Raise the ethical game

The controversy over federal Finance Minister Bill Morneau’s handling of his personal finances has prompted a needed conversation about Canada’s conflict-of-interest law and the office meant to enforce it.

Clearly something is wrong. Morneau was allowed, by law and purportedly on the advice of Ottawa’s ethics watchdog, to maintain control over a large stake in his former company, even as he ran the country’s finances. It is established procedure, but not a requirement, for ministers to place their holdings in a blind trust as a way of avoiding conflicts of interest, real or perceived. That Morneau did not do this is cause for real concern.

For these lapses, some have blamed loopholes in Canada’s conflict-of-interest law, some have blamed the watchdog charged with enforcing that law, and some have blamed the government for its ethical laxity. Each view has merit.

There’s no doubt the federal Conflict of Interest Act should be improved. A number of sensible tweaks have been proposed in recent weeks, the most important being the closing of the loophole that allowed Morneau to continue to “indirectly” manage his investments through a holding company.

The ethics commissioner should not just be an interpreter of the act but also an adviser on ethical judgment.

We need a better conflict-of-interest law and a watchdog who can do more than simply enforce it.