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November 19, 1997
(Executive Council)

The following statement was issued today by Premier Brian Tobin. It was also read in the House of Assembly:

In the last few days we have heard in this house groundless and unsubstantiated accusations of conflict of interest. The accusations are, in my view, politically motivated. They constitute an unfair attack on a member of this House and his family.

The conflict of interest provisions in place are designed to protect the public interest. This is fundamental. However, conflict of interest provisions must also act in a way which shelters those who serve from baseless accusations. With this in mind, today I am pleased to inform the House that I have put in place additional conflict of interest guidelines for Cabinet Ministers. These guidelines are in addition to the legislative requirements concerning conflict of interest set out in Part II of the House of Assembly Act.

The act, as administered by the Commissioner of Members' Interests, Mr. Bob Jenkins, sets out a good framework to protect the public interest and avoid conflicts of interest. These additional guidelines go further than the act, to ensure there is not only no conflict of interest, but that there is also no appearance of any such conflict.

The guidelines will take effect immediately. Ministers will have 30 days in which to comply with them. The guidelines will be administered by the Commissioner of Members' Interests. The additional guidelines are:

(1) Ministers shall place in a blind trust all assets, financial interests or other sources of income within the definition of "private interest" in S. 20 (e) of the Act, except for those that are an "excluded private interest" within the definition of S. 20 (a) of the act;

(2) Trustees for these blind trusts shall be other than members of the Minister's immediate family; and

(3) Ministers shall cease to serve as directors or officers in a company or association, as referred to in S. 20 (e) (iii) of the act.

For the purpose of these guidelines: "blind trust" shall mean one in which the trustee is empowered to exercise all of the rights and privileges associated with the trust assets and makes all investment decisions concerning their management, with no direction from or control by the minister who placed the assets in trust; and, "immediate family" shall mean parent, child, sibling or spouse.

I repeat, these guidelines shall be administered by the Commissioner of Members' Interests. Ministers shall comply with these guidelines promptly and, within 30 days at the latest shall report to the Commisioner of Members' Interests on the steps taken to do so.

All members of Cabinet are now in compliance with the conflict of interest requirements of the House of Assembly Act. They now have 30 days to comply with these additional conflict of interest guidelines.

I have taken these measures to provide further assurance that the public interest is not only protected, but is seen to be so. That is important.

It is also important to ensure that those who have had success in business are not discouraged from offering themselves for elected office. To do so would be unfair and unwise. I believe that these additional conflict of interest guidelines make clear that the public interest is being protected, without discouraging those who may wish to participate in public life.

BACKGROUNDERS

CONFLICT OF INTEREST GUIDELINES

These guidelines on conflict of interest apply to members of Cabinet; they are in addition to the requirements set out in Part II of the House of Assembly Act ("the Act"). The guidelines set out additional measures to avoid any appearance of conflict of interest.

1. Ministers shall place in a blind trust all assets, financial interests or other sources of income within the definition of "private interest" in S. 20 (e) of the Act, except for those that are an "excluded private interest" within the definition of S. 20 (a) of the Act;

2. Trustees for these blind trusts shall be other than members of the Minister's immediate family; and

3. Ministers shall cease to serve as directors or officers in a company or association, as referred to in S. 20 (e) (iii) of the Act.

For the purpose of these guidelines: "blind trust" shall mean one in which the trustee is empowered to exercise all of the rights and privileges associated with the trust assets and makes all investment decisions concerning their management, with no direction from or control by the Minister who placed the assets in trust; and, "immediate family" shall mean parent, child, sibling or spouse.

These guidelines shall be administered by the Commissioner of Members' Interests. Ministers shall comply with these guidelines promptly and within 30 days shall report to the Commisioner of Members' Interests on the steps taken to do so.

HOUSE OF ASSEMBLY ACT

PART II
CONFLICT OF INTEREST

20. In this Part

(a) "excluded private interest" means

(i) an asset, liability or financial interest of less than $10,000 in value,

(ii) a source of income of less than $10,000 a year,

(iii) real property that is used primarily for a residence or for recreation,

(iv) personal property used for transportation, household, educational, recreational, social or aesthetic purposes,

(v) cash on hand or on deposit with a financial institution that is lawfully entitled to accept deposits,

(vi) fixed value securities issued by a government or municipality in Canada or an agency of a government or municipality in Canada,

(vii) a registered retirement savings plan, retirement or pension plan or employee benefit plan, that is not self-administered.

(viii) an investment in an open-ended mutual fund that has broadly based investments not limited to 1 industry or 1 sector of the economy,

(ix) a guaranteed investment certificate or similar financial instrument,

(x) an annuity, life insurance policy or pension right,

(xi) an asset, liability or financial interest that is held

(a) as executor, administrator or trustee, or

(b) by bequest or inheritance, during the 12 months following the date it devolves, and

(xii) an interest certified by the commissioner as being an excluded private interest;

 

(e) "private interest" means;

(i) an asset, liability or financial interest,

(ii) a source of income,

(iii) a position of director or officer in a corporation or association,

(iv) membership of a board, commission or agency of the Crown in right of Canada or a province, or a municipality, and

(v) an office, commission or employment in the service of the Government of Canada or a province, at the nomination of the Crown in right of Canada or a province, or an officer of the Crown in right of Canada or a province;