CBC News Federal Election
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Lobbyists We Have Known

Business and contracts worth thousands of dollars given to friends of the ruling political party. Exposure, scandal and partisan finger pointing.

If you think we're referring to the recent federal sponsorship controversy, think again.

The Pacific Scandal of 1873, in which Hugh Allan of the Canadian Pacific Railway contributed to the Conservative party's re-election campaign and was rewarded with the contract to build the first cross-country railway, was one of the first examples of how lobbying can have unintended consequences.

In this case, the scandal eventually contributed to the defeat of Sir John A. Macdonald at the polls.

Although many feel lobbying has become more pervasive since, it's always been a part of the Canadian political process.

Here are a few instances when the back-room dealings became front-page news.

Roch Lasalle: This public works minister left Prime Minister Brian Mulroney's cabinet in 1987 after being accused of demanding a bribe and accepting money paid by business owners looking for government favours. He and 15 others were charged. The charges were eventually dropped.

Airbus: Karlheinz Schreiber was a lobbyist and businessman best known for his connection to the Airbus scandal. RCMP documents alleged that Schreiber and lobbyist Frank Moores made arrangements for secret commissions and kickbacks in deals for the purchase of airplanes and helicopters. The department of justice under the Liberals sent a letter to the Swiss government in 1995, suggesting former prime minister Brian Mulroney was also a suspect in the case. Mulroney launched a $50-million libel suit, and in 1997, Ottawa was forced to apologize and pay him $2 million for legal costs. The investigation was eventually dropped.

Bovine Growth Hormone: In 1998, scientists at Health Canada expressed concerns about the fast-track approval of the bovine growth hormone produced by drug-maker Monsanto. Scientists at the federal agency said their managers pressured them to approve the rBGH drug. Monsanto had hired Michael Pearson, a lobbyist for S.A. Murray Consulting Inc. But Pearson was also an adviser to Health Canada on biotechnology development, cost recovery and regulatory reform. The uproar over the scientists' claims led to Senate hearings. The drug was not approved.

Paul Martin: There have already been questions raised about Paul Martin's ties to lobbying companies. The activist group Democracy Watch has filed numerous complaints and a lawsuit about Martin's ties to lobby groups.

     LINK: Democracy Watch Ethics Complaints Link opens in new window

The group claims Martin shouldn't participate in a wide variety of debates or votes on major public policy issues because of donations made to his leadership campaign by companies lobbying on those issues.

Martin has close ties to the Earnscliffe Strategy Group. One of his senior advisers is a former employee, and some of the members of his transition team were also Earnscliffe lobbyists. Some deregistered themselves in order to work for him, but critics say the connection is still too close. The company itself has two divisions. One division provides consultants and strategists for the federal government, while the other lobbies, sometimes the very departments its strategists work for. To remove the appearance of conflict of interest, the company has since sold its research and polling division to the international public relations firm Burson-Marsteller.

     LINK: Lobbyist registry Link opens in new window

The Current for Feb. 12, 2004 featured interviews with a lobbyist, and the editor of Lobby Monitor magazine about lobbyists, their role on Parliament Hill, and their connection to the Prime Minister's Office under Paul Martin.



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