BILL C-388

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

SHORT TITLE

DEFINITIONS

(a) places the assets that are the subject of the agreement in the hands of a manager who is at arm's length from the minister;

(b) empowers the manager to exercise all the rights and privileges associated with these assets;

(c) subject to paragraph (e), provides that the manager shall not seek or obtain the advice of the minister;

(d) subject to paragraph (e), provides that the minister cannot offer or provide advice, nor participate in any discussion or decision-making processes, wherever they may arise, that may affect the assets that are subject to the agreement;

(e) provides that the minister may personally intervene in the management of the assets only where

(i) the Commissioner has been consulted, and

(ii) the Commissioner is satisfied that the intervention would not give rise to a conflict of interest;

(f) provides that the minister must make a divestment and file a statement concerning the divestment under section 10; and

(g) provides that the minister is entitled throughout the duration of the agreement to be kept informed of the basic value of the assets.

(a) the assets placed in trust are registered to the trustee, unless they are placed in a Registered Retirement Savings Plan account;

(b) the trustee is at arm's length from the minister and the Commissioner is satisfied that there is an arm's length relation between the trustee and the minister;

(c) the trustee is

(i) a public trustee,

(ii) a company, such as a trust company or investment company, that is public and known to be qualified to perform the duties of a trustee, or

(iii) an individual who may perform trustee duties in the normal course of the individual's work;

(d) the minister has no power of management or control over trust assets;

(e) the assets placed in trust are listed on a schedule to the trust agreement;

(f) the term of the trust is for as long as the minister continues to hold office as minister;

(g) the trust may be terminated once the trust assets have been depleted;

(h) the trustee shall deliver the trust assets to the minister when the trust is terminated;

(i) no information is provided to the minister except information that is required by law to be filed and periodic reports on the overall value of the trust;

(j) the trustee is not authorized to communicate to the minister information relating to the composition of the trust; and

(k) the minister may receive any income earned by the trust, add or withdraw capital funds and be informed of the aggregate value of the trust assets.

(a) publicly traded securities of corporations and foreign governments, whether held individually or in an investment portfolio account;

(b) self-administered registered retirement savings plans, except when exclusively composed of exempt assets; and

(c) commodities, futures and foreign currencies held or traded for speculative purposes.

(a) a principal residence, recreational property or farm used or intended for use by a minister or the minister's family;

(b) household goods and personal effects;

(c) movable property for domestic, educational, social, decorative, recreational use or for transportation, prescribed works of art and collectibles;

(d) cash and deposits in a bank, trust company or other financial institution;

(e) Canada Savings Bonds and other similar investments or securities of fixed value issued or guaranteed by any level of government in Canada or by agencies of those governments;

(f) registered retirement savings plans that are not self-administered;

(g) investments in open-ended mutual funds;

(h) guaranteed investment certificates and similar financial instruments;

(i) annuities and life insurance policies;

(j) pension rights;

(k) money owed by a former employer, client or partnership; and

(l) personal loans receivable from a member of the minister's immediate family and personal loans of less than $1,000 receivable from another person where the minister has loaned the moneys receivable.

(a) the minister's spouse; or

(b) a child of the minister or the minister's spouse who has not attained the age of eighteen or who has attained the age of eighteen but is primarily dependent on the minister or the minister's spouse for financial support.

(a) an asset, a liability or a financial interest,

(b) a source of income, or

(c) a position of director or officer in a corporation, association or union, or of a partner in a partnership, or of a senior officer in any of them,

but does not include a remuneration or benefit that is provided to a minister pursuant to the Parliament of Canada Act or the Salaries Act.

(a) who is married to the minister;

(b) who is living with the minister in a conjugal relationship and

(i) has so lived for a period of at least one year, or

(ii) is the parent of a child of whom the minister is a parent,

but does not include a person from whom the minister is separated, and whose support obligations and family property have been dealt with by a separation agreement or by court order.

PURPOSE

(a) by establishing clear rules of conduct respecting conflict of interest for, and post-employment practices applicable to, all ministers; and

(b) by minimizing the possibility of conflicts arising between the private interests and public duties of ministers and providing for the resolution of such conflicts in the public interest should they arise.

PART 1

OBLIGATIONS

(a) ministers shall endeavour to perform their official duties and arrange their private affairs in a manner that will bear the closest public scrutiny;

(b) in fulfilling their official duties and responsibilities, ministers shall make decisions in the public interest and with regard to the merits of each case and shall not seek to further their own private interests or the private interests of a member of their family or their friends;

(c) ministers shall not place themselves under a financial or other obligation to outside individuals or organizations that might influence them in the performance of their official duties;

(d) ministers must submit themselves to whatever scrutiny is appropriate for their office and, in so far as is possible, are accountable for their decisions and actions to the public;

(e) ministers shall be open about all the decisions and actions that they take;

(f) ministers shall base their conduct on a consideration of the public interest, avoid conflict between personal interest and the public interest and resolve any conflict between the two as soon as possible and in favour of the public interest;

(g) ministers shall never undertake any action that would bring the Senate, the House of Commons or the Members of the Senate and the House of Commons generally, into disrepute;

(h) ministers shall not act as paid advocates in the conduct of their official duties or in any proceedings of the Senate or the House of Commons;

(i) where ministers participate in government actions that may have an influence on their private interests, the ministers shall divest themselves of such interests;

(j) ministers shall arrange their private affairs in a manner that will prevent real or apparent conflicts of interest from arising but if such a conflict does arise between the private interests of a minister and the official duties and responsibilities of the minister, the conflict shall be resolved in favour of the public interest;

(k) ministers shall not solicit or accept on their own behalf transfers of economic benefit other than

(i) incidental gifts, customary hospitality or other benefits of nominal value less than $200,

(ii) remuneration authorized by law and any other reasonable fee related to the minister's duties, or

(iii) a transfer pursuant to an enforceable contract or property right of the minister;

(l) ministers shall not step out of their official roles to assist private entities or persons in their dealings with the federal government where this would result in preferential treatment to any person;

(m) ministers shall not knowingly take advantage of, or benefit from, information that is obtained in the course of their official duties and responsibilities and that is not generally available to the public and shall not use such information to advantage or benefit another;

(n) except in circumstances beyond their control, ministers shall not directly or indirectly use, or allow the use of, government property of any kind, including property leased to the government, for anything other than officially approved activities; and if, because of circumstances beyond their control, they directly or indirectly use, or allow the use of, government property for anything other than officially approved activities, they shall be responsible for any damage to the property or depreciation suffered by the property as a result of such use;

(o) ministers shall not directly or indirectly communicate with a judge concerning a case, a problem or litigation before the courts when the judge has not yet handed down a decision with respect to the case, problem or litigation.