon me, can you clarify your question?

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

As you no doubt understood, that makes the transaction and the relations between Mr. Mulroney and Mr. Schreiber seem shady. When a prime minister receives $1,000 bills in a brown envelope, most people think it's not for very good reasons. If he also keeps them in a safe deposit box for years and only realizes—

3:45 p.m.

As an Individual

Luc Lavoie

What's the question?

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Don't you think that makes this affair even more suspicious?

3:45 p.m.

As an Individual

Luc Lavoie

Not particularly, no.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Didn't you inquire into what he had done with the cash he had received?

3:45 p.m.

As an Individual

Luc Lavoie

No, what he did with his things was none of my business.

3:45 p.m.

Bloc

Serge Ménard Bloc Marc-Aurèle-Fortin, QC

Thank you.

3:45 p.m.

Liberal

The Chair Liberal Paul Szabo

Mr. Martin, please.

3:45 p.m.

NDP

Pat Martin NDP Winnipeg Centre, MB

Thank you.

Mr. Lavoie, you were instrumental in helping Mr. Mulroney win the $2.1 million libel suit against the government for linking him to the Airbus affair. I think that's generally accepted. In fact, in the settlement that was finally reached--the $2.1 million--roughly $1.4 million was for legal expenses and went to lawyers, and fully $587,721 went to you, or your firm, NATIONAL Public Relations. Is that a fair assessment of the settlement?