Annual Report 2007-2008

Annual Report [PDF format, 665 KB]

Table of Content

• Message from the Registrar of Lobbyists
• The Lobbyists Registration Act
  • Purpose and Description of the Lobbyists Registration Act
  • Legislative Changes: The Federal Accountability Act
  • New Regulations Under the Lobbying Act
• The Office of the Registrar of Lobbyists
• Part One — Lobbyists Registration Act
• Registrations
  • The Lobbyists Registration Process
  • Improvements to the Lobbyists Registration System
• Statistical Review
  • Information Services
  • Subject Matters of Lobbying Activities (Areas of Concern)
  • Government Institutions
  • Registrations
• Enforcement of the Act
  • Processing Complaints
  • Administrative Reviews
  • Advisory Letters
• Education and Awareness
  • Direct Communications
  • Training and Information Sessions
  • Media Relations
  • Conferences Learning Events and Presentations
  • Briefings to Federal Government Institutions
  • Dialogue with Other Jurisdictions
• Part Two — Lobbyists’ Code of Conduct
• Purpose and Description of the Lobbyists’ Code of Conduct
• Enforcement of the Lobbyists’ Code of Conduct.
  • Processing of Complaints
  • Administrative Reviews
  • Investigations Under the Code
  • Court Challenges
• Additional Information
• Annex A

Message from the Registrar of Lobbyists

The annual reports of the Registrar on the Lobbyists Registration Act (Act) and the Lobbyists’ Code of Conduct (Code) are combined in one document again this year. This will serve as a transition to the production of a single annual report in future years, as will be required under the Lobbying Act.

These will be the final reports by the Registrar of Lobbyists on the Act and the Code. On July 2, 2008 the Lobbying Act will come into force and it will fall to the new Commissioner of Lobbying to report henceforth to Parliament. In recognition of this, a summary of the Registrars’ reports since the coming into force of the Lobbyists Registration Act is included at Annex A. This summary, which will also be published in a report on lobbying this year by the Organization for Economic Cooperation and Development, charts the evolution of the Act and Code over a period of nearly 20 years.

To the credit of Parliament, the Act has been strengthened considerably over that time. Initially derided by some as requiring little more than the information contained on a business card, the Registry of Lobbyists has become a trusted source of information for public office holders, lobbyists and others. Hardly a week passes without mention in the news media of lobbying that has been disclosed in the Registry of Lobbyists. Again with the support of Parliament, the Office of the Registrar of Lobbyists has grown from a small unit within a large government department to an independent, properly funded and staffed office.

The 2007-2008 reports on the Act and the Code describe a year marked by accomplishment in the Operations and Investigation directorates, preparation for the coming into force of the Lobbying Act, and growth as an organization. I would encourage readers of the reports to scan through the summary in Annex A prior to reading the reports themselves. Together, these documents tell the story of Parliament’s ongoing determination to find a balanced approach to implementing the four important statements from the Act that can be found on the cover of this set of reports.

It has been an honour and a privilege to serve as Canada’s last federal Registrar of Lobbyists. I am grateful to Parliament for providing the resources to build a strong office, to the governments of the day for granting me complete independence to do my work, to my staff, who have produced tangible results in the face of constant change over the past four years, and to the thousands of lobbyists found in the Registry, who have respected the Act and have supported the efforts of this office to ensure that the information contained in the Registry is accurate and complete.

I wish the Commissioner of Lobbying and staff great success as they work with lobbyists, public office holders and others in the months and years to come, to implement the Lobbying Act.

The Lobbyists Registration Act

Purpose and Description of the Lobbyists Registration Act

The Lobbyists Registration Act (Act) provides for the public registration of those individuals who are paid to communicate with public office holders with regard to certain matters as described in the legislation. Public office holders (POHs) are defined in the Act as virtually all persons occupying an elected or appointed position in the Government of Canada, including members of the House of Commons and the Senate and their staff, as well as officers and employees of federal departments and agencies, members of the Canadian Forces and members of the Royal Canadian Mounted Police.

The preamble to the Act sets out four basic principles pertaining to the registration of lobbyists:

• Free and open access to government is an important matter of public interest.
• Lobbying public office holders is a legitimate activity.
• It is desirable that public office holders and the public be able to know who is attempting to influence government.
• A system for the registration of paid lobbyists should not impede free and open access to government.

Under the Act, individuals must be registered if they communicate with federal POHs, whether formally or informally, with regard to:

• the making, developing or amending of federal legislative proposals, bills or resolutions, regulations, policies or programs; or
• the awarding of federal grants, contributions or other financial benefits; and
• in the case of consultant lobbyists, the awarding of a federal government contract and arranging a meeting between their client and a POH.

The Act provides for three categories of lobbyist — consultant, in-house (corporations) and in-house (organizations).

Consultant lobbyists are individuals who are paid to lobby on behalf of a client. Consultant lobbyists may be government-relations consultants, lawyers, accountants or other professional advisors who provide lobbying services for their clients. They must file a registration for each individual undertaking.

In-house lobbyists (corporations) are employees of corporations that carry on commercial activities for financial gain, and who lobby as a significant part of their duties. These employees are usually full-time officers who devote a significant part of their time to public affairs or government-relations work. As the registrant, the most senior paid officer must register the corporation if the total lobbying activity of all employees equals 20 percent or more of the duties of one equivalent full-time employee (FTE). The registration must include the names of all senior officers (the most senior officer and all their direct subordinates) who engage in any lobbying activity, as well as the name of any employee who individually devotes a significant part of their duties to lobbying activities.

In-house lobbyists (organizations) are employees of non-profit organizations, such as associations. As the registrant, the most senior paid officer of such an organization must register the names of all employees engaged in lobbying activity if the total lobbying activity of all such employees equals 20 percent or more of the duties of one equivalent full-time employee.

All three categories of lobbyist are required to disclose certain information within time limits specified in the Act. This information includes:

• names of their clients, or corporate or organizational employers;
• names of the parent or subsidiary companies that would benefit from the lobbying activity;
• organizational members of coalition groups;
• specific subject matters of lobbying;
• names of the federal departments or agencies contacted;
• sources and amounts of any government funding received; and
• communication techniques used, such as meetings, telephone calls or grass-roots lobbying.

Corporations and organizations must also provide general descriptions of their business or activities.

Legislative Changes: The Federal Accountability Act

On December 12, 2006, the Federal Accountability Act (FedAA), an omnibus piece of legislation, received Royal Assent. Among other Acts, it amended the Lobbyists Registration Act and renamed it the Lobbying Act. With the exception of the five-year post-employment prohibition on transition team members, which came into force upon Royal Assent, the remainder of the sections related to the Lobbyists Registration Act will come into force in July 2008. The amendments to the Act will enhance transparency and independence while increasing penalties for breaches of the Act, introduce a ban on contingency fees and prohibit former designated public office holders and members of the Prime Minister’s transition team from lobbying for five years.

• Transparency will be enhanced by providing Canadians with more timely and comprehensive information on who is lobbying public office holders, and in what context. Monthly reports will be required when lobbyists meet with designated public office holders, a new statutory category of key decision makers in government.
• Independence will be enhanced with the naming of a Commissioner of Lobbying. The Commissioner will be an agent of Parliament, and will be a Governor in Council appointee. The Commissioner will have expanded investigative powers and a strong education mandate.
• Monetary penalties for breaches of the Act will be doubled, and contingency fees banned. Former designated public office holders and designated members of the Prime Minister’s transition team will be prohibited from lobbying for a five-year period.

No changes to the Lobbyists' Code of Conduct were introduced in the FedAA.

New Regulations under the Lobbying Act

The Lobbying Act authorizes the Governor in Council to make regulations to set out the measures necessary to enable lobbyists to comply with the registration requirements of the Act, to assist the Commissioner in his or her mandate to oversee the enforcement of the Act, and to ensure that all aspects of the lobbyists’ registration regime are adhered to.

Following consultations conducted by the Treasury Board Secretariat (TBS) in March 2007, two sets of regulations were formulated and pre-published on January 5, 2008 for a 30-day comment period. During this period several submissions were received from various stakeholders representing all three types of lobbyists, as well as one submission from an individual Canadian. Comments ranged from concerns relating to the publication of e-mail addresses in the public registry (and the possibilities of such addresses being harvested for spam purposes) to the desire for "oral and arranged" communications to be better defined. Requests were also made for clarification regarding the date that a paper return or other paper documents would be considered received by the Commissioner.

The Designated Public Office Holder Regulations prescribe various positions in the Canadian Forces and the Privy Council Office, as well as the Comptroller General of Canada, so that the persons occupying the positions would be included as “designated public office holders” under the Lobbying Act. The Lobbying Act defines “designated public office holders” to include ministers, ministers of state and their exempt staff, deputy heads, associate deputy heads and assistant deputy ministers and those of comparable ranks throughout the public service. The Regulations extend this definition to include eleven further positions or classes of positions:

• Chief of the Defence Staff
• Vice Chief of the Defence Staff
• Chief of Maritime Staff
• Chief of Land Staff
• Chief of Air Staff
• Chief of Military Personnel
• Judge Advocate General
• Any position of Senior Advisor in the Privy Council to which the office holder is appointed by the Governor in Council
• Deputy Minister (Intergovernmental Affairs) Privy Council Office
• Comptroller General of Canada
• Any position to which the Office holder is appointed pursuant to paragraph to 127.1 (1) a) or b) of the Public Service Employment Act.

The Lobbyists Registration Regulations set the form and manner in which lobbyists must file returns required by the Lobbying Act. Returns disclose information regarding their lobbying activities. The Regulations also set out certain additional information to be disclosed in returns, beyond what is required by the Lobbying Act. They set the time frames to respond to a request by the Commissioner for correction or clarification of information submitted in returns. The Regulations describe the type of communication that will trigger monthly returns, which are a new requirement under the Lobbying Act. This set of regulations must be completed before the Lobbying Act is brought into force.

The ORL is working in close collaboration with TBS to adjust the online registration system to support the new Act and regulations.

The Office of the Registrar of Lobbyists

After several years in a row of considerable organizational change, the Office of the Registrar of Lobbyists enjoyed a year of relative stability. The Registrar and his management team took the opportunity during 2007-2008 to make progress in a number of areas.

A comprehensive Human Resources Plan was developed as required by the Public Service Employment Act and was followed closely or amended where required, throughout the year. A Labour Management Consultation Committee was formed, leading to a series of important issues being discussed during the reporting period in a cooperative way with the unions. These issues included Employee Assistance Program, Informal Conflict Management System, Health and Safety, Training, Political Activities by ORL Staff during an Election, ORL Grievance Process and others.

The ORL completed its first full Estimates cycle as a department during 2007-2008. This included submission of a Departmental Performance Report, Supplementary Estimates, a Report on Plans and Priorities and Main Estimates. Through the Estimates process, Parliament provided the ORL with an increase in resources for 2007-2008 and future years. As of the writing of this report, the approved personnel strength of the ORL is 28 staff and the ongoing program budget is $4 097 million.

The ORL also made progress with development of performance measures for its Program Activities. These were reported for the first time in the 2008-2009 Report on Plans and Priorities. The Program Activities, the means by which their performance will be measured, the results expected and the related performance indicators are as follows:

Registration of Lobbyists

This activity is intended to ensure that public office holders and the public know who is lobbying government. Its outputs are a current and accurate public Registry and registration advice for registrants. Key functions under this activity are registration of lobbying activities, maintenance of the public Registry, and provision of registration advice to lobbyists to assist them in meeting the letter and spirit of the Act. Performance of the program activity is to be measured with indicators such as the number of visits recorded on the ORL's website, as well as the number of completed registrations and terminated registrations.

Expected Results	Performance Indicators
All lobbying activity is carried out by individuals, organizations and corporations that are properly registered in the Lobbyists Registration System.	Completeness of active registrations in the Lobbyists Registration System.
Canadians have access to information about lobbying and lobbyists.	Online availability of the Registry of Lobbyists.

Education and Research

This activity aims for greater awareness and clarity with regard to the accountability of lobbyists and public office holders. It targets lobbyists and their clients, public office holders and the general public. Its outputs are education programs for lobbyists and public office holders; communications for the general public; policy research for informed input into public policy development; annual reports; advisory opinions and interpretation bulletins. Performance will be measured by the number of ORL presentations made and the number of advisory letters to which ORL receives a reply.

Expected Result	Performance Indicator
Lobbyists, their clients, public office holders and the public are aware of the scope and requirements of the Lobbyists Registration Act.	Survey conducted in the third quarter of every year.

Investigations under the Lobbyists Registration Act and the Lobbyists’ Code of Conduct

The aim of this activity is enhanced compliance and integrity in lobbying. It targets lobbyists who fail to comply with the Act or the Code. Key outputs include audit and investigation reports and annual reports. Performance will be measured by the number of reviews or investigations initiated.

Expected Result	Performance Indicator
Alleged breaches of the Lobbyists Registration Act and the Lobbyists’ Code of Conduct are determined to be either unfounded or true so that they may be subjected to the appropriate sanctions.	Number of alleged breaches of the Lobbyists Registration Act and the Lobbyists’ Code of Conduct which result in decisions.

As the ORL has developed and put in place the foregoing organizational policies and processes and planned for development of others, it has become clear that capacity is a challenge. Generally speaking, the accountability and reporting expectations of small organizations such as the ORL do not differ substantially from those of departments with thousands of employees. The ORL is not alone in facing this challenge. This is why the ORL has joined SAAN (the Small Agency Administrators’ Network). Its mission is to provide opportunities for the sharing of information and practices as well as to discuss issues of common concern; and, to provide a common voice to Central and Common Service Agencies in respect to small agency issues. The ORL looks forward to benefiting from lessons learned by other small agencies and contributing to finding solutions for common problems.

Part One — Lobbyists Registration Act

Registrations

The Lobbyists Registration Process

The Lobbyists Registration System (Registry) is the web-based software application that is used by more than 99,9 percent of lobbyists to register their lobbying activities and complete related registration transactions such as amendments, renewals and terminations. The Registry is the ORL’s principal instrument for ensuring transparency in relation to lobbying activities. It is accessible via the ORL’s website and is well-known and well-used by lobbyists, journalists, public office holders, citizens and others.

All the information contained in the Registry is collected under the Act and the Lobbyists Registration Regulations and is a matter of public record. The objective of the Registry is to ensure that the general public and public office holders know who is being paid to communicate with federal public office holders.

This interactive system validates basic data, such as names and addresses; reminds lobbyists to complete all required information; and permits lobbyists to easily edit their disclosures. Once verified, data are moved to the Registry database. The database is searchable for information and reports based on information it contains can be produced through a web-based interface.

Users may search and retrieve information about:

• who lobbies for which firms, corporations, organizations or associations;
• which parent and subsidiary companies or corporations benefit from lobbying activities;
• the organizational members of coalition groups;
• the activities that corporations and associations are engaged in (a general description);
• which Government of Canada departments or agencies are being contacted;
• the names or descriptions of the specific legislative proposals, bills, regulations, policies, programs of interest and grants, contributions or contracts sought; and
• the positions former public office holders have held within the Government of Canada before they started lobbying.

Users can produce their own summary reports of registered lobbyists, as well as copies of individual registration forms, directly from the Registry. It is also possible to access a list of recent registrations that includes all new registrations, amendments and terminations that have been processed over the previous 30 days. Users who search and retrieve the data directly from their own computers may do so free of charge. If ORL staff are asked to search and retrieve information, a service charge may be applied.

Improvements to the Lobbyists Registration System

The Federal Accountability Act has had a considerable impact on the registration requirements set out in the Lobbyists Registration Act, which is being replaced by the Lobbying Act on July 2, 2008. With the coming into force of the new Act, lobbyists will require access to a registration system that incorporates the new legislative and regulatory registration requirements to which lobbyists will be subject. To meet these requirements, work has been underway to ensure that the necessary system is functional. To this end, the Registry of Lobbyists required major modifications to allow efficient processing of significantly larger numbers of transactions. Moreover, additional functions have been added to the Registry to improve its usability, thus contributing to increased transparency.

During fiscal year 2007-2008, the ORL completed a series of changes to the electronic Lobbyists Registration System to improve the overall efficiency of the computer application used for registering lobbyists and make the approval process for registrations timelier. The majority of these changes were identified in the previous reporting period for implementation in the current period. In the current period, the ORL implemented an automated termination process for overdue registrations, carried out development work on its internal reporting system and enhanced the Registry’s administrative capabilities.

These changes were made to allow the Registration Unit to focus on ensuring that registrations are complete and accurate. As well, the Registry’s search and sub-search capabilities and its user interface have been improved to facilitate the production of registration reports.

While further work remains to be done to ensure the Registry fully meets the registration requirements established under the Lobbying Act and related regulations, it is anticipated that the modifications will be in place for the coming into force of the new Act. The ORL’s software development team will ensure a smooth transfer of registration data to the new system. It has designed an improved registration system architecture for the Registry to support the expected increase in transactions with a communications log module to be used in relation to the monthly reporting requirements. Links will also be established between registrations for a particular registrant, which will improve the transparency of data contained in the Registry. In the new system, incomplete registrations will automatically be returned to registrants for corrections, eliminating the need to send correction requests to registrants via e-mail.

Statistical Review

Information Services

The Office of the Registrar of Lobbyists (ORL) provides assistance in relation to the registration process, reminds lobbyists to renew their registrations and verifies that disclosures are complete and accurate. During fiscal year 2007-2008, the ORL processed a total of 10 110 registrations, of which 8 129 were for consultant lobbyists registrations. There were 783 in-house lobbyist (corporations) registrations and 1 198 in-house lobbyist (organizations) registrations. This may be compared to 9 656 registrations processed in 2006-2007, 7 775 consultant lobbyists registrations, 793 in-house lobbyist (corporations) registrations and 1 088 in-house lobbyist (organizations) registrations. This represents a global increase of five percent in the number of registrations processed for the three categories of lobbyist. For each category of lobbyist, the year-over-year increases were five percent for consultant lobbyists, practically unchanged for in-house lobbyists (corporations) and 10 percent for in-house lobbyists (organizations).

The number of requests for technical assistance decreased from the previous year. Typically, such requests relate to the use of incorrect website addresses, navigational assistance, forgotten passwords, broken links and other technical problems. There were 249 helpline calls in 2007–2008, compared to 332 calls in 2006-2007 and 426 calls in 2005-2006. More than half of the calls had to do with lost passwords and user identifiers. The decrease in the number of helpline calls can probably be attributed to the ORL’s more user-friendly website, which is constantly being updated, resulting in fewer navigation and technical difficulties.

The ORL’s Registration Unit also handled 5 045 information calls from users of the Lobbyists Registration System during the fiscal year. This represents a 15% increase from the 4 406 calls received by the Unit in 2006-2007. As in the previous reporting period, although the overall number of registrations added to the Registry decreased slightly during the year, the complexity of calls received by the Registration Unit was greater, with the result that the Unit’s overall workload increased significantly over the course of the fiscal year.

In 2007–2008, the ORL website recorded 77 079 visits during which a total of 294 105 pages were accessed. This is an overall increase of 31% compared to the previous reporting year, when 74 792 visits were recorded and 305 733 pages accessed. During the current reporting period, as illustrated in the graph below, the highest levels of activity were recorded during the month of January 2008, which may relate to interest in the Federal Accountability Act and the Lobbying Act. This high level of activity is a clear indication of the continued interest in Canadian federal lobbying.

ORL Website — Visits — Fiscal Year 2007-2008:

Subject Matter of Lobbying Activities (Areas of Concern)

All lobbyists are required to identify the broad subject matter of their lobbying activities from the provided checklist. In the table that follows, the first column shows, in descending order, the 20 subject areas that are most frequently identified by lobbyists in their registrations. This information is based on the registrations that were active on March 31, 2008. The second column indicates the ranking for the previous year.

	2007-2008	2006-2007
Industry	1	1
Taxation and Finance	2	2
Environment	3	4
International Trade	4	3
Health	5	5
Science and Technology	6	6
Transportation	7	7
Consumer Issues	8	9
Employment and Training	9	8
Energy	10	10
Regional Development	11	11
Government Procurement	12	12
Infrastructure	13	14
International Relations	14	13
Agriculture	15	19
Defence	16	17
Aboriginal Affairs	17	16
Intellectual Property	18	15
Internal Trade	19	18
Financial Institutions	20	20

Government Institutions

All lobbyists are required to identify the names of the Government of Canada institutions that they contact or expect to contact in the course of their lobbying activities. In the table below, the first column identifies, in descending order, the 20 institutions most frequently identified by lobbyists in their active registrations as of March 31, 2008. The second column indicates the ranking for the previous year.

	2007-2008	2006-2007
Industry Canada	1	1
Finance Canada	2	2
House of Commons	3	5
Privy Council Office	4	3
Foreign Affairs and International Trade Canada	5	4
Environment Canada	6	6
Health Canada	7	7
Prime Minister’s Office	8	13
Transport Canada	9	8
Treasury Board of Canada Secretariat	10	9
Natural Resources Canada	11	10
Canada Revenue Agency	12	11
Public Works and Government Services Canada	13	12
Agriculture and Agri-Food Canada	14	16
Human Resources and Social Development Canada	15	14
Indian and Northern Affairs Canada	16	15
Department of National Defence	17	17
Department of Canadian Heritage	18	18
Senate of Canada	19	S.O.
Department of Justice	20	19

Changes in the ranking of federal institutions may often be related to developments or modifications in programming, policy, regulatory or legislative activity levels. For instance, in 2007–2008, federal institutions such as the House of Commons, the Prime Minister’s Office and Agriculture and Agri-Food Canada were mentioned more often than in the previous year by registered lobbyists. Other institutions, such as the Privy Council Office, Foreign Affairs and International Trade and Transport Canada were cited less often by lobbyists.

Registrations

On March 31, 2008, 867 active individual consultant lobbyists were registered with the ORL. This represents an increase of approximately one percent from the 860 consultants lobbyists registered last year. These consultant lobbyists work primarily as consultants for firms active in areas such as government relations, law, accounting, strategic advice and other professional services that provide lobbying services for their clients.

As of March 3l, 2008, a total of 1 754 individual in-house lobbyists (corporations) were registered in the Lobbyists Registration System, representing the interests of 283 different corporations. This reflects a decrease of six percent compared to the 1 882 individual in-house lobbyists (corporations) that were registered the previous year. During the same period, the number of corporations registered by their most senior officers decreased by 10 percent from 313 to 283.

The number of organizations registered by the most senior paid officers of non-profit organizations and interest groups, as well as business, trade, industry and professional organizations or associations, was about three percent lower than in the previous year, decreasing from 457 to 442. Over the fiscal year, the number of individual in-house lobbyists (organizations) decreased by almost four percent from 2 539 to 2 439.

Individual Lobbyists — active as of March

	2007-2008	2006-2007
Consultant lobbyists	867	860
In-house lobbyists (corporations)	1 754	1 882
In-house lobbyists (organizations)	2 439	2 539
Total registered individual lobbyists, all categories	5 060	5 281

Registrations — active as of March 31

	2007-2008	2006-2007
Consultant lobbyists (one registration per client)	2 857	2 975
Corporations	283	313
Organizations	442	457
Total active registrations, all categories	3 582	3 745

Enforcement of the Act

Processing Complaints

The Investigations Directorate uses a set of procedures to govern administrative reviews and investigations. Administrative reviews are initiated following requests or complaints received from various external sources, which allege a possible contravention of the Act or the Code. Administrative reviews are also initiated as a result of in-house monitoring by the ORL. An administrative review is not a formal investigation. Its purpose is to assemble and check factual evidence, with a view to determining if a formal investigation is required. All information gathered during either an administrative review or an investigation is retained in accordance with government information management practices.

An administrative review typically involves reviewing all registration files in the ORL Registry, available correspondence and other forms of communication between the ORL and the lobbyist; and confirming, through phone or in-person interviews with public office holders, whether registrable activities have indeed taken place. The ORL may also decide to contact the lobbyist during the course of a review.

Where the Registrar determines that there are reasonable grounds to believe a breach of the Act occurred, the matter is referred to the Royal Canadian Mounted Police (RCMP) for further investigation. The Act stipulates a two-year limitation period for contraventions of the registration requirements, after which no charges may be laid. Conviction for a contravention of the Act relating to fraudulent misrepresentation carries a fine of up to $100 000 or a jail term of up to two years.

The Investigations Directorate also issues advisory letters to lobbyists whose activities come to the ORL’s attention primarily through media sources that allege they are conducting unregistered lobbying activities. This initiative is intended to enhance the awareness of organizations and corporations regarding the Act and to encourage them to visit the ORL website or contact the ORL directly for additional information pertaining to registration requirements.

Administrative Reviews

The following summary of administrative reviews undertaken by the ORL during the 2007-2008 fiscal year respects protection of personal information and the restrictions associated with disclosure of such information in accordance with the Privacy Act.

Work continued on the following six administrative reviews, referred to in the Lobbyists Registration Act Annual Report, 2006-2007. The files involved:

• Allegations that employees of a public broadcasting advocacy group were engaged in unregistered lobbying activities. The administrative review revealed that the combined lobbying activities of all employees of the organization did not constitute a significant part of one employee’s time, and therefore registration was not required. The file was closed.
• An allegation that a human rights advocacy organization had been conducting activities deemed registrable under the Act. The administrative review revealed that the combined lobbying activities of all employees of the organization did not constitute a significant part of one employee’s time, and therefore registration was not required. The file was closed.
• An allegation that a voluntary, charitable organization, which promotes personal health across Canada and in developing countries, failed to register receipt of financial benefits from a government institution. Substantial progress has been made and the file is still open.
• Allegations that employees of a not-for profit business association engaged in unregistered lobbying by communicating with POHs in a number of federal departments regarding matters deemed registrable under the Act. The administrative review outlined sufficient grounds to believe a breach of the Act had taken place. The case was referred to the RCMP in October 2007 for follow-up investigation. A response to this referral is pending.
• An allegation that an individual was conducting unregistered lobbying activities. As reported in the 2006-2007 Annual Report, the administrative review found reasonable grounds to believe that the individual in question had contravened the Act through organizing and participating in meetings with POHs while not registered as a lobbyist. The case was referred to the RCMP for a follow-up investigation. In March 2007, the RCMP informed the ORL it would not be proceeding with an investigation under the Act. After the file was returned by the RCMP, new information was brought to the attention of the Registrar indicating that the individual had filed an “intent to register” as required in the 2005 transition period. The Registrar did not therefore have reasonable grounds to believe a breach of the Lobbyists’ Code of Conduct had occurred. The file was closed.
• Allegations that representatives of a drug company had contravened the Act and the Code in relation to meetings with POHs. The administrative review determined that the time spent in arranging, preparing and attending the meetings with POHs did not constitute a significant part of the duties of one employee, and therefore the individuals in question were not under an obligation to file a return. The file was closed.

In the reporting period of 2007-2008, 17 administrative reviews were initiated with one of these discussed in Part Two — Lobbyists’ Code of Conduct Annual Report, Enforcement of the Act, Administrative Reviews. Of the administrative reviews relating to possible breaches of the Act, one review was completed with the file referred to the RCMP. The case involved:

• An allegation that an individual lobbied the federal government on behalf of a municipality and a province, and failed to respect the time limits for registering, thereby breaching the Act and the Code. The administrative review found reasonable grounds to believe that the individual had breached the Act, and accordingly, the file was suspended and was transferred to the RCMP in August 2007 for follow-up investigation. A response from the RCMP is pending.

Of the 17 reviews initiated during this reporting period, 15 remain open. They include 13 allegations of unregistered lobbying. Of these, nine involve individual lobbyists, and four involve non-profit organizations. Of the remaining four reviews, two were initiated based on allegations that registered lobbyists were in breach of the Act by filing registrations that did not include full disclosure of the members of a client coalition and public funding.

A recent Federal Court decision has questioned the Registrar’s authority to investigate cases involving alleged breaches of the Lobbyists Registration Act. The decision of the Federal Court is under appeal. In the interim, the ORL has suspended work on all administrative reviews pending the receipt of clearer guidance from the Federal Court regarding the ORL’s ability to investigate alleged breaches of the Code in cases where the lobbyist has not registered. The Attorney General is seeking a stay of execution of the Federal Court’s decision in Makhija v. Attorney General of Canada pending the appeal of the Federal Court’s judgement.

Advisory Letters

The Investigations Directorate issued a total of 26 advisory letters from April 2007 to March 2008. These letters resulted in six respondents replying that they were not required to register. It is worth noting that registrations were received from six of the 26 addressees shortly after advisory letters had been sent.

Over this same period, an additional 193 entities (consulting firms, corporations, and organizations) were examined as a result of references in the media alleging unregistered lobbying activities. No further action was taken in 152 of the cases for the following reasons: 121 institutions were already registered, 21 were volunteer organizations which were not required to register under the Act, and 10 instances were found to involve provincial lobbying only. Forty institutions were monitored for a period but due to inactivity, monitoring has ceased. One institution continues to be monitored by the Investigations Directorate, and an advisory letter may be issued, if required.

Education and Awareness

The Office of the Registrar of Lobbyists (ORL) believes that promoting awareness of the Lobbyists Registration Act is crucial to achieving greater compliance. During the reporting period, the ORL used several means to promote awareness of the Act and its requirements, including:

• direct communications;
• training and information sessions;
• media relations;
• conferences and learning events;
• presentations to management teams and staff of government institutions; and
• dialogue with other jurisdictions.

Direct Communications

During the 2007-2008 reporting period, there was significant interest on the part of lobbyists and members of the media regarding the new Lobbying Act as well as issues relating to lobbying activities at the federal level.

Over the course of the reporting period, the ORL’s Operations Directorate continued its efforts to improve its communications with registrants. To increase awareness of the registration process and to help registrants understand how best to fulfill their obligations under the law, the ORL organized a number of outreach and information sessions with lobbying firms and in-house lobbyists.

In 2007-2008, the ORL continued implementing improvements to its website. Further changes were made to ensure it remained user-friendly and contained up-to-date information. For example, new sections were created for information documents, such as a section about the new Lobbying Act. Presentations, interpretation bulletins and advisory opinions were updated or added on a regular basis. Progress was made in aligning the ORL’s website with the Government of Canada’s Common Look and Feel Standards for the Internet (CLF 2.0) with a goal to full compliance by December 31, 2008.

With the coming into force of the Lobbying Act, the Commissioner of Lobbying will have an explicit mandate to develop and implement programs to foster awareness of the requirements under the new legislation. Consequently, the ORL is developing awareness and training materials to be used in fulfilling this new mandate. This work is expected to continue over the next reporting period.

Training and Information Sessions

The ORL presented information sessions to various groups and organizations from outside the federal government.

Media Relations

On a day-to-day basis, the ORL’s communications staff ensured prompt response to media inquiries, directed individuals to information relevant to their inquiries and liaised with other government departments and agencies as appropriate. The ORL’s communications staff also attended meetings of relevant Parliamentary Committees.

During this reporting period, a good deal of media attention was directed towards various allegations of breaches of the Act as well as certain court proceedings. On a regular basis, the ORL responded to media inquiries and provided clarifications about ongoing investigations and administrative reviews to the extent permissible under the Act. The ORL’s communications staff also provided guidance for media interviews and presentations delivered by ORL senior staff.

As expected, there was substantial media interest in the new Lobbying Act, which is to come into force on July 2, 2008. Questions relating to the new Act and to the related regulatory approval process were referred to the Treasury Board Secretariat, which, until the new regulations were published in final form, remained the primary source of information about the new Act and the regulatory process. Through its website, the ORL provided users with access to key documents related to the new Act.

Conferences, Learning Events and Presentations

During the reporting period, the Registrar and senior ORL staff participated in a number of conferences and panel discussions in the National Capital Region and elsewhere in Canada. It is the ORL’s belief that such discussions and sharing of information are key elements in increasing awareness of the federal lobbying legislation.

Over the year, the Registrar and the ORL’s senior staff made a number of presentations to national and international organizations interested in lobbying issues. The ORL hosted a Norwegian delegation mandated to study the possible implementation of a lobbyists’ registry in Norway, met with a Chinese delegation from the Ministry of Supervision, attended meetings of the Council on Governmental Ethics Laws (COGEL), and made presentations before the Canadian Study of Parliament Group and the Financial Management Institute of Canada, among others.

Briefings for Federal Government Institutions

The ORL continued its outreach efforts within the federal government through briefings to senior management at a number of departments and other federal organizations. These sessions, provided at the institutions request, were aimed at assisting senior staff in becoming familiar with the provisions of the Act and the Code, as well as addressing specific issues faced by those institutions regarding lobbying and interactions with lobbyists.

Dialogue with Other Jurisdictions

The ORL has continued its practice of exchanging best practices with other Canadian and foreign multilateral jurisdictions involved in the regulation of lobbying activities. The ORL has shared information and met with officials from Newfoundland and Labrador, Nova Scotia, Québec, Ontario, British Columbia, as well as with officials from various U.S. jurisdictions.

Discussions were also held regarding the implementation of lobbyist registration legislation with officials from Alberta, the most recent Canadian province to adopt lobbying legislation. The ORL also worked with the City of Toronto regarding the establishment of its Registry of Lobbyists. The ORL provided demonstrations of the LRS and exchanged information with a view to helping officials to set up a municipal registry. In addition, the ORL shared best practices with city officials to assist them with the implementation of the registry.

The Registrar took part in the work of the Organization for Economic Co-operation and Development (OECD) Expert Group on Conflict of Interest. In early June 2007, he co-chaired a special session on lobbying that brought together a group of officials from foreign administrations who are in charge of legislation and policy related to lobbying. The group reviewed different approaches and options for regulating lobbying and developed principles aimed at increasing transparency and accountability in relation to lobbying activities.

Part Two — Lobbyists’ Code of Conduct

Purpose and Description of the Lobbyists’ Code of Conduct

The Lobbyists’ Code of Conduct (Code) was developed for lobbyists under the Lobbyists Registration Act (Act). The Code came into force on March 1, 1997. The purpose of the Lobbyists’ Code of Conduct is to assure the Canadian public that lobbying is done ethically and with the highest standards, with a view to conserving and enhancing public confidence and trust in the integrity, objectivity and impartiality of government decision-making.

The Code establishes mandatory standards of conduct for all lobbyists communicating with federal POHss. It is composed of a set of principles — Integrity, Honesty, Openness and Professionalism — and an accompanying set of rules organized into three categories: Transparency, Confidentiality, and Conflict of Interest.

The Code is an integral part of the disclosure and ethical requirements that apply to all lobbyists. Paper copies of the Code are available from the ORL or may be printed from its website.

Enforcement of the Lobbyists’ Code of Conduct

Processing of Complaints

Whenever an allegation of non-compliance with the Act or Code is brought forward, the Investigations Directorate conducts an informal fact-gathering process called an administrative review. The objective of an administrative review is to collect sufficient information for the Registrar to determine, on the basis of reasonable grounds, whether a breach of the Code has occurred. If so, the Registrar will commence a formal investigation.

There is no limitation period for investigations under the Code. Breaches do not carry fines or jail sentences, but an investigation report including the Registrar’s findings, conclusions and reasons for the conclusions must be tabled before both Houses of Parliament.

The Act requires that investigations relating to possible breaches of the Code be conducted "in private." Consequently, the Registrar of Lobbyists will neither confirm nor deny the existence of any investigation. All information gathered during either an administrative review or an investigation is retained in accordance with government information management practices.

Administrative Reviews

The following summary of administrative reviews and investigations undertaken by the ORL during fiscal year 2007-2008 respects protection of personal information and the restrictions associated with disclosure of such information in accordance with the Privacy Act.

In this reporting period, the Investigations Directorate completed two outstanding administrative reviews carried over from the 2006-2007 reporting period. One review was a complaint from the Office of the Ethics Commissioner and related to the involvement of political party officials and non-elected persons in the review of federal grant applications. It was determined that there was no basis to conclude on reasonable grounds that the individuals in question, who communicated with POHs regarding successful grant applicants, were engaged in an activity deemed registrable under the Act. In the absence of any lobbyist, lobbying activity, or requirement to register, it was determined that no breach of the Code had occurred and the file was closed.

The other 2006-2007 carry-over review, which was one of the six unfinished Democracy Watch cases from 2006, was finalized. It involved an allegation of unregistered lobbying and found that the individual in question was not required to register under the Act, and therefore was not in breach. Furthermore, as there was no requirement to register, the individual was not bound by the Code of Conduct and the file was closed. The remaining Democracy Watch cases are ongoing.

Nine of the new reviews mentioned in last year’s Annual Report are still ongoing. Seven of them relate to possible breaches of the Code, and involve allegations of improper lobbying activity by individuals who were seeking financial benefits from a special operating agency of the federal government. The other two involve registered lobbyists who were alleged to be providing advice and professional services to federal POHs at the same time as being registered to lobby the government.

During the 2007-2008 reporting period, a total of 17 administrative reviews were initiated with only one related to a possible contravention of the Code. The ORL received a complaint that a registered lobbyist had provided confidential information without consent. This review is ongoing.

The other 16 administrative reviews relate to possible breaches of the Act and are discussed in Part One — Lobbyists Registration Act Annual Report, Enforcement of the Act, Administrative Reviews.

The recent Federal Court decision questioning the Registrar’s authority to investigate cases involving alleged breaches of the Lobbyists Registration Act is under appeal. In the interim, the ORL has suspended work on all administrative reviews pending the receipt of clearer guidance from the Federal Court regarding the ORL’s ability to investigate alleged breaches of the Code in cases where the lobbyist has not registered. The Attorney General is seeking a stay of execution of the Federal Court’s decision in Makhija v. Attorney General of Canada pending the appeal of the Federal Court’s judgement.

Investigations under the Code

Once the Investigations Directorate has completed an investigation under the Code, a report is submitted to the Registrar. Before the Registrar can determine whether a person has breached the Code, he gives that person 30 days to present his or her views in writing. Once the Registrar has completed an analysis of the file, a report is prepared and tabled in Parliament with the Registrar’s findings, conclusions, and supporting reasons.

During the fiscal year 2007-2008, the Registrar did not initiate any new investigations. However, several investigations initiated in previous years remained active. Two investigation reports were finalized by the Investigations Directorate and forwarded to the Registrar, one of which was the Democracy Watch case, which was opened as an investigation in 2006-2007. The Registrar shared these reports with the individuals reported upon so as to provide them a reasonable opportunity to respond in writing. As with the aforementioned suspended reviews, these two cases and the active investigations have been temporarily suspended pending receipt of clearer guidance from the Federal Court regarding investigations under the Code.

Court Challenges

In the past year, two of the court challenges referred to in last year’s report were considered by the Federal Court of Canada.

The first case involved allegations that the activities of a registered lobbyist, Barry Campbell, had violated the Lobbyists’ Code of Conduct. The Registrar of Lobbyists had made a ruling in 2006 regarding a complaint by Democracy Watch concerning the activities and conduct of Mr. Campbell. After examining the evidence regarding Mr. Campbell’s activities, the Registrar determined that he did not have reasonable grounds to commence a Lobbyists’ Code of Conduct investigation. The complainant, Democracy Watch, was informed of the decision and commenced an application for judicial review of the Registrar’s decision not to investigate in the Federal Court. In February 2008, the Federal Court of Canada released its judgment dismissing the application for judicial review. The Court ruled in favour of the Registrar and Mr. Campbell and found that the Registrar’s decision not to investigate was reasonable. As of March 31, 2008, Democracy Watch had commenced an appeal of the Court’s decision.

The second case which brought the Office of the Registrar to Federal Court was the Neelam Makhija case, which was discussed in the 2006-2007 Annual Report. In December 2006, Mr. Makhija applied to Federal Court to challenge the validity of the Lobbyists Registration Act and the decision of the Registrar to provide him an opportunity to present his views in writing rather than receiving an oral hearing. Following the court’s denial of Mr. Makhija’s application for an injunction to compel the Registrar to grant him an oral hearing, the Registrar’s four reports regarding Mr. Makhija’s activities were tabled in Parliament in March 2007, and Mr. Makhija discontinued this application.

In April 2007, Mr. Makhija filed four more applications for judicial review in the Federal Court. These were subsequently consolidated into one file. Mr. Makhija alleged that the Registrar had erred in law by failing to provide an oral hearing, by incorrectly interpreting the Lobbyists Registration Act, by holding that Mr. Makhija was required to register, and by finding that Mr. Makhija had violated the Act and the Code.

The application was heard in Federal Court by Justice Martineau in January 2008. In a judgement that was issued in March 2008, the Federal Court granted the application for judicial review. Justice Martineau determined that as Mr. Makhija was not registered, the Registrar did not have the jurisdiction to investigate him under the Lobbyists’ Code of Conduct. Consequently, the court quashed the Registrar’s four reports and ordered the Registrar to take the necessary steps to have them removed from Parliament.

On March 20, 2008, the Attorney General of Canada, on behalf of the Registrar, filed a notice of appeal with the Federal Court of Appeal. An application to stay the judgement of Justice Martineau was also filed.

Additional Information

For the legal text of the Act and Regulations, consult the following:

• Lobbyists Registration Act, R.S.C. 1985, c. 44 (4^th supp.);
• Lobbyists Registration Regulations, Canada Gazette, Part II, December 27, 1995;
• Lobbyists Registration Regulations, Canada Gazette, Part I, December 18, 2004;
• Lobbyists Registration and Service Fees, Canada Gazette, Part I, December 16, 1995;
• An Act to Amend the Lobbyists Registration Act, S.C. 2003, c. 10;
• An Act to Amend the Parliament of Canada Act (Ethics Commissioner and Senate Ethics Officer) and Other Acts in Consequence, S.C. 2004, c. 7;
• The Federal Accountability Act, S.C. 2006. c. 9;
• Designated Public Office Holder Regulations, Canada Gazette, Part II, April 30, 2008;
• Lobbyists Registration Regulations, Canada Gazette, Part II, April 30, 2008; and
• The Lobbying Act, R.S., 2006, c.9, s. 66.

Additional publications available on the Internet include the Guide to Registration, which covers the basic requirements under the Lobbying Act, a Quick Reference Guide to registration, implementation notices, as well as advisory opinions and interpretation bulletins.

Data from the Lobbyist Registration System are accessible free of charge on the Internet for viewing, searching, and producing summary reports.

The website of the Office of Registrar of Lobbyists contains additional links to related information.

For further information, please contact:

Office of the Registrar of Lobbyists, Operations Directorate, 255 Albert Street, 10^th Floor Ottawa Ontario K1A 0R5

Telephone: 613-957-2760 Fax: 613-957-3078
Email: QuestionsLobbying@orl-bdl.gc.ca

Annex A

Evolution and Operation of the Lobbyists Registration Act 1989-2008

The Lobbyists Registration Act, Canada’s federal legislation regarding the registration of lobbyists, came into force in 1989. This paper summarises the operation of the Lobbyists Registration Act as described in the Registrar of Lobbyists’ annual reports to Parliament since that time as well as in other public documents such as the Main Estimates. Although the emphasis is on recent experience, important changes made by the legislator over time are pointed out where appropriate to show how the Lobbyists Registration Act has evolved. In addition, while the most recent amendments to the Lobbyists Registration Act brought by the Federal Accountability Act are not yet in place at the time of writing this paper, they are described briefly here in order to provide a complete picture of the evolution of Canadian federal lobbying legislation.

Purpose and description of the Lobbyists Registration Act

The Lobbyists Registration Act provides for the public registration of those individuals who are paid to communicate with public office holders with regard to certain matters as described in the legislation (i.e. lobbying). Public office holders are defined in the Lobbyists Registration Act as virtually all persons occupying an elected or appointed position in the Government of Canada, including members of the House of Commons and the Senate and their staff, as well as officers and employees of federal departments and agencies, members of the Canadian Forces and members of the Royal Canadian Mounted Police.

Four basic principles are set out in the preamble to the Lobbyists Registration Act:

• Free and open access to government is an important matter of public interest.
• Lobbying public office holders is a legitimate activity.
• It is desirable that public office holders and the general public be able to know who is engaged in lobbying activities.
• The system for the registration of paid lobbyists should not impede free and open access to government.

Individuals are required to register under the Lobbyists Registration Act if they communicate with federal public office holders, whether formally or informally, with regard to:

• The making, developing or amending of federal legislative proposals, bills or resolutions, regulations, policies or programs.
• The awarding of federal grants, contributions or other financial benefits.
• In the case of consultant lobbyists, the awarding of a federal government contract or arranging a meeting between their client and a public office holder.

The Lobbyists Registration Act provides for three categories of lobbyists:

• Consultant lobbyists.
• In-house lobbyists (corporations).
• In-house lobbyists (organizations).

Consultant lobbyists are individuals who, for payment, lobby on behalf of a client. Consultant lobbyists may be government-relations consultants, lawyers, accountants or other professional advisors who provide lobbying services for their clients. They must file a registration for each individual undertaking (i.e., for each lobbying contract). When they complete the undertaking, they must advise the Registrar. The registration information remains on the registry; however it is displayed as “inactive”.

In-house lobbyists (corporations), are employees of corporations that carry on commercial activities for financial gain, and who lobby as a significant part of their duties. These employees are usually full-time staff who devote a significant part of their duties to public affairs or government-relations work. The most senior paid officer must register the corporation if the total lobbying activity of all employees forms a significant part (currently interpreted by the Registrar as 20 percent or more) of the duties of one equivalent full-time employee. The registration must include the names of all senior officers — the most senior officer and all his or her direct subordinates — who engage in any lobbying activity, as well as the name of all employees who devote a significant part of their duties to lobbying activities.

In-house lobbyists (organizations) are employees of not-for-profit organizations, such as associations and universities. The most senior paid officer of such an organization must register the names of all employees engaged in lobbying activity if the total lobbying activity of all such employees forms a significant part (currently interpreted by the Registrar as 20 percent or more) of the duties of one equivalent full-time employee.

All lobbyists are required to disclose certain information within time limits specified in the Lobbyists Registration Act. This information includes:

• For consultant lobbyists, the names of their clients, or, in the case of in-house lobbyists, of their corporate or organizational employers.
• The names of the parent or subsidiary companies that would benefit from the lobbying activity.
• The organizational members of coalition groups.
• The specific subject matters lobbied.
• The names of the federal departments and agencies contacted.
• The sources and amounts of any government funding received.
• The communication techniques used, such as written or oral communications, meetings, telephone calls, informal communications, or grassroots lobbying.

Corporations and organizations must also provide general descriptions of their business or activities.

The Lobbyists’ Code of Conduct

When the Lobbyists Registration Act was amended by Parliament in 1995, provision was made for a code of conduct for lobbyists. The Lobbyists’ Code of Conduct came into force on 1 March, 1997.

The purpose of the Lobbyists’ Code of Conduct is to assure the Canadian public that lobbying is done ethically and with the highest standards, with a view to conserving and enhancing public confidence and trust in the integrity, objectivity and impartiality of government decision making.

The Lobbyists’ Code of Conduct establishes mandatory standards of conduct for all lobbyists communicating with Government of Canada public office holders. The Lobbyists’ Code of Conduct begins with a preamble that states its purpose and places it in a broader context. Next, a body of overriding Principles sets out, in positive terms, the goals and objectives to be attained, without establishing precise standards. These Principles of Integrity, Honesty, Openness and Professionalism represent goals that should be pursued, and are intended as general guidance.

The Principles are followed by Rules that set out specific obligations and requirements. The Rules are organised into three categories:

• Transparency
• Confidentiality
• Conflict of Interest

Under the Rule of Transparency, lobbyists have an obligation to provide accurate information to public office holders, and to disclose the identity of the persons or organizations on whose behalf the representation is made, as well as the purpose of the representation. They must also disclose to their clients, employers or organizations their obligations under the Lobbyists Registration Act and the Lobbyists’ Code of Conduct itself. Under the Rule of Confidentiality, lobbyists can neither divulge confidential information, nor use insider information to the disadvantage of their clients, employers or organizations.

Finally, under the Rule of Conflict of Interest, lobbyists are not to use improper influence, nor to represent conflicting or competing interests without the consent of their clients.

The Lobbyists’ Code of Conduct is an integral part of the disclosure and ethical requirements that apply to all lobbyists.

Lobbyists, their registrations and disclosures

The Registry of Lobbyists is the Lobbyists Registration Act’s core instrument of transparency. Registry information collected under the Act and the Lobbyists Registration Regulations is a matter of public record so that information about who is being paid to communicate with federal public office holders is available. Accessible over the Internet, the Registry is well-known and well-used by lobbyists, journalists, public office holders, citizens and others. The Registry has evolved since 1989 in terms of the disclosures it contains and the means of making that data available.

The 1989 version of the Lobbyists Registration Act distinguished between two types of lobbyists rather than the three described earlier in this paper. Tier I lobbyists were essentially the same group now known as consultant lobbyists. They were required to disclose relatively few details compared to current requirements. Disclosures were limited to information about their clients and the subject-matter of the undertaking, as well as the parents and subsidiaries if the client was a corporation.

Tier II lobbyists were employees who were paid to lobby on behalf of their employer. These lobbyists were required to disclose even less information that those in Tier I. Only the name and address of the employer was required.

The Lobbyists Registration Act was amended in 1995. The amended Act strengthened the disclosure requirements to make more meaningful and comprehensive information about lobbyists, and what they do, available to all. The new registration requirements came into force on 31 January, 1996.

The changes to the Lobbyists Registration Act provided for the three categories of lobbyists that exist to this day. The former Tier I or professional lobbyists were now known as consultant lobbyists. The former Tier II or employee lobbyists were subdivided into in-house lobbyists (corporate) and in-house lobbyists (organizations). The former group included for-profit entities and the latter, not-for-profit entities such as universities, professional associations and interest groups.

For organizations, the senior officer must since 1996, register the entity as an in-house lobbyist (organizations) when one or more employees communicate with federal public office holders in an attempt to influence government decisions and where the accumulated activity of all such employees would constitute a significant part of the duties of one employee. Registration is required for the same activities as for consultant lobbyists, except for lobbying in respect of the awarding of a contract or for arranging a meeting.

All lobbyists were required to disclose certain information within time limits specified by the law. The information required under the amended legislation was much more extensive than that required prior to 31 January, 1996, and included:

• The name or description of the specific legislative proposals, bills, regulations, policies, programs, grants, contributions or contracts sought.
• The names of the federal departments or other governmental institutions lobbied.
• The source and amount of any government funding.
• The communication techniques used, including grassroots lobbying.

Corporations and organizations had also to provide a general description of their business or activities.

More legislative changes that affected the disclosures in the Registry came into force in 2005. The revised Lobbyists Registration Act broadened the scope of activities for which registration is required by removing the expression “in an attempt to influence” from the Lobbyists Registration Act as it previously read. This meant that all communications covered by the legislation now constituted lobbying and, therefore, required registration.

The new legislation strengthened and simplified the registration requirements set out in the Act. It did so by requiring all lobbyists to update or renew their filings every six months, and by implementing a single filing approach for the registration of corporations and not-for-profit organizations. Previously, accountability for registration of in-house (corporations) lobbyists rested with the individual lobbyist. The amendments switched this accountability to the most senior officer in the corporation, as was already the case for in-house (organizations) lobbyists. This single filing system was intended to provide consistent treatment for all types of lobbyists, as established under the Lobbyists Registration Act, and to ensure that responsibility for the actions of lobbyists rested at the highest corporate levels.

The amended Lobbyists Registration Act also required former public office holders engaged in lobbying to provide information about the positions they had held within the federal government. Finally, the revised Lobbyists Registration Act clarified minor discrepancies that previously existed between the French and English versions of the legislation.

The Registry of Lobbyists

The original Registry of Lobbyists introduced in 1989 was a paper-based system. However, as the Government of Canada made progress throughout the 1990s with its initiatives to make government information and services available online, it became clear that the Registry of Lobbyists would be an excellent candidate.

Amendments made to the Lobbyists Registration Act in 1995 permitted lobbyists to file their returns electronically, via the Office of the Registrar’s dial-up filing system. The electronic filing system was designed to enable contact from the most basic computer equipment, and to support virtually all makes of computers. Lobbyists needed only a computer, modem and communications software to access the bilingual application. To ensure that only authorised users were given access to the system, a contractual agreement was developed which identified the lobbyist’s responsibility for electronic certification using a system of passwords. Organizations or companies that did not yet have the necessary equipment could file electronically using the facilities within the Office of the Registrar of Lobbyists.

To encourage lobbyists to file their registration forms electronically, the Office offered use of this technology free of charge and introduced a fee schedule to process filings made in paper format.

Currently, more than 99 percent of the transactions performed in the Registry of Lobbyists (registrations, amendments, renewals, and terminations) are carried out electronically through the Lobbyists Registration System (LRS). The LRS is now a web-based application available to lobbyists and the public through the Internet. It is used both for processing and disclosing registrations filed by lobbyists.

The interactive system validates basic data, such as names and addresses; reminds lobbyists to complete all required information; and permits lobbyists to easily edit their own disclosures. Data, once verified, are moved to the Registry database. Anyone may search this database for information and produce reports from their own computer.

Users can search and retrieve information on:

• Who lobbies for which firms, corporations, organizations or associations.
• The parent and subsidiary companies or corporations that may benefit from the lobbying.
• The organizational members of coalition groups.
• The activities that corporations and associations engage in (a general description).
• The Government of Canada departments and agencies being contacted.
• The names or descriptions of the specific legislative proposals, bills, regulations, policies, programmes, grants, contributions or contracts being sought.
• The positions former public office holders have held with the Government of Canada.

Users can also produce their own summary reports on registered lobbyists, as well as copies of individual registration information forms, online, directly from the Registry. It is also possible to access a list of recent registrations that includes all new registrations, amendments and terminations processed within the previous 30 days. Users who search and retrieve the data directly from their own computers may do so free of charge. If personnel of the ORL are asked to search and retrieve information, a service charge may be applicable.

Registration statistics

Registration statistics are reported to Parliament each year by the Registrar. These statistics include, volume and type of lobbyist registrations, subject-matter of lobbying activities, and government institutions lobbied.

The Registry of Lobbyists contained a high volume of transactions from the start of its operation in 1989. Within 10 days of the launch of the Registry, 829 Tier I registration forms had been received. Within two months, 1 709 Tier II registrations had been filed. By the end of the first fiscal year of operation, 6 221 registrations had been processed for a total of 2 828 lobbyists.

Year-over-year registration volumes fluctuated over the next several years but with one exception, the changes were not dramatic. A combination of factors contributed to a sharp rise — 847% — in the number of registered in-house corporate lobbyists during the 2005-2006 reporting period. A detailed analysis of this rise has not been carried out. However, the prominence of lobbying-related stories in the media; the implementation of new, stronger lobbying legislation in 2005; an increase in resources provided to the Registrar; and a general increase in awareness of registration requirements may have been among the contributing factors.

The following two tables show some recent volumes:

Table 1: Active Lobbyists as at March 25, 2008

Consultant lobbyists:	874
In-House Corporation lobbyists:	1 729
In-House Organization lobbyists:	2 432
Total lobbyists:	5 035

Table 2: Active Registrations as at March 25, 2008

Consultant registrations:	2 878
In-House Corporation registrations:	282
In-House Organization registrations:	439
Total active registrations:	3 599

The Lobbyists Registration Act requires that lobbyists of all three types disclose the areas of concern (subject matters) of their lobbying activity. Recent statistics showing the top 20 areas of concern are included in the following table.

Table 3: Areas of concern in active registrations as at March 25, 2008

Area of Concern	Active Registrations
Industry	1 813
Taxation and Finance	1 381
Environment	1 184
International Trade	1 147
Health	1 041
Science and Technology	949
Transportation	782
Consumer Issues	779
Employment and Training	740
Energy	737
Regional Development	714
Government Procurement	658
Infrastructure	582
International Relations	559
Agriculture	546
Aboriginal Affairs	530
Defence	523
Intellectual Property	493
Internal Trade	477
Financial Institutions	457

The Lobbyists Registration Act requires that lobbyists of all three types disclose the government institutions that are the subject of their lobbying activity. Recent statistics showing the top 20 institutions lobbied are included in Table 4.

Table 4: Government organizations in active registrations as at March 25, 2008

Department or Agency	Active Registrations
Industry Canada (IC)	2 210
Finance Canada (FIN)	1 663
Members of the House of Commons	1 426
Privy Council Office (PCO)	1 375
Foreign Affairs and International Trade (DFAIT)	1 220
Environment Canada (EC)	1 206
Health Canada (HC)	1 118
Prime Minister’s Office (PMO)	1 044
Transport Canada (TC)	898
Treasury Board of Canada (TBS)	855
Natural Resources Canada (NRCan)	814
Revenue Canada (RC)	775
Public Works and Government Services Canada (PWGSC)	746
Agriculture and Agri-Food Canada (AAFC)	690
Human Resources Development Canada (HRDC)	664
Indian and Northern Affairs Canada (INAC)	648
National Defence (DND)	638
Canadian Heritage (PCH)	602
Senate of Canada	544
Justice Canada (JC)	504

Enforcement

The Lobbyists Registration Act provides for various types of penalties and sanctions. Contraventions of the Lobbyists Registration Act or its regulations are subject upon summary conviction, to a fine of up to twenty-five thousand Canadian dollars. Individuals who knowingly make false or misleading statements in any return or other document submitted to the Registrar are subject on summary conviction to a fine of up to twenty-five thousand Canadian dollars, imprisonment for up to six months, or both. Individuals who knowingly make false or misleading statements in any return or other document submitted to the Registrar are subject on indictment to a fine of up to one hundred thousand Canadian dollars, imprisonment for up to two years, or both. Proceedings by way of summary conviction related to these offences must be instituted not later than two years after the offence.

The first significant test of the penalties under the Lobbyists Registration Act came in 1999, and revealed an important weakness in the legislation. Allegations of unregistered lobbying were brought to the attention of the Registrar and the Ethics Counsellor. These allegations were then forwarded to the Royal Canadian Mounted Policy for further investigation. The Royal Canadian Mounted Police determined that they did not believe that they would be able to secure a conviction because it would be too difficult to prove to the court that the alleged lobbyist had acted, “with the intent to influence” a public office holder. Consequently, the Lobbyists Registration Act could not be effectively enforced. This development led to an important amendment to the Lobbyists Registration Act in 2005 that removed the phrase, “with the intent to influence” from the legislation.

The current Office of the Registrar of Lobbyists enforces the Lobbyists Registration Act in a number of ways.

The registration process is an important point of enforcement. The Office provides assistance in relation to the registration process, reminds lobbyists to renew their registrations, and verifies that disclosures are consistent and complete. Information is provided by lobbyists, such as clients, parent companies or subsidiaries of companies, is analysed by office staff and verified where necessary. Questions on the content of disclosures are sent by email to registrants and the registration is not approved until the Office is satisfied with the accuracy and transparency of the disclosure. This requires an efficient process and diligent staff because volumes are very high. For example, during fiscal year 2006-2007, 9 656 registrations were processed, of which 7 775 were consultant lobbyist registrations, 793 were in-house lobbyist (corporations) registrations and 1 088 were in-house lobbyist (organizations) registrations.

Media monitoring is carried out on a regular basis. The Office uses a sophisticated web-based monitoring system to examine the content of media publications for articles that mention lobbying activities. Follow-up is done by staff in the Investigations Directorate to determine if alleged lobbying is the subject of a valid registration.

Advisory letters are sent to individuals or organizations for which media monitoring or other information received by the Office indicates that unregistered lobbying may be taking place. These letters advise the recipients that they may have obligations under the Lobbyists Registration Act. This practice is designed to enhance the awareness of organizations and corporations regarding the Lobbyists Registration Act and to encourage them to visit the ORL website or contact the ORL directly for additional information pertaining to registration requirements.

Administrative reviews are initiated following requests or complaints received from external sources which allege a possible contravention of the Lobbyists Registration Act or the Lobbyists’ Code of Conduct. Administrative reviews are also initiated as a result of in-house monitoring by the ORL. An administrative review is not a formal investigation. Its purpose is to assemble and check factual evidence, with a view to determining if a formal investigation is required. All information gathered during either an administrative review or an investigation is retained in accordance with government information management practices.

An administrative review typically involves:

• Reviewing all registration files in the custody of the ORL, available correspondence and other forms of communication between the ORL and the lobbyist.
• Confirming, by phone or in-person interviews with public office holders, whether registration activities have indeed taken place. The ORL may also decide to contact the lobbyist during the course of a review.

Some examples of allegations that have resulted in the initiation of an administrative review are:

• Allegations of unregistered lobbying activities and breaches of the Lobbyists’ Code of Conduct by a number of lobbyists, acting on behalf of an organization, who were communicating with a government department to seek federal funding. The individuals in question are alleged to have breached all three principles of the Lobbyists’ Code of Conduct — namely Integrity and Honesty, Openness, and Professionalism — and, additionally, are alleged to have not provided accurate information in registering.
• An allegation of improper disclosure of government funding by several organizations.
• Allegations that employees of a public broadcasting advocacy group were engaged in unregistered lobbying activities.
• An allegation that a voluntary, charitable organization, which promotes personal health across Canada and in developing countries, failed to register receipt of financial benefits from a government institution.
• An allegation that a lobbyist’s registration did not contain information that he would be lobbying Members of Parliament.

At the end of March 2008, 34 administrative reviews were underway.

If a review indicates there are reasonable grounds to believe a breach of the legislation has occurred within the two-year limitation period of the Lobbyists Registration Act, the Registrar of Lobbyists is informed of the conclusions and the matter is referred to the Royal Canadian Mounted Police. Alleged breaches of the Lobbyists’ Code of Conduct by registered lobbyists are dealt with by the Registrar, who will determine if an investigation pursuant to the Code of Conduct is required.

Investigations of alleged breaches of the Lobbyists’ Code of Conduct are carried out by the Registrar, who has significant investigative powers, identical to those of a superior court of record. These powers include the ability to summon and enforce the attendance of persons so that they may give evidence under oath, and to compel them to produce documents. Once the Registrar has completed such an investigation, he or she must submit a copy to the Registrar General of Canada, who must cause it to be tabled in each House of Parliament. At the end of March 2008, ten investigations had been initiated and four completed. The four were successfully challenged in the federal court by the individual who was the subject of the investigations. The Registrar has launched an appeal of this decision.

Strategic Enforcement is the term used by the Registrar to describe the Office’s efforts to extend its reach. The Registrar believes that by making the requirements of the Lobbyists Registration Act and the Lobbyists’ Code of Conduct better known not only to lobbyists, but to public office holders and those who employ lobbyists, great leverage in enforcement of the legislation can be obtained. From an efficiency and effectiveness perspective, a dollar spent on education and awareness has more potential to contribute to enforcement than a dollar spent pursuing an investigation. As a practical example, if a public office holder is made aware of the registration requirements of the Lobbyists Registration Act and is encouraged to ask a potential lobbyist if he or she is registered, a possible infraction and the expensive costs of pursuing an investigation may be averted.

Education and awareness

The ORL believes that education and awareness are key to compliance with the Lobbyists Registration Act.

From the earliest days of the Lobbyists Registration Act’s existence, successive Registrars have made public speaking appearances and the distribution of educational materials a part of their communication activities. More recently, with more staff and resources available, the Office has used several means to promote awareness of the Lobbyists Registration Act and its requirements, including:

• Direct communication.
• The ORL Website.
• Training and information sessions.
• Media relations.
• Conferences and learning events.
• Presentations to departmental management teams and staff.
• Dialogue with other jurisdictions.

Direct communications

The ORL responds to inquiries from lobbyists, the media and the public on a daily basis. Updates about the Registry are provided to registered lobbyists via email and through notices to registrants on the Office’s website. In order to improve communications with registrants, the Operations Directorate organises outreach and information sessions with lobbying firms, with a view to improving the overall quality and reliability of disclosures filed in the Registry of Lobbyists.

The ORL website

ORL staff devote considerable effort to improving the ORL’s website, giving it a clearer, fresher appearance, and making it a more useful information and communications tool. An updated version of the site, which is easier to navigate, was launched in 2006-2007. New sections were created for information documents, such as reports, presentations, interpretation bulletins and advisory opinions, which are updated or added on a regular basis.

Training and information sessions

While the ORL does not have resources to deliver extensive training programmes, it presents information sessions to interested groups and organizations outside the federal government including other jurisdictions and delegations from other countries.

Media relations

On a regular basis, the ORL responds to inquiries from the media about the Registry, and provides clarification about the registration process, investigations, and administrative reviews to the extent permissible under the Lobbyists Registration Act and under privacy provisions.

Conferences and learning events

Each year, the Registrar and senior ORL staff take part in conferences and panel discussions in the National Capital Region and elsewhere in Canada. In past years these have included the Access and Privacy Conference, hosted by the University of Alberta in Edmonton, the Annual University Government Relations Officers’ Meeting in Winnipeg, the Public Affairs Association of Canada Conference and the Canadian Council for Public-Private Partnerships National Conference, both of which were held in Toronto.

Briefings for federal government institutions

The ORL carries out outreach efforts within the federal government through briefings to management at departments and other federal organizations. These sessions, provided at the organizations’ request, are aimed at assisting public office holders in becoming familiar with the provisions of the Lobbyists Registration Act and the Lobbyists’ Code of Conduct and in addressing issues faced by specific organizations regarding lobbying and interactions with lobbyists.

Dialogue with other jurisdictions

The ORL exchanges ideas and practices with counterparts from other Canadian and international jurisdictions. Meetings have been held with officials from Canadian provinces that have their own lobbying legislation, with U.S. counterparts and with officials from the Organisation for Economic Co-operation and Development (OECD) and its member countries.

Organization, resources and priorities

Organization

The structure of what is now the Office of the Registrar of Lobbyists has evolved considerably since its inception. For the first years of its existence, the Office was situated within the Department of Consumer and Corporate Affairs. Machinery changes within the government eventually led to the Office residing within the Department of Industry in an organization called the Office of the Ethics Counsellor.

Amendments to the Lobbyists Registration Act in 1995 provided the Ethics Counsellor with responsibility for, among other duties, enforcement of the new Lobbyists’ Code of Conduct. The Registrar of Lobbyists retained responsibility for the Registry. Over time, the structural arrangement of the Ethics Counsellor having Lobbyists’ Code of Conduct responsibilities in addition to his other duties, as well as his reporting relationship to the Prime Minister, were subject to criticism. In 2004, the Lobbyists Registration Act was amended, setting in motion the most substantial changes in structure and resources in the Lobbyists Registration Act’s history.

The 2004 amendments to the Lobbyists Registration Act gave the Registrar for the first time, responsibility for both operation of the Registry and for the Lobbyists’ Code of Conduct. An Assistant Deputy Minister within Industry Canada was designated as Registrar of Lobbyists — the first time that the position had been held by such a senior public servant. A new Office of the Registrar of Lobbyists was established within Industry Canada.

Further significant changes followed soon after. In September 2005, the Registrar of Lobbyists was made a full-time position. This measure was taken in response to the increased workload resulting from the coming into force in the summer of 2005 of amendments to the Lobbyists Registration Act. Immediately after his full-time appointment, the Registrar took a number of steps to transform what was known as the Lobbyists Registration Branch of Industry Canada into a more independent organization. The Registrar ceased all participation in Industry Canada’s management team and, in October 2005, moved the Branch, now renamed the Office of the Registrar of Lobbyists, to new premises physically separated from those of Industry Canada.

In an effort to increase the efficiency of the registration process and to strengthen the enforcement capabilities of the Office, the Registrar undertook a restructuring of the organization by creating two directorates focused on groups of core activities. An Investigation Directorate was established, the major role of which was to enforce the Lobbyists Registration Act through conducting administrative reviews, investigations, and policy analysis related to the application of the Lobbyists Registration Act. The Registrar also decided to combine a number of responsibilities within an Operations Directorate. This new unit now performed all registration functions, including client service, advice, interpretation and informatics, as well as communications and certain corporate functions.

In February 2006, the Prime Minister announced that the Office of the Registrar of Lobbyists had been transferred from the Industry portfolio to the Treasury Board portfolio as a stand-alone office, to increase its independence while the Government was working to further revise and strengthen the Lobbyists Registration Act. Since that time, the Office of the Registrar of Lobbyists has been a separate and independent department and the Registrar of Lobbyists has had the authority of a deputy head.

Resources and priorities

The expansion of the Office of the Registrar of Lobbyists described above was made possible by a substantial budget increase approved by Parliament.

Initial resources allocated to the Office of the Registrar of Lobbyists in 1989 had included a budget of $467 000 and a staff of four. Budgets varied little over the years although the budget allocated to the new Registrar in 2004 had dwindled to $313 000 to cover all operational expenses and salaries.

The budget approved by Parliament for 2006-2007 was $3,5 million annually and a staff of 20 to operate the Office of the Registrar of Lobbyists. The approval was based on three priorities to be pursued by the Office. They were:

1. Update the Registry and enhance its transparency — When the on-line Registry was launched in 1996, it was not designed for the volumes of data it now contained, nor for the search expectations of current internet users. Improving the capacity of the Registry and preparing it for enhanced capabilities was a priority for the planning period.
2. Increase awareness of Lobbyists Registration Act and Lobbyists’ Code of Conduct requirements — As mentioned elsewhere in this paper, The Registrar believed that increasing awareness of the Lobbyists Registration Act, including how it operates and who needs to register, was key to increasing compliance. Parliament was asked for resources to begin developing a comprehensive education and awareness strategy aimed at public office holders, lobbyists and those who employ them.
3. Pursue enforcement and communicate the results — The Registrar had commenced several investigations under the Lobbyists’ Code of Conduct. It was seen as important not only to pursue enforcement by assigning more resources to reviews and investigations within the Office, but also to communicate the outcomes of enforcement activity.

The broad strategic outcome of these priorities was to contribute to confidence in the integrity of government decision-making through transparency and accountability in the lobbying of public office holders.

The Lobbying Act

Bill C-2, the Federal Accountability Act, received Royal Assent on December 12, 2006, as S.C. 2006 c. 9, setting the stage for amendments to the Lobbyists Registration Act. The Lobbyists Registration Act will be renamed the Lobbying Act and will include important changes. Among these are:

• The appointment of an independent Commissioner of Lobbying with a strong mandate to investigate violations of the Lobbying Act and the Lobbyists’ Code of Conduct.
• A five-year ban on lobbying for ministers, ministerial staff, and senior public servants once they leave office, as well as for members of Prime Ministers’ transition teams.
• A ban on the payment and receipt of success or contingency fees.
• Requirements that communications with certain designated public office holders be recorded.
• Expanded investigative powers for the Commissioner of Lobbying and a longer period under which lobbying violations may be investigated and prosecuted.

The Office of the Registrar of Lobbyists supported the work of Parliament as it considered Bill C-2 by appearing before the committees of the House of Commons and the Senate to provide testimony on the operational implications of the Bill. Subsequent to Royal Assent, the Office began preparing for implementation of the lobbying provisions of the Federal Accountability Act. Chief among these preparations were enhancements to the Lobbyists Registration System. The Lobbying Act will come into force on July 2, 2008.