Privy Council Clerk Michael Sabia, responsible for overseeing Prime Minister Mark Carney’s ethical conduct, emphasized that the prime minister’s ethics screen is activated proactively when there is even a slight chance of necessity. Sabia, the country’s highest-ranking civil servant, provided testimony in Ottawa on Wednesday to address concerns raised by Conservative MPs on the House ethics committee regarding potential financial gains from Carney’s policy decisions.
The ethics screen was put in place earlier this year following Carney’s full disclosure of his assets to the federal ethics commissioner, who enforces the Conflict of Interest Act for public office holders. Carney moved the majority of his assets into a blind trust shortly after assuming Liberal leadership, excluding some liquid assets, his primary residence, and a cottage.
In a blind trust arrangement, the trustee gains legal ownership of the assets and manages them independently without consulting Carney, who remains unaware of the trust’s contents. Carney’s initial asset disclosure to the ethics commissioner outlined the assets before they were placed in the blind trust. The ethics screen aims to prevent Carney from participating in decisions that could favor the assets as they existed pre-blind trust.
Carney’s ethics screen encompasses over 100 companies in which he had vested interests, prohibiting his involvement in any decisions that could benefit these companies while he serves as prime minister. Sabia reported that the ethics screen has been invoked 13 times thus far, with six instances leading to Carney being restricted from making related decisions after consultation with the ethics commissioner.
Sabia clarified that in cases where the screen was eventually lifted, it was because the decisions did not intersect with the disclosed companies or involved general tax measures. He assured the committee of providing further details on the invoked screens, excluding ongoing cases. The Conflict of Interest Act lays down regulations and timelines to prevent office holders from making self-serving decisions.
Carney’s background includes serving as board chair of Brookfield Asset Management before entering politics in Canada and holding significant roles in international finance, including leading the Bank of Canada and Bank of England. The law prohibits the prime minister, cabinet ministers, and parliamentary secretaries from owning “controlled assets” that could be influenced by government actions, necessitating divestment or placing such assets in a blind trust.
Opposition MPs have raised concerns about the adequacy of existing laws. Conservative MP John Brassard, the ethics committee chair, questioned Sabia regarding the necessity of complete divestment, rather than a blind trust, to eliminate any perception of conflict of interest. Sabia defended the current stringent system and suggested that any updates to the rules should be decided by parliamentarians, warning against potential barriers for talented individuals transitioning from private to public sectors due to overcorrection.
Managing the ethics screen alongside Marc-André Blanchard, Carney’s chief of staff, Sabia specified that the screen pertains to all matters involving Brookfield and Stripe, where Carney held board positions. Carney’s public filing revealed holdings in both companies at the time of divestment, with the exact value undisclosed. However, Brookfield Asset Management’s 10-K report indicated Carney possessed $6.8 million US in unexercised stock options as of Dec. 31.
