Senate announces outside audit for 3 senators
Expense rules for senators might be rewritten
By Leslie MacKinnon, CBC News
Posted: Feb 8, 2013 1:18 PM ET
Last Updated: Feb 8, 2013 9:48 PM ET
Senator Mike Duffy, shown speaking during the Maritime Energy Association's annual dinner in Halifax on Wednesday, and two other senators are the subjects of an outside audit about their expenses. (Devaan Ingraham/Canadian Press)
The Senate has hired an outside auditor to examine the residency declarations and related expenses of three senators, and is also seeking legal advice about the status of Conservative Senator Mike Duffy's residency.
Conservative Senator David Tkachuk, chair of the committee on internal economy, says the Senate may look at changing its own rules about residency and submitting expenses.
One of the problems, he says, is that the constitutional requirement that a senator be a "resident' of the province he or she represents does not define what is meant by the word.
"The constitution is quite nebulous about this. It says residence, it doesn't say primary residence," Tkachuk said in a telephone interview Friday from his residence in Saskatoon.
The Constitution requires that every senator own property and maintain a residence in the province he or she is supposed to represent in the Senate.
Tkackuk also said the Senate is looking to an outside auditor, in this case Deloitte, because the Senate doesn't want to appear as if it is hiding anything by having its own members conduct the probe.
The other two senators are Liberal Mac Harb of Ontario and Quebec's Patrick Brazeau, who has just been criminally charged in a completely separate matter. Brazeau is now sitting as an independent after being kicked out of Conservative caucus Thursday.
'It's a different world'
The three senators have been under fire lately for claiming expenses for residences outside Ottawa even though they own or rent homes, in some cases doing so for years, in the capital.
Duffy, although he claims a cottage in P.E.I. is his residence, doesn't pay income tax in the province and only applied for a new P.E.I. health card following media stories that detailed how he has owned his home in Ottawa well before he was appointed to the Senate.
Harb, a former Ottawa MP and now an Ontario senator, claims his residence is actually in Pembroke, 100 kilometres from Ottawa, where he has a house.
Brazeau, now facing assault charges in a separate incident, has been claiming his father's home in Maniwaki, Que. — again more than 100 kilometres from Ottawa — as his residence, even though he lives in a house in Gatineau, just across the river from the capital.
All three senators have been claiming expenses for living in Ottawa, or in Brazeau's case, in Gatineau, a virtual stone's throw from Parliament.
Tkachuk explained the rules were changed in the '90s so that senators could submit expenses for a house or a condo which he said, "had to be a lot cheaper than a hotel."
He continued, "Even though Mike's [Duffy's] expenses are 30 or 35,000 bucks [since his 2009 appointment], they're only $10,000 a year, which is a lot cheaper than I spend — I stay in a hotel. So they have a small subsidy for buying a house, because some people are older, they have health problems, they can't fly back every week."
Tkachuk said the subsidy for a house or condo in Ottawa amounts to $900 a month, and it's meant to substitute for hotel costs. He assumes this is what Duffy has been collecting.
Tkachuk didn't seem to have a problem with Duffy's expense claim, and explained that Duffy visits P.E.I. frequently and has a residence there. "Whether he closes the place up for the winter... If I was Mike I wouldn't be travelling back and forth either, because his heart condition is not that great. I wouldn't be getting on a plane, trying to get to Charlottetown every week."
Retired senator Lowell Murray, who was appointed by Joe Clark's Progressive Conservative government, said in an interview airing Saturday on CBC Radio's The House, "Senator Duffy's problem is not just an ethical problem potentially and a problem with the Senate rules. Potentially, his problem is a serious constitutional problem because if it can be demonstrated he is not a resident in Prince Edward Island, then he's finished, he's a goner, he's been sitting while he's disqualified. "
Duffy does not pay the resident-only property tax for his house in P.E.I., but instead pays a special tax for non-residents. But Tkachuk said, "P.E.I. says he's not a resident. Well, as far as I'm concerned, those are the provincial provisions of residency, they have nothing to do with the Constitution."
Tkachuk admits he's not happy about the negative publicity the Senate has been getting lately, and added, "Our intent is not to hide anything."
He went on to say, "It's a different world — rules that made sense a long time ago don't necessarily make sense today."
A legal or moral issue?
Al Rosen, a Toronto investigative accountant, said in an interview that it's difficult to know whether Duffy's and the other senators' residency is a legal or a moral issue. He thinks Duffy has possibly found a loophole in the rules.
"The real problem is the definition of residency ... the definition has to exist. You can't just say just because he [Duffy,for instance] only has three plane tickets going to P.E.I., there's something wrong, that he doesn't meet the definition that doesn't exit. So the defintion has to exist," Rosen said.
Talking to reporters Friday, NDP MP Alexandre Boulerice said he thinks the expenses issue "will convince Canadians that maybe the Senate is a bad institution and it’s costly and it’s not working anymore."
The NDP advocates that the Senate be abolished.
Liberal MP Rodger Cuzner dodged the question of whether the Senate should be done away with.
"You know, we’re looking at a government that, that bodes, you know, prides itself in law and order and playing by the rules and accountability and transparency and one of their own seems to be, you know, taking such a flagrant abuse of, of the rules," he said.
Prime Minister Stephen Harper, speaking to reporters in Vancouver where he made an announcement about crime, admitted there were "a couple of cases that are extremely difficult" when asked about his Senate appointments. Harper appointed both Duffy and Brazeau.
Harper said he would prefer if provinces would hold elections for senators, as Alberta has. "I have appointed those elected people. And that's the reform we'd like to continue to see move forward, along with defined and shortened mandates," he said.
Share Tools
Latest Thunder Bay News Headlines
- Strike delays elevator service in Thunder Bay
- A province-wide strike is causing longer waits for elevator service in Thunder Bay. Fourteen hundred Ontario members of the International Union of Elevator Constructors workers have been off the job since May 1. more »
- Neskantaga First Nation finds hope after suicide crisis
- Artwork created by young people in Neskantaga First Nation will soon be on display in Toronto as part of an effort to help the community recover from a suicide crisis. more »
- Anglers face shortage of minnows heading into long weekend
- Anglers in the Thunder Bay area may have trouble buying bait minnows this long weekend, because they are in short supply. more »
- Thunder Bay's Gateway in Minnesota closing down
- Four years after it was launched, an award-winning tourist promotion just over the U.S. border in Minnesota, is being closed down. more »
Must Watch
Top News Headlines
- Senator Pamela Wallin leaves Conservative caucus
- Senator Pamela Wallin says she is recusing herself from the Conservative caucus while her travel expense claims are under scrutiny. Wallin's departure comes one day after Senator Mike Duffy left the Tory caucus amid controversy over his expense claims.
more »
- Toronto Mayor Rob Ford denies crack cocaine allegations
- Toronto Mayor Rob Ford says allegations he was caught on tape smoking crack are "ridiculous," following reports that someone had been trying to sell a purported recording of such an event to U.S. and Canadian media outlets. more »
- Sailor fighting cancer says AWOL charges dropped
- All charges against a Nova Scotia woman in the Royal Canadian Navy who is fighting cancer, and who was charged with being absent without leave and facing a court martial have been dropped, the woman and her lawyer say. more »
- Should genetic testing for cancer be available to all Canadians?
- The revelation that Hollywood celebrity Angelina Jolie had a double mastectomy as a preventative measure against cancer stoked heated discussion this past week, but one prominent cancer researcher says it demonstrates the need to make genetic testing available to all Canadians. more »
- 12 young leaders changing Canada in this week's Generation Why
- If the number of young entrepreneurs and innovators in Canada is any indication, the generation that came of age alongside the modern web is ready to rethink everything. Meet 12 young people our readers nominated as the most dedicated, impressive, creative and intelligent Canadians under the age of 30 they know. more »

