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MLAs call for tighter conflict rules

Herb Mathisen
Northern News Services
Published Wednesday, January 07, 2009

SOMBA K'E/YELLOWKNIFE - MLAs are calling for changes to the NWT's anti-lobbying legislation, following news that former premier Joe Handley took on Atcon Construction as a consulting client in June.

Atcon had signed a $132 million contract with the Deh Cho Bridge Corporation last August.


No complaint filed
Gerald Gerrand, the NWT conflict of interest commissioner, said no formal complaint had been made about former premier Joe Handley's relationship with Atcon Construction as of Monday.

He added he had only heard of the issue that morning after receiving inquiries from the media.

Gerrand said he does not investigate an issue until a complaint is made.

"I have no jurisdiction until someone files a complaint under the act," he said from his office in Regina, Sask.

Glen Abernethy, MLA for Great Slave, said he would like to see the period of time during which politicians who leave office cannot work as lobbyists - or help companies gain contracts or employment with the government - extended to greater than one year.

"One year does not allow for enough separation," he said.

"It does not make me comfortable that the person is no longer privy to insider information which may benefit the company at the disadvantage of the government and the people of the Northwest Territories."

Abernethy said there needs to be more separation to allow corporate history to change so people are not "able to negotiate based on things that most contractors should not know."

Currently, the Legislative Assembly and Executive Council Act prohibits ministers from lobbying for organizations that were involved with the department they were in charge of for 12 months after they leave office.

Handley took Atcon on as a client nine months after he retired from politics. He said he provides the company with advice on business opportunities in the North. The former premier said there is no conflict of interest, as Atcon does not have a contract with the government but with the Deh Cho Bridge Corporation.

In February it was revealed Atcon put up $2 million to the Deh Cho Bridge Corporation, making them a minority partner in the bridge.

Bob Bromley, MLA for Weledeh, was elected in Handley's former riding and said Handley should not have been allowed to work for the New Brunswick- based construction company.

"I think this is a defining situation where Mr. Handley - against the will of the public and certainly without proper vetting in my opinion - approved the bridge in an inappropriate way just three days before the election," he said.

"This is the sort of thing we'd like to guard against in the public interest."

Dave Ramsay, MLA for Kam Lake, said some responsibility rests with current ministers, who should know the legislative assembly's 12-month prohibition.

"If it's within that year time frame, they shouldn't even have meetings with former politicians that are representing various companies and dealings with the government," he said.

"The legislation that is there has to be enforced. What good is it if nobody is paying attention to it?"

Transportation Minister Michael McLeod said a meeting between his department and Atcon president Robert Tozer, which took place in early December, included Joe Handley as a representative for Atcon. McLeod said the meeting involved discussions about potential business opportunities for Atcon in the North but didn't say with what or whom.

Abernethy said the board of management will be reviewing the act. Speaker Paul Delorey, who chairs the legislative assembly's board of management, said the board is putting together an independent commission, which must be in place by October, to hear concerns from the public and MLAs.

He added any changes to the act would most likely become effective with the next government.

Ramsay spoke up about what he saw as the NWT's weak lobbying legislation back in January when Handley had taken on Pacific Western Bank - a firm that specializes in lending governments cash for infrastructure funding - as a client. As a member of the board of management, Ramsay said he will raise the issue during the act's review.

The federal government recently passed a stronger anti-lobbying act, which went into effect July 2, 2008. Consulting lobbyists are required to report what happened in meetings with federal cabinet ministers no later than 10 days after the encounter if it involved discussions on drafting or making amendments to federal legislation, the awarding of grants or contributions or the introduction of bills to parliament, among other things.

Also, ministers are prohibited from working as an in-house or consulting lobbyist within five years of leaving their positions.

Handley said if outgoing ministers were not able to work for companies that had contracts with the government, he'd have to move away. Abernethy said the five-year federal limit may be a little excessive in the NWT because there is a smaller pool of people here, adding the greater limit could discourage people from working in the North.

Bromley said he understood Handley's concern but said it was part of the sacrifice of entering public office. All Yellowknife MLAs contacted said the issue raised issues of credibility and negative public perception of government.