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Stronach to avoid cabinet talks on auto industry

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CTV Newsnet: Stronach recused from auto meetings

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Canadian Press

Date: Mon. Sep. 26 2005 3:10 PM ET

OTTAWA -- Human Resources Minister Belinda Stronach excused herself from cabinet discussions on subjects related to the auto industry even before signing a formal agreement to do so with the ethics commissioner.

Stronach, former head of auto parts giant Magna International, signed a formal recusal agreement Saturday, but during the last four months she avoided cabinet discussions on free trade with South Korea, satellite radio, auto industry safety regulations and climate change policy as it relates to cars and trucks.

She recused herself from the satellite radio talks because automakers are keen to get the technology into new cars.

Her agreement with Bernard Shapiro, the ethics commissioner, said she is potential beneficiary of the Stronach Trust, which has voting control of Magna.

She said she will not take part in any discussions involving Magna, the auto industry in general, the steel industry as it relates to autos, international treaties on double taxation and international trade related to autos.

The agreement also said that Magna will tell the commissioner about "any dealings they may have with government outside the normal course of business. This will include matters such as grant applications and government contracts.''

Peter Van Loan, the Conservative Human Resources critic, said he is satisfied with Stronach's efforts.

He said it would set a bad precedent to bar people from public life because they were successful in business.

"You don't want the only qualification to sit in Parliament to be a lack of qualifications,'' he said.

"You don't want to get to the point where anyone who has been successful in business is disqualified from serving.''<

He said it will be important for Stronach to ensure the rules are followed.

He also suggested she may be in the wrong portfolio, because training is a major part of Human Resources and that is an issue of special importance to the auto industry.

In her filing with Shapiro, Stronach listed directorships she has since resigned, including posts with Magna and American firms.

They include: Magnolia Holdings Ltd., Adena Springs Ltd., Shadowlawn Holdings Ltd., Triple Bell Holdings Ltd., Bell Mountain Inc., and Stronach Stables Inc.

She was also a director of four Ontario firms: 445327 Ontario Ltd., The Alpen House Ltd., Adena Meadows Ltd., and Adena Springs Ltd.

Stronach, 39, was elected to the Commons last year as a Conservative after running for, and losing, the Tory leadership.

She crossed the floor to the Liberals last May and was promptly named to the cabinet.

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