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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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