accounting for gomery: the money links between the … · accounting for gomery: the money links...

Accounting for Gomery:The Money Links Between theFederal Government, PoliticalParties, and Private Interests

Mark Mullins, PhD

Contents

Executive summary / 2

Context / 3

Introduction / 4

Financial flows context / 5

Methodology / 7

The Liberal party reports / 7

The Kroll Lindquist Avey report / 11

Gomery inquiry testimony / 14

Conclusions and recommendations / 14

Appendix A: Identified Organizations and Individuals / 18

References / 34

Acknowledgements / 35

About the author / 35

About this publication / 36

About The Fraser Institute / 37

Fraser Institute Digital Publication

July 2005

Executive summary

• The numbers of people and amounts of money involved in the Gomery inquiry are

larger than previously known. Problems with federal government sponsorship

and advertising programs can be understood using an economic theory of incen-

tives and institutional structure.

• This study finds that at least 565 organizations and individuals are identified in

reports and testimony related to the Gomery inquiry. The original 2003 Auditor

General sponsorship and advertising report cited only 71 organizations. The activ-

ities under investigation are therefore quite widespread.

• The people identified in these reports and testimony are politicians and bureau-

crats (government insiders), and political party members and business people

(government outsiders). This paper finds that almost all of them have an exclu-

sive financial link to the Liberal Party of Canada (hereafter referred to as the Lib-

eral party). They donated at least 40 times more to the Liberal party than to all of

the other main political parties combined from 1993 to 2003.

• This paper finds that these individuals privately donated at least $3.9 million to

the Liberal party and received at least $7.4 million in private payments from the

Liberal party from 1993 to 2003. The Gomery inquiry forensic report found only

$2.5 million in Liberal party donations.

• The same people also received public (tax funded) payments from the federal gov-

ernment, and this was the underlying incentive that encouraged inappropriate

behaviour and relationships. These incentives can be specifically identified:

• Government insiders benefited through salaries, staffing, budgets, and

political influence accruing to senior ministers and bureaucrats from access

to $120 million in public funding of the federal cabinet, and

• Nearly $1.2 billion in directed sponsorship and advertising contracts were

awarded to government outsiders, generating at least $190 million in pri-

vate benefits through outsider salaries, bonuses, and profits

• The economic rent (or unearned financial benefits) captured by the government

outsiders was almost 50 times larger than their political donations to the govern-

ing Liberal party. This cash incentive may have been the driving force that resulted

in misdirected and wasted taxpayer funds.


July 2005

Accounting for Gomery 2

• There were also specific conflicts of interest involved in the financial relationships

between the Liberal party and a number of organizations, including the RCMP,

the Privy Council Office and the federal government’s two largest advertising

firms, that have not yet been adequately reported on by the media.

• The money links outlined here are significant underestimates of the underlying

relationships.

Context

The Auditor General and the Gomery Commission have investigated allegations that

taxpayer funds were misused in federal government sponsorship and advertising activi-

ties. This paper provides the first comprehensive assessment of the private money links

between federal political parties and people associated with the sponsorship and adver-

tising investigations. The purpose is to provide a fuller understanding of both the public

and private financial links between the federal government, political parties, and private

individuals than has yet been established.

The analysis of this paper continues the work in a series of value-for-money studies

began last year with an assessment of Auditor General reports from 1997 to 2003 (Clem-

ens et al., 2004). The current paper lays out the tripartite financial links between govern-

ment, political parties and the private sector using publicly available Elections Canada

data and several audit sources, including two reports commissioned by the Liberal party.

Applying a Public Choice theoretical analysis1 to this case study reveals that there exist

significant incentives for insider and outsider rent seeking2 of the kind that was identi-

fied in the preceding Fraser Institute report. A further finding is that these numbers are

significant underestimates of the true underlying financial links.


July 2005


1 Public Choice uses economic tools and methods to model the behaviour of voters, politicians, bureau-

crats, and special interest groups to explain political outcomes. A key assumption is that all of these peo-

ple act in their own self-interest.

2 Rent seeking is defined as money and effort expended by individuals or groups to obtain public benefits

(or rents) from government. This results in a misallocation of public spending that is paid by everyone

else in society.

Introduction

The Gomery Commission of Inquiry into the Sponsorship Program and Advertising Activities

began hearings on September 7, 2004 and completed final arguments on June 17, 2005.

Justice John Gomery heard testimony from 183 witnesses over those nine months. This

produced more than 180,000 pages of transcripts and evidence and 28 million estimated

pages of related documents (Globe and Mail, June 4, 2005, p. A8; Kroll Lindquist Avey

Report, May 18, 2005).

Inside this sea of information, there was little apparent media interest in analyzing two

reports commissioned by the Liberal party, one for the Quebec wing of the party and the

other for its national organization (Federal Liberal Agency of Canada, 2004; Federal Lib-

eral Agency of Canada (Quebec), 2004). The Quebec report was commissioned on

March 22, 2004 and the other was likely commissioned after July 15, 2004.3 Both were

delivered to the Liberal party in the period between the June 28, 2004 election and the

September start of the Gomery inquiry.

The reports were written by two chartered accounting firms (Samson Belair/Deloitte &

Touche, 2004; PricewaterhouseCoopers LLP, 2004). They are accounting reviews of the

organizations and individuals identified by Auditor General Sheila Fraser in her Novem-

ber 2003 report on federal government sponsorships and advertising (Fraser, 2003).

Together, the reports track donations from these people to the Liberal party and pay-

ments by the Liberal party to these same people. The work was later extended in the May

18, 2005 Kroll Lindquist Avey forensic accounting report, commissioned by Judge

Gomery at a reported cost of $7.5 million in taxpayer funds (MacDonald, 2005: A22).

This paper documents the two Liberal party reports, highlighting their significant find-

ings and limitations. Additional information is examined from the Kroll Lindquist Avey

report and from the Elections Canada party financing database. Donations from spon-

sorship and advertising organizations and individuals are tracked for all of the main fed-

eral political parties. These money flows are placed within the context of the tripartite

relationship between the government, political parties, and the private sector.


July 2005


3 The national report was likely commissioned after the July 15, 2004 reporting date of the Quebec report,

as it uses an almost identical list of named parties (organizations and individuals) as the Quebec report

and some identical text passages.

Financial flows context

Figure 1 lays out the channels of all

possible financial flows between

government, political parties, and

the private sector. For example,

money can flow from the govern-

ment to private contractors in

exchange for services rendered.

Individuals (and organizations

prior to the 2004 election financ-

ing reforms) can donate funds to

political parties. Politicians can

receive funds from government in

the form of salaries and other

monetary benefits.

There are specific payment channels for the Canadian federal government. The main

political parties examined in this paper are the Liberal Party of Canada, the Conservative

Party of Canada (and its predecessors, the Reform Party of Canada, the Progressive Con-

servative Party of Canada, and the Canadian Reform Conservative Alliance), the Bloc

Quebecois and the New Democratic Party.

Canada’s parliamentary system gives a unique status to the governing party, at present

the Liberal party. The merging of executive and legislative functions results in a com-

mingling of individuals from the governing party with the government itself. The most

obvious example of the money flows involved is the funding of cabinet salaries and bud-

gets to ministers who are at the same time members of the governing party.

Figure 2 looks specifically at the potential money flows associated with the sponsorship

and advertising activities highlighted by the Auditor General’s 2003 report and investi-

gated by various bodies, including the Public Works and Government Services depart-

ment, the Standing Committee on Public Accounts, and the Gomery inquiry.4 The

organizations and individuals identified in those reports are the basis for the calculation

of financial flows in this paper.

It should be emphasized that there is nothing necessarily illegal or unethical about these

financial flows.


July 2005


Figure 1: General Financial Flows

4 See http://www.pwgsc.gc.ca/sponsorship/sponsorship-update-e.html for a listing and chronology of these inves-

tigations.

However, allegations arising from

the various sponsorship and adver-

tising investigations suggest that

payments were made by Liberal

party donors, both legally and on

an illegal cash or in-kind basis, in

order to benefit from favouritism

in the awarding of government

contracts. This linkage of party

donation to contract awards can be

termed outsider rent, the seeking of

inappropriate payments by parties

outside government. Such activi-

ties waste taxpayer funds and are a

form of corruption.

Another potentially worrisome activity is the seeking of insider rent, government benefits

that accrue to bureaucrats and politicians. In the case of sponsorship and advertising

program allegations against various Public Works bureaucrats, this is another form of

corruption.5

An accepted method of securing insider rent is to win election campaigns and form a

government. This, of course, is the financial benefit of wielding power by the governing

party, the ability to harness public resources to be used by cabinet to further its agenda.

Complications arise, however, when there are informal arrangements for private bene-

fits to accrue to people who fund the governing party’s effort to win and remain in office,

thus allowing them to acquire insider rent. These arrangements are the heart of allega-

tions by witnesses to the Gomery inquiry.

In summary, figures 1 and 2 show potential financial linkages between government,

political parties, and the private sector. The linkages are complicated by two factors.

First, there are personal relationships between party donors, party members, and deci-

sion makers, notably bureaucrats and cabinet ministers. The mixing of financial pay-

ments amongst these people introduces potentially adverse behaviours. Second, there

are financial incentives to seek insider and outsider rent from government. This also cre-

ates the potential for activities that are not in the interests of taxpayers.


July 2005


Figure 2: Sponsorship & AdvertisingFinancial Flows

5 Clemens et al. (2004) references a number of key papers in the Public Choice literature, notably Downs,

1957 and William and Simmons, 1994.

The rest of this paper now turns to examining the people and organizations identified in

the various sponsorship and advertising reports and tallies the resulting financial flows.

Methodology

The basic approach of the two Liberal party reports was to list all organizations and indi-

viduals identified in the Auditor General’s report “regardless of the context in which

they were reported” (PricewaterhouseCoopers LLP, 2004). The Quebec Liberal report

expanded an initial list from the Auditor General’s report by searching for related direc-

tors, shareholders, family members, and companies. The national Liberal report added

four more names to this list, for a total of 410 organizations and individuals identified by

the Liberal party.6 This paper uses that same methodology, applied to witnesses and

identified organizations and individuals at the Gomery inquiry, to establish a fuller list of

people linked with sponsorship and advertising activities.7

The next step was to add up the political donations to the Liberal party and all other

major political parties from these people. This paper uses donation amounts in the Kroll

Lindquist Avey report and data from Elections Canada for the additional organizations

and individuals. Finally, the Liberal reports showed payments to their list of names. This

was not done in this paper for the additional organizations and individuals, as the pay-

ments data were unavailable. This omission is one reason why the actual financial link-

ages are underestimated.

The Liberal party reports

Table 1 shows donations and payments for groupings of organizations and individuals

from the two Liberal party reports over the eight-year period from 1996 to 2003.8 The


July 2005


6 The report mentions 409 names in total but this is a miscount—there are actually 410 names. Thirty-four

of the 410 names are government organizations. Only 37 companies were identified in the Auditor Gen-

eral’s report, indicating that there are ten times that many related parties to these companies. The two

Liberal reports did not develop a list of related parties for the 34 government organizations, a notable

omission.

7 All articles published in the Toronto Star, The Globe and Mail, and the National Post related to the Gomery

inquiry were also examined between September 2004 and June 2005 in a search for these organizations

and individuals.

8 Kroll Lindquist Avey examined a ten-year period from 1994 to 2004. The Elections Canada database is

also available for ten years from 1993 to 2003.

party opted not to look at data prior to 1996. The donations data from sponsorship and

advertising people to other parties comes from the Elections Canada database.

The table shows total donations of $1.8 million and total payments of $7.4 million

between the identified organizations and individuals and the Liberal party. A focus on

the governing party is entirely justified, as sponsorship and advertising donations to all


July 2005


Table 1: Identified Payments and Donations in Two Liberal Reports

Payment

Liberal

Donation

Liberal

CPC BQ NDP

BCP $4,694,628 $122,820 $1,000 $370 $250

Vickers & Benson $2,077,648 $102,475 $4,717 $0 $1,550

Communication & Stratégie $225,938 $354,050 $10,678 $0 $0

IDA-Everest $118,934 $173,710 $14,361 $195 $220

Groupaction-Gosselin $41,607 $202,500 $390 $1,145 $150

Allard-Johnson $30,158 $145,645 $250 $0 $0

Global Television $108,626 $36,275 $1,516 $0 $0

Palmer Jarvis $0 $125,490 $1,900 $0 $500

RCMP $0 $112,165 $0 $0 $0

Not identified $58,000 $51,107 $0 $0 $0

Lafleur $8,138 $97,025 $0 $120 $0

GGA $123 $83,320 $25,173 $104 $0

Privy Council Office $0 $44,400 $0 $0 $0

Tremblay-Guittet $17,799 $14,115 $0 $0 $0

Coffin $0 $30,100 $3,980 $0 $0

Information Essentielle $0 $24,000 $0 $0 $0

Government-relatedorganizations

$15,841 $1,875 $1,010 $0 $0

TVA/JPL $0 $13,735 $0 $630 $0

Gingko $0 $13,400 $873 $0 $0

BCE Media $0 $13,000 $942 $0 $0

Scott Thornley $5,709 $6,100 $0 $0 $0

Edmonton Drillers $0 $0 $0 $0 $0

Impact de Montréal $0 $0 $727 $0 $0

Multivet $0 $0 $0 $0 $0

Tribar $0 $0 $0 $0 $0

Total $7,403,149 $1,767,307 $67,515 $2,564 $2,670

Note: Liberal data are 1996-2003; other party data are 1993-2003.Source: Liberal Party of Canada, 2005; Elections Canada.

of the other parties combined are only 4 percent of the Liberal party total, as shown in

the table.9

There are several items of note from table 1.

First, the Royal Canadian Mounted Police (RCMP) and the Privy Council Office (PCO)

were charged $112,000 and $44,000, respectively, for seats accompanying the prime

minister during the 2000 election campaign. These revenues were not recorded for the

1997 campaign, a notable omission.

It is an apparent conflict of interest for government agencies, especially those engaged in

law enforcement, to pay a governing political party for services rendered during an elec-

tion. This financial entanglement can impair perceptions of independence and due pro-

cess that are essential to the proper functioning of those agencies.

Second, just over $239,000 in donations or payments had no supporting documentation,

either a copy of a cheque, deposit slip, or invoice.10 This is a smaller example of a greater

problem with the Liberal party reports: they are merely audits that do not examine unre-

corded transactions. As noted below, $1.8 million in such unrecorded payments were

published in the Kroll Lindquist Avey forensic accounting report.

Third, the Liberal party paid $5.9 million to two firms, Vickers & Benson and BCP, for

media expenses during the 1997 and 2000 elections. These two companies were the only

ones identified as having provided election services (aside from a $108,626 media buy

from Global Television in 2000) and BCP “was responsible for co-ordinating the Party’s

full media efforts” (PricewaterhouseCoopers LLP, 2004) in Quebec during elections. No

tendering process was used for this work and no contracts were awarded setting out

terms and conditions, suggesting that favouritism was involved.

The payments to these two firms that were recorded in the Liberal reports were from pri-

vate Liberal party funds and not directly from public monies. However, it is also known

that as the governing party, public funds were directed to these firms through large

multi-million dollar government contracts that they signed. Vickers & Benson and BCP


July 2005


9 The Liberal party donations are understated because the party reports ignored the period from 1993 to

1996. Donations by sponsorship and advertising names to other parties are very likely overstated, as we

were only able to do a name search (with no associated address or other identifier) to obtain the data. As

an example of this, table 3 shows that an individual (or individuals) named Paul Martin gave donations to

all of the major parties. It is extremely unlikely that the current prime minister is the same person in all

four cases, thus resulting in overestimation of donations to other parties.

10 These undocumented donations were reported in the two Liberal party reports.

were the number one and two ranked advertising firms for the federal government

between 1994 and 2003, with contracts totalling $277 million and $160 million, respec-

tively (Kroll Lindquist Avey Report, p. 20). The appearance of political favouritism is

reinforced by the donations made by these firms and their principals to the Liberal party

(shown in tables 1, 2 and 3).


July 2005


Table 2: Identified Donations in Kroll Lindquist Avey Report

Liberal CPC BQ NDP

9004-8612 Québec Inc. (Comsar)* $812,065 $0 $0 $0

PluriDesign Canada* $430,370 $0 $0 $0

Groupe Everest $194,832 $14,361 $195 $220

Groupaction $170,854 $390 $1,145 $150

Investissement Alain Renaud* $153,481 $0 $0 $0

Vickers & Benson $151,659 $4,717 $0 $1,550

BCP $97,720 $1,000 $370 $250

John Welch* $84,500 $0 $0 $0

Commando Communication* $70,000 $0 $0 $0

PluriDesign Canada Inc. $53,190 $0 $0 $0

Groupe Everest* $50,000 $0 $0 $0

Le Groupe Gosselin et Associés* $42,856 $0 $0 $0

Lafleur $42,213 $0 $120 $0

Productions Caméo* $39,850 $0 $0 $0

Coffin $29,300 $3,980 $0 $0

Richard Boudreault via Harel Drouin &Associés*

$24,975 $0 $0 $0

Expour/Groupe Polygone $23,361 $0 $0 $0

Gestions Richard B. Boudreault* $14,790 $0 $0 $0

Club de Golf de Verchères* $14,100 $0 $0 $0

Restaurant La Tarentella* $8,282 $0 $0 $0

Georges Farrah* $6,000 $0 $0 $0

Gosselin $5,407 $0 $0 $0

Au Printemps Gourmet* $5,168 $0 $0 $0

Gabriel (“Gaby”) Chrétien* $4,000 $0 $0 $0

Business fundraisers attended by ministers* $3,150 $0 $0 $0

Cash payments unknown* $0 $0 $0 $0

Total $2,532,123 $24,447 $1,830 $2,170

Note 1: Data are 1993-2003.Note 2: Indirect payments marked * are from Jean Brault’s testimony.Source: Kroll Lindquist Avey, 2005; Elections Canada.

There are, therefore, multiple financial and non-financial relationships between these

two firms and the Liberal party. The firms and individuals at the firms donated to the

Liberal party. The Liberal party awarded them untendered contacts to provide election

services. The Liberal government also awarded them large sponsorship and advertising

contracts. In sum, the firms provided donations and election services to the Liberal

party, and the Liberal party and government awarded private and public contracts to

these people.

Finally, it is important to note that donations to candidates, MPs, or local ridings

“for which a receipt is not issued” are not included in the Liberal party reports “as

such amounts do not form part of the books or records of the Party”

(PricewaterhouseCoopers LLP, 2004). In other words: no receipt, no record. The two

Liberal party reports tally only official receipted donations that for Quebec and Ontario

donors (the preponderance of identified organizations and individuals in sponsorship

and advertising activities) can only be issued by the national organization. Another limi-

tation is that there was no assessment done in the reports of payments by the Liberal

party to identified individuals; rather, only payments to identified companies were

shown.

The Kroll Lindquist Avey report

Table 2 shows donations to the Liberal party and other political parties from organiza-

tions and individuals found in the Kroll Lindquist Avey report. These forensic auditors

found $768,000 in direct donations and $1.8 million in indirect contributions, the latter

as testified to by Jean Brault.11 Again, a focus on the governing party is reasonable, as

donations by people to all other parties combined is only 1 percent of the alleged Liberal

party amount as shown in the table.12

It is difficult to total up the number of organizations and individuals in the Kroll

Lindquist Avey report, as there is no convenient listing and the full report (with 11

appendices and 27 schedules) is as yet not available on a web site.


July 2005


11 In regard to this $1.8 million in non-receipted alleged payments, Judge Gomery is quoted as saying that

on “quite a lot of the evidence, I’m not going to be able to come to any conclusion whatsoever” (Cernetig,

2005). This is not surprising, as noted above, because non-receipted donations to candidates, MPs, or

local ridings are not recorded in the books of the Liberal party. Also, financial records for many organiza-

tions and individuals were not made available to the inquiry.

12 Footnote 10 explains why this is an overstatement of donations to other political parties.


July 2005


Table 3: Identified Donations from Gomery Inquiry Testimony

Liberal CPC BQ NDP

Wallding International Inc. $36,457 $0 $0 $0

Commando CommunicationMarketing Inc.*

$23,425 $0 $0 $0

Jean Chrétien $16,830 $0 $500 $0

Marc Lefrançois $12,105 $0 $0 $0

Michel Béliveau $10,975 $0 $150 $0

Paul Martin $9,677 $110 $1,145 $314

Jean Pelletier $7,660 $150 $0 $0

Denis Coderre $7,624 $0 $0 $0

Michel Vennat $7,520 $0 $0 $0

Diane Marleau $7,290 $0 $0 $0

Jacques Roy $6,736 $110 $0 $0

Michel Joncas $5,898 $0 $0 $0

Martin Cauchon $5,373 $0 $0 $0

Don Boudria $5,320 $0 $0 $0

John Welch $5,277 $0 $0 $0

Michel Chrétien $5,112 $0 $0 $0

Pierre Lesieur $5,035 $0 $0 $0

Guy Bisson $4,292 $0 $0 $0

Alfonso Gagliano $4,247 $0 $0 $0

Jacques Saada $3,842 $0 $0 $0

Benoît Corbeil $3,687 $0 $750 $0

André Ouellet $3,117 $0 $0 $0

Jean-Marc Bard $2,969 $0 $0 $0

Jacques Paradis $2,884 $0 $130 $0

Alain Renaud $2,863 $0 $0 $0

Luc Lemay $2,861 $0 $0 $0

Marc-Yvan Côté $2,593 $0 $0 $0

Pierre Tremblay $2,500 $0 $3,058 $0

Georges Farrah $2,079 $0 $0 $0

Bernard Thiboutot $2,060 $0 $0 $0

Giuseppe Morselli $2,000 $0 $0 $0

David Dingwall $1,677 $0 $0 $0

Gabriel Chrétien $1,442 $0 $0 $0

Sergio Marchi $1,433 $0 $0 $0

Irène Marcheterre $1,418 $0 $0 $0

Nevertheless, 99 additional organizations and individuals were added to the Liberal

reports list of 410 using the main Kroll Lindquist Avey document, including two entire

groups affiliated with Jacques Corriveau and Luc Lemay. This added $1.9 million in

donations to the $1.8 million found in the two Liberal party reports. These additional

names and donation amounts were not identified at all in the two Liberal party reports.

Many of the additional people identified by Kroll Lindquist Avey have also been high-

lighted in the media as political operatives of the Liberal party.


July 2005


Table 3: Identified Donations from Gomery Inquiry Testimony

Liberal CPC BQ NDP

Serge Gosselin $1,233 $254 $0 $0

Françoise Haxaire-Patry $1,075 $0 $0 $0

Claude Lemieux $1,024 $0 $150 $0

Jean Carle $1,000 $0 $0 $0

Franco Iacono $837 $0 $0 $0

Daniel Dezainde $689 $0 $0 $0

Winnifred Cumming $683 $0 $0 $0

Michel Monette $670 $0 $0 $0

Productions Cameo Inc. $580 $0 $0 $0

Pierre Michaud $483 $0 $235 $0

Bruno Lortie $450 $0 $0 $0

Luc Desbiens $403 $0 $0 $0

Antonio Mignacca $400 $0 $0 $0

Gaitano Manganiello $387 $0 $0 $0

Jean Brisebois $200 $0 $0 $0

François Beaudoin $0 $0 $1,080 $0

Odilon Emond $0 $0 $0 $0

Normand Gravel $0 $0 $0 $0

Michel Octeau $0 $0 $0 $0

Mario Parent $0 $0 $200 $0

Louis Pichette $0 $3,056 $0 $0

Isabelle Roy $0 $0 $0 $0

Robert Guy Scully $0 $0 $0 $0

Phillippe Zrihen $0 $0 $0 $0

Total $236,393 $3,680 $7,398 $314

Note 1: Data are 1993-2003.Note 2: Payment marked * used in place of $20,000 estimate from Jean Brault’s testimony.Source: Elections Canada.

Gomery inquiry testimony

Table 3 shows a list of 56 additional organizations and individuals compiled for this

paper from media coverage of witness testimony. The donations of these individuals

were not identified in either the Liberal party reports or the Kroll Lindquist Avey report.

Their donation amounts were found in the Elections Canada party contributions data-

base. Note from the table that donations of only 3 percent of the Liberal party total go to

all other political parties combined.13

This brings the total number of organizations and individuals to at least 565 (see Appen-

dix A for a full alphabetical listing of the identified organizations and individuals) and

adds another $236,000 in donations to the Liberal party, bringing the total to $3.9 mil-

lion. As noted above, the Liberal party made at least $7.4 million in payments to some of

these people. A trust fund of $750,000 set up by the Liberal party to “repay any funds

received inappropriately” is considerably smaller than these sums (Brydon, 2005).

These numbers must be treated as minimum estimates, as payments to individuals were

ignored in the Liberal party reports. The chartered accountants who wrote the Liberal

party reports and Kroll Lindquist Avey also provide caveats that not all relevant parties

have been identified. Finally, there was no attempt to establish related directors, share-

holders, family members, and companies for the additional individuals identified in this

paper, nor was that done for any government organizations in any of the reports.

Conclusions and recommendations

Figure 3 shows the distribution of donations from the 565 organizations and individuals

to the main political parties. Of the $4 million in total donations to all parties, at least 98

percent went to the Liberal party. There seems no doubt that people implicated in the

sponsorship and advertising programs focused on the governing Liberal party when

making their party contributions.

Figure 4 brings the preceding information together to estimate the financial flows asso-

ciated with the sponsorship and advertising programs of the federal government.

As discussed above, it is alleged that $3.9 million was donated to the Liberal party and

the party paid $7.4 million to identified companies and individuals. By comparison, the

amount of insider rent from the federal government under the control of individuals in


July 2005


13 Footnote 10 explains why this is an overstatement of donations to other political parties.

the Liberal party, through their

roles as cabinet ministers, is 30

times larger than these sums. The

$120 million estimate comes from

spending on the Office of the

Prime Minister, other cabinet

offices, and the Privy Council

Office from fiscal years 1993-94 to

2003-04 (data from the govern-

ment’s main spending estimates

are at http://www.tbs-sct.gc.ca/est-

pre/estime.asp).

The amount of insider rent is

again dwarfed by 10 times by the

amount of outsider rent from the

federal government to people in the private sector. The $1.2 billion total is the value of

sponsorship and advertising contracts between 1994 and 2003 that involve identified

organizations and individuals. The advertising portion represented 77 percent of all fed-

eral government advertising over those 10 years, thus showing how pervasive were the

relationships between government outsiders and insiders.

The Kroll Lindquist Avey report noted that typical commissions on advertising con-

tracts ran to 15 percent, while the profits and payments in salaries and bonuses for

sponsorship contracts were almost 20 percent of revenues (author’s calculations).

This range produces an estimated private benefit of at least $190 million from the

federal government to the organi-

zations and individuals identified

in the sponsorship and advertising

reports, almost 50 times larger

than their $3.9 million collective

donation to the Liberal party.

Of course, the table shows that

there are no offsetting financial

flows from the Liberal party or the

private sector to the government,

aside from the normal tax and

transfer flows applicable to all

Canadians.


July 2005


Other Parties

2%

Liberal Party

98%

Figure 3: Donations to PoliticalParties—Sponsorship & Advertising

Total of $4 Million

Figure 4: Estimated Sponsorship &Advertising Financial Flows

As noted above, these flows are not necessarily illegal or unethical. However, a set of

financial incentives was established that created the potential for misdirected and

wasted public funds. It is up to Justice Gomery and a number of criminal investigations

to determine the exact involvement of the people identified in these sponsorship and

advertising programs and to make appropriate policy recommendations.

For the purposes of this paper, the financial relationships between the federal govern-

ment, political parties, and private interests have been established for people associated

with the sponsorship and advertising programs. The numbers of people and amounts of

money involved in the Gomery inquiry are larger than previously known. Problems with

federal government sponsorship and advertising programs can be understood using an

economic theory of incentives and institutional structure. The financial incentive of

$120 million in insider rent appears to have been sufficient in part to motivate $5.9 mil-

lion in untendered election services contracts, while $190 million in potential outsider

rent attracted some portion of $3.9 million in political donations to the Liberal party.

As for recommendations to prevent a re-occurrence of these problems in the future,

there are a number of changes that would improve financial reporting and monitoring.

However, the existence of economic rent means that there will always be powerful

incentives for rent-seeking behaviour. The preceding Fraser Institute publication (Clem-

ens et al., 2004) found 120 examples of federal government failure over a seven-year

period. The average of over one significant failure every month underscores the difficulty

of eliminating waste. Nevertheless, there are a number of options to reduce rent-seeking

activities.

One step is to improve financial disclosure. A quarterly regime of financial reports by

department, on a standardized accounting basis, and to the detailed level required of

public companies, would enable MPs and citizens to better monitor government activi-

ties. Independent tendering of government contracts, through an arms-length organiza-

tion and with a transparent decision-making process, would also reduce the potential for

favouritism. Publication of contract expectations and follow-up assessments of contract

performance would introduce incentives for more effective service delivery.

Fraser Institute authors have previously recommended increasing resources to the Audi-

tor General and broadening the scope of audits undertaken to include Crown Corpora-

tions and government foundations. Mandatory follow-up audits to determine

compliance and the creation of an oversight parliamentary committee are other recom-

mended strategies (Clemens et al., 2004).

Governance changes that create real agency independence (for the Auditor General, Eth-

ics Counsellor, Treasury Board auditing functions, and others agencies) might see the

replacement of parliamentary or executive oversight, and all the politicization that


July 2005


involves, with directly elected officials and a more formalized relationship with the pub-

lic.14 The issue of who oversees the overseers can never be satisfactorily resolved, but

the role of politics in that process can be altered in a way that reduces inappropriate

actions.

Finally, it must be recognized that waste in government is often a function of publicly set

standards of behaviour. The electorate, through polls that reveal attitudes and by voting

in elections, ultimately sets the parameters around acceptable behaviour. Pervasive and

sustained misallocation of taxpayer funds is more likely to reoccur if such activities are

socially tolerated. There is no reform of government practices that can create a culture

that does not tolerate government waste. That is something that must be decided and

declared by Canadians at large.


July 2005


14 I am indebted to Brett Skinner for making the suggestion to directly elect the Auditor General.


July 2005


Appendix A: Identified Organizations and Individuals

Number Name Group

1 140638 Canada Inc. IDA/Everest

2 157146 Canada Inc. Lafleur

3 163368 Canada Inc. Communication & Stratégie

4 163926 Canada Inc. TVA/JPL



7 2142376 Canada Inc. Vickers & Benson

8 2373556 Canada Inc. BCE Media

9 2428-6932 Québec Inc. IDA/Everest




13 2636-7300 Quebec Inc. BCP

14 2794101 Canada Inc. Coffin

15 2846651 Canada Inc. Global Television

16 2862611 Canada Inc. Impact de Montréal



19 2KL Etcetera Communications Inc. Lafleur

20 3100-0516 Québec Inc. BCP



23 3364577 Canada Inc. Groupaction/Gosselin

24 3397823 Canada Inc. Media/IDA Vision

25 3428265 Canada Inc. Groupe Everest/Paul Martel/Mediavision

26 3440222 Canada Inc.

27 3451186 Canada Inc. BCP







34 3703096 Canada Inc.

35 3722449 Canada Limited Global Television



38 6015328 Canada Inc. Lafleur


July 2005



Number Name Group


40 6080081 Canada Inc. Multivet

41 790382 Alberta Ltd. Edmonton Drillers

42 9004-8612 Québec Inc. (Comsar)





47 9039-2788 Québec Inc. Groupaction/Gosselin




51 9042-9390 Quebec Inc. BCP

52 9049-8130 Québec Inc. Communication & Stratégie






58 A.M.A.N. Communication Inc. BCP

59 Acart Communications

60 Advertising and Public Opinion ResearchSector (APORS)

Government Organization

61 Agriculture and Agi-Food Canada Government Organization

62 Alexsim Management Inc. Groupaction/Gosselin

63 Allard et Associes

64 Allard Johnson Communications Inc. Allard-Johnson

65 Allard-Johnson Allard-Johnson

66 Alleluia Design Inc. Groupaction/Gosselin

67 Anderson, S. C. Vickers & Benson

68 Archambault, Joane Groupaction/Gosselin

69 Armanda

70 Arscott, A. Glenn Vickers & Benson

71 Asper, Leonard Global Television

72 Attractions Canada Government Organization

73 Au Printemps Gourmet

74 Bard, Jean-Marc

75 BCE Media BCE Media


July 2005



Number Name Group

76 BCE Media Inc. BCE Media

77 BCP BCP

78 BCP Canada Inc. BCP

79 BCP Chine Conseil en Marketing etCommunication Inc.

BCP

80 BCP Consultants Inc. BCP

81 BCP Holding Inc. BCP

82 BCP Ltée BCP

83 BCP Mondial Inc./BCP Worldwide Inc. BCP

84 BCP Promo Inc. BCP

85 BCP Stratégies Inc. BCP

86 BCP Worldwide Inc. BCP

87 Beauchemin, Elise BCP

88 Beaudoin, François

89 Belisle, Jean-Bernard IDA/Everest

90 Béliveau, Michel

91 Bertram, Ronald Vickers & Benson

92 Bertrand, Mario TVA/JPL

93 Bisson, Guy

94 Boivin, Valier BCP

95 Bouchard, Gaetan Allard-Johnson

96 Boudreault, Richard via Harel Drouin& Associés

97 Boudria, Don

98 Boulay, Claude IDA/Everest

99 Bowen & Binstock

100 Bowen, Walter M. Vickers & Benson

101 Bradstock, John Palmer Jarvis

102 Brault, Jean Groupaction/Gosselin

103 Bremner , William B. Vickers & Benson

104 Briere, Raynald TVA/JPL

105 Brisebois, Jean

106 Bristol Group

107 Brott, Richard Allard-Johnson

108 Buck, Erwin W. Allard-Johnson

109 Buron, Paul TVA/JPL

110 Business Development Bank of Canada(BDC)



July 2005



Number Name Group

111 C. & S.P.B. Communication & Stratégie Inc. Communication & Stratégie

112 Calimero Partenariat

113 Campbell & Partners Communications Inc. Allard-Johnson

114 Campbell, Barry Allard-Johnson

115 Canada Customs and Revenue Agency(CCRA)


116 Canada Information Office (CIO) Government Organization

117 Canada Lands Company Limited/ParcDownsview Park Inc.


118 Canada Mortgage and Housing Corporation(CMHC)


119 Canada Post Corporation (CPC) Government Organization

120 Canadian Firearms Centre

121 Canadian Tourism Commission (CTC) Government Organization

122 Canwest Global Broadcasting Canada Ltd Global Television

123 Carder, Paul C. Vickers & Benson

124 Carle, Jean

125 Caty, Linda BCE Media

126 Cauchon, Martin

127 Centre de Placement de Professionnels enCommunication Inc.

128 Chanistel Inc. BCP

129 Charel, Gestion BCP

130 Charest, Gilles BCP

131 Charron, Claude TVA/JPL

132 Chiappetta, John Tribar

133 China Marketing and CommunicationCounselling Inc.

BCP

134 Choquette, Charles IDA/Everest

135 Chrétien, Gabriel

136 Chrétien, Jean

137 Chrétien, Michel

138 Clark, Peter Gingko

139 Cloutier, Alain BCP

140 Club de Golf de Verchères

141 Coderre, Denis

142 Coffin, Charles Coffin

143 Coffin, Paul Coffin

144 Commando Communication Marketing Inc.


July 2005



Number Name Group

145 Communication Canada Government Organization

146 Communication Coffin Coffin

147 Communication Jean Lafleur InternationalInc.

Lafleur

148 Communication Procurement Directorate Government Organization

149 Communications 2KL Etcetera Inc. Lafleur

150 Communications Art Tellier Inc.

151 Communications Co-ordination ServicesBranch (CCSB)


152 Communications Dobrimar Inc. Information Essentielle

153 Compass Communications

154 Consortium Lafleur

155 Consultant Claude Boulay Ltée IDA/Everest

156 Continuum Database Marketing 2004 Inc. Communication & Stratégie

157 Continuum Database Marketing Inc. Communication & Stratégie

158 Corbeil, Benoît

159 Corriveau, Jacques PluriDesign

160 Cossette Communication

161 Côté, Marc-Yvan

162 Crawford, Thomas R. Vickers & Benson

163 Création La Pralière Canada Ltée BCP

164 Cumming, Winnifred

165 Curtis, Donald J. Vickers & Benson

166 Davidson, Pierre

167 Davis, Peter IDA/Everest

168 De Lorimier, Sylvie Information Essentielle

169 Défi Design Groupaction/Gosselin

170 Delta Media

171 Denes, Peter BCP

172 Department of Canadian Heritage Government Organization

173 Department of Finance Government Organization

174 Department of Justice Government Organization

175 Desbiens, Luc

176 Design Digital Emd 2 Groupaction/Gosselin

177 Desjardins, Claude BCP

178 Desjeans, Roger Groupaction/Gosselin

179 Deslauriers, Diane Oro Communication

180 Dezainde, Daniel


July 2005



Number Name Group

181 Dezert Publicity Inc. Lafleur

182 Dingwall, David

183 DLC Communications Inc.

184 Draftmondial Québec Inc. / DraftworldwideQuébec Inc.

IDA/Everest

185 Draftworld Québec Inc. IDA/Everest

186 Draftworldwide Canada Inc. IDA/Everest

187 Draftworldwide Montreal Inc./DraftmondialMontreal Inc.

IDA/Everest

188 Dumas Walker Groupaction/Gosselin

189 Dumas, Lucie Groupaction/Gosselin

190 Edmonton Drillers (Club de soccer) Edmonton Drillers

191 Edmonton Drillers Corp. Edmonton Drillers

192 Edmonton Drillers Limited Partnership Edmonton Drillers

193 Edmonton Drillers Soccer Club Edmonton Drillers

194 Emd 2 Design Digital Groupaction/Gosselin

195 Emond, Odilon

196 Ensemble Consortium Groupaction/Vickers/Compass/Focus/Coffin

197 Etienne, Jean-Michel BCP

198 Everest Commandites (G.E.C.M.) Inc. IDA/Everest

199 Everest Estrie Publicité (G.E.C.M.) Inc. IDA/Everest

200 Everest Promotion Inc. IDA/Everest

201 Everest Publicite (G.E.C.M.) Inc. IDA/Everest

202 Everest Publicite Promotion Inc. IDA/Everest

203 Everest Publicite Promotions (G.E.C.M.) Inc. IDA/Everest

204 Everest Quebec (G.E.C.M.) Inc. IDA/Everest

205 Everest Relations Publiques (G.E.C.M.) Inc. IDA/Everest

206 Everest Relations Publiques Inc. IDA/Everest

207 Everest Versant Ouest Inc. IDA/Everest

208 Everest-Estrie IDA/Everest

209 Expour/Groupe Polygone

210 Fagnan, Nathalie BCP

211 Farrah, Georges

212 Federal Office for Regional Development(Quebec)


213 Fiducie CBI IDA/Everest

214 Fiducie Toupin IDA/Everest

215 Fisher, David Henry IDA/Everest


July 2005



Number Name Group

216 Fisher, Richard H. IDA/Everest

217 Florence, David IDA/Everest

218 Focus Stratégies & Communications Inc. Palmer Jarvis

219 Foreign Affairs & International Trade Canada Government Organization

220 Fortin, Sylvain Multivet

221 Freeman, Rodgers & Battaglia

222 Fyshe, Michael A. Vickers & Benson

223 Gagliano, Alfonso

224 Gagnon, Jean-René GGA

225 Genesis Media

226 Gervais Gagnon Covington & Associés Inc. GGA

227 Gervais, Gagnon Associés Communications GGA

228 Gervais, Pierre Vickers & Benson

229 Gervais, Richard GGA

230 Gestion Antarctique Inc. IDA/Everest

231 Gestion Isami Inc. Groupaction/Gosselin

232 Gestion Lamier Inc. Lafleur

233 Gestion Marc Roberge Inc. Lafleur

234 Gestion Operation Tibet Inc. IDA/Everest

235 Gestion Versus Inc. BCP

236 Gestions Richard B. Boudreault

237 GGA Communications Public andGovernmental Relations Inc.

GGA

238 GGA Communications Relations publiqueset gouvernementales

GGA

239 Gingko Gingko

240 Global Global Television

241 Global Canadian Program Investment FundCorporation

Global Television

242 Global Television Global Television

243 Global Television Centre Ltd Global Television

244 Global Television News Inc. Global Television

245 Goodhue et associés Design Communication BCP

246 Goodhue, Luc BCP

247 Goodman Communications Inc.

248 Gosselin Communications Groupaction/Gosselin

249 Gosselin Communications Strategiques Inc. Groupaction/Gosselin


July 2005



Number Name Group

250 Gosselin et Associés CommunicationsStratégiques Inc.

Groupaction/Gosselin

251 Gosselin Relations Publiques Inc. Groupaction/Gosselin

252 Gosselin Relations Publiques Inc. / GosselinPublic Relations Inc.


253 Gosselin, Andrée Groupaction/Gosselin

254 Gosselin, Gilles-André Groupaction/Gosselin

255 Gosselin, Nicolas

256 Gosselin, Serge

257 Gougoux, Yves BCP

258 Goular Inc. BCP

259 Grafix Studio

260 Gravel, Normand

261 Gravel, Stéphane Multivet

262 Greenburg, Stephen TVA/JPL

263 Groupaction Groupaction/Gosselin

264 Groupaction Communication Inc. Groupaction/Gosselin

265 Groupaction Gosselin CommunicationsStrategiques Inc.


266 Groupaction Interactif Inc. Groupaction/Gosselin

267 Groupaction Marketing Inc. Groupaction/Gosselin

268 Groupaction Publications Ltée Groupaction/Gosselin

269 Groupaction/Gosselin Groupaction/Gosselin

270 Groupaxion Nouveaux Medias Inc. /Groupaxion New Medias


271 Groupe Cible (B.A.) Inc. Communication & Stratégie

272 Groupe Everest C. M.-P.C.R. Inc. IDA/Everest

273 Groupe Everest Inc. IDA/Everest

274 Groupe Gosselin et Associes Groupaction/Gosselin

275 Groupe Polygone and Expour

276 Groupe TVA Inc. / Group TVA Inc. TVA/JPL

277 Guertin, Stéphane Lafleur

278 Guilbault, Pierre TVA/JPL

279 Guite, Joseph Charles APORS/CCSB

280 Guittet, Manuel Tremblay-Guittet

281 Haxaire-Patry, Françoise

282 Hayter, John

283 Health Canada Government Organization


July 2005



Number Name Group

284 Heritage Canada Government Organization

285 House of Commons Government Organization

286 Human Resources Development Canada(HRDC)


287 Iacono, Franco

288 IDM Communications Limited Vickers & Benson

289 Impact de Montréal Impact de Montréal

290 Impact Splash

291 Impression Arts Ltd.

292 Imprimerie Production

293 Industry Canada Government Organization

294 Interpoles

295 Investissement Alain Renaud

296 Itakura, Alan Vickers & Benson

297 Jacques Corriveau Designer Inc.

298 Jean Lafleur Communication Marketing Inc. Lafleur

299 Jodoin, Yves BCP

300 Johnson, Terry M. Allard-Johnson

301 Joli-Coeur, Claude TVA/JPL

302 Joncas, Michel

303 Journal de Montreal

304 Journal de Quebec

305 JPL TVA/JPL

306 JPL Production II Inc. TVA/JPL

307 JPL Production Inc. TVA/JPL

308 Julien, Annie BCP

309 Koskie, Michael H. Vickers & Benson

310 Kruk, Yuri Yuri Kruk Communications Design

311 La Fabrique de la Paroisse St-Adolphe

312 Labbe, Rejean BCP

313 Labelle, Philippe TVA/JPL

314 Lacroix, Claude IDA/Everest

315 Lafleur Lafleur

316 Lafleur Communication Marketing Inc. Lafleur

317 Lafleur, Dyane Lafleur

318 Lafleur, Eric Lafleur

319 Lafleur, Jean Lafleur


July 2005



Number Name Group

320 Lafleur, Julie Lafleur

321 Lafleur, Simon Lafleur

322 Lalonde, Jacques BCP

323 Lambert Multimedia Inc.

324 Lampron, Pierre TVA/JPL

325 Lawrie, Robert BCP

326 LBJ.FRB Communications Inc.

327 Le Groupe BCP Ltée BCP

328 Le Réseau de Télévision TVA Inc. / TVATelevision Network Inc.

TVA/JPL

329 Lefrançois, Marc

330 Léger, Claude Communication & Stratégie

331 Lemay, Luc

332 Lemieux, Claude

333 Lemoine, Pierre C. Information Essentielle

334 Leroux, Monique TVA/JPL

335 Les Editions Satellite Inc./SatellitePublishing Inc.

Lafleur

336 Les Editions TVA Inc./TVA Book Publishers Inc.

TVA/JPL

337 Les Promotions Propulsion Inc. BCP

338 Les Publications TVA Inc./TVAPublishing Inc.

TVA/JPL

339 Lesieur, Pierre

340 Leveille, Jean Vickers & Benson

341 Levesque, Daniel DLC Communications

342 Lévy, Maurice BCP

343 L’Information Essentielle Inc. Information Essentielle

344 Lithospec Inc. BCP

345 Lortie, Bruno

346 Lyon, Daniel TVA/JPL

347 Maillard, Eric Groupaction/Gosselin

348 Manganiello, Gaitano

349 Manifest Communications

350 Marcheterre, Irène

351 Marchi, Sergio

352 Marleau, Diane Minister of Public Works and GovernmentServices

353 Martin Publicity Inc. Communication & Stratégie


July 2005



Number Name Group

354 Martin, Paul

355 Maschmeyer, Bruce Tribar

356 Materiaux Pont Masson

357 McKim Communications

358 Media - I.D.A. Vision Inc. IDA/Everest

359 Media Vision Inc. IDA/Everest

360 Media Vision W.W.P. Inc. IDA/Everest

361 Media/I.D.A. Vision IDA/Everest

362 Médiabec Inc. BCP

363 Médiavision W.W.P. Inc. IDA/Everest

364 Médiavision WWP, S.E.C. IDA/Everest

365 Metcalfe, Herbert Communication & Stratégie

366 Michaud, Pierre

367 Mignacca, Antonio

368 Millenium Bureau of Canada Government Organization

369 Miller, Donald Palmer Jarvis

370 Mirabau Serigraphie

371 MMS Canada Holdings Inc. BCP

372 Mondoux, Gaetan Exposition CP

373 Monette, Michel

374 Monk, Robert BCP

375 Montreal Canadians

376 Montreal Expos

377 Morris, Graham B. Vickers & Benson

378 Morselli, Giuseppe

379 Motion International Inc. TVA/JPL

380 MP Photo Reproduction

381 Multivet Multivet

382 Multivet Media Inc. Multivet

383 Multi-Vet Vidéo Inc. Multivet

384 Murphy, D W Vickers & Benson

385 Musacchio, Vincent Impact de Montréal

386 Myer, David Former Director General of CCSB

387 Natcom Publicite

388 National Arts Centre Corporation Government Organization

389 National Capital Commission Government Organization

390 National Defence Government Organization


July 2005



Number Name Group

391 Natural Resources Canada Government Organization

392 Neveu, Jean TVA/JPL

393 NEWBO VB Inc. Vickers & Benson

394 NMC Neighbourhood Marketing Canada Inc. Communication & Stratégie

395 NMC Sélection du Quartier Canada Inc. Communication & Stratégie

396 Noble, Gerald Global Television

397 Octeau, Michel

398 Old Port of Montréal Corporation Inc. Government Organization

399 O’Malley, Terrence J. Vickers & Benson

400 Option Canada

401 Oro Communications

402 OSL Marketing Communications Inc. Communication & Stratégie

403 OSL-Martin Inc. Communication & Stratégie

404 Otis, Robert Communication & Stratégie

405 Otis, Sauter & Associés Inc. Communication & Stratégie

406 Otis, Sauter, Léger Carr Inc. Communication & Stratégie

407 Ouellet, André

408 PacCanUS Inc.

409 Palmer Jarvis Palmer Jarvis

410 Palmer Jarvis (Canada) Inc. Palmer Jarvis

411 Palmer Jarvis DDB Inc. Palmer Jarvis

412 Palmer, Frank William Palmer Jarvis

413 Paquette, Serge Communication & Stratégie

414 Paradis, Jacques

415 Parent, Mario

416 Parisella, John BCP

417 Parizeau, Jean BCP

418 Paul Martel Inc. IDA/Everest

419 Pearson, Richard Groupaction/Gosselin

420 Pelletier, Jean

421 Périscope Interactif 2004 Inc. Communication & Stratégie

422 Périscope Interactif Inc. Communication & Stratégie

423 PFC Soccer Inc. Edmonton Drillers

424 Picard, Andre TVA/JPL

425 Pichette, Louis

426 Pickford, Barry W. BCE Media

427 PluriDesign Canada Inc.


July 2005



Number Name Group

428 Poirier Communications Ltd

429 Portage Promotion

430 Poulin, Gilles TVA/JPL

431 Privy Council Office (PCO) Government Organization

432 Productions Caméo Inc.

433 Promotions Market Place Inc. BCP

434 Proux, Genevieve

435 Public Works and Government ServicesCanada (PWGSC)


436 Publicis Canada Inc. BCP

437 Publicis Consultants Inc. BCP

438 Publicis Dialogue Inc. BCP

439 Publicis Groupe Holdings B.V. BCP

440 Publicis Inc. BCP

441 Publicis Montréal Inc. BCP

442 Publicis Réalisations Inc. BCP

443 Publicis Toronto Inc. BCP

444 Publicis. SMW Inc. BCP

445 Publicis.BCP Inc. BCP

446 Publicis.BCP Montréal Inc. BCP

447 Publicis.BCP Promotion Inc. BCP

448 Publicis.BCP Réalisations Inc. BCP

449 Publicis-BCP Art Ad-vice Inc. BCP

450 Publicis-BCP Toronto Inc. BCP

451 Publicité Dézert Inc./Dezert Publicity Inc. Lafleur

452 Publicité Intercepte Inc. BCP

453 Publicité Martin Inc. Communication & Stratégie

454 Publicité Vickers & Benson Ltee Vickers & Benson

455 Publistudio Communication Inc. Communication & Stratégie

456 Quad

457 Quail, Ranald PWGSC

458 Radio Capsules

459 Rahill, Linda IDA/Everest

460 Rancourt, Serge BCP

461 Réalisations 2 de go Inc. BCP

462 Réalisations BCP Inc. BCP

463 Réalisations Inc. BCP


July 2005



Number Name Group

464 Rebelles.com Inc. Groupaction/Gosselin

465 Receiver General Government Organization

466 Renaud, Alain

467 Réseau de télévision Global Inc. / GlobalTelevision Network Inc.

Global Television

468 Restaurant La Tarentella

469 Retail Debt Agency Government Organization

470 Ricciuto, Ildo BCE Media

471 Richard, Alain Groupaction/Gosselin

472 Rigg, Norman Palmer Jarvis

473 Roberge, Marc Lafleur

474 Robichaud, Marc IDA/Everest

475 Robillard, Michel BCP

476 Rodriguez, Pablo GGA

477 Roy, Isabelle

478 Roy, Jacques

479 Royal Canadian Mint Government Organization

480 Royal Canadian Mounted Police (RCMP)(Headquarter)


481 Royal Canadian Mounted Police (RCMP)(Quebec Division)


482 Saada, Jacques

483 Saputo, Joey Impact de Montréal

484 Saputo, Lino Jr Impact de Montréal

485 Satellite Publishing Inc./Les EditionsSatellite Inc.

Lafleur

486 Sauter, John Communication & Stratégie

487 Sauvé, Jacques BCP

488 Scott Thornley Company Inc. Scott Thornley

489 Scott Thornley, Colin Scott Thornley

490 Scully, Robert Guy

491 Sedlex Inc. Information Essentielle

492 Sensas (G.E.C.M.) Inc. IDA/Everest

493 Sentir Chasse-Peche Magazine Lemay

494 Serigraphie 2000

495 Siguier, Bertrand BCP

496 Simard, Marc TVA/JPL

497 SKS Advertising


July 2005



Number Name Group

498 Slemko, Morris IDA/Everest

499 SMW Marketing Communications Inc. BCP

500 Société de placement Richard G. Gervais Inc. GGA

501 Société Immobilière Alexsim Inc. Groupaction/Gosselin

502 SOS Communications

503 Southside Digital Communications

504 Sparks Communication Inc.

505 St-Arnaud, Louis TVA/JPL

506 Strike, Thomas Global Television

507 Studios Pub Design Inc. Groupaction/Gosselin

508 Super Impression

509 Surf Marketing Inc. Groupaction/Gosselin

510 Synergie Conseil & Gestion encommunications

BCP

511 Taft, Robert Communication & Stratégie

512 Tassé, André BCP

513 Télémission Information Inc. Information Essentielle

514 The Capital Hill Group Ottawa Inc. Communication & Stratégie

515 The Gingko Group Gingko

516 The Gingko Group Canada Ltd Gingko

517 The Ongoing Partnership

518 Theoret, Claudette Information Essentielle

519 Thiboutot, Bernard

520 TNC Multicom

521 Tonik Etcetera Marketing Inc. Lafleur

522 Torella, John A. Vickers & Benson

523 Totem Conseils Groupaction/Gosselin

524 Touch Infopublicité Inc. BCP

525 Toupin, Jean-Pierre IDA/Everest

526 Tour Cyclist Trans Canada Government Organization

527 Tourism Canada Government Organization

528 Treasury Board Government Organization

529 Tremblay Guittet Communications Inc. Tremblay-Guittet

530 Tremblay, Gaétan BCP

531 Tremblay, Michéle Tremblay-Guittet

532 Tremblay, Pierre APORS/CCSB

533 Tremblay-Guittet Tremblay-Guittet


July 2005



Number Name Group

534 Tribar Tribar

535 Tribar Industries Inc. Tribar

536 Trustar Limitee/Limited TVA/JPL

537 TVA TVA/JPL

538 TVA Films Inc. TVA/JPL

539 TVA International Distribution Inc. TVA/JPL

540 TVA International I Inc. TVA/JPL

541 TVA International Inc. TVA/JPL

542 TVA International VI Inc. TVA/JPL

543 U.S. Postal Service Government Organization

544 UQAM—BCP JR Les Communicateurs del’an 2000

BCP

545 Vanasse, Jean-Robert BCP

546 Vasquez, Michael Allard-Johnson

547 VBCL

548 Vennat, Michel

549 Verrault, Laurent TVA/JPL

550 VIA Rail Government Organization

551 VIA Rail Magazine Government Organization

552 Vickers & Benson Vickers & Benson

553 Vickers & Benson Advertising Limited Vickers & Benson

554 Vickers & Benson Co. Limited Vickers & Benson

555 Vickers & Benson Direct Marketing Limited Vickers & Benson

556 Vickers & Benson International Limited Vickers & Benson

557 Vickers & Benson Retail Limited Vickers & Benson

558 Vision 4 Groupaction/Focus/Compass/Acart

559 Warwick and Associates

560 Warwick, E. Joseph Vickers & Benson

561 Weaver Tanner & Miller Inc.

562 Welch, John

563 Xylo Concept Graphique

564 Yuri Kruk Communications

565 Zrihen, Phillippe

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July 2005


Acknowledgements

The author is grateful to Brett Skinner, Jason Clemens, and Michael Walker at The Fra-

ser Institute for their very helpful comments in the course of reviewing and improving

this paper. Any errors and omissions are strictly the responsibility of the author.

About the author

Mark Mullins is the Director of Ontario Policy Studies at The Fraser Institute in Toronto.

He has a doctorate in economics from the London School of Economics and was formerly

a chief economist in the financial markets and a public policy consultant.


July 2005


About this publication

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The author of this publication has worked independently and opinions expressed by him

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Copyright © 2005 by The Fraser Institute. All rights reserved. No part of this publication

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case of brief passages quoted in critical articles and reviews.

ISSN

1714–6739

Date of issue

July 2005

Editing, design and production

Lindsey Thomas Martin and Kristin McCahon


July 2005


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July 2005


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