“Carbon Tax Carney.” That’s the name the federal Conservatives have given Mark Carney, but perhaps they might want to switch to “Cashing in Carney.”
Questions are arising about whether taxpayers are going to be funding one of the companies Carney works for just days after he was announced as an adviser to Prime Minister Justin Trudeau.
Carney is the former governor of the Bank of Canada and the Bank of England. He’s an adviser to the United Nations on climate change and on a pile of corporate and charitable boards.
That’s where a potential conflict of interest comes in and for Carney and one of his companies, it could involve billions of taxpayer dollars.
Citing unnamed sources, the Globe and Mail reported that a proposal floating on Bay St. and the halls of Parliament would see Brookfield Asset Management create a $50-billion investment vehicle with $10 billion being put up by Canadian taxpayers. Carney is the chair of the board for Brookfield and holds the title of head of transition investing. Brookfield has not confirmed the proposal.
If the proposal goes forward then Brookfield is suddenly going to get a windfall from your pockets and mine just as he’s coming in as an economic adviser to the Liberal Party of Canada.
If Carney were a member of the Trudeau cabinet — say the finance minister instead of the de facto, hidden finance minister — then he would be subject to federal ethics laws and disclosures. Even as a senior civil servant, there would be rules in place that he would have to follow, but as an adviser to the Liberal party, no such rules exist.
In addition to being the chair of Brookfield, Carney is also on the board of the online payments firm Stripe. He also sits on the board of investment firm PIMCO and the World Economic Forum.
Knowing whose interests are being served as Carney advises the Liberal party is not an unreasonable question.
“Only days after he took on the unofficial and unelected role as finance minister, we learned that the company he chairs is now seeking $10 billion federal Canadian tax dollars, money to control Canadians’ pensions. He has gone from carbon tax Carney to conflict-of-interest Carney and now coincidence Carney,” Conservative Leader Pierre Poilievre said in question period on Wednesday.
“Will the prime minister cut loose carbon tax Carney and call a carbon tax election so Canadians can choose their future?”
Trudeau wasn’t willing to even admit there was a problem or even the potential for a conflict of interest.
“The reality is he is jealous that top-notch economists and world-renowned experts back our plan to fight climate change and grow the economy, but he is stuck with late-night, far-right conspiracy videos on YouTube,” Trudeau replied dismissively.
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The idea of tax dollars going to a fund controlled by Brookfield, the company Carney chairs, is not the only benefit the Liberals are offering.
On Monday, Finance Minister Chrystia Freeland announced major changes to mortgage rules for first-time home buyers. The changes will allow 30-year mortgages and a price cap increase from $1 million to $1.5 million.
These changes only apply to insured mortgages.
While many mortgages are insured by the Canada Mortgage and Housing Corp., the biggest private provider of mortgage insurance is Brookfield.
Would these changes have happened without Carney? Perhaps, but knowing that ethical rules were followed is something all Canadians should be able to rely on.
The last time Trudeau appointed one of his wealthy buddies to be an economic adviser, it worked out very well for Dominic Barton and his firm McKinsey, but not so well for Canadians. McKinsey saw contracts from the federal government skyrocket after he was appointed as a Trudeau adviser in 2016.
It appears that may be happening with Carney and Brookfield.
Something has to give: Either Carney gives up his role as the unofficial finance minister in Trudeau’s government or he gives up his roles at Brookfield and other firms.
The status quo is unacceptable.