Evidence of meeting #20 for Access to Information, Privacy and Ethics in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was lobbyists.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Charles King  President, Government Relations Institute of Canada
Jim Patrick  Treasurer, Government Relations Institute of Canada
John Capobianco  President, Public Affairs Association of Canada
Stephen Andrews  Vice-President, Public Affairs Association of Canada

11:45 a.m.

Treasurer, Government Relations Institute of Canada

Jim Patrick

I think we've already seen cases where the lobby commissioner and the ethics commissioner come to different conclusions based on the same set of facts. We want to avoid triplicating that process, where you have the same set of facts under investigation by three separate bodies.

11:45 a.m.

Conservative

Dan Albas Conservative Okanagan—Coquihalla, BC

Would PAAC agree? Anything to add?

11:45 a.m.

President, Public Affairs Association of Canada

John Capobianco

We agree that having that potential three-way cross-section could be quite entangling for us.

11:45 a.m.

Conservative

Dan Albas Conservative Okanagan—Coquihalla, BC

Madam Chair, I appreciate the opportunity to question the witnesses, and thank them again for their presentations.

11:45 a.m.

NDP

The Chair NDP Jean Crowder

Thank you very much.

We will now begin the second round.

Mr. Boulerice, you have five minutes. Go ahead.

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Thank you, Madam Chair. Gentlemen, thank you for being here today.

Mr. King, you said earlier that the vast majority of lobbyists respected the letter and spirit of the law. That got me thinking. How do the minority of lobbyists who do not respect the law behave?

11:45 a.m.

President, Government Relations Institute of Canada

Charles King

I have no idea.

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

You don't know.

11:45 a.m.

President, Government Relations Institute of Canada

Charles King

If the rules are clear and transparent, there are no excuses. The rules are quite simple. If someone cannot follow simple rules—

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

In your view, however, the rules are not clear or transparent right now.

11:45 a.m.

President, Government Relations Institute of Canada

Charles King

If they were more transparent, there would be less questionable behaviour.

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Very well.

Why should the 20% rule no longer apply to former DPOHs but still apply to others? Why just them?

11:45 a.m.

President, Government Relations Institute of Canada

Charles King

The rule was clear. There is a hole in the act. If you are a designated public office holder and you worked on the Hill, you must wait five years after leaving office before you can engage in lobbying activities. You can't go in through the back door. There is no such possibility.

Why the small hole in the act if lobbying accounts for less than 20% of their activities? Whether it is 5%, 15% or 100% of their activities, lobbying is lobbying.

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Others argue that the 20% calculation should be maintained. What does the 20% mean to you? How is the percentage calculated? Is it weekly, monthly? Does it include preparation, travel, meetings?

11:45 a.m.

President, Government Relations Institute of Canada

Charles King

All of it, in other words, time spent preparing, travelling, working and writing briefs.

11:45 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

Okay. You include everything.

My next question is for Mr. Capobianco.

Mr. Capobianco, you work for a lobbying firm. A few times, you have run as a candidate for the Conservative Party. You still appear to be a commentator for the Conservatives. You are on the board of directors of the Albany Club, a Conservative club that hosts Conservative ministers. Tony Clement was a guest at one of your events held in a Senate room on December 1st. Past guests have included Mr. Flaherty, Mr. Baird and Mr. Harper. You are virtually a member of the Conservative family.

As a lobbyist, does that not strike you as somewhat of an apparent conflict of interest or unfair advantage?

11:50 a.m.

President, Public Affairs Association of Canada

John Capobianco

Well, no. In fact I'm proud to be a Conservative, and there are many Conservative lobbyists. But I also live and work in Toronto, which is a Liberal province. I do very well there as a lobbyist. I think at the end of the day, what it comes down to, if you are working in the government relations profession, is that you firmly believe in trying to ensure that businesses and organizations that want to know and want to understand governments come to you as somebody who might understand the process and might be able to help them through that. I think that's why we're standing here before you: to say that we believe lobbying rules should exist. I think the clearer and more transparent they are, the better we will be able to do our jobs.

Lobbying--and we've made this clear in our submission--is a noble profession, and we're very proud to be lobbyists. I think whether you're Conservative, Liberal, or NDP doesn't really matter. At the end of the day, you're providing some service for businesses or organizations that want to work with government. As long as you abide by the rules and you do what the rules say, I think it's perfectly fine for people to do that. At the end of the day, if I were a candidate, I would either be an MP sitting on your side of the aisle or I'd be over here sitting on this side of the aisle. The idea of whether or not you belong to a club doesn't matter. It's all about trying to do good work for organizations that want to do work with government.

11:50 a.m.

NDP

Alexandre Boulerice NDP Rosemont—La Petite-Patrie, QC

When Mr. Clement attends a social gathering, lecture or dinner at the Albany Club, it is arranged and planned. When circumstances of that nature allow you to have direct contact with a minister, do you consider it a lobbying activity?

11:50 a.m.

President, Public Affairs Association of Canada

John Capobianco

If it's a pre-arranged meeting at which I plan on speaking with any minister or any member on a specific issue, I will register it. It will be a registered activity. If it's an event at which we're having a speaker, and the minister or an MP happens to be there, and it's just a regular social event and there's no business being discussed, there won't be any need to register that activity. I think at the end of the day, if a meeting is specifically arranged to discuss a client issue or an issue that is registerable, our members, including me, by and large will register that activity no matter where it is.

11:50 a.m.

NDP

The Chair NDP Jean Crowder

Your time is up, Mr. Boulerice.

Mr. Butt, you have five minutes.

11:50 a.m.

Conservative

Brad Butt Conservative Mississauga—Streetsville, ON

Thank you very much, Madam Chair.

I should thank Mr. Boulerice for all the free advertising he is giving to the Albany Club today, because I'm a member there too. There you go.

Thank you, gentlemen, for coming today.

I think it's very important for this committee to hear the views of your organizations and the people you represent as to how this act has worked in its first five years. I think this is very helpful to us. We know that lobbying is a legitimate professional service. I think we all want to make sure we have some rules and some context around the Lobbying Act to make sure that it's done above board and properly and legally and fairly. So I appreciate your being here to help us in our study.

One of the areas the lobbying commissioner has perhaps recommended there be a change to--and I'd like your opinion on this--is whether she should have the authority to place a monetary penalty or some sort of an administrative penalty on someone who has breached the act, rather than having to refer it to the RCMP perhaps if it's not a criminal issue. How do you feel about that? Would it strengthen the act if she and her office could levy some sort of an administrative penalty instead of referring something to the RCMP? I think her view is that when there is a significant issue, her only recourse is to refer it to the RCMP. What's your view on that?

11:50 a.m.

Treasurer, Government Relations Institute of Canada

Jim Patrick

First, I would just like to endorse Mr. Jordan's comments from Tuesday that as a lobbyist, having your name placed in front of Parliament as someone who has violated the rules has a financial consequence. It affects your career prospects.

Coming back to the specific question of administrative monetary penalties, anytime you have an officer of Parliament or a tribunal of any sort with essentially unfettered quasi-judicial powers, especially powers with a Criminal Code underpinning, you want to make sure that there's a clear commitment to due process. Before we could endorse that recommendation, we'd need to see a greater commitment to due process on the part of the OCL.

As mentioned, we've seen rules applied retroactively, such as having 2009 rules applied to events that took place in 2004. We've seen lobbyists found guilty of putting a cabinet minister in a conflict of interest after the Ethics Commissioner has said that the minister was never in a conflict of interest. We've seen straightforward investigations last up to ten years. We've seen seven-year investigations without the subjects being aware that they've been accused of anything; they just get a letter one day that says congratulations, you're no longer under investigation. We've had lobbyists denied the right to have counsel make oral representations on their behalf during investigations, and we've had the Canadian Bar Association find that certain rulings and actions by the OCL have been unconstitutional. There's a legal opinion on the record to that effect.

The commissioner is asking, in effect, to be the registrar, the regulator, the investigator, the judge, and the jury. So before we could support that recommendation, we'd want to see a clear requirement within the legislation that before penalties were applied, there would be an investigation that adhered to the most basic and fundamental concepts of judicial due process.

11:55 a.m.

Conservative

Brad Butt Conservative Mississauga—Streetsville, ON

Thank you for that.

Do you see any difference between what I would call financial or economic lobbying and social lobbying? I'll give you an example. Someone comes in to see me and is lobbying on a specific tax policy or on something that's going to make a company or an individual money or that would make it easier for them to do business. That is versus someone who comes in and just wants to lobby me on my position on abortion, let's say, as an example. Do you see a difference in that type of lobbying? Is there a difference, in your view? Or is it anything that's coming or is likely to come before the House of Commons in any way, shape, or form? Should it all be treated the same way? Are all those issues the same, whether it's a non-profit group coming in to see me or a Fortune 500 company?

11:55 a.m.

President, Government Relations Institute of Canada

Charles King

We support the current definition. Let's be clear: lobbying is lobbying is lobbying. Whether I'm lobbying for doughnuts or I'm lobbying for tanks, it's lobbying. If you're being paid, the rules should be very clear.

11:55 a.m.

Conservative

Brad Butt Conservative Mississauga—Streetsville, ON

It is when you are being paid. So these not-for-profit groups, then, you don't believe should be treated the same way.