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Government-created organizations should be part of review of third-party political contributors, Wynne says

The provincial attorney general is already looking at possible changes to campaign contribution rules regarding unions and other groups

thestar.com
Jan. 13, 2016
By Moira Welsh

Political donations from government-created agencies like the Ontario Tire Stewardship should be added to an ongoing provincial review of “third-party” contributions, says Premier Kathleen Wynne.

Thousands of dollars in donations from Ontario’s tire stewardship - funded by consumer “eco-fees” - were exposed in a Star investigation that uncovered spending on high-end restaurants, luxury hotels and wine-country retreats.

“I think it’s something that, as we look at third-party donations to political parties, we need to look at,” Wynne said at Queen’s Park.

“Because it (the tire stewardship) is so close to the government, I think that there are good questions to ask.”

The provincial attorney general is already looking at possible changes to campaign contribution rules regarding unions and other groups, following pressure from Ontario’s Chief Electoral Officer.

The Star’s investigation found the tire stewardship donated $5,150 to the Liberals from 2013 to 2015, mostly for tickets to “meet and greet” fundraising events. It gave $500 in telephone donations to the NDP in 2013. The stewardship is funded by recycling fees paid by consumers when tires are purchased.

Records obtained by the Star show that a few weeks before the June 2014 provincial election, tire agency executive director Andrew Horsman and chair Glenn Maidment paid $1,000 to attend a fundraiser for then Environment Minister Jim Bradley and “special guest” Eric Hoskins.

In July 2015, Horsman charged $3,200 on the stewardship’s corporate credit card to reserve a foursome in a golf tournament at Emerald Hills Golf Club in Whitchurch-Stouffville hosted by Wynne. Maidment, the chair, said the stewardship couldn’t get a private meeting with new Environment Minister Glen Murray.

Maidment said the donation allowed him and Horsman to have a private conversation with Wynne, related to the organization’s $49.6-million surplus.

“At that particular event, and good on the premier for doing this, she went around the golf course and spent about five minutes with each foursome,” Maidment said in an interview.

"It’s important for the government to understand the programs and challenges that they foist upon (the industry) from time to time."

“So if you can spend a few minutes with the premier to express your concern about some elements of the program they are forcing you to adhere to, I think it’s time well spent,” he told the Star.

Donations are “fair and reasonable,” Maidment said.

In 2009, the tire stewardship was designated by the Liberals to oversee the collection and recycling of old tires. Since then, consumers have paid between $5.45 and $5.85 in recycling fees on each new passenger vehicle tire, more for truck tires. Current passenger tire fees are $4.25. Roughly 12 million tires are disposed of in Ontario each year.

Since the program began, consumers have collectively paid about $80 million a year in recycling fees. Initially, producers and retailers pay into the recycling program and then recoup the fees from the consumer.

Murray has proposed new legislation that, if passed, would eventually dissolve Ontario’s recycling stewardships and replace them with a more competitive system. It could take several years before the stewardships are dismantled.

The Star also reported that tire stewardship board members and executives enjoyed wine tastings, fine lodging and a boat cruise.

That practice was lambasted by Progressive Conservative environment and climate change critic Lisa Thompson (Huron-Bruce).

“The Liberals have once again proven that they cannot manage the province with integrity. Allowing an organization this government created to irresponsibly waste taxpayer dollars on lavish dinners and cruises for top executives is unacceptable,” Thompson told the Star.

Credit card statements obtained by the Star show tire stewardship executives paid for expensive dinners and organized board events at exclusive locations. Most board members are employed by tire corporations or related associations. None are paid by the stewardship.

The documents are partial statements of credit card bills that do not give a full account of spending. Instead, the statements provide a glimpse into 16 separate months of charges dating to 2011.

They provide a rare insight into the spending of the agency, which operates without public oversight.

At one dinner for two that was expensed, a $288 meal was enjoyed at Etobicoke’s Via Allegro, where elk tenderloin, wild boar chops, Cabernet Sauvignon and Italian lager were served.

An October 2014 dinner for 13, at beerbistro on King St. E., included 10 orders of steak frites, three chicken dinners and a salmon entree, along with 37 glasses of beer and wine. The receipt noted “CATRA,” which is the Canadian Alliance of Tire Recycling Agencies. Maidment said each provincial agency hosts an annual dinner on a rotating basis and the Ontario stewardship hosted in 2014.

Three times a year, the board meets in the stewardship’s spacious Etobicoke offices, at Bloor St. and The East Mall. But once a year, in addition to Christmas dinner, the board takes it tire recycling discussions on the road.

In 2013, the stewardship invited the board on a tour of an eastern Ontario recycling plant, Maidment said. It made sense, he added, that the group stay in Ottawa for its annual off-site meeting. The stewardship paid for a three-night $16,104.94 bill at the Fairmont Chateau Laurier.

In 2014, a board meeting at the Prince of Wales Hotel in Niagara-on-the-Lake, included a tour of the Trius Winery. Dinner included a five-course tasting menu for 10 people and 10 bottles of wine. The hotel bill was $2,200.

And last summer the board was invited to the Rosseau Muskoka resort, on Lake Rosseau. That included a $573 cruise around the lake on the M.V. Idyllwood, a restoration/reproduction of a 40-foot 1920s-era private yacht.