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March 1, 2005

Secret Trusts Defeat Legislative Scrutiny

"J. MacPhail: One of the reasons why I'm very suspicious about this government prepaying to the Olympic committee, when the Olympic committee isn't doing anything with the money yet, is because the Olympic committee isn't subject to freedom-of-information legislation - or has that changed?
Hon. J. Les: No.
J. MacPhail: Here we are, another secret organization set up by this government.
W. Cobb: Secret.
J. MacPhail: Yeah, secret. There's no freedom-of-information access to this. The auditor general can't get access to it. Does the Auditor General Act cover the Vancouver organizing committee?
Hon. J. Les: The affairs of VANOC are not subject to review by the auditor general, but they are subject to a full audit by an internationally recognized accounting firm.
J. MacPhail: That was very interesting, the way that firm was chosen - very interesting. Poof! The firm was chosen. So the auditor general doesn't get to examine the books. There's no freedom of information, and somehow the Liberal MLAs go: "No, you're just fear-mongering, saying it's a secret organization." Of course it's a secret organization, and this government keeps putting more and more money into it, prepaying money to it. So we don't get to examine it."
Hansard, February 28, 2005

On Monday, February 28, 2005, "supplementary estimates" were called for debate on "vote 34(S)". That is the procedure in BC's legislature where spending is approved beyond the original budget. The legislature is debating extra spending for the fiscal year that will end on March 31, 2005. The government will adjourn the legislature and deny MLAs, and the public, the opportunity to have line by line estimates debate on the budget for the year that begins April 1, 2005, even though there is no need to adjourn the legislature for the election until April 19, 2005.

Vote 34(S) approves $40 million additional dollars for the Ministry of Small Business and Economic Development for spending on the 2010 Olympics. The government is moving money into trust accounts that are not subject to freedom of information and that are beyond the reach of BC's Auditor General. The monies in the trust accounts are not yet being spent, and no member of the legislature will ever be able to again question the government on how the monies were spent. While the Olympics are the most blatant move to escape freedom of information and the Auditor, the Campbell government has moved many millions of dollars to similar trusts. This accounting technique allows them to escape scrutiny on how money is spent as well as to shift money between different fiscal years, thereby defeating the spirit of Generally Accepted Accounting Principles.

When Minister John Les rose to defend sending $40 million to a secret Olympic trust, Opposition House Leader Joy MacPhail let it be known that he was not going to get a silent rubber stamp of approval. Les switched between arguing that MacPhail had no right to question spending on each specific Olympic venue, and arguing that $30 million of the $40 million was specifically for the Richmond speed skating oval. MacPhail caught Les in his contradiction. He couldn't argue that ultimate accountability and spending was up to the Olympic Committee while at the same time claiming that $30 million was specifically targeted to one venue. Les said: "I don't think it is appropriate that we go into a venue-by-venue discussion and an expenditure-by-expenditure discussion related to each one of those venues." The Campbell government intends to spend $600 million on the Olympics and the Minister responsible thinks it is unreasonable to examine how the money is spent! MacPhail went on to catch Les in a contradiction over the Campbell government's announcement for a $10 million "Own the Podium" program. The government claims that the new announcement doesn't increase the budget from $600 million to $610 million, yet it also maintains that the $10 million won't come out of commitments for Olympic venues. It can't have it both ways. That is an example of why line by line estimates debate is important in order to hold the government to account. That kind of debate will not happen on the 2005 budget because the Campbell government will adjourn the legislature a month early in order to avoid cross examination in the legislature. "Not a Dime without Debate" is illustrated every day as the 2004 budget gets extended, but is anyone paying attention to the blank cheque the Campbell government is writing for itself for 2005?

 

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