Published by Clay Whitman, a lawyer in Vancouver, Canada.
Conflict of Interest and Ethics
Conflict of Interest and ethics rules serve to prevent and avoid conflicts of interest between their public duties and their private interests, both real and perceived. Public office holders are held to a high standard of conduct, and to ensure that these standards are met, governments often impose codes of conduct and financial reporting requirements on public office holders.
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Lessons for Lobbyists from the Stewart and McSweeney Reports
21 February 2011 | Lobbying, Conflict of Interest and Ethics
I previously wrote about how two lobbyists were found to be in breach of Rule 8 of the Lobbyist Code of Conduct (Canada) (the "Code").
The Commissioner ruled that the combination of the lobbyists' political activities in connection with a fundraiser for Lisa Raitt's electoral district association and their lobbying of Ms. Raitt and her department put Ms. Raitt in an apparent conflict of interest.
The Stewart Report and the McSweeney Report are the first reports dealing with Rule 8 following the federal Lobbying Commissioner's (the "Commissioner") new guidance on political activities and the potential for conflicts of interest.
As this is the first time the Commissioner has applied Rule 8 following the new guidance, the reports contain important lessons for lobbyists, especially for those lobbyists who are involved in any sort of political activities, no matter how trivial those activities may seem.
According to Rule 8 of the Code, lobbyists shall not place public office holders in a conflict of interest by proposing or undertaking any action that would constitute an improper influence on a public office holder.
The new guidance on political activities states that a lobbyist who interacts closely with a public office holder when conducting registrable lobbying activities and participates in political activities which advance the private interest of that public office holder to a high degree such as organizing a fundraising activity for the benefit of the public office holder or their constituency association is likely in breach of Rule 8.
Mr. McSweeney was a contact person for the fundraiser and sold six tickets. The Commissioner found that this advanced the private interest of Ms. Raitt to a moderate degree.
Mr. Stewart was on the board of directors for Ms. Raitt's constituency association and sold around 20-25 tickets to the fundraiser. The Commissioner found that this advanced the private interest of Ms. Raitt to a high degree.
The lesson for lobbyists in these reports is that the Commissioner has set a low threshold for when political activities will result in a breach of Rule 8 of the Code. If you are lobbying a Minister, any involvement in a fundraiser beyond purchasing a ticket could result in a breach of Rule 8.