Ethics watchdog clears Bill Morneau in pension bill fallout

Finance Minister Bill Morneauwasn't in a conflict of interest when he introduced a pension bill in the House of Commons while he still owned shares in his family's pension services company, according to the ethics commissioner.

The opposition benches insisted Morneaucould personally benefit fromBillC-27, which seeks to amend the Pension Benefits Standards Act, because he owned shares in MorneauShepell, a human resources firm, at the time.

In the "MorneauReport," released Monday morning, Conflict of Interest and Ethics Commissioner Mario Dion outlinedhow he had to consider whether Morneau contravened two sections of the Conflict of Interest Act that prohibitpublic office holders from making, or being partof, decisions if they are in a conflict of interest.

"Because Bill C-27 is of general application, Mr. Morneau's interests, those of his relatives, and those of Morneau Shepell Inc. in this matter are excluded from the application of the act," Dion wrote in his decision.

"I found that he did not place himself in a conflict of interest in making decisions leading to the introduction of Bill C-27, therefore he did not contravene ...theConflict of Interest Act."

In a Facebook post, Morneau thanked Dion's officefor its "work and diligence."

"Canadians shouldalwaysbe able to trust that the people they have elected to serve are working in their best interests," he said.

"I have always and will always hold myself to the highest standards."

Former ethics commissioner Mary Dawson began investigatingMorneau'srole in the pensions file,but retired before completing the inquiry. Morneauintroduced the bill back in October 2016.

Dawson initiated the examination at the request of Conservative finance critic Pierre Poilievreand NDPMP Nathan Cullen.

Cullen argued that, because Morneau held about one million shares in MorneauShepellwhen he sponsored the bill, he could make millions if it passed.

"Well, it's obviously surprising," said Poilievreof Dion's report. "But regardless of whether Minister Morneau's actions were illegal, they were definitely bad judgment."

The ethics commissioner's decision to give Morneaua clean bill of health points to a loophole in the ethics laws the "general application" clause that can letministers off the hook for decisions they make that affect their own assets said a spokesperson for the activist group Democracy Watch.

"Now that this huge loophole is exposed, the question is whether the Trudeau Liberals will finally close it so that the now 'Almost Impossible to be in a Conflict of Interest Act' will finally become an effective law," said Duff Conacher.

"The House ethics committee is required to review the Conflict of Interest Act this fall, and if doesn't recommend closing this loophole, and the government doesn't pass a bill closing it before the next election, it will show that the Trudeau Liberals are just as unethical as all past governments."

Not Morneau'sfirst ethics report

Morneau'stenure as finance minister has been plagued by ethical questions about how he handled his substantial personal assets after coming to government.

In the fall of last year, he was forced to pay a $200 fine for failingto declare a corporation in France that owns avilla.

Poilievre had argued the timing of the sharesale was no coincidence, as the share price later took a dip, and he has sought to tiethedepreciation to the tax hike.

Dawson said the income tax increase for Canadians earning more than $200,000 was publicly announced on Nov. 4 and Morneau sold his shares on Nov. 30. The legislation was tabled on Dec. 7.