Finance Minister Morneau “scandal” reveals deeper issues in Canadian politics
The uproar at Finance Minister Bill Morneau’s handling of his personal assets left most Canadians feeling that public and media pressure have prevented a substantial conflict of interest.
When Morneau entered federal politics, he and his family owned about $20 million in shares in Morneau Schepel, a business founded by his father and where Morneau worked before entering the harsh political world.
Morneau said he expected his shares would be put in a blind trust where he would have no control or knowledge of them.
Everyone, including Morneau Schepel, believed that was what happened. Something else happened. In discussion with the Parliamentary ethics commissioner, Morneau discovered there is another rule allowing him to set up a conflict of interest screen and avoid the possible sale of his shares in a blind trust. Morneau chose the little-used conflict of interest screen but neglected to tell the public, or Morneau Schepel.
When Morneau introduced pension legislation on corporate pension plans that could benefit Morneau Schepel, digging by researchers uncovered his action and omission not telling what he had done with his assets.
The revelation looked even worse, considering the conflict of interest screen involved two numbered companies holding the shares.
Using numbered companies is a perfectly legitimate plan. In the eyes of the public, numbered companies are associated with nefarious deals and criminal activities. The existence of the numbered companies only made Morneau’s legally done action look worse.
To top that off, someone discovered Morneau had failed to declare ownership of a villa in France, and the villa “was hidden” in a numbered company.
The Conservative Opposition and the media literally roasted Morneau over this, painting him as a rich person sticking it to small business operators and farmers. Other than failing to declare ownership of a villa in France, Morneau did nothing wrong. There is perception he could have done wrong, but no evidence.
This trial by the political opposition and the media has left Canadian politics a little less credible than before.
Not only was the reputation of a perhaps naive politician soiled, the whole episode had other consequences.
If someone with interest in politics has built or inherited a substantial amount of assets, they need to think long and hard before committing to the political arena.
Aside from the harsh slander and mudslinging in politics, anyone with wealth must first declare publicly every penny they have; second, to meet public perception their need to put their assets and immediate family assets in complete control of strangers.
The total loss of privacy and control causes anyone to wonder why bother with politics? The Morneau episode will cement attitudes of the wealthy against getting involved in politics and likely condemn voters to continued domination of politics by lawyers. Given the performance of billionaire Donald Trump as U.S. president, some observers might believe keeping the wealthy from office is good.
Everyone should have equal opportunity to run for office without personal success being a barrier.
Ron Walter can be reached at ronjoy@sasktel.net