Morneau Shepell defends its dealings with feds

OTTAWA — The human-resources and pension-management firm at the centre of the conflict-ofinterest controversy raging around Finance Minister Bill Morneau broke its silence with a flourish Friday, denying strenuously any suggestion that it has benefited from having its former boss in cabinet.

Opposition critics have been attacking Morneau over his links to Toronto-based Morneau Shepell, urging the federal ethics watchdog to investigate the fact that minister spearheaded pension reform legislation that could benefit both the company and the man who used to run it.

However, the only thing Morneau shares with Morneau Shepell these days is a name, the company said in a statement aimed at countering “a growing amount of misinformation” about the firm and its contracts with the federal government.

“Morneau Shepell severed all contact with Finance Minister Bill Morneau upon his election to the House of Commons in October 2015; this includes any discussions about his financial investments,” the statement said.

“Morneau Shepell wins business because we are good at what we do. We stand behind our success in the open, transparent, competitive process for government contracts.”

Nor was the company ever consulted about Bill C-27, the legislation introduced by Morneau that now has ethics commissioner Mary Dawson — who signed off on the minister’s decision to forgo a blind trust for his considerable assets — double-checking for signs of conflict.

The firm acknowledged Friday that it has expressed its support for the concepts in the proposal, but it doesn’t expect a windfall if the legislation becomes law.

“Bill C-27 is not expected to have a material impact on our company,” the statement said.

“If passed, it would allow federally regulated pension plans the option to implement targetbenefit pension plans. They would not be required to do so.”

Several provinces have adopted similar laws, but few employers have changed their pension systems, the company said.

The statement denies media reports that suggest Morneau Shepell obtained and renewed contracts with the federal government after the Liberals came to office.

All contracts were awarded fairly and competitively, and “nearly all” of them were awarded when the Conservatives were in power, the company said.