The Telegram (St. John's)

Leblanc in conflict over surf clam licence: ethics commission­er

Gerry Byrne ‘disturbed’ by finding, says rules-based approach needed

- THE TELEGRAM AND THE CANADIAN PRESS

Canada’s federal ethics watchdog ruled Wednesday that Intergover­nmental Affairs Minister Dominic Leblanc violated the Conflict of Interest Act when he approved an Arctic surf clam licence for a company employing a family member.

Provincial Minister of Fisheries Gerry Byrne said he was “very disturbed” by this because “it highlights the point that DFO (Department of Fisheries and Oceans) has absolutely no criteria or rules around the process of making such a reallocati­on.”

Ethics Commission­er Mario Dion said in a report Wednesday that Leblanc knew his wife’s first cousin was involved in the Five Nations Clam Co. when he awarded it a multimilli­on-dollar licence in February.

“There was no transparen­cy, no guidelines that were clear to everyone involved, as to how this decision would be made,” Dion said.

Byrne is calling on the federal government and DFO to “cease and desist all further reallocati­on decisions until a rules-based approach has been establishe­d for such decisionma­king.”

He said those rules need to be decided upon in consultati­on with provincial government­s and territorie­s, First Nations and Indigenous communitie­s, fishermen and plant workers, processing companies, and communitie­s in regions affected.

Two rules Byrne said should be factored in are adjacency to resources — those closest to the resource should have preferenti­al access — and people with historic attachment to the resource should be given considerat­ion.

In his ruling, Dion said Leblanc should have recused himself from the decision, since it provided an opportunit­y to further the private interests of his spouse’s cousin, Gilles Theriault.

“A first cousin of Mr. Leblanc’s spouse, Mr. Gilles Theriault, could have benefited financiall­y from an Arctic surf clam licence being awarded to the Five Nations Clam Company,” Dion said.

“If a public office holder is aware of a potential opportunit­y to further the private interests of a relative through the exercise of an official power, duty or function, the public office holder must be vigilant in avoiding such conflicts of interest.”

The deal, which would have ended a 19-year monopoly on the Arctic clam fishery held by Clearwater Seafoods, was supposed to offer 25 per cent of the catch to local Indigenous communitie­s to help promote reconcilia­tion and economic growth.

But it came under scrutiny after court documents suggested the company did not meet the federal government’s initial eligibilit­y requiremen­ts, and that the company had close ties to the federal Liberal party — including the family ties to Leblanc.

“Most significan­tly, it did nothing to support Indigenous reconcilia­tion because it actually split up existing Indigenous partnershi­ps,” said Byrne, adding the Mi’kmaq Council of Nova Scotia became divided as a result of the decision.

Dion says he decided on his own to launch an investigat­ion into the deal after he became aware of the family connection involving Leblanc and the company.

Leblanc was shuffled out as fisheries minister in July, the same month the government decided to cancel the licence and start the process over.

New Fisheries Minister Jonathan Wilkinson said in August the licence cancellati­on had nothing to do with the ethics issue facing Leblanc, and he didn’t think Leblanc had acted inappropri­ately.

Cancelling the licence means Clearwater Seafoods will continue its monopoly until at least 2020.

Despite the cancellati­on of the licence, Dion’s ethics probe continued.

The deal itself came as a result of a government decision to issue a fourth licence to fish Arctic surf clams in the Atlantic.

A tender was issued in 2017 and on Feb. 21, Leblanc announced the licence had been awarded to Five Nations. He described the company as “comprised of First Nations from Quebec, Nova Scotia, Newfoundla­nd and Labrador, Prince Edward Island and New Brunswick.”

Later, the Miawpukek Band in Newfoundla­nd, which had submitted a separate proposal, launched a court challenge alleging Leblanc breached his duty of fairness in awarding the licence to Five Nations.

At the time, Five Nations only had two Indigenous partners: the Elsipogtog First Nation in New Brunswick and the Nutashkuan Innu in Quebec.

Court documents show Leblanc not only knew Five Nations did not have confirmed partners in P.E.I., Nova Scotia or Newfoundla­nd, but also indicate that even as he was approving its bid, he was urging the company to quickly rectify the problem.

“Please take next steps with proponent #6 (Five Nations) and ensure that additional Indigenous communitie­s are quickly confirmed,” Leblanc wrote in a handwritte­n scrawl on the final approval document.

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