June 18, 2010
MP’s rental of kids’ condo raises ire of taxpayers
Group plans campaign to pressure politicians to open books
Stephen Maher, Ottawa Citizen
The Canadian Taxpayers Federation plans to launch a publicity campaign today to pressure MPs into opening their books to auditor general Sheila Fraser in response to a Chronicle Herald-Ottawa Citizen investigation that found a Liberal MP has been claiming $22,000 a year in expenses for rent she pays to her children.
The papers revealed Monday that Judy Sgro, MP for York West and a former cabinet minister, had transferred ownership of the condominium she owned to her three adult children in 2006 and had been paying them taxpayer dollars for rent ever since, an apparent violation of House of Commons rules.
The story makes it clear that the officials in the Speaker’s office who oversee spending by MPs are missing things, said Kevin Gaudet, federal director of the anti-tax group.
“We have more good evidence that the oversight doesn’t work so well,” he said. “I would say it’s the most egregious example of a problem so far.”
Gaudet’s group will send an email to its 74,000 members across the country asking them to send messages to the MPs from all parties who are on the board of internal economy, the secretive all-party committee that last month told Fraser she was not welcome to audit $583 million in parliamentary spending.
After the public reacted with anger to its decision, the MPs on the board decided to revisit the issue and plan to meet with Fraser to discuss opening Parliament’s books to her next Monday.
A spokesperson for Speaker Peter Milliken declined to say Monday whether officials would now review other MPs’ files to see if any others are paying their family members for accommodation.
Gaudet said the board should just let Fraser do it.
Sgro held a private meeting with a representative of the House comptroller to discuss the rental, her staff said Monday.
Sgro admitted Friday that she lives in the two-bedroom unit in the Queen Elizabeth Towers on Laurier Avenue West after an Ottawa Citizen-Chronicle Herald review of property records found that her children owned a condominium in Ottawa. By paying rent instead of taking about $10,000 a year in “secondary residence expenses,” she was able to get about $12,000 more a year from taxpayers.
House of Common rules forbid MPs from entering into contracts with members of their immediate families or parents.
Sgro said she was unaware she was breaking any rules and promised to rectify the situation.
It is unclear, however, how that might be done. Her office would not say whether she plans to refund to the House the money she paid to her children over the past four years.
“We’ll be waiting for their recommendations and take on the situation,” said Greg McClinchey, a Sgro aide.
Nathan Cullen, a NDP MP from British Columbia who co-owns a condominium in Ottawa with wife, said Sgro’s arrangement breaches conflict of interest rules.
“It’s clearly a violation,” Cullen said. “You can’t benefit your family from your job.”
It is not unusual for MPs to buy homes in Ottawa, but Sgro was one of a small group of MPs with property registered in family members’ names.
Two other MPs contacted say they claim only the $28.85 residence allowance and do not pay rent on the properties owned by their spouses.
A third Toronto-area Liberal MP, John Cannis, reported in his ethics disclosure that his wife receives rental income from a property in Ottawa, but it is unclear who pays it. Mary Cannis is the registered owner of a condominium on Laurier Avenue West.
Cannis has not responded to emails and calls seeking comment. His office on Parliament Hill was darkened Monday and calls left on the answering machine were not returned. A senior Liberal said Monday that party officials have not been able to contact him since Friday, when the issue came up.
