June 11, 2002
Ottawa, Ontario

Fulfilling a pledge made in his May 23, 2002 address to the House of Commons to enhance the trust of Canadians in our public institutions, Prime Minister Jean Chrétien today released new guidelines for ministerial dealings with Crown corporations, as well as guidelines to govern ministerial activities for personal political purposes. In addition, he announced a change to the appointment procedure for the Ethics Counsellor that will give the office new stature in how it reports and operates.

"Ministerial probity and integrity - in fact and in appearance - are the foundation of democratic government," said the Prime Minister. "Today’s announcement builds on our record of achievement and strengthens governmental ethics by establishing new guidelines for ministerial conduct that take into account the recent evolution in the governance of Crown Corporations, as well as the fundamental right of Canadians to the assurance that the private political interests of ministers do not create any real or apparent conflicts of interest with the public trust. And while I remain ultimately accountable to Canadians for the conduct of the Ministry, the additional steps of making the position of Ethics Counsellor a 5-year appointment made in consultation with the leaders of the opposition parties, and requiring the concurrence of Parliament for dismissal, will help alleviate any concerns as to the independence of the office."

The Eight Point Action Plan builds on the government’s substantial record of achievement in building public trust in government institutions - a record with includes:

• Making it possible for the Auditor General to make more frequent reports;
• A more comprehensive Conflict of Interest Code for public office holders;
• The introduction of the post of Ethics Counsellor, the first such office to be created in any Commonwealth country; and,
• Substantial reforms to the Lobbyists Registration Act.

As promised in his speech to the House of Commons on May 23, 2002, the Prime Minister has released the following three documents:

The Guide for Ministers and Secretaries of State

The Guide contains the Prime Minister's personal advice to the members of the Ministry on a wide range of issues, from ethical conduct to management priorities, and reminds Ministers and Secretaries of State of their constitutional, legal and ethical responsibilities while holding public office. Ministers and Secretaries of State are also expected to comply with the Conflict of Interest and Post-Employment Code for Public Office Holders.

Guidelines for Ministerial Dealings with Crown Corporations

Developed in keeping with the standards of conduct outlined in the Guide, these guidelines will reinforce the managerial autonomy of Crown corporations and limit direct contact between all members of the Ministry and Crown corporations. In cooperation with Crown corporations, the offices of Ministers responsible for Crown corporations will establish procedures so that their staff can refer representations from parliamentarians and constituents to Crown corporations for appropriate action. Crown corporations will be expected to record all such referrals.

Guidelines to Govern Ministerial Activities for Personal Political Purposes

The guidelines are based on the principles of public office set out in the Conflict of Interest and Post-Employment Code, and reflect the standards of conduct outlined in the Guide. Under these guidelines, Ministers may opt to put contributions in a blind trust that will be disclosed no later than thirty days before a convention. Donations, including contributions in kind, collected outside of a blind trust or which otherwise become known to a Minister, must be disclosed every 60 days.

Funds, and donations in kind, received prior to the publication of these guidelines will be disclosed within 30 days. Those working on a Minister's leadership campaign will be ineligible either to lobby or to receive contracts from the Minister's department or any agencies in the portfolio. Ministerial exempt staff wishing to become engaged full time in a leadership campaign must take a leave of absence without pay or resign.

In addition to the pledges made in his May 23, 2002 address, the Prime Minister today announced this additional step:

The Prime Minister announced today that the Ethics Counsellor will be appointed after consultation with the leaders of the opposition parties, serving for a term of 5 years. Further, dismissal could only take place with the concurrence of Parliament. In addition, the Ethics Counsellor will inquire into complaints, or other matters related to a Minister of the Crown, referred to his Office by any member of Parliament. As promised by the Prime Minister on May 23, 2002, there will now be an annual report on the activities of the Office of the Ethics Counsellor that will be presented to the Speaker of the House.

The Prime Minister today also released further, substantive details on the other elements of the Eight-Point Action Plan outlined in the House of Commons on May 23, 2002. The Prime Minister has asked responsible ministers to ensure that the various legislative elements of these agenda items are introduced soon after the House resumes in September. And he reaffirmed that all parliamentarians will have a role to play in making progress on this agenda

Code of Conduct for MPs and Senators

Drawing inspiration from the 1997 Milliken-Oliver Report, the government will seek the support of Senators and Members of Parliament for a code of conduct for all parliamentarians that will include an officer reporting to Parliament who will advise MPs and Senators on ethical matters. The government will ask that Parliament begin the development of such a code in the autumn.

Lobbyists Registration Act

Building on the work of the Industry Committee, in the fall the government will bring forward changes to the Lobbyists Registration Act, with the objective of improving its clarity, transparency and enforceability, and ensuring that the Government of Canada has one of the most rigorous regimes in the world. Important elements of this regime will include a clearer definition of lobbying and the need to register, stronger enforcement provisions, and simplified registration and strengthened deregistration procedures. In addition, measures will be brought forward to prohibit lobbying by former public office holders for a period of two years after leaving office.

Financing of Political Parties and Candidates

The government will introduce strengthened legislation governing the financing of political parties and candidates to enhance fairness and transparency. Changes will be proposed to set specific limits on donations from corporations, unions and individuals, and to introduce enhanced tax measures facilitating individual contributions. All Members of Parliament will be required to disclose all contributions on a regular basis. As well, financing of political parties' leadership campaigns will be regulated by law.

Strengthening Public Service Management and Accountability for Public Funds

To promote propriety and due diligence in the management of public funds and building on the framework established in the Financial Administration Act, the President of the Treasury Board will bring forward recommendations to enhance accountability for the expenditure of public funds, including mechanisms for more explicit accounting of departmental affairs by deputy ministers.

Background information on elements of the government’s strategy is attached.

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PMO Press Office: (613) 957-5555

In our system of government, the Prime Minister is responsible for judging the conduct of Ministers and Secretaries of State. The Guide for Ministers and Secretaries of State constitutes the Prime Minister’s personal advice to the members of the Ministry on a wide range of issues.

In the area of ethical conduct, the Guide reflects the fundamental principles outlined in the Conflict of Interest and Post-Employment Code for Public Office Holders. Ministers and Secretaries of State are expected to act with honesty so that public confidence and trust in the integrity and objectivity of government is conserved and enhanced. Ministers and Secretaries of State must act in keeping with the highest standards of conduct.

The issues addressed in the Guide support good government in Canada:

• the fundamental principles of ministerial responsibility and accountability;
• ministerial management of portfolio responsibilities, including their management of exempt and departmental staff and their relationships to Ministers of State, Secretaries of State, Parliamentary Secretaries, with advice and support provided by Deputy Ministers;
• ministerial relations with Parliament, including appearances before the House and Senate committees by Ministers and officials;
• the importance of appropriate consultation and the need to work with mechanisms for coordination;
• the high standards of conduct applicable to Ministers and Secretaries of State, including:
• the conflict of interest and post-employment compliance measures found in the Conflict of Interest and Post-Employment Code for Public Office Holders, as well as the Code’s object and principles, and
• the rules respecting ministerial relations with the judiciary, quasi-judicial bodies and other government agencies; and
• an overview of policies on Ministers’ and Secretaries of State’s offices and exempt staff, access to Cabinet and ministerial confidences, and public access to information and privacy.

The Guide also contains four Annexes, which outline:

• the basic roles and responsibilities of executive authority in Canada’s system of responsible parliamentary government;
• the main elements of the organization and conduct of decision making in Cabinet;
• the Prime Minister’s responsibilities regarding appointments; and
• the rules applicable to Cabinet documents, institutional records, ministerial records and personal and political records.

In our system of government, one of the most important responsibilities of Members of Parliament is to represent the interests of their constituents; that responsibility is not extinguished by virtue of being appointed to the Ministry.

Since 1995, the government has outlined a more explicit governance structure for Crown corporations, emphasizing the autonomy of Crown corporations and the responsibilities of the board of directors for the direction and management of the corporation, while formalizing the relationship of the Crown corporation to its responsible Minister, who establishes the corporation’s broad policy orientation.

These guidelines were developed in order to clarify the relationship between Ministers and Crown corporations when dealing with constituency matters and to strengthen the managerial autonomy of Crown corporations. They do not change the normal interaction Ministers have with the Crown corporations in their portfolios, such as determining the broad orientations of the corporation and approving corporate plans.

Six specific guidelines applicable to all members of the Ministry when dealing with Crown corporations have been established:

1) Ministers should not personally promote the private interests of any individual, corporation or non-governmental organization, including a constituent, with any Crown corporation.

2) A Minister may always raise the concerns of constituents directly with the Minister responsible for the Crown corporation.

3) Dealings with Crown corporations on constituency matters should be done by the staff of the Minister.

4) The staff of a Minister may not make representations, on behalf of a constituent, to any Crown corporation which falls within their Minister’s portfolio.

5) The office of the Minister responsible for a Crown corporation should establish a procedure, in cooperation with the corporation, to enable the Minister’s staff to refer the representations of parliamentarians, other Ministers or their offices, constituents and the public, to the Crown corporation for appropriate action. Crown corporations will be expected to record such referrals.

6) Nothing in these guidelines limits social contacts or contacts initiated by a Crown corporation with a Minister.

The guidelines are consistent with the principles of the Conflict of Interest and Post-Employment Code for Public Office Holders, which prohibits Ministers and Secretaries of State from stepping out of their official roles to assist private entities or persons in their dealings with government where this would result in preferential treatment to any person.

The guidelines strike a balance between fulfilling the responsibilities of Ministers and Secretaries of State as Members of Parliament and as members of the Ministry.

The guidelines on ministerial activities for personal political purposes address four specific areas: government contracts, lobbyists, ministerial offices and fundraising. The Ethics Counsellor should be consulted by Ministers and Secretaries of State on compliance with the requirements.

Government Contracts

The guidelines require a separation between individuals involved in a leadership campaign and any work carried out under contract in the Minister’s department.

The Minister must decline the support of the individual or the individual must cease the contract work for the department or refrain from involvement in the contract if the contract is held by a firm, for as long as the individual is involved in a leadership campaign.

Lobbyists

Where an individual is a lobbyist registered under the Lobbyists Registration Act to lobby a Minister’s department, the Minister must decline the support of the individual or the individual must cease to lobby the department, so long as the individual is involved in a leadership campaign.

Ministerial Offices

These guidelines extend the rules against the use of public funds for partisan political activities to leadership campaigns. Accordingly, if a trip is primarily for official ministerial purpose, subsequent events related to a leadership campaign are permissible. Ministers will be responsible for ensuring that any publicly-funded trip has official business as its central purpose.

Furthermore, ministerial exempt staff wishing to become engaged full-time in a campaign must take a leave of absence without pay or resign.

Fundraising

Fundraising is an important part of the political process, including for leadership campaigns. But leadership fundraising when it is to support directly the personal political interest of a Minister does raise several questions which need to be carefully managed.

Disclosure of contributions is an important element in most political fundraising. This is also the case for a leadership campaign. Without disclosure of all contributions, both financial and those in kind, there may be concerns that the Minister has undeclared future obligations to those who contributed to his or her campaign.

To avoid this, Ministers raising money for a leadership campaign may opt to put contributions in a blind trust to be disclosed at an appropriate time, and no later than 30 days before a convention.

All contributions, including contributions in kind, collected outside of a blind trust, or which otherwise become known to the Minister, will be disclosed every 60 days. All contributions, both financial and in kind, that were received before the publication of these guidelines will be disclosed within 30 days.

Ministers should consult with the Office of the Ethics Counsellor when establishing a blind trust or putting in place procedures for fundraising and disclosure.

These guidelines do not apply to campaign expenditures, nor to funds raised for a political party as they were not raised for personal political purposes.

ETHICS COUNSELLOR

The Prime Minister announced today that the Ethics Counsellor will be appointed after consultation with the leaders of the opposition parties, serving for a term of 5 years. Further, dismissal could only take place with the concurrence of Parliament. In addition, the Ethics Counsellor will inquire into complaints, or other matters related to a Minister of the Crown, referred to his Office by any member of Parliament.

As promised by the Prime Minister on May 23, 2002, there will now be an annual report on the activities of the Office of the Ethics Counsellor that will be presented to the Speaker of the House.

The report will provide background on the Office of the Ethics Counsellor and the Conflict of Interest and Post-Employment Code for Public Office Holders, outline the reporting relationship and advisory role of the Office, report on parliamentary appearances, and provide information on reviews and complaints investigated, while respecting the privacy of any parties involved. It will also deal with work the Ethics Counsellor has done with other jurisdictions.

The report is intended to allow Parliament and Canadians to be kept well informed of the work of the Office of the Ethics Counsellor. The Ethics Counsellor will also be available to appear before parliamentary committees to answer questions on the report.

The Ethics Counsellor’s first annual report will be tabled this fall and will be accessible to the public on the Ethics Counsellor’s website.

CODE OF CONDUCT FOR MPS AND SENATORS

This fall, the government will seek the support of all Senators and Members of Parliament for a Code of Conduct for all parliamentarians, including Ministers, with an independent officer of Parliament to advise MPs and Senators on ethical matters, reporting to Parliament.

In 1997, the Milliken-Oliver Committee recommended a Code of Conduct for all parliamentarians.

• The proposed Code would consolidate and strengthen existing rules and would apply to all MPs and Senators. As suggested in the Report, where the Prime Minister’s Conflict of Interest and Post-Employment Code for Public Office Holders has more stringent requirements for Ministers and Parliamentary Secretaries, these would take precedence.
• The Code would be overseen by an independent parliamentary officer reporting to Parliament. The officer would come under the direction of a standing joint committee on official conduct, and would have the power to investigate complaints. If a complaint could not be resolved, the matter would be referred to the joint committee which would review the case and report to the relevant Chamber. The relevant Chamber would decide upon sanctions, if required.
• The Code’s disclosure regime would require all parliamentarians to file a confidential statement listing major financial assets, liabilities, sources of income and directorships, for themselves and their spouses and dependents, with a summary of this information made public.
• The Code would set rules on the receipt of gifts and personal benefits, and would require parliamentarians to disclose trips worth more than $250 funded in whole or in part by a sponsoring company or organization.
• The Code would enumerate and strengthen existing provisions which prohibit parliamentarians from taking actions, making decisions, or using influence to benefit themselves or their families; using insider information for personal gain; voting on matters in which they have a direct financial interest; and being party to a government contract that bestows a benefit.

A Code of Conduct will reassure Canadians that high standards of conduct apply and are adhered to by all Parliamentarians.

The Milliken-Oliver Report was tabled in the spring of 1997, but a parliamentary consensus for its adoption was not reached before the June 1997 election. The government believes the Report is a non-partisan and effective approach to a Code of Conduct and is worthy of support by all MPs and Senators.

The Prime Minister has asked the Leader of the Government in the House of Commons, with the Leader of the Government in the Senate, to work with the government’s caucus and opposition parties so that Parliament can consider a Code of Conduct by October 2002.

The government will support parliamentary adoption of a Code of Conduct by year-end.

LOBBYISTS REGISTRATION ACT

Building on the work of the Industry Committee, early in the fall, the government will introduce changes to the Lobbyists Registration Act to strengthen clarity, transparency and enforcement.

The new bill will include:

• a clearer definition of lobbying and the need to register;
• stronger enforcement provisions, including disciplinary measures and penalties; and
• simplified registration and strengthened deregistration requirements by requiring all lobbyists to update or renew their filings every six months, with a single system of registration for corporations and non-profit organizations.

These measures will draw on provincial and international experiences, ensuring that Canada has one of the most rigorous regimes for lobbying in the world.

The government will seek the support of the House and Senate to pass the Bill by year-end.

In addition, measures will be brought forward under the Conflict of Interest and Post-Employment Code for Public Office Holders, to prohibit lobbying by former public office holders for a period of two years after leaving office.

The government will consult other parties and propose changes this fall to rules governing the financing of political parties and candidates to enhance the fairness and transparency of the electoral system. The overarching objective of this reform will be to ensure that all contributions and expenditures are fully and clearly disclosed. Changes will be proposed requiring that all:

• transfers of funds made by provincial political entities as well as from trust funds and local electoral district associations name the original contributors to those bodies;
• contributions received by Members of Parliament be disclosed on a regular basis; and
• contributions be receipted.

Other disclosure requirements will be proposed to achieve increased political transparency. These include disclosure of contributions made to, and expenses incurred by:

• contestants for the leadership of a political party; and
• contestants for party endorsement.

The regime governing contributions to political parties will be reviewed, and the following proposals will be considered:

• limiting corporate, union and individual contributions;
• limiting the amount that may be contributed by any contributor;
• developing tax-based approaches to further facilitate the making of contributions by individuals; and
• developing, if necessary, other government subsidies of the electoral process to compensate for the smaller pool of contributors and/or smaller amounts of money given.

The government will consult with MPs, experts and other stakeholders to ensure that proposals are practical and effective, prior to the introduction of legislation in the fall.

While Ministers hold constitutional and legal responsibilities for their departments, the day to day work of public administration is carried out in the departments and agencies of the Government of Canada under the supervision of deputy ministers and deputy heads.

Deputy ministers are appointed to support ministers to fulfil their responsibilities, including appearing before Parliamentary committees on behalf of their minister. In order for deputies to fulfill their roles in a responsible manner and to be held accountable for their performance, new measures will be introduced to provide for more explicit accounting by deputies for the affairs of their department. Building on the framework established in the Financial Administration Act (FAA), this initiative will lead to enhanced accountability mechanisms in Parliament and in public for proper management practices.

In the United Kingdom, department heads are appointed as the Accounting Officer for funds voted by Parliament. Under the Minister, the Accounting Officer has responsibility for the overall organization, management and staffing of the department and for department-wide procedures in financial matters, while serving the Minister in charge of their department.

The Prime Minister has asked the President of the Treasury Board to develop recommendations by the fall to enhance accountability for the expenditure of public funds consistent with the FAA. These recommendations will include specific measures on the responsibilities and reporting requirements of deputy ministers and deputy heads with respect to their administration of the FAA.

Ministers will continue to be responsible to Parliament for the policies, actions and conduct of the department.