I was with the House of Commons Standing Committee on Public Accounts for three hours today — a meeting length that was too long for Conservative MP John Williams who complained at the outset of about this rare extra-long version over “a simple contract”.
That simple contract that was causing all the fuss was worth $122,000 and it went to to Hugh MacPhie's 4-person company MacPhie and Associates. MacPhie and friends spent 820 hours in not very many days putting together a lot of the Budget 2007 “communications products” – speeches, press releases, brochures, etc. It was definitely a lot of work and, by all accounts, MacPhie seems to have delivered value for money.
But here's the thing: Contracts of this size really ought to be put out to a competitive tendering process and it seems that Finance Minister Jim Flaherty failed to do so. Actually, it wasn't so much that Flaherty failed to do so as it may have been his then-Chief of Staff David McLaughlin who, against the advice of departmental officials, awarded the contract to MacPhie. Or at least that's what Flaherty and departmental deputy minister Rob Wright told the committee today. McLaughlin – oddly, in hindsight — was not a witness at the committee, nor was I able to reach him today.
To make the story even juicier if you're a Liberal, MacPhie was a enthusiastic helping hand for two of Flaherty's failed bids for the leadership of the Progressive Conservative Party and helped write speeches for that Liberal bogeyman, former Ontario Premier Mike Harris.
So the Liberal narrative here is that you have a finance minister playing pork barrel politics.
Flaherty's office has already had to concede that “administrative errors” were made in the awarding of the MacPhie contract and that systems have been corrected. Fair enough. But, today, at this Public Accounts Committee, the Liberal research team had found lots of others with close connections to Flaherty at Queen's Park and beyond who have, much like some Liberals were alleged to have done at famed consultancy Earnscliffe in another era, benefitted financially, some say, from the new government.
The Liberal Research Bureau proferred the following (and remember – the cutoff for having to tender a contract is $25,000)
- Bronwen Evans received a $24,877.50 contract to write speeches for Flaherty from June 2006 until last February. Ms. Evans was Flaherty's executive assistant and chief of staff at Queen's Park.
- David Curtin, who worked on Flaherty's Ontario leadership campaign, received $24,877.50 to write your first budget speech in 2006. Curtin was also paid $3,350 to write a keynote address earlier this year for Flaherty.
- Carol Hansell, was appointed to the board of directors of the Bank of Canada in October 2006. For serving on the Bank of Canada board, she gets up to $8,600 a year plus a $665 per diem. Hansell and her husband, Ron McLaughlin, donated $22,550 to Flaherty's 2002 leadership campaign.
- Toronto lawyer James Love, who donated $63,000 to Flaherty's two leadership campaigns, was appointed to the Royal Canadian Mint. He has also served on two advisory panels (Advisory Panel on Canada's System of International Taxation and the Panel to Help Children with Severe Disabilities) on a voluntary basis and was provided expenses of $75,000 and $10,000, respectively. As a mint director, he receives up to $6,200 a year plus a per diem of up to $485.
Liberal MP and Flaherty arch-nemesis John McCallum ran through some of these at the Committee and when he got to Love, that was it for Flaherty, who already loaded for bear so far as McCallum goes because Flaherty believes McCallum is smearing his wife and children with suggestions Flaherty is in a conflict-of-interest because his wife – an Ontario MPP — sits on the board of a school fighting for special federal funds.
So this thing between Flaherty and McCallum has been simmering for weeks… Flaherty stops McCallum at Love and says, “You should think twice before you go after much-respected Canadians in the petty, gutterlike way that you do.”
That prompts Kevin Bausch, the director of the Liberal Research Bureau, to heckle Flaherty from the sidelines. At these committee meetings (this one was in West Block 269), staffers for the Opposition sit on chairs lined up one side of the room and the Conservative staffers sit on the other side. Bausch had chimed in a few times during this rather raucous meeting and was doing it again while Flaherty was giving McCallum the gears. This apparently infuriated the young and impetuous Rossano Bernardi, the recently installed director of Parliamentary Affairs for Flaherty. Bernardi leapt up from his spot, marched briskly and with a slightly threatening purpose towards the seated Bausch and, upon arriving a few inches from Bausch's nose, told him to “Shut up and stay out of it!”
Bernardi then marched back to his seat and sat down with a thud.
Now I have seen Conservative MP Royal Galipeau march across the floor of the House of Commons and get up in Liberal MP David McGuinty's face before, but I ain't ever seen anything like this at a committe before.