DRAFT BILL ON ETHICS COMMISSIONER AND DRAFT CODE OF CONDUCT FOR PARLIAMENTARIANS TABLED

October 23, 2002
Ottawa, Ontario

The Deputy Prime Minister, the Honourable John Manley, together with the Leader of the Government in the Senate, the Honourable Sharon Carstairs, today announced the details of two elements promised in the Prime Minister's Eight-Point Action Plan on ethics in government. These proposals demonstrate important progress on the Action Plan, which was outlined in a speech by the Prime Minister to the House of Commons on May 23, 2002 and reiterated in the September 30 Speech from the Throne.

The government tabled today:

• a draft bill to establish a single Parliamentary officer, the Ethics Commissioner, reporting to Parliament, to administer the Code of Conduct for Parliamentarians and to advise the Prime Minister on his Conflict of Interest and Post-Employment Code for Public Office Holders; and
• draft rules for a Code of Conduct for Parliamentarians.

The Minister of Industry, the Honourable Allan Rock, also introduced today amendments to the Lobbyists Registration Act.

"With the three initiatives tabled today, the Government of Canada has now acted on six of the commitments in the Prime Minister's Eight-Point Action Plan," said Deputy Prime Minister Manley in tabling the proposals in the House of Commons. "Canadians have a right to expect the highest ethical standards of their government. We look forward to early input from all parliamentarians on these draft proposals."

Tabling the draft rules for a Code of Conduct in the Senate, Senator Carstairs said, "All parliamentarians have a role to play in restoring the trust of Canadians in their political and public institutions. The draft Code of Conduct, based on the 1997 Milliken-Oliver report, will provide a starting point for parliamentarians to develop a Code of Conduct that will be administered by an independent Ethics Commissioner."

On June 11, the Prime Minister acted on the first three points of the Action Plan by releasing the Guide for Ministers and Secretaries of State, guidelines for ministerial dealings with Crown Corporations, and guidelines governing Ministerial activities for personal political purposes.

Proposals on the two final points in the Action Plan – rules on financing for political parties and candidates, and strengthening public service accountability – will be brought forward in November.

Draft Bill to Create the Ethics Commissioner

The draft bill to amend the Parliament of Canada Act to create the Ethics Commissioner includes provisions to:

• establish the Ethics Commissioner as an independent officer of Parliament, who would administer the Code of Conduct for Parliamentarians, including complaints under the Code;
• make the appointment of the Ethics Commissioner a non-renewable five-year term, ensuring full independence of office; and
• allow any parliamentarian to request that the Ethics Commissioner inquire into the conduct of Ministers and Secretaries of State under the Prime Minister's Conflict of Interest and Post-Employment Code for Public Office Holders.

Draft Code of Conduct for Parliamentarians

Drawing inspiration from the 1997 Milliken-Oliver Report, the draft rules for a Code of Conduct for Parliamentarians tabled today would establish:

• a disclosure regime requiring all parliamentarians to file a confidential statement with the Ethics Commissioner listing the nature of financial assets, liabilities, sources of income and directorships, a summary of which will be made public; and
• consolidated and strengthened rules for the official conduct of Parliamentarians.

The draft rules tabled today will provide a basis for all-party efforts to develop the Code, which will be administered by the Ethics Commissioner.

Additional background information on the measures taken today is attached.

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Backgrounder

DRAFT RULES FOR A CODE OF CONDUCT FOR MEMBERS OF PARLIAMENT AND SENATORS

The draft rules for a Code of Conduct for Parliamentarians tabled today are based on the 1997 Milliken-Oliver Joint House and Senate Committee Report. They are designed to assist parliamentarians in their development of a Code of Conduct.

The proposals tabled today would establish:

• a disclosure regime requiring all parliamentarians to file a confidential statement with the Ethics Commissioner listing the nature of financial assets, liabilities, sources of income and directorships, a summary of which would be made public, and
• consolidated and strengthened rules for the official conduct of parliamentarians.

The 1997 Milliken-Oliver Report recommended that the adoption of a Code of Conduct for Parliamentarians should not preclude the Prime Minister from adopting more stringent standards for Ministers, Secretaries of State and Parliamentary Secretaries. The Prime Minister's Conflict of Interest and Post-Employment Code for Public Office Holders, which has been in place since 1985 and was revised in 1994, sets out additional obligations for Ministers, Secretaries of State and Parliamentary Secretaries that are above and beyond the obligations they would be required to comply with as Members of Parliament under the Code of Conduct for Parliamentarians.

The Prime Minister's Conflict of Interest Code sets out more stringent requirements for members of his ministry in areas such as conflict of interest, acceptance of gifts, disclosure of assets of Ministers, Secretaries of State and Parliamentary Secretaries as well as those of their spouses and dependents, on outside activities such as partnership in a business, and on acceptance and public disclosure of gifts and hospitality.

In addition to administering the Code of Conduct for Parliamentarians, the Ethics Commissioner would also support the Prime Minister in administering the Prime Minister's Conflict of Interest and Post-Employment Code for Public Office Holders.

The 1997 Milliken-Oliver Report was the result of extensive parliamentary consultation and discussion, and drew on experiences that other jurisdictions, such as the United Kingdom, Australia and Canada's provinces, have had with similar Codes of Conduct. While discussion of the Milliken-Oliver Report had begun in Parliament in 1997, consensus on its adoption was not reached before the June election of that year.

While the Milliken-Oliver Report contains the most recent proposals developed in the Canadian Parliament on a Code of Conduct for parliamentarians, discussions on this subject have been taking place in Parliament since 1973. The Milliken-Oliver Report also drew on recommendations from the 1992 Blenkarn-Oliver Report, which was a report of Special Joint Committee of the Senate and House of Commons on Conflict of Interest.

Backgrounder

DRAFT BILL TO AMEND THE PARLIAMENT OF CANADA ACT TO CREATE AN ETHICS COMMISSIONER

The draft bill would amend the Parliament of Canada Act to create a single Parliamentary officer, the Ethics Commissioner, reporting to Parliament. The Ethics Commissioner would administer the Code of Conduct for Parliamentarians, and advise the Prime Minister on his Conflict of Interest and Post-Employment Code for Public Office Holders. The Ethics Commissioner would provide a single channel for all questions on ethical matters involving parliamentarians, and have a strong public reporting role.

Under the draft bill, the Ethics Commissioner would be appointed by the Governor in Council, which mirrors the appointment process for the Auditor General. Appointed for a five-year non-renewable term, the Commissioner could only be removed from the position by Governor in Council on the address of both Houses of Parliament. The draft bill would require the Ethics Commissioner to table an annual report to Parliament three months after the end of the fiscal year.

In advising on the Code of Conduct for Parliamentarians, the Ethics Commissioner would carry out his or her duties under the direction of Parliamentary committees and would provide reports to Parliament. Under the Prime Minister's Conflict of Interest and Post-Employment Code for Public Office Holders, the Ethics Commissioner will provide confidential advice to the Prime Minister on ethical issues in general, as well as advice to public office holders on their obligations under the Prime Minister's Code.

In addition, the draft bill proposes that any parliamentarian may request that the Ethics Commissioner inquire into the conduct of a Minister or Secretary of State under the Prime Minister's Code. In such instances, the Commissioner's report will be provided at the same time to the Prime Minister as the head of the government, to the requesting parliamentarian, and to the parliamentarian who is the subject of the request, and will be made public.

The current position of Ethics Counsellor will cease to exist when the amendments to the Parliament of Canada Act to create an Ethics Commissioner come into force. As promised by the Prime Minister on June 11, the Office of the Ethics Counsellor will submit in fall 2002 a report on its activities of the past year. The draft bill also transfers the role of the current Ethics Counsellor in the administration of the Lobbyists Registration Act to the registrar, an existing position at Industry Canada.