Wednesday, October 27, 2010

Bill to end abuses in overseas mines up final vote.

OTTAWA — A Liberal private member's bill that makes it illegal for Canadian mining companies to commit human-rights abuses abroad faces a "very tight" final vote in the House of Commons on Wednesday.





Toronto MP John McKay's bill calls for "corporate accountability" of mining, oil and gas corporations in developing countries.





It follows what he says is growing evidence of abusive behaviour — despite some companies' claims to the contrary.





"Regrettably, the facts show otherwise," said McKay. "They show companies involved in human-rights abuses, they show companies involved in using rape and murder as measures of security in order to secure their sites, they show companies operating without licenses in countries, they show significant environmental degradation."





The bill would punish companies found to be engaging in immoral behaviour by putting sanctions on their Export Development Canada funding, as well as removing embassy promotion. EDC is an export credit agency that provides financing and "political risk" insurance to companies that invest abroad, sometimes in volatile regions.





McKay's bill narrowly passed in an April 2009 vote of 137 to 133. It then languished at the committee stage for over a year due to extensions and prorogation.





If passed, the legislation would set up a "quasi-administrative" process within the Department of Foreign Affairs to investigate complaints.





McKay said Canadians possess a "wilful blindness" toward the issue, perhaps not understanding that Canada represents over 60 per cent of mining companies around the world.





"Canada is a world leader in this, in the extractive industry . . . what happens here has got worldwide influence," he said.





McKay also acknowledged the pull of the industry itself.





"I don't think you can ever underestimate the power and the influence of mining companies in the corridors in Ottawa and everywhere else," he said. "They're immensely influential, and they've got very deep pockets, and they are able to get the attention, shall we say, of people who are decision-makers."





The MP said that Wednesday's vote is expected to be "very tight."





"We're always trying to turn people to see the light . . . We'll see how (Tuesday) and (Wednesday) goes to get people around," he said.





Minister of International Trade Peter Van Loan said he "fully intends to vote against it," citing concerns that if the bill was passed, it could drive mining companies out of Canada because it would create unnecessary red tape for them.





"Mining companies are headquartered in Canada not because they're actually doing mining here, but because Canada has a historically well-developed expertise (in the field)," he said.





"Those companies could just as well move their headquarters elsewhere," said Van Loan. "If we create a very unlevel playing field between Canada and other countries that could be perfectly good locations for headquarters, perfectly good sources for capital and markets, we will find that we will lose those businesses and the jobs associated with them.





"Paradoxically, because Canadians are such good corporate citizens, we're actually encouraging them to abandon their good practices here and go elsewhere abroad where they will be less constrained by the discipline of the Canadian marketplace and Canadian society."





A mining industry representative called the bill's goals "laudable," but said the means to get there have him concerned.





"Canadian mining companies are global leaders in the area of CSR (corporate social responsibility) and the objective of a bill like C-300 is laudable, and to be commended," said Paul Hebert, a spokesman for the Mining Association of Canada.





"But the way this bill is constructed, we don't feel it would accomplish what it intends to accomplish," said Hebert. "We're concerned that what it would do is punish Canadian mining companies not based on their behaviour but based only on complaints. Effectively, what it would be doing is opening a complaints desk at the Department of Foreign Affairs and International Trade (DFAIT), and all complaints would have to be reported regardless of substance."





Hebert said that the bill would put more power in the hands of the minister of foreign affairs in responding to complaints, instead of giving it to an independent ombudsman.





"We feel there are more constructive ways forward to promote, support and improve corporate social responsibility," he said, pointing to DFAIT's appointment of Marketa Evans as Canada's first counsellor of corporate social responsibility for mining.





Evans' role will see her help in "resolving social and environmental issues relating to Canadian companies operating abroad," a DFAIT statement from last week read.





The counsellor, while not imbued with the power to render verdicts in disputes, would file an annual report with the minister of natural resources and the minister of international trade on how Canada's mining companies handled themselves abroad.





But some unlikely support for McKay's bill came Tuesday — from south of the border.





Maryland Senator Ben Cardin, a Democrat who introduced a bipartisan bill that would require American energy companies to disclose what they pay for oil, gas and minerals from U.S. and foreign governments, said he supports McKay's bill and planned on sending a note to all MPs, urging them to pass it.





"I've never had a U.S. senator lobby for my legislation," said McKay.





According to McKay's office, EDC investments in 2008 helped facilitate more than $27 billion in business in the mining sector.







Read more: http://www.vancouversun.com/business/Bill+abuses+overseas+mines+tight+final+vote/3730470/story.html#ixzz13X0zpwMg

Tuesday, October 26, 2010

Veteran Bruyea gets apology : Personal info of outspoken critic ended up in ministerial briefings.

The federal government has apologized to Sean Bruyea, a Canadian Gulf War veteran and Veterans Affairs critic whose sensitive personal and medical information was illegally shared by officials in the department.



It comes after the federal privacy commissioner found Veterans Affairs officials broke the law by including Bruyea's medical and psychological diagnosis and treatment in ministerial briefing notes and also sharing it with a veterans' hospital.



In an interview with CBC News on Monday from Ottawa, Bruyea said he and his wife broke down in tears when they first heard about the apology.



"It's been quite a trying five years, so for us, it means a lot," Bruyea said.



In a statement, Veterans Affairs Minister Jean-Pierre Blackburn also said the government is immediately launching an "expedited mediation procedure" to resolve Bruyea's legal case against the government and several departmental officials.



"I was very troubled to learn that personal information concerning you was shared among public servants who had no need for this information in order to do their work," Blackburn said in his statement.



"I recognize that this information sharing has caused you needless suffering and anxiety, and for that the government and I are truly sorry."



The minister also acknowledged for the first time that other veterans might have been subjected to similar privacy breaches.



"I also extend my sincere regrets to anyone who may have gone through the same situation," Blackburn said.



Bruyea started a $400,000 court action after learning through access-to-information requests he filed that his privacy rights were breached.



But he insisted the lawsuit was not about the money, but his way of trying to fix the system "so it doesn't happen to any other veteran or any Canadian, for that matter."



"I'm very grateful for the apology and I don't want anything to distract from that, but we cannot trust that the bureaucrats who did this wrongdoing will fix it themselves," Bruyea said.



From Gulf War vet to Veterans Charter critic

The decorated former intelligence officer fought for years for modest monthly disability pension from Veterans Affairs after being medically released from the military in 1996 with symptoms of Gulf War syndrome and post-traumatic stress disorder.



He became an outspoken critic of the 2006 Veterans Charter's replacement of life-time guaranteed pensions for veterans with a one-time lump-sum payment.



Privacy commissioner Jennifer Stoddart found that Bruyea's personal information ended up in March 2006 briefing notes of the former minister in charge, Greg Thompson, while his medical information, including diagnosis, symptoms and prognosis, were also found in a second ministerial briefing note dating back to 2005 under the former Liberal government and then minister.



In her report released earlier this month, Stoddart said she found it "alarming" that Bruyea's information was shared "seemingly with no controls" among departmental officials "who had no legitimate need to see it."

Bruyea said the actions of department officials left him and his wife in a "humiliating state of powerlessness and vulnerability" and in "constant terror" of what the department, which controlled 100 per cent of his income at the time, would do next.



Blackburn, who got the Veterans Affairs portfolio eight months ago after Thompson left politics, has pledged to act on Stoddart's recommendations and vowed to increase penalties for bureaucrats who break the rules.







Read more: http://www.cbc.ca/politics/story/2010/10/25/veterans-affairs-bruyea.html#ixzz13RAHtsbb

Monday, October 25, 2010

Tories await stimulus program audit Auditor General Sheila Fraser will release the report

OTTAWA — Canadians will learn the answer Tuesday to a question that could turn federal politics upside down. Has Auditor General Sheila Fraser found shortcomings with Prime Minister Stephen Harper’s much-touted economic-stimulus program?



Ms. Fraser will release a report that includes an audit of the stimulus package from the 2009 budget, when the Conservatives rushed billions of dollars out the door to rescue the economy.



For months, speculation has been mounting about whether the report will be politically explosive or contain only minor revelations that would barely wound the Tories.



Two questions are at the heart of the matter: Did the Harper government bend the rules and allocate funds to economic-stimulus projects that didn’t qualify for the money? And did a disproportionate share of the cash get funnelled into ridings held by Conservative MPs?



Ms. Fraser is expected to provide an answer to the first question, and likely stray away from the second. Still, if she finds the government unduly acted in haste as it hurried to limit the political damage of the recession, it could leave the Tories scrambling to protect their claim of being good fiscal managers.



Moreover, the irony of Ms. Fraser’s report isn’t being lost on federal politicians.



It was Ms. Fraser who released reports in 2002 and 2004 that exposed shoddy spending controls in the Quebec sponsorship program established by the Liberal government then in power. This led to an RCMP investigation, an inquiry and the conclusion by many Canadians that the Liberals were using public funds to feather their own political nests.



The problems initially unearthed by Ms. Fraser also ignited voter anger, gave Harper a convenient campaign issue, and eventually led to the election of the Conservatives in 2006.



Is history about to repeat itself?



NDP MP Thomas Mulcair says he thinks it might.



“When the Liberals were faced with a real national unity crisis in the wake of the near-death experience we all went through in the 1995 referendum they convinced themselves that the normal rules don’t apply, the emergency is too great, and we got the sponsorship scandal,” he said.



“The Conservatives, looking at a real worldwide economic crisis, said the danger is too great, the normal rules don’t apply and they went ahead with their so-called infrastructure spending. What we’re going to learn probably from Sheila Fraser is that the normal rules were being bent.”



Mr. Mulcair said such a finding would be “devastating” for the Conservatives because the criticism will come not from political foes who can be attacked, but from an auditor general with “moral authority” and great credibility.



For her part, Ms. Fraser has been cautious to avoid publicly tipping her hand. Her office said the audit examined 11 programs under the government’s Economic Action Plan and “what steps it took to ensure that only eligible projects were funded.”



The audit also probed how the government complied with “financial management and environmental requirements” for the program.



Perhaps the best hint of what to expect came in a letter she wrote to the senior bureaucracy in 2009 as she launched the audit of the stimulus plan.



“I appreciate that managers will face challenges in implementing the plan, given the very tight time constraints. They will need to balance the government’s wish to move quickly with the requirement to exercise due regard; this will require a sound analysis of risk, and appropriate delivery mechanisms commensurate with those risks. The program design — notably the degree of flexibility and the specificity of eligibility criteria — will be a critical aspect of managing the plan.”



Ms. Fraser’s report on Tuesday also contains the audit findings of other issues that could prove embarrassing for the Tories: A military acquisition program of two helicopters (the Cyclone and Chinook); government preparedness for animal disease emergencies; the regulation of large banks; and tax shelters for people who give to charities.



“I have a feeling they’re going to get their butts kicked on Tuesday,” said Mr. Mulcair.



Liberal MP John McCallum said he isn’t so sure the audit on stimulus spending will be very informative. Apart from learning whether the Tories “followed their own rules,” he’s not counting on learning much from this report.



He said the real damage could come from a second audit being conducted by Fraser’s office of the stimulus program. It will examine the results of how the funds were spent, but the report won’t be released until the fall of 2011.



Mr. McCallum said Canadians deserve answers to a wide range of questions.



“Were all the environmental rules followed? Was the allocation of the funding politically neutral or not? Was the tendering process appropriate? There’s all sorts of questions that would be nice to get answers to, but my guess is those won’t come until 2011.”



The Tories have always delivered twin messages on the program: They discount research by opposition parties that suggests Conservative ridings have tended to benefit from the stimulus package. And while promising to provide oversight of the program, Mr. Harper’s ministers said they couldn’t guarantee perfection.



Finance Minister Jim Flaherty, in a speech just weeks after the January 2009 budget, spoke of how he was trying to quickly kick-start the economy.



“There will be some mistakes made,” he admitted, saying even Ms. Fraser knew this would occur.



“So is it worth taking a risk that there will be some mistakes? My answer is yes. The much greater risk is that — and I’ve had this discussion with the auditor general — we don’t act in time and that we see tens of thousands of Canadians suffer more than they have to.”







Read more: http://www.nationalpost.com/news/Tories+await+stimulus+program+audit/3719341/story.html#ixzz13LCFUWwc

Sunday, October 24, 2010

'I wondered if I would get the job if I applied for it today,'Auditor General Sheila Fraser tells CBC.

Sheila Fraser reflects on end of AG term

'I wondered if I would get the job if I applied for it today,' she tells CBC

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CBC News

Auditor General Sheila Fraser might not be deemed eligible for the job she has held for a decade based on the new job requirements that appear in the ad seeking her replacement, she joked in a CBC interview.



Auditor General Sheila Fraser's 10-year tenure is set to expire in May 2011. (Fred Chartrand/Canadian Press)

The government's ad seeking a new auditor general to replace Fraser after her term ends May 31, 2011, reads:



"Being a team player, [the successful candidate] will also be action-oriented and will possess a constructive approach."



In a lengthy interview to air Saturday on CBC Radio's political affairs program The House, Fraser reflected on the new job description and her 10-year tenure.



"I wondered if I would get the job if I applied for it today," Fraser said.



There has been speculation on the Hill as to what the term "team player" means within the context of a role that is supposed to be an arm's length overseer of government.



The House airs on Saturday morning at 9 a.m. on CBC Radio 1 and is replayed at 12 a.m. on Sunday.

But Fraser isn't as concerned as other critics have been.



"I know there are a couple of people who sort of have expressed concern about what that actually means, but you do have to work [with others]," she said. "It is important that the auditor general establish good, professional working relationships with a number of people."



On Tuesday, Fraser will release her first audit into the federal government's stimulus spending program.



There will be a second report on the topic next year, but Fraser won't be around for that one.



"When I'm gone, it will be my successor who will have the pleasure of tabling that," she said.



One report Fraser will be around to table is an audit of the Public Sector Integrity Commissioner's office.



Commissioner Christiane Ouimet resigned earlier this week after employees complained of a "difficult" work environment that had caused several of Ouimet's subordinates to leave the office.



Fraser said in the interview she plans to table her audit into that office before her term ends.





Read more: http://www.cbc.ca/politics/story/2010/10/22/auditor-general-sheila-fraser-house.html#ixzz13FX1mEqU

Saturday, October 23, 2010

The Supreme Court of Canada has sent a case involving a newspaper reporter who refused to reveal confidential sources in a federal sponsorship scandal back to a lower court.

Canada court sends reporter sources case back to Quebec



22 October 2010 at 14:58 ET Canada court sends reporter sources case back to QuebecThe Supreme Court of Canada has sent a case involving a newspaper reporter who refused to reveal confidential sources in a federal sponsorship scandal back to a lower court.




In the 9-0 ruling, the court ruled that Daniel Leblanc could shield his sources if it was in the public's interest.



The Globe and Mail reporter's case has now been sent back to a Quebec court.



The scandal stems from advertising firms being paid with government money in the 1990s in exchange for no work.



Continue reading the main story

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The Quebec Superior Court court permitted lawyers from La Groupe Polygone, one of the advertising firms named in the scandal, to question Mr Leblanc in court about the identity of his source used in the stories he broke about the government sponsorship programme.



But Mr Leblanc said he would rather go to jail than reveal his source.



Weighing public interest



In the ruling, the Supreme Court also gave the Quebec court a set of guidelines with which to decide the case.



The lower court must "balance the importance of disclosure to the administration of justice against the public interest in maintaining journalistic source confidentiality", the ruling said.



After coming out of the courtroom, Mr Leblanc told reporters he was confident he would be able to prove the newspaper stories were in the public's interest.



La Groupe Polygone is being sued by the city of Ottawa which hopes to retrieve some of the $35m (£21m) that company allegedly over-charged the government in the 1990s.



In 2004, Canada's auditor-general issued a report which said that in the late 1990s, the governing Liberals systematically channelled at least $100m from a $250m government programme to advertising and communication agencies with ties to the Liberal Party, for little or no work.



The scandal assisted in driving the Liberal Party in Quebec out of power.

Friday, October 22, 2010

RCMP shakes up top management : Several senior RCMP members who complained about Commissioner William Elliott, shown in June, have been forced out or simply left.

RCMP shakes up top management

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CBC News

The RCMP has shaken up its management team, creating two new executive positions under Commissioner William Elliott.



Several senior RCMP members who complained about Commissioner William Elliott, shown in June, have been forced out or simply left. (Canadian Press)

The positions of deputy commissioner east and deputy commissioner west have been created, a letter from Elliott to RCMP staff obtained by CBC News says. The positions will be in Halifax and Vancouver, respectively. Existing deputies Gary Bass and Steve Graham will assume the western and eastern roles, respectively.



In addition, the deputy commissioner positions Pacific region, northwest region, central region and Atlantic region have been eliminated. The responsibilities of the former regional deputy commissioner positions are being assumed by the new deputies east and west.



"No further changes to our regional structure or reporting relationships are being made at this time," the letter read.



'I am confident we are on the right track.'

—RCMP Commissioner William ElliottElliott also appointed some new provincial commanding officers: Assistant Commissioner Dale McGowan becomes commanding officer in Alberta, Chief Supt. Russell Mirasty in Saskatchewan, and Chief Supt. Alphonse MacNeil in Halifax.



The moves come after some other senior RCMP officers complained about Elliott to some of the highest levels of the federal government on two occasions in July. They accused Elliott, who became the first civilian to head the Mounties in July 2007, of being verbally abusive, closed-minded, arrogant and insulting.



An independent "workplace assessment" of the fractious RCMP also found that the tepid pace of reform inside the police force frustrated some Mounties.



At a news conference Thursday, an upbeat Elliott acknowledged his "shortcomings" but said the problems that have divided the force's upper echelons are in the past.



"I am confident we are on the right track," he said. "We are moving forward."



Still, Elliott declined to comment on a report from earlier this week that said Raf Souccar, deputy commissioner for federal policing, had been asked to leave the force.



He said that following the summer complaints, all members of the senior executive, including Souccar, had agreed to work together.





Read more: http://www.cbc.ca/politics/story/2010/10/21/rcmp-elliott-management.html#ixzz133orm0mQ

Thursday, October 21, 2010

WOW Norway 'petroleum fund' tops $500bn

Norway 'petroleum fund' tops $500bn


Norways public finances have benefited significantly from its access to North Sea oil Norway's oil-fueled state pension fund has grown to a massive 3 trillion Norwegian kroner (£324bn; $513bn), the country's central bank has announced.



The size of the "petroleum fund" means that, unlike other developed countries, Norway has little to worry about when it comes to state pension provision.



The government can spend some 600,000 kroner ($103,000; £65,000) on pension costs for every Norwegian.



Norway started investing proceeds from its North Sea oil revenues in 1996.



Initially, 1.98bn kroner was invested, but rising equities and big rises in oil prices have seen the size of the fund grow.



"The fund has grown faster and bigger than most people expected since getting its first inflow of capital in May 1996," says Yngve Slyngstad, chief executive officer of Norges Bank Investment Management (NBIM), which manages the fund.



"A surge in oil prices since 2002 increased the size of capital inflows.



"Increased equity investments, particularly in emerging markets, also helped the fund's growth."



The pension fund is the world's second-largest sovereign wealth funds.