The polls, fundraising hauls and endorsements aren’t the only things suggesting former central bank governor Mark Carney is on track to win the Liberal leadership — Conservatives seem convinced as well.
Carney has become the primary target of Conservative attacks in recent weeks. On Wednesday, the party accused Carney of lying to the media after Tuesday’s Liberal leadership debate and of indirectly helping U.S. President Donald Trump in his quest to get firms to relocate to the U.S.
When Carney was asked whether he approved Brookfield Asset Management’s decision to move its headquarters from Toronto to New York when he was the company’s chair, Carney told reporters he had “ceased to be chair” in mid-January, when he entered the leadership race.
“The formal decision of the board happened after I ceased to be on the board,” he said Tuesday night.
But on Wednesday, the Conservatives circulated a Dec. 1 letter signed by Carney as board chair that says the board had approved the move and urges shareholders to vote for it in a Jan. 27 meeting.
“This letter says that the decision by the board, of which Mark Carney at that time was chair, was unanimous to move the headquarters and Canadian jobs to Donald Trump’s hometown of New York City,” said Conservative ethics critic Michael Barrett.
Liam Roche from Carney’s campaign team replied in an email that the attack shows Poilievre is “scared of running against Mark Carney, and he’s desperate to misrepresent Mark’s serious experience in business because he has no economic experience whatsoever.”
“The changes reported are technical in nature, and with respect to jobs, Brookfield has clearly stated that Canadian operations were not impacted,” Roche added.
The Dec. 1 letter says the move was intended to position Brookfield Asset Management for inclusion in U.S. stock exchanges. The company is 73 per cent owned by Brookfield Corporation, which is based in Canada.
Should Carney adhere to ethics rules?
It’s not the only attacks the Conservatives have made though, they’ve also demanded that he comply with the conflict of interest rules that apply to members of Parliament and cabinet ministers.
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Carney, who is neither an MP nor a member of cabinet, has said he will comply with the rules when they apply to him.
MPs are subject to the Conflict of Interest Code for Members of the House of Commons, which came into force in 2004 and has been updated five times, most recently in March 2023. That code applies to Chrystia Freeland and Karina Gould as they are sitting MPs.
The code includes a process to disclose private interests to the ethics commissioner and procedures to make some of that information public. It also sets out rules to help MPs avoid conflicts of interest.
It only applies to sitting members of Parliament, so it’s not in force during an election.
Cabinet ministers and the prime minister are subject to the Conflict of Interest Act and must make disclosures to the ethics commissioner.
Some of the information disclosed to the commissioner has to be made public.
Frank Baylis, who was an MP from 2015 to 2019, would have made disclosures at that time. Right now, he and Carney are not subject to either set of rules.
Rob Shepherd, a professor of public policy and administration at Carleton University, said the rules are “meant for protecting the interests of the Canadian public once they’re in office.”
“No candidate is required to disclose their personal assets,” he said, adding that asking candidates to disclose assets early could run afoul of privacy laws.
This is an unusual situation, since Carney could become prime minister before becoming an MP. Shepherd said that’s led to questions about whether the rules need to be changed.
“It may be a very legitimate question to ask,” he said.
Shepherd said that while changes could be made to the laws that govern elections, it’s up to political parties to set the rules for their own leadership races.
The winner of the Liberal leadership race will be appointed prime minister by the governor-in-council and will then have to comply with the Conflict of Interest Act.
That law says public office holders have 120 days to complete an initial compliance process.
They must divest controlled assets — assets like stocks or bonds that could rise or fall in value as a result of government actions. Those assets must be sold in an arm’s-length transaction or placed in a blind trust.
Within 60 days of taking office, a cabinet minister, minister of state or parliamentary secretary must submit a confidential report to the ethics commissioner’s office. According to the wording on the ethics commissioner’s website, they must “make reasonable efforts to include a similar description for (their) spouse or common-law partner and dependent children.”
That report is reviewed by the commissioner’s office, which provides a summary statement and advice on any public declarations required. Those must be signed and handed to the commissioner within 120 days of the initial appointment to office.
What the Conservatives are saying about conflict of interest rules
Conservative MPs say Carney is exploiting a “loophole” in the laws.
MP Michelle Rempel Garner said last week that because Carney could win the Liberal leadership and quickly call a federal election, “it’s conceivable that he wouldn’t have to disclose his financial interests … until after an election.”
She argued the law did not anticipate “an unelected person who had significant corporate board interests becoming prime minister” and called on Carney to disclose all his corporate interests now.
“I firmly think that anybody seeking to lead this country needs to live above the letter of the law,” she said.
When he announced his intention to run for the Liberal leadership, Carney said he resigned as UN special envoy for climate action and finance and left his executive role at Brookfield Asset Management and the boards of Stripe and PIMCO.
His campaign team said in an emailed statement on Monday that he has resigned from all professional or advisory roles.
“He will work hard to earn a seat in the House of Commons, where he is committed to complying with all applicable ethics rules and guidelines relating to these roles,” said campaign spokesperson Emily Williams.
“It’s clear that Pierre Poilievre is afraid to face Mark Carney in the coming election campaign.”
