Prime Minister Stephen Harper's incoming chief of staff has established an "ethical wall" that identifies how he won't be involved in certain issues — including discussion of the Canadian aerospace manufacturing industry — to avoid a conflict of interest.
The plan by Nigel Wright is laid out in documents provided to a parliamentary committee examining his appointment as Harper's top aide. Wright is on a temporary leave of absence from his job as managing director of Onex Corp., the Toronto-based private equity fund that manages billions of dollars in assets.
Opposition parties are concerned the temporary nature of his move to government could place the businessman in a conflict. Also, they note that Wright has worked on a wide range of issues for Onex in such areas as aerospace and defence. Critics say Wright will have to recuse himself so frequently from government discussions on those areas that he will be useless to Harper.
Wright, however, said his actions will be in full compliance with the Conflict of Interest Act, which he noted is designed to encourage "competent persons" to join government and also to "minimize the possibility of conflicts arising between the private interests and public duties of public office holders."
Wright started his leave of absence from Onex on Monday. He joins the Prime Minister's Office on Nov. 8 as a senior adviser and will become chief of staff on Jan. 1.
He said he has established a "conflict of interest screen," which he also calls an "ethical wall."
In the documents provided to MPs, he writes that he will "abstain from any involvement in the Canadian aerospace manufacturing industry."
Wright does not specifically say this would apply to discussions on the controversial F-35 fighter jet contract that has become a hot political issue, but the general wording of his promise likely means he will stay clear of the matter once in the PMO.
Furthermore, he writes that he will "abstain from any involvement in matters or issues" identified by Conflict of Interest and Ethics Commissioner Mary Dawson as being subject to the ethical wall.
Dawson has identified several "matters or issues" that would be considered conflicts for him in government, says Wright.
They are:
- Any dealings that Onex Corp., its operating businesses, subsidiaries and affiliates may have with the federal government (Wright provides a list of the 40 Onex businesses affected);
- The taxation of the Canadian private equity industry and its participants, including tax treatment of carried interest;
- The tax deductibility of cross-border interest expense with corporate groups;
- Any other matter that Dawson later concludes should be made part of the ethical wall;
Wright says he will not access documents, attend cabinet or committees, be briefed orally or in writing, attend meetings or participate in discussions whenever these areas are on the table.
Liberal MP Wayne Easter described Wright's plan as a "convoluted mess" that will require an "army of bureaucrats" to sort through documents to ensure he doesn't see policy areas that are supposedly blocked by the ethical wall.
Easter predicted the arrangement won't work well.
"I actually think it's an impossible task, in terms of the ethical wall and the connections that this individual has."
NDP MP Pat Martin agreed, saying Wright will be "useless" to Harper because he'll recuse himself so often.
"Mr. Wright would have to be outside the cabinet room more often than he is in. It's an untenable situation."
But Andrew MacDougall, Harper's press secretary, said Wright is pleased to talk to the MPs Tuesday about the ethical arrangements he has made to serve in government.
MacDougall said it's important to note that Onex and its subsidiary companies have never lobbied or approached the PMO.
"That will give you an idea of how often Onex is in the government's face," he said. "It hasn't been for the entire time we have been in office, so Mr. Wright will be fully able to manage his duties."
Also in documents given to MPs, Wright reveals that he has appointed deputy chief of staff, Derek Vanstone, to be the "supervisor" of the ethical wall. Vanstone will ensure other senior officials know of its existence so they exclude Wright from relevant discussions.
source: http://is.gd/gAJ8X
The plan by Nigel Wright is laid out in documents provided to a parliamentary committee examining his appointment as Harper's top aide. Wright is on a temporary leave of absence from his job as managing director of Onex Corp., the Toronto-based private equity fund that manages billions of dollars in assets.
Opposition parties are concerned the temporary nature of his move to government could place the businessman in a conflict. Also, they note that Wright has worked on a wide range of issues for Onex in such areas as aerospace and defence. Critics say Wright will have to recuse himself so frequently from government discussions on those areas that he will be useless to Harper.
Wright, however, said his actions will be in full compliance with the Conflict of Interest Act, which he noted is designed to encourage "competent persons" to join government and also to "minimize the possibility of conflicts arising between the private interests and public duties of public office holders."
Wright started his leave of absence from Onex on Monday. He joins the Prime Minister's Office on Nov. 8 as a senior adviser and will become chief of staff on Jan. 1.
He said he has established a "conflict of interest screen," which he also calls an "ethical wall."
In the documents provided to MPs, he writes that he will "abstain from any involvement in the Canadian aerospace manufacturing industry."
Wright does not specifically say this would apply to discussions on the controversial F-35 fighter jet contract that has become a hot political issue, but the general wording of his promise likely means he will stay clear of the matter once in the PMO.
Furthermore, he writes that he will "abstain from any involvement in matters or issues" identified by Conflict of Interest and Ethics Commissioner Mary Dawson as being subject to the ethical wall.
Dawson has identified several "matters or issues" that would be considered conflicts for him in government, says Wright.
They are:
- Any dealings that Onex Corp., its operating businesses, subsidiaries and affiliates may have with the federal government (Wright provides a list of the 40 Onex businesses affected);
- The taxation of the Canadian private equity industry and its participants, including tax treatment of carried interest;
- The tax deductibility of cross-border interest expense with corporate groups;
- Any other matter that Dawson later concludes should be made part of the ethical wall;
Wright says he will not access documents, attend cabinet or committees, be briefed orally or in writing, attend meetings or participate in discussions whenever these areas are on the table.
Liberal MP Wayne Easter described Wright's plan as a "convoluted mess" that will require an "army of bureaucrats" to sort through documents to ensure he doesn't see policy areas that are supposedly blocked by the ethical wall.
Easter predicted the arrangement won't work well.
"I actually think it's an impossible task, in terms of the ethical wall and the connections that this individual has."
NDP MP Pat Martin agreed, saying Wright will be "useless" to Harper because he'll recuse himself so often.
"Mr. Wright would have to be outside the cabinet room more often than he is in. It's an untenable situation."
But Andrew MacDougall, Harper's press secretary, said Wright is pleased to talk to the MPs Tuesday about the ethical arrangements he has made to serve in government.
MacDougall said it's important to note that Onex and its subsidiary companies have never lobbied or approached the PMO.
"That will give you an idea of how often Onex is in the government's face," he said. "It hasn't been for the entire time we have been in office, so Mr. Wright will be fully able to manage his duties."
Also in documents given to MPs, Wright reveals that he has appointed deputy chief of staff, Derek Vanstone, to be the "supervisor" of the ethical wall. Vanstone will ensure other senior officials know of its existence so they exclude Wright from relevant discussions.
source: http://is.gd/gAJ8X
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