Mar to get golden handshake
Contract for Hong Kong posting to end with $ 140,000 payout
After more than 20 years as an Alberta politician and government official, Gary Mar’s public sector career will come to an end on June 30 as his contract as Alberta’s representative in Asia expires.
But even as he prepares to leave his Hong Kong post, Mar — and the former Progressive Conservative administration — is under fire over a $ 140,000 golden handshake he will receive from the provincial government.
Mar — the former Tory cabinet minister and leadership candidate who received a transition allowance worth nearly $ 500,000 when he resigned as an MLA to become Alberta’s envoy to Washington in 2007 — will receive the equivalent of 26 weeks of salary because his contract is not being renewed.
The payout — equivalent to what he would receive if terminated — is part of the contract signed by Mar in December 2011 when he took the position in Asia.
In an interview from Hong Kong this week, Mar said the provision is due to the “cooling- off” rules relating to future employment that he will face after leaving public service.
“I negotiated that because of the restrictions on what I can and cannot do,” he said.
“The restrictions are not insignificant and so that is a reflection of the cooling- off period.”
Under provincial government regulations in place when he signed his contract, Mar would be unable for six months to make representations to the government, take a position with a company that he has had significant official dealings with in office or act on a commercial basis with a company he had dealings with.
The government has since extended the cooling- off period for civil servants to 12 months but was unable to say Wednesday if the newer rules applied to Mar.
Liberal Leader David Swann said the timeout is no reason for such a hefty parting package.
“I don’t think it’s valid, I don’t think it’s fair. I don’t think it’s responsible to set up these contracts with that kind of severance,” he said.
Wildrose Leader Brian Jean said the payment to Mar is illustrative of how the former Tory government treated its foreign offices as patronage posts.
“It’s a ridiculous amount of money for the time he’s served there,” he said. “But this is exactly why these jobs should be professional jobs in the civil service and not political appointments.”
Premier Rachel Notley’s NDP government, which defeated the four- decade- old PC administration in last month’s provincial election, would not comment on Mar’s contract except to say it will be honoured.
In opposition, Notley called for a new severance policy limiting senior civil servants to severance equivalent to one month’s salary per year of service.
Mar was already slated to be replaced before the election, with expremier Jim Prentice announcing last fall that former diplomat Ron Hoffman would take the Hong Kong position when Mar’s contract expired this year.
Cheryl Oates, spokeswoman for Notley, said no decision has yet been made about the future of the foreign offices or their staffing.
Interim PC Leader Ric McIver noted he was not a member of the government when the agreement with Mar was made. He said the government had been moving away from large severance packages, though Prentice’s government had capped political staffer severance, not civil servants.
Mar’s compensation has been the subject of criticism in the past.
The Calgary lawyer was an MLA from 1993 to 2007, serving in cabinet in posts that included health, education and environment. In 2007, he resigned to become Alberta’s envoy in Washington.
Mar said when he took the U. S. post that he would defer taking his MLA transition allowance, worth $ 478,499, but later opted to take the payment in the 2008- 09 fiscal year.
In 2011, Mar left the Washington position to run for the Progressive Conservative leadership, only to lose to Alison Redford. Soon afterward, Redford appointed Mar to the Hong Kong post, where he earned an annual salary over $ 264,000, as well as other benefits.
In 2013, the envoy received over $ 560,000 worth of pay, cash benefits and non- cash benefits.
Mar said he receives the same salary as any other senior official at the deputy minister level, but there are specific allowances that come with the Hong Kong position because of the expense that comes with living in the city.
He would not comment on the future of the foreign offices but said the Hong Kong office performs a valuable service helping provincial companies increase their trade in Asia and bringing investment back to Alberta.
“I chose a public life over a more highly remunerative private life,” he said in a followup email.
“I encourage others to do the same. There will always be critics of the remuneration of government officials, both elected and unelected.
“For the future of our province, I hope this is not a barrier to good people from serving.”
Mar said he has received numerous offers of work, both in Hong Kong and Alberta, and is considering what to do next. He said he will not re- enter politics. The PC party is slated to hold a leadership convention later this year.
“That chapter is behind me,” he said.