No watchdog probe of Morneau finances
While the heated debate over the government’s proposed tax changes carries on in Parliament, the ethics watchdog is keeping its distance — at least for now — from allegations by Conservative MPs that Finance Minister Bill Morneau is putting himself in a conflict of interest.
The Morneau family business, Morneau Shepell, is one of the major pension management firms in the country. The opposition has been increasingly citing it as an attack line in the tax debate, claiming it will ultimately benefit from the proposed reforms on tax planning through private corporations.
A spokesperson for Ethics Commissioner Mary Dawson said they are monitoring the situation, but the office doesn’t see the need to formally investigate the matter.
“There does not appear to be reasonable grounds at this time for the Commissioner to launch an examination,” said Jocelyne Brisebois.
She said the office generally does not investigate “if there is no specific information to suggest that a provision of the Act or the Code may have been contravened.”
Pierre Poilievre, the Conservative finance critic, has often brought up the conflict-of-interest concerns but said the party hasn’t filed a formal complaint.
“We are considering a complaint to the ethics commissioner, but we’re still in the information-gathering phase,” he said.
The most frequent accusation made against Morneau is that the proposed restrictions on keeping money inside private corporations will prompt more people to take out individual pension plans.
Morneau has previously called this allegation “absurd,” saying it’s a tiny proportion of the company’s business.
This week the Conservatives also noted Morneau Shepell has a subsidiary registered in Barbados, where there are rock-bottom corporate tax rates, and the government has indicated it will soon review the treaty that allows Canadian companies to benefit from these low rates.
His office will not comment on his current shareholdings beyond noting he has complied with all rules for a minister’s investments.