REPORT OF THE COMMITTEE
Friday, June 13, 2014
The Standing Committee on Conflict of Interest for Senators has the honour to present its
FIFTH REPORT
Your Committee, which is responsible on its own initiative for all matters relating to the Conflict of Interest Code for Senators, pursuant to rule 12-7(16) of the Rules of the Senate, has undertaken a study on the provisions of the Code and reports as follows:
Introduction
The Conflict of Interest Code for Senators was adopted on 18 May 2005, when the Senate concurred in the Third Report of the Standing Committee on Rules, Procedures and the Rights of Parliament. In this report, the Rules Committee emphasized that the Code is a “work in progress,” and that only time and experience would tell if the choices made at the time were the best that were possible. As an evolving document, the Code may at any time be amended to adapt its provisions to contemporary realities and to enhance public confidence and trust in the Senate and Senators. In that regard, your Committee was granted authority to self-initiate a study at any time and recommend amendments to the Code. The Code also mandates your Committee to conduct a comprehensive review of its provisions and operation once every five years. The Committee has always exercised diligently its general and constant oversight role to ensure that the provisions of the Code are clear and current. Amendments to the Code were made in 2008, 2012 and earlier this year, based on recommendations and after careful consideration by your Committee. The amendments the Committee is now proposing are in the spirit of the Code as a living document and are consistent with the work already accomplished by your Committee. The proposed amendments rest on principles already embodied in Code. They reassert the commitment of the Senate and each individual Senator to the highest standards of conduct.
Principles
Current Provisions
The first duty of a Senator is the performance of his or her parliamentary duties and functions. Senators’ summonses to the Senate expressly state the precedence of parliamentary obligations over all others. The Code, however, is silent on this subject.
Proposed Amendment
The precedence of Senators’ parliamentary duties and functions would be explicitly stated as one of the principles of the Code.
Rationale
This amendment would assert explicitly the precedence of Senators’ parliamentary duties and functions over Senators’ other obligations and outside activities.
Rules of Conduct
Current Provisions
The Code prescribes specific rules of conduct with a particular emphasis on conflict of interest. It does not, however, explicitly provide for general rules of conduct.
Proposed Amendment
The Code would state that Senators’ conduct shall uphold the highest standards of dignity inherent to the position of Senator, and that Senators should refrain from acting in a way that could reflect adversely on the position of Senator or the institution of the Senate.
The Code would also state explicitly that Senators must perform their parliamentary duties and functions with dignity, honour and integrity.
Rationale
This amendment would reassert the commitment of the Senate and each Senator to the highest standards of conduct.
Disclosure – Trusts
Current Provisions
The Code is unclear on the disclosure of trusts.
Proposed Amendment
Senators would be required to disclose trusts from which they could derive a direct or indirect benefit either at present or in the future. This disclosure would be both confidentially to the Senate Ethics Officer (SEO), and publicly as part of each Senator’s public summary.
Rationale
This amendment would clarify the confidential and public disclosure requirements of Senators.
Disclosure - Clarification of “deposits with a financial institution”
Current Provisions
The Code lists assets and liabilities that need not be disclosed confidentially to the SEO because they relate to the ordinary course of a Senator’s personal life or could not conceivably create an apparent or real conflict of interest. One of those listed exemptions relates to “deposits with a financial institution.”
Proposed Amendment
The exemption for “deposits with a financial institution” would be replaced by an exemption for “cash on hand or on deposit with a financial institution.”
Rationale
This amendment would clarify the disclosure requirements of Senators.
Disclosure – Errors or Omissions
Current Provisions
If he or she believes a Senator’s confidential disclosure statement contains an error or omission, the SEO may request that the Senator provide the relevant information within 60 days.
Proposed Amendment
The delay to provide the relevant information would be reduced to 30 days.
Rationale
This amendment would streamline the disclosure process and ensure timely disclosure.
Disclosure – Material Change
Current Provisions
Senators must disclose to the SEO material change to the information contained in their confidential disclosure statements within 60 days.
Proposed Amendment
The delay to disclose material change would be reduced to 30 days.
Rationale
This amendment would streamline the disclosure process and ensure timely disclosure.
Disclosure – Review of the Public Disclosure Summary
Current Provisions
After the SEO has prepared a Senator’s public disclosure summary, he or she submits it to the Senator for review. The practice of the SEO is to require each Senator to sign his or her public disclosure summary before making it available for public inspection. The Code, however, imposes no deadline on Senators for the review and signature of the public disclosure summary.
Proposed Amendment
Senators would have 30 days to review the public disclosure summary, and return it to the SEO with either their signed approval or proposed changes.
Rationale
This amendment would streamline the disclosure process and ensure timely disclosure.
Title of the Code
Current Provisions
The Code is currently entitled the Conflict of Interest Code for Senators.
Proposed Amendment
The Code would be renamed the Ethics and Conflict of Interest Code for Senators.
Rationale
The title would better reflect Senators’ obligations under the Code and the provisions of the Parliament of Canada Act establishing the position of Senate Ethics Officer.
Recommendations and Coming into Force
These proposed amendments lead to changes to various sections of the Code. The Code, with the recommended amendments integrated into it, is attached as an Appendix to this report. Your Committee recommends that these proposed amendments be adopted. It is further recommended that the new Code come into force upon the adoption of this report, provided that new confidential and public disclosure requirements are made applicable to the next annual disclosure, and that new subsections 27(6) and 28(6) come into force 30 days after the adoption of this report.
These amendments to the Code would require consequential amendments to the Rules of the Senate. Your Committee therefore recommends that the Standing Committee on Rules, Procedures and the Rights of Parliament undertake a study with the view to recommend the appropriate consequential amendments to the Rules of the Senate.
Respectfully submitted,
RAYNELL ANDREYCHUK
Chair