The Hard Work Starts for Private Member’s Bill C-461

The day before Parliament adjourned for a two week Easter Break, my Private Member’s Bill C-461, “The CBC and Public Service Disclosure and Transparency Act,” passed Second Reading in the House of Commons by a vote of 155-127.  I was surprised and disappointed by the closeness of that margin.

The debate preceding the vote was similarly disappointing, focusing on conspiracy theories as to why the Bill was being introduced rather than on the merits (or the deficiencies) of the legislation.

Regarding the CBC, the Bill corrects a well-recognized defect in the “Access to Information Act,” which allowed the CBC to skirt the authority of the Information Commissioner.  This resulted in well publicized litigation between the two parties: both the Federal Court and the Federal Court of Appeal ruled against the CBC and determined that when a dispute existed, the CBC must disclose the documents to the Information Commissioner for a determination.  PMB C-461 corrects the defect and reinforces the Courts’ rulings. It also recognizes the uniqueness of a public broadcaster and therefore adds protection in the form of a prejudice test.  CBC would not be subject to disclosure, if it would result in an injury (prejudice) to its competitive, programming or journalistic independence.

The NDP predictably took the position that the legislation is an attack on the CBC and voted against it.  Although the Liberal Access and Privacy Critic voted in favour of the Bill, the rest of his caucus similarly voted “nay.”

Yesterday, I appeared before the House of Commons Standing Committee on Access, Ethics, and Privacy to explain and defend the Private Member’s Bill.

The Bill is not an attack on the CBC.  Transparency is not the enemy of the public institution, opaqueness is.  Transparency leads to trust, trust that there is proper stewardship over public resources.  Opaqueness leads to mistrust, suspicion that the government institution is, or at least might be, exercising improper stewardship.  CBC has its detractors to be certain; part of the mistrust is the suspicion that inevitably results from secrecy.  This legislation promotes transparency, accountability and ultimately the trust that the CBC is, or at least can be, good stewards of taxpayer resources.

The Parliamentary Secretary to the Minister of Justice indicated at Second Reading that although the Government supports this part of C-461, they are proposing a most unhelpful amendment.  They want to remove documents regarding journalistic source privilege from the ambit of the Act through an “exclusion.”  I fully support, conceptually, protecting journalistic source confidentiality; the problem is that I am not sure it can be drafted given the broad powers given to the Information Commissioner under s.36 of the “Access” Act.

That Section empowers the Commissioner to compel persons, take evidence, enter government offices without warrant and examine ANY record and that “no such record may be withheld from the Commissioner on any grounds.”   How the lawyers at the Justice department believe they can draft an exclusion that can coexist with the unfettered discretion afforded the Information Commissioner remains a mystery to me.  Moreover, said legal advisors seem unaware of the 2010 Supreme Court of Canada decision in “R v. National Post”.  The High Court held that protection of confidential journalistic sources is not absolute and must be weighed against other factors including the investigation of a crime.  Accordingly, a journalist’s claim for protection of confidential sources must be assessed properly using a case-by-case model of privilege employing a four criteria test developed by esteemed Professor Whigmore.

Who is going to apply the four pronged Whigmore test to determine (as it will in most cases) that source privilege must be protected if CBC is to be given an exclusion?  Is CBC to be party to, and adjudicator of, disputes to determine if journalistic source privilege is applicable?

Sadly, if the Justice lawyers are able to amend C-461 in the manner they have indicated they intend to, the answer will be yes.

However, the damage the Justice Ministry intends to inflict upon the “CBC and Public Service Disclosure and Transparency Act” regarding journalistic source privilege is minor compared to its proposed “gutting” of the salary disclosure requirements proposed for all federal government institutions. I will discuss this further in my next blog.

INFORMATION COMMISSIONER FAVOURS PMB 461 UNAMMENDED

On Wednesday, May 8, the Information Commissioner for Canada, Suzanne Legault, appeared before the House of Commons Standing Committee on Access, Privacy and Ethics to discuss the Main Estimates, the budget needs for the operation of her office. After her presentation she was asked a question regarding C-461.  C-461, “The CBC and Public Service Disclosure and Transparency Act,” is my Private Member’s Bill. It attempts to bring greater transparency to the Canadian Broadcasting Corporation and the public service as a whole.

The Information Commissioner was asked specifically about how she felt about exclusions.  She indicated that she would be preparing a written brief on the subject because the entire subject matter is complicated.  The complexity arises from the use of three words, all starting with the letter “e,” which in common use all mean the same thing.  But in the context of Access to Information legislation, the nuances of the respective “e” words are very different.

The words are exclusion, exemption, and exception.

In the context of the “Access to Information Act,” exclusion would mean that the Act does not apply to a certain situation or class of documents. As the Act is inapplicable, the Information Commissioner has no powers of review with respect to the particular situation.

Meanwhile, an “exception” is used to narrow an “exclusion.”  The Act generally would not apply “except” in specific situations.   This combination is employed in the current 68.1 of the Access Act regarding CBC records:

68.1 This Act does not apply to any information that is under the control of the Canadian Broadcasting Corporation that relates to its journalistic, creative or programming activities, other than information that relates to its general administration.

So the current Act creates an exclusion for CBC’s journalistic, creative, or programming records, but then creates an exception to the exclusion for matters relating to general administration.  The Federal Courts have referred to this as “not a model of clarity because the exclusion is subject to an exception” which creates a “recipe for controversy” and eventually leads to expensive litigation.

My Private Member’s Bill repeals the exception to an exclusion clause (68.1) and proposes a discretionary exemption.  An “exemption” means that although the documents are not excluded from the Act, they are exempt from disclosure.  As the documents are not excluded from the Act, the decisions of Access Officers are fully reviewable by the Information Commissioner.

The Information Commissioner clearly stated her preference for “exemptions” over “exclusions.” She told the Committee that the litigation between her and the CBC over 68.1 “was not about substance. […] CBC argued because it was an exclusion, I did not have a right to review the complaints. […] I was not allowed to review the records.”

She continued: “My personal view as Information Commissioner does not support exclusions to be appropriate as a matter of principle.”  Commenting on the Government’s stated intent to amend C-461 to provide exclusion for journalistic confidential source documents, she stated: “I profoundly believe there should be independent review of Government decisions regarding access to information. This does not mean that the information gets disclosed, because still after a review, we can recommend against disclosure.”

Finally, the Information Commissioner indicated that since 2007 she has received 1200 cases (complaints) related to the Canadian Broadcasting Corporation, of which 200 remain outstanding.  According to Ms. Legault, not a single one of those files relates to the CBC’s journalistic sources.

Accordingly, it appears to me that the Justice Department’s intended amendments to provide an exclusion to protect journalistic source confidentiality is a solution in search of a problem.

Moreover, as exclusions preempt the Information Commissioner’s ability to review matters and complaints, the inevitable result will be confusion and probable litigation.

I agree with the Information Commissioner that a discretionary exemption is far superior to a blanket exclusion as it is consistent with the purpose of the Access to Information Act as enunciated in section 2: “that government information should be available to the public, that necessary exceptions to the right of access should be limited and specific and that decisions on the disclosure of government information should be reviewed independently of government.”

As an Officer of Parliament (not Government), the Information Commissioner is the appropriate person to adjudicate disputes and determine when a discretionary exemption is applicable.

TAXES, TAXES, AND MORE TAXES

Earlier this week was the deadline for Canadians to file their taxes. On April 30, Canadians are forced to contemplate the magnitude of their tax obligations.  It serves as a stark reminder of how much tax Canadians actually pay throughout the year.

However, income taxes comprise only a fraction of an individual’s total tax bill.  All levels of government impose taxes and in ever increasing numbers.  According to the Fraser Institute, a family earning $74,113 paid $9,195 in income taxes in 2012, but that represents less than one third of its total tax bill.

EI, CPP Premiums, and Health Care Premiums in the three largest provinces add $6,769 in payroll taxes.   Meanwhile, the family will pay an estimated $4,812 in sales and consumption taxes; while property taxes will add another $3,607 to that average family’s tax bill.  Finally, the so called sin taxes (alcohol and liquor), capital gains and other profit taxes, and import duties bring the aforementioned family’s total tax bill to $31,615 against its income of $74,113.

That means the family paid 42.7 per cent of its income to one level of government or another.  Comparing that sum to the 36.9 per cent of the family budget going to food, shelter and clothing puts tax obligations into perspective.

Furthermore, as deficits represent deferred taxes, one should add another $2,417 for current consumption of government services paid for in the future, bringing the total tax bill to $34,032.

As sobering as it is that the average Canadian family now spends more of its income on taxes than it does on basic necessities, the gap between the two continues to grow. According to the Fraser Institute, in 1961 that same family would have spent 56.5% of its income on household necessities and 33.5% of its budget on taxes.  By 1981, the spending demands for taxes and basic necessities had balanced one another — both requiring 40.5 per cent of the family’s resources.

Including deferred taxes on deficits, the tax bill of the average Canadian family has increased by 1,932 percent since 1961. Average cash income rose by 1,382 percent and consumer prices rose by 675 percent over the same time period.  When adjusted for inflation, the total tax bill still grew by 143.5 per cent. So although Canadians gained purchasing power over the last half century, a disproportionate amount of their increased resources goes to paying taxes.

It is clear that taxes have become the most significant item in Canadian families’ budgets and that taxes have grown much more rapidly than any other expenditure item.

The knowledge that 45.9 per cent of family income goes to paying taxes allows Canadians to assess whether they are receiving value for money and hold government to account for the taxes it collects.  However, if one wants to reduce tax burdens to 1961 or even 1981 levels, it may be logically necessary to reduce the size and scope of government services to either 1961 or 1981 levels.  Without a drastic reigning in of government spending, taxpayers will continue to pay a disproportionate share of their income for federal, provincial and municipal spending and deficits for decades to come.

Families would certainly prefer to spend a greater percentage of their earnings on goods, services, retirement savings, education funds, or other family priorities.  For families to manage more of their budgets, governments are going to have to claim less of them.

On tax filing day, Canadians should ask themselves whether they believe they or the state are in a better position to determine how hard earned resources should be allocated.  It will take a concerted effort from all levels of government to reduce government spending and lessen Canadian tax burdens to more appropriate levels.