The Pacific political report Oct. 09 Conflicting interests? Line blurs 2013 between public, private business VOL. 01 ISSUE 10

Pat Bell’s day was not a busy one. The then-Minister of Jobs, Tourism and Skills Training’s appointment calendar – obtained through a Freedom of Information request – for Tuesday, October 2, 2012 shows that he had no appointments in the morning, and only three in the afternoon. His first meeting, from 3:30 to 4:00 pm, was with two senior executives from WorkSafe B.C.– Dave Anderson, the president, and Roberta Ellis, senior vice-president for human resources and corporate services. No items for discussion are listed in the calendar, but it is likely the trio talked about the two sawmill Premier and Steve Kukucha campaigning during May 2013 election. explosions that had occurred earlier in the year – in Burns Lake in January, than 300 agencies, commissions and The third and final meeting of the day, and Prince George in April – leaving councils, including the boards of from 4:30 to 5:00 pm, was with two four workers dead, with another 40 or directors at colleges, health authorities individuals. One was John Sheridan, so injured. Bell, minister responsible and Crown corporations. All the president and chief executive for WorkSafe B.C., also was the MLA appointments are supposed to be ‘on officer at Ballard Power Systems Inc. for Prince George-Mackenzie. merit,’ but as is evident by Wicks’ Sheridan was anxious to advise Bell partisan leanings, most have some and other government officials about Next up, from 4:00 to 4:15 pm, was political colouring. new developments concerning the Ann Wicks, a long-time Liberal activist company’s fuel-cell technology, and – federal and provincial – who at the (Wicks is married to Kishone ‘Tony’ especially the Ballard-powered bus time was working in Christy Clark’s Roy, who for four years in the early service operating in Whistler. government as managing director of 2000s was an assistant to then- the Board Resourcing and Develop- Education minister, Christy Clark, and Accompanying Sheridan – indeed, ment Office. in 2011 was chair of Clark’s on-line the man responsible for setting up the campaign for the BC Liberal Party appointment – was Steve Kukucha. The BRDO coordinates the leadership. Kim Haakstad, the long- A lawyer by training, Kukucha is a government’s appointments to more time Clark aide who resigned as her principal with the Wazuku Advisory deputy chief of staff in the aftermath Group, which bills itself as “one of of the multicultural outreach scandal, ’s leading, full-service INSIDE ... reportedly served as bridesmaid at the business solutions firms.” Roy-Wicks nuptials.) Political Financing (Part Two) p. 4 One of the myriad services offered by It’s difficult to surmise the topic of the group is something called Spotlight (on ex-Canucks owner) p. 8 discussion between the pair, but not ‘advocacy’ – but which most observers long afterward Wicks quit the BRDO would describe as ‘lobbying’ – whereby to move over to the Financial Wazuku helps clients to “reach their In the News (Special Prosecutor) p. 9 Institutions Commission. She now business goals and objectives, market works as FICOM’s director of statutory expansion opportunities or plans to Behind the Scenes p. 10 approvals and regulations. shape public policy.” Continued on p. 2 www.pacificpoliticalreport.ca Phoenix Strategies Inc. Blurred lines, continued from p. 1 Kukucha is well-positioned to lobby the Clark government. A long-time Where is ethical line for lobbyists & governments? federal Liberal, he was campaign Is it ethical for someone to about six months before he registered director in B.C. for the 1997 general collect provincial monies while as a lobbyist, even though B.C. election and worked as a senior simultaneously being paid by clients requires a filing within 10 days of such advisor to David Anderson, who seek favours from province? Put work getting underway. Environment minister under Prime another way, can someone serve his Minister Jean Chretien. or her private interest, and at the same A lawyer, Terrence time serve the public interest? Robertson, was appointed as a Special In the Fall of 2011, about six months Prosecutor to look into the former after Christy Clark won election as Increasingly in recent years, the line deputy’s activities. He concluded that leader of the BC Liberals, Kukucha was separating public and private business Dobell faced a “substantial likelihood named as the party’s campaign in Victoria has become blurred. of conviction” under the Criminal director. (Later, during the 2013 Code of Canada – specifically, the provincial general election, he acted as Ken Dobell served as Deputy section dealing with “Frauds on the ‘wagon master’ for the victorious Clark Minister and Cabinet Secretary to government” – but he also determined Liberals, making sure that the former Premier that it was “not in the public interest Premier’s campaign bus and plane ran from June 2001 to June 2005. After to proceed with a prosecution.” on schedule.) quitting his government employment, the former public servant set up a Instead, Dobell agreed to plead guilty Kukucha first registered to lobby on consulting company, Dobell Advisory for failing to register as a lobbyist Ballard’s behalf on April 22, 2010. Services Inc., that reportedly charged within the required time limit. He The length of his contract was about clients $250 per hour for his expertise. went to court in March 2008 and 15 months, with a completion date of despite facing a fine of up to $25,000, August 3, 2011. Dobell may have left the government, the judge granted an absolute but he did not really leave – he discharge. It was clear that Dobell’s Throughout that period, Kukucha reportedly maintained a desk at the criminal offence was a minor breach intended to meet with numerous government’s cabinet offices in down- of the Lobbyists’ Registration Act. But government officials, including town Vancouver where he continued what of the ethical issue of working then-Premier Gordon Campbell and to work on various projects. simultaneously for the government several of his cabinet ministers – Iain and for a lobbying client? Black, , , For the fiscal year 2005/06, he was and . paid $70,323 for his time as That question seems to have been Campbell’s deputy, while Dobell answered by the BC Liberals – and That initial filing showed that he was Advisory Services received $136,646. they see nothing wrong with it. not then associated with a ‘lobbyist Consider the following example, just firm’ – Wazuku Advisory Services was Not long after Dobell retired from the one among many. born about four months later. (The provincial public service, the City of name is derived from the first two Vancouver retained him to promote Cynthia Grauer is a long-time federal letters of its principals’ last names: the city’s arts and culture infrastruc- Liberal activist. Usually found in Mike Watson, Brad Zubyk and Steve ture, and housing policy. One of his the party’s backrooms, she lost a Kukucha.) lobbying targets was Ottawa. We nomination battle in Vancouver- know this because before he Quadra to in 2007. The On June 22, 2012, less than a year after commenced his assignment, Dobell following year, the BC Liberals named the expiry of his initial filing, registered with the Office of the Grauer to the board of the BC Lottery Kukucha again registered to lobby on Commissioner of Lobbying of Corporation. behalf of Ballard. This contract – which Canada. was filed under the Wazuku label – was In April 2010, she registered as a to last for about 18 months, until He also continued to work for the lobbyist representing a Vancouver- December 31, 2013, and targeted three B.C. government and through fiscal based renewable energy company, cabinet ministers: Bell, and 2006/07, taxpayers sent another Instream Energy Systems Corp. . $157,326 to Dobell Advisory Services. Months later, Grauer was reappointed to the Lottery board, to a term lasting It is the relationship with Bell that is of In November 2006, he finally filed until the end of 2013. immediate interest. with the Registrar of Lobbyists in Victoria. It now was clear that Dobell Earlier this year, she again registered Pat Bell first was appointed as Jobs was lobbying the same government as a lobbyist, this time on behalf of minister by Clark on March 14, 2011 – for which he had been – and was – Rogers Communications Inc. (The 16 days after she won election as leader working as a paid consultant. cable and cellphone giant also has of the BC Liberal Party – and the same retained Dobell to represent its day she was sworn-in as Premier. Observers – that is, the news media interests in Victoria.) and the opposition New Democrats From the beginning it was clear that – soon found evidence that Dobell’s Grauer is both a patronage appointee ‘jobs’ were going to be a major focus of lobbying efforts in Victoria had begun and a lobbyist -- at the same time. Continued on p. 3 www.pacificpoliticalreport.ca Phoenix - 2 - Strategies Inc. Blurred lines, continued from p. 2 the Clark government – and of the during the Summit, and then assist in Many questions come to mind BC Liberal re-election campaign. To drafting the final Accord by February concerning Wazuku’s relationship that end, in September 2011 – six 19 – Budget Day. It’s not evident as to with the Clark government – and months after she became Premier – why Wazuku’s contract ran through to specifically with Pat Bell’s Jobs Clark unveiled her ‘BC Jobs Plan.’ the end of the fiscal year (March 31) ministry. when the Accord was to be finalized Notwithstanding the millions of tax- six weeks earlier (by February 19) – The issue here, however, is the payers’ dollars spent promoting Clark’s nonetheless, it is clear that the propriety – the ethics – of an Jobs Plan, the government’s fortunes contract value was fixed at $18,000, individual or firm lobbying the continued to wane. By the Fall of 2012, with payment in three equal install- provincial government to attain a following the resignations and ments of $6,000. benefit on behalf of a clients, while at retirements of such high-profile the same time working on behalf of the cabinet ministers as , Contracts valued at $25,000 and above province. Barry Penner and others, Premier must go to a public tender – that is, Clark was forced to re-shuffle her other firms or individuals have an From June 22, 2012 through to the end cabinet. opportunity to competitively bid for of 2013, Wazuku was registered to the work – but contracts below that lobby Bell for Ballard Power Systems. One of the notable moves was the value may be ‘sole-sourced.’ And for three-and-a-half months demotion of Naomi Yamamoto, during that lobbying period, from formerly – and, very briefly – the Which means, contracts valued at January 1 to April 15, 2013, Wazuku Minister of Advanced Education. less than $25,000 – such as Wazuku’s was actively working with Bell’s $18,000 contract – may be directly ministry to deliver the Small Business Her new – and, very junior – portfolio awarded to a chosen contractor. Accord. was Minister of State for Small Business. She reported to Bell, the And so, on January 2, 2013 – a day While seeking favours from the minister responsible for the Jobs after the contract had begun – Wazuku government (on behalf of a client), portfolio. (He had political staff and a principal Mike Watson signed a Wazuku was also delivering services to sprawling bureaucracy; she did not.) contract with Pat Bell’s Ministry of the government. Jobs, Tourism and Skills Training. Something, anything had to be found It is difficult to blame Wazuku or for her to do. And so on October 22, Watson was described in the its principals for accepting contracts 2012 – in a Kamloops music store – document as “Project Lead,” but also – and accepting financial payments – Yamamoto announced the listed as members of the Wazuku from both a lobbying client and government’s intention to begin “a “team” that would help to deliver the the provincial government, consultation process” that would end project were Kukucha, Zubyk and simultaneously. with the drafting of a “B.C. Small associate Kirsten Avison. Business Accord.” The fault lies with a government that On March 15, almost a full month allows – and, it seems, encourages – And what, exactly, was a Small after Budget Day and release of the lobbyists to represent their clients to Business Accord? Once completed, it Small Business Accord, Watson and public officials, while at the same time would “establish a list of priorities to Wazuku signed a new agreement with retaining those lobbyists to provide make B.C. the most business-friendly Bell’s ministry that extended their services that are beneficial to the jurisdiction in Canada.” Consultations services for an additional two weeks, to government. and a document were promised, but April 15. That date – coincidentally, of with the fixed-election date of May course – was one day before the writs *** 14, 2013 a mere seven months distant, were dropped for B.C.’s 40th provincial time was running out. What to do? general election. In January 2010, Mike Watson was named to the board of directors of the As 2012 drew to a close, Bell’s Jobs Wazuku now was tasked, among other Pacific Carbon Trust (PCT), a ministry and Wazuku Advisory things, with “Identification of key provincial Crown corporation. A news Services pondered how the Small validators,” “Development of key release stated that the government’s Business Accord might become a messages,” and “Creation of media Board Resourcing and Development reality. Discussions were held and a kits.” Office had given the PCT “guidance” contract was signed. That contract in recruiting Watson. – also obtained through a Freedom And instead of being valued at a mere of Information request – was for the $18,000, the value of the new, extended Three years later, in early 2013, the period January 1 to March 21, 2013. contract – which, again, was for a mere Auditor General was preparing to two-week period – was valued at a release an audit that was extremely Wazuku was retained to identify and hefty $50,000. critical of the PCT’s operations. recruit small business owners to participate in a Small Business Accord In total, the new deal paid Wazuku PCT responded by retaining Wazuku Summit, scheduled for January 11. $68,000 – considerably above the – where Watson is a principal – to $25,000 threshold above which all discredit the Auditor General’s report. The firm also would prepare a government contracts are supposed to Wazuku reportedly was paid $10,950 “facilitator’s guide to help discussions” go to competitive tender. for its services. www.pacificpoliticalreport.ca Phoenix - 3 - Strategies Inc. Political Financing Business donations to NDP skyrocket under Dix Corporate donations reached record high in 2013 – Part One

Two-and-a-half years ago, on April Corporate donations to the NDP, by year 20, 2011, B.C.’s received an incredibly generous corporate donation. It was a cheque for $50,000 – and it came from Corporation. Three days earlier, on April 17, Adrian Dix had won election as leader of the B.C. New Democrats. Is it possible that the two events were connected? Canfor Corporation effectively is controlled by Jim Pattison, who owns about 59 million – 41.1 per cent – of the forest company’s 143 million common equity shares. The President of the is none other than Glen Clark, who served as B.C.’s NDP Premier (Source: Elections BC) from 1996 to 1999. Before that, Clark was the province’s Finance followed by another four months later, Plus, the Canfor donations represented minister (1991-93) and Minister of for $5,060. And a couple of months about one-quarter of the total Employment and Investment (1993- later another, for $1,165, arrived. corporate contributions the NDP 1996) received in 2011 – a total of $222,183. All told, the giant forest company sent Dix, of course, served in Premier an incredible $56,225 to the NDP in *** Clark’s office as chief of staff, and 2011. before that was his ministerial Canfor’s $50,000 gift to the NDP just assistant. The two have a friendship Incredible, because those financial three days after Adrian Dix won the that stretches back to the early 1980s. contributions marked the first time – party leadership marked the beginning according to an analysis of Elections of a remarkable two-year period in The initial – and sizeable – Canfor B.C.’s records – that Canfor made any which corporate donations to the donation to the New Democrats was donation to the New Democratic Party. left-of-centre party skyrocketed heavenward. A decade earlier, in 2002 – the year after the New Democrats were reduced to just two seats in the Legislative Assembly – the party’s business donations added up to a mere $6,325. Corporate contributions to the NDP over the first decade of the new century followed a familiar pattern: a sharp spike upward to about one- quarter of a million dollars in election years (2005, 2009), followed by a return to exceptionally modest levels in the post-election period. Continued on p. 5

Adrian Dix Glen Clark www.pacificpoliticalreport.ca Phoenix Strategies - 4 - Inc. Political financing - part two, continued from p. 4 Over the entire nine-year period Forest industry donations, 2012-13 before Dix became Leader, the cumulative total of corporate Company # of donations total donations donations to the New Democrats was just $758,158. Canadian Forest Products Ltd. 17 $65,550 Mercer International 3 30,000 By comparison, the total of business Conifex Timber Inc. 6 28,500 contributions to the BC Liberals over Western Forest Products Inc. 13 24,300 the same 2002-2010 period was a Tolko Industries Ltd. 13 23,850 staggering $45.3 million – good for a Teal-Jones Group 12 15,400 sixty-to-one advantage over the New Weyerhaeuser 5 14,730 Democratic Party. Council of Forest Industries 3 11,485 Coastland Wood Industries Ltd. 2 5,100 With Dix as Leader, the field became Coulson Group of Companies 1 5,000 somewhat more level – although the Aspen Planers 2 4,500 business community still Timber Country Investments Corp. 1 4,000 favoured Christy Clark’s Liberals. Carrier Lumber Ltd. 2 3,000 Flavelle Sawmill Company Ltd. 1 3,000 In 2012, corporate offerings to the Catalyst Paper 1 2,500 NDP totalled a record-breaking Atco Wood Products 2 2,300 $978,043. The BC Liberals, on the Cribco Forest Products Limited Partnershp 1 2,000 other hand, received nearly $5.0 Fibreco Export Inc. 2 1,290 million – a five-to-one advantage. Dix’s success at corporate fundraising was most evident in the first four-and- Mining industry donations, 2012-13 a-half months of 2013, when the New Democrats received business Company # of donations total donations contributions that added up to an extraordinary $2,116,817.

Teck Resources Ltd/Teck Cominco 5 $58,890 Clark’s Liberals, over the same period, Imperial Metals Corp./ Red Chris/Mount Polley 14 38,380 collected slightly more less than $5.1 Capstone Mining Corp. 3 21,050 million from the corporate sector. The Pretium Resources Inc. 4 17,200 free-enterprise party’s advantage was Copper Fox Metals Inc. 2 11,500 down to 2.4 to one. Canadian Dehua Int’l Mines Group Inc. 3 8,325 Catface Copper Mines Ltd. 1 5,000 In total, Dix and the New Democratic Avanti Kitsault Mines Ltd. 2 4,685 Party received corporate donations New Gold Inc. 2 3,050 of $3.1 million in the sixteen months Fortune Minerals 2 2,050 or so leading up to the May 14, 2013 general election. *** Alberta energy donations, 2012-13 Canfor Corporation’s financial Company # of donations total donations contributions to the New Democrats ended in 2011; afterward, the Encana Corporation 8 $52,640 company’s donations came from a Capital Power Corporation 6 20,980 wholly-owned subsidiary, Canadian Devon Energy Canada 4 19,185 Forest Products Ltd. All told, the latter Meg Energy 2 18,000 entity sent 17 donations to the NDP Pennwest Exploration 4 17,750 in 2012 and 2013, with a total value of TransCanada Pipelines Limited 3 13,400 $65,550. AltaGas Ltd. 3 8,900 Talisman Energy Inc. 6 7,790 Second on the list of forest industry Enbridge Inc. 6 6,800 contributors to the New Democratic Chevron Canada Limited 2 6,000 Party was Mercer International Inc., Nexen Inc. 2 6,000 which proffered a total of $30,000 in Canadian Natural Resources Limited 2 5,500 2012 and 2013. The company owns the Suncor Energy Servicees Inc. 2 5,500 Zellstoff Celgar pulp mill in Castlegar. Alliance Pipeline LP 2 3,500 Apache Canada 2 1,300 One of the more noteworthy donations TransAlta Corporation 1 1,750 to the NDP from the forest sector was Continued on p. 6

www.pacificpoliticalreport.ca Phoenix Strategies - 5 - Inc. Political financing - part two, continued from p. 5 a $10,000 gift in November 2012 from Lobbyist donations, 2012-13 the Council of Forest Industries. Long a vocal proponent of free-enterprise Company # of donations total donations policies, COFI gave the NDP a total of $11,485 in the last two years. Earnscliffe Strategy Group Inc. 18 $35,900 Hill & Knowlton Strategies 15 14,050 Notably absent from the list of forest National Public Relations Inc. 8 9,339 company contributors are two well- Global Public Affairs Inc. 9 8,725 known industry names – West Fraser Ascent Public Affairs 3 6,300 Timber Co. Ltd. and International CST Consulting 1 2,500 Forest Products Limited. The latter John Moonen & Associates Ltd. 6 1,345 company is headed by Duncan Davies, Bluestone Consulting Inc 1 1,000 a prominent fundraiser – ‘bagman’ – Progressive Group 2 745 for the Clark Liberals. Fleishman-Hillard` 1 350 *** Casino/gaming donations, 2012-13 Two mining companies – Ltd. and Imperial Metals Company # of donations total donations Corporation – made sizeable contributions to Dix’s New Democrats. Great Canadian Gaming Corporation 24 $29,964 Grand Villa Casino 1 11,000 Teck offered $57,500 in donations to Gateway Casinos & Entertainment Limited 8 10,550 the centre-left party, while Teck- Playtime Community Gaming Centres Inc. 1 3,000 Cominco chipped in another $1,390. Edgewater Casino 1 2,500 Imperial sent 10 donations for a total of $23,380, while two subsidiaries also Financial and professional donations, 2012-13 stepped up. Red Chris Development Co. Ltd. offered three donations that Company # of donations total donations totalled $10,000, and Mount Polley Mining Corp. sent a single cheque for Financial $5,000. American Income Life (AIL) 4 $11,600 Central 1 Credit Union 3 6,600 *** Insurance Bureau of Canada 6 4,515 Canadian Imperial Bak of Commerce 1 3,500 Gwyn Morgan has been one of Christy The Toronto Dominion Bank 1 1,000 Clark’s biggest boosters – and a size- able financial donor to her leadership Professional campaign and the BC Liberal Party. Accounting KPMG LLP 5 $11,650 Yet, Morgan’s former company, Encana Ernst & Young LLP 5 12,075 Corporation – a natural gas giant with MNP LLP 2 2,900 significant holdings in the Fort Nelson area, and specifically the Horn River Engineering Basin – sent a total of $52,640 to the McElhanney Consulting Services Ltd. 4 $3,750 NDP in 2012 and 2013. Legal That number was more than twice Fasken Martineau Dumoulin LLP 4 $22,500 as much as the next-highest Bull Housser & Tupper LLP 2 10,000 Alberta-based donor, Capital Power Heenan Blaikie LLP 7 9,900 Corporation, which offered $20,980. Joseph M. Prodor Law Corp. 1 5,000 Once owned by the City of Edmonton Hastings Labour Law Office 1 3,500 (and known as EPCOR), the company Roper Greyell Law 2 2,890 owns several independent-power Boughton Law Corporation 1 2,500 projects in British Columbia. David H. Albert Law Corporation 1 2,500 Webster Hudson & Coombe LLP 1 2,500 U.S.-owned Devon Energy also has a Marvin Stern Law Corp. 1 2,500 considerable interest in shale gas Leslie J. Mackoff Law Corporation 1 2,000 possibilities in the Horn River Basin. The company made four donations Notaries to the New Democrats, for a total of Society of Notaries Public of B.C. 7 $8,050 $19,185. Dhama Sahota Notary Corp. 3 5,500 *** Continued on p. 7 www.pacificpoliticalreport.ca Phoenix Strategies - 6 - Inc. Political financing - part two, continued from p. 6 Rumours abound as to how Christy The firm’s Vancouver office has been *** Clark’s re-elected BC Liberal govern- top-heavy with BC Liberals over the ment will handle the province’s last decade – Bruce Young, Adam Property developers were amongst the lobbying interests. Will some be Johnson and Michael Drummond, to largest financial donors to the New favoured, will some be shunned? Time name a few. Still, that didn’t stop Democrats over the last two years. will tell. Earnscliffe from sending nearly $36,000 to Dix’s New Democrats in Two of the biggest were from the Founded in Ottawa in 1989, the 2012 and 2013. Aquilini Investment Group and RMPG Earnscliffe Strategy Group has stayed Holdings (see The Pacific Political in business by offering the services (or Far behind was Hill and Knowlton Report, Vol. 1, Issue 9, p. 6), owned, advice) of Liberal, Conservative and Strategies, headed by Ken Dobell, respectively, by the Aquilini and the NDP veterans. which coughed up more than $14,000. De Cotiis families. Concord Pacific made six donations adding up to $25,500, while related Entertainment and liquor donations, 2012-13 company One West Holdings made two donations totalling $30,000. Company # of donations total donations Two other affiliated entities – Centreville Construction and Television, Cable and Film Crestmark Development – gave four Rogers Group of Companies/Communications 3 $65,000 donations with a total value of $40,000 /Pacific Backlot Services 8 24,500 Canadian Motion Picture Park 2 13,000 Polygon Homes made seven donations Savick Entertainment Inc./Out TV 4 7,500 that gave the New Democrats $44,500, Shaw Communications/Cable 2 2,950 and Bosa Properties – along with four Stage One Academy 1 2,640 related companies: Bosa Construction, Blue Sky Properties, Loon Properties Alcohol and Icon West Construction – also Canada’s National Brewers 5 $27,800 made seven offerings with a value of Molson Coors Canada 4 23,225 $38,250. Pacific Western Brewing Co. 6 17,000 Alliance of Beverage Licensees 3 7,600 Gibson Investments Ltd. 2 5,750 *** Liquor Stores GP Inc. 2 5,000 Sailor Hagar’s Pub Inc. 1 5,000 Finally, Lower Mainland taxi Granville Entertainment Group 4 4,500 companies have a vital interest in Okanagan Spring Brewery Ltd 1 4,000 government policy, especially as it Westcoast Tap House Ltd. 1 1,658 regards the issuance of licences (see Labatt Breweries of Canada LP 1 550 p. 8), and so many gave a donation to the New Democrats. Property development/construction donations, 2012-13 Bonny’s Taxi and Queen City Taxi offered five donations with a total Company # of donations total donations value of $5,350. They were followed by Blacktop and Checker Cabs with two Property Development/Construction gifts adding up to $4,000. Aquilini Investment Group/Dev. & Const. 3 $117,500 Concord Pacific/Centreville/One West/Crestmark 12 95,500 Yellow Cab Company Ltd made three RPMG Holdings/Onni Group/Pinnacle 7 94,000 donations which totalled $3,000, Polygon Homes Ltd. 7 44,500 while two firms – Maclure’s Cabs Bosa Prop./Bosa Const./Blue Sky/Loon/Icon West 7 38,250 and Vancouver Taxi Ltd. – each Westbank Projects/8400 Granville/Via Vista 8 30,800 contributed one cheque of $1,500. Surespan Group/Const./Invest./Struct. 11 23,550 Townline Housing Solutions/Group 6 12,000 Royal City Taxi Ltd. cut three cheques Holborn Holdings Ltd 5 10,200 worth a total of $1,600, and Sunshine Mayor Development Corporation 1 10,000 Cabs Ltd. sent two with a total value of Wesbild Holdings Ltd. 5 9,550 $1,400. Park Lane Homes/Wesgroup Properties 4 6,580 Concert Properties Ltd. 4 6,500 Bel-Air Taxi Ltd., Newton Whalley Northern Lands Development Corp. 1 5,000 Hi-Way Taxi Ltd. and North Shore Mrtn Lonsdale Properties 1 5,000 Taxi each gave a single donation of MS Westcoast Homes Limited 1 5,000 $1,000, while the Vancouver Taxi Wall Financial Inc. 2 5,000 Association wrote a cheque for Westlo Financial Corp. 1 5,000 $2,000.

Phoenix www.pacificpoliticalreport.ca Strategies - 7 - Inc. Ex-Canucks owner Spotlight makes lobbying debut by Kristy Fredericks

Arthur Griffiths is known to hockey The filing was made about five-and-a- fans as a member of the family that half years after former Transportation once owned the Vancouver Canucks. minister Kevin Falcon unveiled the BC One answer would be to let some of To politicos he’s known as a one-time Liberals’ “Taxi Bill of Rights.” the companies licensed to operate in BC Liberal candidate in a November the suburbs, occasionally travel into 2008 by-election. Passengers were promised that they Vancouver to pick up fares and drive had a ‘right’ to be “picked up and them home. That by-election, in Vancouver- transported to their stated destination Burrard, was necessitated by the by any available on-duty tax driver.” That solution, however, has been resignation of Lorne Mayencourt, a BC strongly resisted by the four city cab Liberal MLA who first won his seat in The document also vowed that companies – who together comprise the House in 2001. passengers could expect “A courteous the Vancouver Taxi Association. driver who provides assistance,” and Mayencourt failed to make much of “A taxi that is clean, smoke free and In the mid-2000s, the Vancouver an impression on – or win a cabinet in good repair.” For their part, taxi companies retained Tony Bhullar, a appointment from – former Premier drivers had a right to protect their lawyer and one-time BC Liberal MLA, Gordon Campbell, however, and personal health and safety, and refuse to plead their case with the after seven years on the backbench service to a fare “acting in an offensive government. he set his eyes on the House of manner.” Commons. Not long thereafter, the two former All very reassuring, but the Taxi Bill caucus colleagues, Falcon and Bhullar, He ran as a Conservative in of Rights’ main purpose was to allow introduced the Taxi Bill of Rights. It Vancouver-Centre in the 2008 federal the government to pay lip service to did little to address the problem, but election, but was unable to upset Hedy complaints by Lower Mainland at least the government seemed to Fry, the Liberal incumbent. residents who often were unable, acknowledge the problem. notably at night or on weekends, to Since March 2011 – that is, since find a cab that would take them from To no one’s surprise, the issue did not Christy Clark became Premier – he’s downtown Vancouver to their homes go away. been working for the BC Liberal in the suburbs. caucus as a ‘director of outreach’. On June 10, the Passenger The problem stems from the fact that Transportation Board approved (Mayencourt also made an ill-fated taxis (and limousines and buses) are applications by seven suburban attempt last year to regain a seat in regulated in British Columbia by the companies – Delta Sunshine Taxi, the legislature, losing the BC Liberal Passenger Transportation Act, which Kimber Cabs, Guildford Cab, nomination for Vancouver-False Creek is administered by the Passenger Tsawwassen Taxi, Newton Whalley to , the former Vancouver Transportation Board. HiWay Taxi, North Shore Taxi and mayor.) Sunshine Cabs – to operate up to 38 Among other things, the Board is cabs in downtown Vancouver on Griffiths – who finished the 2008 authorized to set rates for taxis Friday nights and Saturdays. by-election to replace Mayencourt a operating in the province, and more couple of thousand votes behind NDP contentiously, to issue a finite number That decision greatly displeased the victor – of taxi licences for proscribed Vancouver owner/operators, who, incorporated his fledgling lobbying geographic areas. four days later, obtained a B.C. firm within weeks of Clark’s stunning Supreme Court order to delay those re-election victory in May. Four taxi companies in Vancouver new licenses until after a judicial hold all but one of the city’s 688 review. And in early September he registered licenses – Yellow Cabs has 285; Black as a lobbyist in Victoria on behalf of Top, 227; Vancouver Taxi, 94; and The Vancouver Taxi Association also his first client, the Vancouver Taxi Maclure’s, 81. (The remaining license is retained Griffiths to influence the Association. held by an individual owner/operator.) political process. According to his inaugural filing, With a set number of licenses for Working on the file with the ex- Griffiths intends to help the taxi Vancouver, the demand for cabs Canucks owner is a junior associate, association promote “a level playing sometimes exceeds the supply. Craig Jangula. By coincidence (of field for all operators to ensure the course) he once worked as an assistant long term health of the industry.” How to fix the problem? to then-MLA Mayencourt.

www.pacificpoliticalreport.ca Phoenix - 8 - Strategies Inc. VICTORIA – David Butcher, a members of the Executive Council VICTORIA – The government’s Vancouver lawyer, was named in late (the cabinet) – and/or government Core Review may be expected to put August as a Special Prosecutor to employees, the RCMP and DeWitt-Van considerable focus on the operations investigate alleged contraventions of Oosten decided the public interest was of British Columbia’s Crown corpora- British Columbia’s Election Act. best served by retaining Butcher to tions and the SUCH sector – schools, probe – and possibly prosecute – the universities, colleges and hospitals – The appointment, which followed matter. plus agencies, boards and commissions a request from the Royal Canadian (ABCs). Mounted Police, was announced by *** the Criminal Justice Branch nearly a That information was contained in month after it was made. OTTAWA – British Columbia has letters recently sent to their colleagues suffered negative interprovincial by , the Minister of Energy Adrian Dix, leader of the BC New migration in seven of the last eight and Mines responsible for the Core Democratic Party, subsequently issued quarters, going back to July 2011, Review, and Kim Henderson, the a statement in which he acknowledged according to the latest Quarterly public service deputy overseeing the it was his complaint to the police Demographic Estimates from Statistics nuts and bolts of the operation. that had precipitated Butcher’s Canada. appointment. “This investigation The letters outlined a four-step process relates to concerns the Opposition Over the first six months of 2013, the for the review: raised repeatedly in the Legislature, as province had a net loss of 2,869 British well as other serious issues,” said Dix. Columbians to other provinces. (1) Early opportunities – this phase apparently is well underway, with the “I thought these issues were sufficiently That loss was offset by the addition of cabinet working group on core review serious as to warrant an investigation. 4,872 people through ‘natural increase’ studying submissions “on priority The RCMP has now undertaken one – births minus deaths – plus the gain areas.” Just who had offered those and a Special Prosecutor has been of another 21,075 through net submissions was not made clear. appointed. I raised these concerns in international migration. early August in a confidential letter to (2) Mandate review – individual the RCMP, which laid out the grounds *** ministers will appear before the for our concerns.” cabinet committee to answer questions VANCOUVER – The provincial on “the performance of their ministry, According to a news release from the government will lead a delegation key trends in policy and service Criminal Justice Branch, the RCMP of forest companies and industry delivery, leading approaches in other investigation concerns “matters arising associations on a 10-day marketing jurisdictions, the major themes heard out of the Review of the Draft mission to Japan and China. Officials from key stakeholders, and metrics Multicultural Strategic Outreach Plan will leave on October 16, and return on program and service efficiency and that was completed in March 2013 by on October 26. effectiveness.” This phase will last from Mr. John Dyble, Deputy Minister to October through to the end of the year. the Premier. The delegates intend to meet key customers and senior government (3) Refinement – this phase will feature “The complaint also alleged Election officials in an attempt to expand “more comprehensive and detailed Act irregularities for consideration by market opportunities. work on the programs and services police.” recommended” by the cabinet Over the last decade, the value of B.C.’s working group. “It is expected that Butcher’s appointment as a Special forest product exports have plunged, this analysis will include targeted Prosecutor was made by M. Joyce dropping from $9.3 billion in 2002, to consultations with stakeholders.” This DeWitt-Van Oosten, the Assistant $6.2 billion in 2012. phase will take place in the Winter and Deputy Attorney General who Spring of 2014. oversees the Criminal Justice Branch. The biggest declines occurred in the The appointment of a lawyer “who United States – falling from $7.0 (4) Implementation – Bennett, is not employed in the Ministry of billion to $3.1 million – and Japan – according to his letter, will “monitor” Justice,” under the Crown Counsel $1.8 billion to $946 million. implementation of the program and Act, takes place if “it is in the public service changes approved by cabinet. interest.” Forest product exports to China, on the other hand, have exploded over the Early and informed speculation is that As the investigation may involve same period from a mere $37 million the Agricultural Land Commission members of the government – that is, to almost $1.4 billion. will be a major focus of the review. www.pacificpoliticalreport.ca Phoenix Strategies - 9 - Inc. By most accounts the guys running In 2008, DTR – which owned a Fortunately, Pat Bell, the ex-Jobs Conifex Timber Inc. are pretty sharp subsidiary called Conifex Inc. – bought minister – and former MLA for Prince operators. a bankrupt sawmill in Fort St. James George-Mackenzie, home to two (from Pope-Talbot Ltd.), and by 2010 Conifex sawmills and the bio-energy The company’s origins are somewhat was in the process of buying two more operation – had announced his convoluted, but let’s begin in the financially-distressed mills in retirement from politics just two summer of 2007 with the creation of a Mackenzie (from Abitibi-Consolidated months before the election. He was capital pool entity called West Fourth Co.). available, in other words, to maintain Capital Inc. Starting with just $256,500 cordial relations between Conifex and in cash, the company – more Once the transaction between West the Clark government. appropriately, a ‘shell’ – was required to Fourth and DTR was completed, a new complete a ‘Qualifying Transaction’ to entity, Conifex Timber Inc., began On August 13, the forest company justify its public listing. publicly trading on the TSX. issued a news release on quarterly earnings. Buried deep in the release Put another way, the company’s The company lost money in 2011 and was Bell’s appointment to the board of management and shareholders – in 2012, but finally turned a profit of $8.6 directors. He’ll be making something the beginning, five B.C. business men million in the first six months of 2013. north of $40,000 per annum – plus including a pair of lawyers with the stock options – for a less-than onerous Vancouver firm of Farris, Vaughn, Wills Like most other forest companies in assignment. and Murphy – had to purchase an asset British Columbia – where 95 per cent or going concern so investors could of the land base is owned by the Crown assess the value of the shares being – Conifex is vitally affected by *** publicly traded. provincial government policies. That interest is heightened by the company’s There were many surprises on May 14. After at least one false start – the recent investment in a bio-energy attempted acquisition of a mineral operation in Mackenzie, and a deal to Even as the BC Liberals romped to an property near Nelson – and a brief sell electricity into BC Hydro’s power unexpected election victory, three trading suspension for failing to file a grid. female cabinet ministers were losing Qualifying Transaction within the their own legislative seats. One, of prescribed time limit, West Fourth in It’s not surprising, then, that Conifex course, was the Premier, Christy Clark, 2010 agreed to buy a company called and related companies have given who later had to win a by-election DTR Wood Acquisitionco Ltd. financial donations to B.C. political in Westside Kelowna to get into the parties. From 2009 through 2012, all of House. DTR itself was a capital pool company, those donations – totalling $37,950 – but whereas West Fourth had been put were sent to the BC Liberal Party. The other two, however, probably have together by lawyers, the former was seen the end of their political careers, set up by a couple of Raymond James But that changed in February 2013. and so the government has found Ltd. executives – Ken Shields and David The Conifex executives could see, as comfortable sinecures for their many Roberts – plus a B.C. forest-company could everyone else who followed talents. veteran, George Malpass. public-opinion polls, that Adrian Dix and the New Democratic Party were Margaret MacDiarmid, the one-time going to win election to government Health minister, lost her Vancouver- Photo Credits: in May. Fairview seat to New Democrat p. 1 Clark, Kukucha - Wazuku Advisory Group p. 5 Dix, Clark - BC NDP newcomer George Heyman. In late In short order the forest company made September she was named to the five donations adding up to $28,500 to board of the Vancouver Coastal Health The Pacific Political Report the NDP. Authority. publishes 24 issues per year. The election results on May 14 stunned , the BC Liberal MLA for To subscribe please visit: everyone, including (we may assume) Oak Bay-Gordon Head from 1996 to www.pacificpoliticalreport.ca the guys at Conifex. What to do? 2013, was upset by Green challenger Publisher: Phoenix Strategies Inc. Andrew Weaver. She’s been named to Editor: Kristy Fredericks, BSc. How to stay onside with the re-elected the board of governors at the University BC Liberal government? of Victoria. © The Pacific Political Report. www.pacificpoliticalreport.ca Phoenix - 10 - Strategies Inc.