Monday, February 26, 2001

OTTAWA - Today Democracy Watch, backed by the nation-wide Government Ethics Coalition and the nation-wide Money in Politics Coalition, called for changes to federal ethics and political finance laws in response to last week's barrage of ethics fiascos. The 31-group Government Ethics Coalition and the 50-group Money in Politics Coalition, both organized and coordinated by Democracy Watch, have been pushing for systemic changes for several months.

"Parliament Hill is a breeding ground for unethical behaviour," said Duff Conacher, Coordinator of Democracy Watch and Chair of the Government Ethics Coalition, "and the only solution is to change the system so that unethical politicians have a much greater chance of getting caught."

First, Ethics Counsellor Howard Wilson revealed just how unable he is to investigate any alleged violation of ethics rules when he was forced, finally, to admit that he did not know that Prime Minister Chrétien and his staff had contacted the Business Development Bank of Canada about a loan to a hotel in Chrétien's riding. Democracy Watch and the Government Ethics Coalition propose the following systemic changes to ensure politicians act ethically:

• Establish an independent, well-resourced, ethics commission that reports directly and only to Parliament;
• Require MPs and Senators, especially Ministers, to help all private interests find the government office they want or need, but prevent them from in any way lobbying for or against any private interest, or selling access directly or indirectly; and
• Anyone covered by a federal government code of conduct (e.g. Ministers and other appointees, civil servants, lobbyists) should be required to report any lobbying or ethics rules violations, or violation of any law or policy, to the ethics commission.

Second, Health Canada scientist Margaret Haydon was suspended again by senior Health Canada officials, this time for speaking out against the government's ban on Brazilian beef imports, a ban that was lifted on Friday. Democracy Watch and the Government Ethics Coalition propose the following systemic changes to ensure that all public officials are allowed to act ethically:

• The identity of any person who reports a violation of lobbying or ethics rules, or any other law or policy, to the ethics commission (so-called "whistleblowers") should not be made public without their consent, and they should be protected from retaliation or disciplinary measures of any sort during the investigation and if the violation is found to be true, especially if the person is a civil servant or political staff.

Finally, the Canadian Alliance acknowledged that it had received a $70,000 donation from either Bennet Jones, a Calgary law firm, or a lawyer at Bennett Jones. Bennett Jones is the law firm that handled the libel case against Stockwell Day. Despite criticizing Prime Minister Chrétien for controlling Ethics Counsellor Howard Wilson, and Wilson's lack of independence and effective investigative powers, the Alliance decided to hire a lawyer to investigate the donation, and then have a committee made up only of party executives to complete a further investigation.

"The Alliance's internal, controlled investigation of its own donation is as invalid as the Prime Minister's internal, controlled investigation of his lobbying for his friend," said Conacher. "These investigations only prove one thing, that government ethics really is a contradiction in terms."

Democracy Watch and the Money in Politics Coalition propose the following systemic changes to ensure that the political donations system is democratic and ethical:

• Corporations, unions, and other organizations that do not vote should be prohibited from donating to political parties, candidates and riding associations;
• Limits on political donations at a level that is affordable for the average Canadian, along with public financing, should replace Canada's current political finance system that is dominated by donations from wealthy interests;
• Parties should be required to disclose donations quarterly, and one week before each election. Candidates and constituency associations should be required to disclose annually, and one week before each election;
• The Commissioner of Canada Elections should be required to investigate any donation if there is a reasonable belief that the donation is illegal; and
• Strong penalties for illegal donations should be established.

"The political finance system encourages corruption by allowing secret donations of any amount from anyone," said Aaron Freeman, Democracy Watch board member and Chair of the Money in Politics Coalition, "Strong rules, enforcement and penalties are needed to end these undemocratic donations."