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LETTERS EXCHANGED BETWEEN THE PRIME MINISTER AND THE HONOURABLE LAWRENCE MACAULAY

October 22, 2002
Ottawa, Ontario

Enclosed is the text of letters exchanged today by Prime Minister Jean Chrétien and the Honourable Lawrence MacAulay.  In addition, the text of letters exchanged in 1999 between Ethics Counsellor Howard Wilson and the Honourable Lawrence MacAulay have been enclosed.

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PMO Press Office (613) 957-5555

 

 

October 22, 2002

Dear Prime Minister:

For weeks, I have been under attack for the way in which I have fulfilled my responsibilities to the people of Prince Edward Island. These attacks have impugned my honour and that of my family. I am deeply grateful to the people of Prince Edward Island and to my colleagues in Caucus and Cabinet for the support they have given me and my family during these difficult days for us.

However, in this era of political correctness, if I were to remain in the Cabinet, I would be seen to be fighting for my job rather than for my honour. I am therefore tendering my resignation from the Cabinet.

The controversy about me is undoubtedly diverting attention from the important agenda that was put forward in the Throne Speech and that we were all elected to promote. I want to ensure that attention is focussed on health care reform, growing the economy, and reducing child poverty. If that can best be done by my leaving the Cabinet, I do so with the knowledge that it will make it easier for you and our colleagues in the Cabinet to get the job done.

Last week, I met with the Ethics Counsellor and I have learned that he has found me in breach of some obligations because I was involved in a file respecting the only community college in Prince Edward Island. A college whose President is my brother but who was appointed by an independent board selected by the Provincial Government.

I believe that the advice of the Ethics Counsellor is dead wrong in this whole matter. Because of the importance of the issue, I am setting out my reasons at some length.

Mr. Wilson finds that "there is no difference between public institutions and business corporations" for the purposes of the Conflict of Interest Code. With respect, there is an enormous difference between a public institution, in this case, a community college owned by the Government of Prince Edward Island, and a business corporation whose motive is profit.

It is inconceivable in this day and age that a Federal Minister should be precluded from dealing on matters of public policy that involve an important public institution in his Province simply because he has a sibling who was appointed by the Provincial Government to run the provincial institution.

In particular, in the case of a Province like Prince Edward Island, there is no other Federal Minister to whom I could delegate my responsibilities. This is very different from a Province which has many Ministers in Cabinet.

I wish the Ethics Counsellor had recognized that very small Provinces are not the same as large ones.

Mr. Wilson found that the Holland College Proposal was recommended favourably by the Atlantic Innovation Fund and was eventually funded by the Government of Prince Edward Island. It was a joint project of Sheridan College in Toronto, the University of Moncton and Acadia University. Clearly it was not a proposal so lacking in merit that it could be inferred that I was just trying to do an inappropriate favour for my brother. I might also point out that my brother had no possibility of financial gain in the matter. That is something that Mr. Wilson recognized but said it was irrelevant. I believe it is very relevant.

According to Mr. Wilson, the Conflict Code does not permit a Minister to give "preferential" treatment in a case involving a family member. Mr. Wilson found that it was wrong for me to have raised the matter with both the Commissioner of the RCMP and the Commissioner of Corrections. I submit that it is not "preferential" treatment to raise a matter recommended by the Atlantic Innovation Fund and the Provincial Government with officials with whom I deal on a regular basis. This is not "preferential" treatment. It would have been discriminatory treatment if I had not raised it. In this case, after I raised it, last May, with both Commissioners, they told me they had no funds for the project and the matter ended there. I accepted their decision. It would be a dangerous precedent if Ministers were precluded from raising any matter on any subject with senior officials at any time. Ministers and officials must be able to have unfettered discussions.

Mr. Wilson says that he told me in September 1999, in writing, that I could not in any way deal with any matter respecting Holland College. With the greatest respect, Mr. Wilson's interpretation of his letter is wrong. I do not think a fair-minded person would read the letter in that way. I am making the exchange of correspondence between Mr. Wilson and myself public so that it can be clear to everyone that I was not precluded from raising a matter related to Holland College with the Commissioners of Corrections and of the RCMP.

Finally, with respect to the contract with MacIssac Younker, Roche, and Soloman, I am pleased that Mr. Wilson found that all Treasury Board guidelines were followed. He also found that according to Treasury Board, the manner of awarding of such directed contracts is considered to be competitive. If all the Treasury Board requirements are met, then surely it is totally irrelevant as to who may have benefited from the contract. The democratic process requires citizen participation.

It must not preclude citizens who participate in politics from doing business with the Government in exactly the same manner as citizens who do not participate in the political process.

It has been a great honour to serve in your Cabinet. You have always given me your total support. My family and I will always grateful for that. You have accomplished great things for our country over the last nine years. I do not want a controversy, no matter how unfair, to get in the way of the important work that you have before you between now and February 2004.

I will be discussing with counsel possible legal remedies against those who have publicly slandered my reputation.

Sincerely,

[ORIGINAL SIGNED BY LAWRENCE MACAULAY, P.C., M.P.]

 

 

October 22, 2002

Dear Lawrence:

It is with great regret that I accept your resignation from Cabinet. You have put the agenda of the Government ahead of your own personal interests. It is a selfless act for which you will always be remembered with fondness and affection by your friends and colleagues.

I have read your letter with great care. I am in full agreement with the points that you have made about the allegations against you.

Your friendship and support over the years has meant a great deal to Aline and me. You have served your constituency, your province and your country with great distinction.

Sincerely,

[ORIGINAL SIGNED BY THE RIGHT HONOURABLE JEAN CHRÉTIEN]

 

 

September 14, 1999

Dear Mr. Wilson:

I am writing to seek your opinion in preparation for a submission to Treasury Board on a management development proposal for the Correctional Service of Canada. This proposal will have the Government of Prince Edward Island and the Government of Canada partnering to develop and deliver leadership and management training for the management team of the Correctional Service. It will also create a visible presence for the Service in the province where currently there is only a small parole office in Charlottetown. I would like your views on whether or not there is a perceived conflict of interest with the proposal.

The Correctional Service of Canada [CSC] has had discussions with officials of the government of Prince Edward Island about the possibility of establishing an agreement where the government of Canada would enter into an agreement with the Government of Prince Edward Island to establish and in-residence leadership and management training program for CSC managers.

The need for such a program was identified by CSC as far back as 1992, but for various reasons, including budget constraints, did not proceed. The need has since increased. A number of reviews of the Service's management training programs have indicated much more needs to be done. In addition, much like the rest of the Public Service, approximately 70% of CSC's managers are eligible to retire before 2006. Development activity must be urgently accelerated to ensure the Service continues to effectively contribute to public protection.

The proposal is that the Government of Canada would make a capital contribution of approximately $6m over two years to refurbish a building owned by the Government of Prince Edward Island, and would contribute approximately $5m per year to have Prince Edward Island manage and administer the learning program for CSC. Given Holland College is the only organization in the province with skills and experience in correctional and management training, particularly the management of in-residence training; they are the choice of the Government of Prince Edward Island to manage their part of the agreement. The Correctional Service of Canada would ensure the Government of Canada obligations are met.

The conflict concern arises from the fact that the President of Holland College is my brother. I do not plan to take any part in the negotiation of the terms, or in the program as it evolves. That will be done between the Government of Canada, represented by CSC, and the Government of Prince Edward Island represented by Holland College. My brother will not gain any financial benefit.

The proposal requires Treasury Board approval to spend, given the amounts involved. CSC plans to reallocate resources form within its base. And for the Treasury Board review, as you are aware, I am not allowed to advocate for the proposal as it emanates from part of my portfolio.

I see this as a good initiative for the two levels of government and for the Correctional Service of Canada.

If you require more detail in order to provide advice, I would be please to provide it. A Treasury Board submission is being finalized to be presented to the Treasury Board September 28, 1999. As a result, I would appreciate your views by Friday, September 17, 1999.

Thank you in advance for your consideration of this matter.

Sincerely,

[ORIGINAL SIGNED BY LAWRENCE MACAULAY, P.C., M.P.]

 

 

September 14, 1999

Dear Mr. MacAulay:

Thank you for your letter of September 14, 1999 concerning the submission to Treasury Board for a management development proposal for the Correctional Service of Canada. As I understand, this proposal will be a partnership between the Government of Prince Edward Island and the Government of Canada to develop and deliver leadership training for the management team of Correctional Services.

You indicated that the Government of Prince Edward Island has selected Holland College to deliver the program in association with Correctional Service. The problem you have raised with me was that your brother is the President of the College.

Although you were not involved in any way in the selection of Holland College, my recommendation is that in view of your brother's involvement, the Treasury Board submission should be signed by a Minister other than yourself.

Yours sincerely,

[ORIGINAL SIGNED BY HOWARD R. WILSON]


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