Information & Ethics Committee on Aug. 12th, 2008

[Douglas Lowry]

In my function today, I'm a Conservative. Naturally, one of the things I'd have to do is go to corporate headquarters and ask them, “What do you think?” I don't really pay attention to a lot of this, mainly because I didn't receive a rebate. I still think this is a valid thing to do. I think it's a good thing to be doing. I think the cap could be lowered a little bit to make it.... I know every party has done exactly the same thing in various fashions. That's fine. So some of the people in corporate would say...because this is a political thing and in Ottawa this is political, in Toronto it's not. But in Ottawa it's political, so they would say, “If you really don't want to, you don't really have to.” But I'm not used to getting summonsed.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Lowry, I don't mean to be rude, but my time as well is limited. The whole reason we're undertaking this investigation is that it was Elections Canada that flagged this. This isn't something that was brought forward by the other three parties here. This was something Elections Canada brought forward.

In their affidavit you're quoted as saying, “There was no discussion pertaining to the advertising or its benefit to the Goldstein campaign” between yourself and the Conservative Party, and that you were “simply instructed to post the funds as an advertising expense”, and that's what you did. My question to you is, who directed you to post the funds as an advertising expense?

[Douglas Lowry]

I received the letter probably from the treasurer. I'm not really sure of his name. I gave all my documents to Elections Canada; I don't really need them. I received something from what I call corporate--I mean headquarters, whatever headquarters is.

[Karen Redman, Liberal, Kitchener Centre, ON]

Were you aware of the arrangements between Retail Media and your campaign that encapsulated just short of $50,000 in media buy attributed to your riding?

[Douglas Lowry]

No, of course not; it wasn't until afterwards.

[Karen Redman, Liberal, Kitchener Centre, ON]

I have two receipts here that I'd like you to look at. One has a list of several ridings. Interestingly enough, one of them is Kitchener Centre, which is my riding, as well as Trinity—Spadina. They appear to be on Retail Media letterhead. And you've seen neither of these?

[Douglas Lowry]

They arrived afterwards.

[Karen Redman, Liberal, Kitchener Centre, ON]

They're dated January 1, 2006, which was well before election day.

[Douglas Lowry]

It doesn't really matter. I had no input. I didn't pick the radio stations. I didn't pick the ads. I didn't hear the ads. I didn't do anything about the ads. That was contracted out to Retail Media.

If that's in the Elections Act, maybe the next time around that's what we'll have. All the CFOs will have to come into some committee to hear election ads. Then they'll be able to say, “Yes, we've heard them all.” If it's the process, then the process can easily be changed.

[Karen Redman, Liberal, Kitchener Centre, ON]

Mr. Lowry, I'm sorry to interrupt again. You suggested that it would be a really good idea to read the Elections Act. In subsection 438(4) it stipulates:

No person or entity, other than the official agent of a candidate, shall pay expenses in relation to the candidate’s electoral campaign except for petty expenses referred to in section 411 and the candidate’s personal expenses.

Subsection 438(5) states:

No person or entity, other than a candidate, his or her official agent or a person authorized under paragraph 446(c) to enter into contracts, shall incur expenses in relation to the candidate’s electoral campaign.

From what you're describing to me, the central party entered into an electoral expense under which you had no control. You had no control over the funds, and you did not enter into the Retail Media buy. Is that a fair depiction of how you've presented this?

[Douglas Lowry]

The short answer is yes.

[Karen Redman, Liberal, Kitchener Centre, ON]

Thank you.

[The Chair, Liberal, Paul Szabo]

The next questioner is Mr. Del Mastro. But first, Mr. Lowry, I'm not familiar.... I've been following politics since 1980; I was a candidate in 1980 and have been through seven elections. We don't refer to a corporate HQ.

You are a Toronto resident.

[Douglas Lowry]

Yes, sir. The headquarters of the Conservative Party is in Ottawa.

[The Chair, Liberal, Paul Szabo]

You're talking about the national office of the Conservative Party of Canada.

[Douglas Lowry]

Right.

[The Chair, Liberal, Paul Szabo]

Because the provincial wing of each of the national parties is in each province. Liberals have LPC(O), Liberal Party of Canada (Ontario). They are located on St. Mary Street in Toronto. But the Liberal Party of Canada's office is here.

So it is important to know. You're talking about the national offices of the Conservative Party of Canada. Do you visit there often?

[Douglas Lowry]

Of course not. Why would I visit them? I'm a member of the Conservative Party in a riding. The riding reports to, eventually.... There's an executive director.

[The Chair, Liberal, Paul Szabo]

Sir, maybe I misheard you.

[Douglas Lowry]

The executive director is the person who decides all this sort of stuff.

[The Chair, Liberal, Paul Szabo]

The executive director of...?

[Douglas Lowry]

The Conservative Party would decide, have input into elections, finance them--the nature of the elections from a national perspective. It wouldn't be an Ontario thing: “Gee, we're only doing Ontario buy-ins.”

If you look at the 2005 results in Quebec, we were lousy. We did a lot better in 2006. In a lot of our campaigns we were under the 10%, which means it's hard to get money, it's hard to get candidates, and it's hard to do everything else. So with long-term thinking, what do you do? What part of the 60% is malleable?

[The Chair, Liberal, Paul Szabo]

So in answer to the question Madam Redman posed to you about who told you that you didn't have to attend, you're now saying it was the executive director of the Conservative Party of Canada.

[Douglas Lowry]

I'm saying that the executive director would have a war cabinet, a war cabinet would report to whatever, and they would do various strategies. There are people who do media buys. We have a number of lawyers, we have a number of accountants, we have a number of corporate people doing corporate stuff, and that's what they do and that's what they're supposed to do. That's why we pay them, and that's why we expect them to be working for us.

[The Chair, Liberal, Paul Szabo]

Okay. Thank you kindly.

Mr. Del Mastro, please.