VICTORIA: A Freedom of Information request by the Canadian Taxpayers Federation (CTF) found that the previous NDP government broke its own contracting rules when it gave $200,000 to the Canadian Centre for Policy Alternatives (CCPA) in 2001. The 11th hour approval was made a day before the fiscal year closed and 18 days before the NDP called the last election.

"The bogus justification to award the $200,000 contract, the rush to get the money out the door and Cabinet's disregard for its own contracting rules indicate that the NDP were less interested in the CCPA's 'research' and more concerned with supplying tax dollars to fund a lobby group," said Victor Vrsnik, BC Director for the Canadian Taxpayers Federation.

Research into the province's annual Public Accounts reveals that the previous NDP government paid in total $410,186 to the CCPA between 1993 and 2001 for contracts, subscriptions and publications. This discovery prompted the CTF to dig deeper for an account of the unusual expenditures. See the attached Backgrounder.

"No one is questioning the existence of the CCPA, but is it necessary for taxpayers to finance them " asked Vrsnik. "If Premier Campbell transferred half a million dollars of taxpayers money over to the CTF, the NDP would have lit their hair on fire!"

"In view of the cronyism that plagued the former NDP government and so burdened British Columbia taxpayers, the BC Liberals should buttress their commitment to "open tendering and fair competition" by launching an investigation into the illicit contract and demand the money back from the CCPA."

"The CTF opposes all government funding to interest groups, particularly those that use tax dollars for politically motivated activities. The CCPA should return the $200,000 cheque."



Backgrounder: NDP Giveaways to CCPA


$200,000 Handout:

On the strength of a two-page CCPA proposal outlining some remarkably vague policy themes, the NDP government awarded the organization a $200,000 contract in 2001 for "on-going research into inequality and social justice" with no deliverables.

"It's unconscionable for the previous NDP government to award money and have nothing to show for it," said Vrsnik. "This is worse than Prime Minister Jean Chretien's Group Action scandal. At least the Quebec communications firm submitted one of the three studies it was contracted to produce."


Contract Rules give way to Cronyism:

The NDP broke its own contracting rules by failing to request and receive an 'opinion' from the Purchasing Commission of its intent to direct award the $200,000 contract to the CCPA. The provincial government's General Management Operating Policy (GMOP) manual requires the Purchasing Commission to provide a ministry with an opinion on direct awards in excess of $100,000. The ministry must then attach a copy of that opinion to the Treasury Board submission . No such opinion was ever produced.

"The blame falls squarely on the shoulders of the previous NDP cabinet that pushed through the Treasury Board submission in violation of government policy," said Vrsnik.

The GMOP also requires a competitive bidding process for contracts over $25,000. The NDP rejected competitive bidding in favour of a direct award process for the CCPA contract on the spurious grounds that "only one contractor is qualified to perform the services" and that "the CCPA is a unique organization."


11th hour scramble:

"The fact that funds were made available through the "contingencies" budget line demonstrates that the government had no prior intention to pay for CCPA research when the budget was written," noted Vrsnik. "Only through an 11th hour scramble were they able to shovel funds to the CCPA knowing that their days in government were numbered."


$105,000 Government 'Subscription':

The Ministry of Finance paid $105,000 for a three-year 'enhanced government subscription' to the CCPA in 1997, 1999, and 2000. In exchange, the ministry was entitled to 50 copies per year of the monthly CCPA Monitor, the quarterly BC Commentary and other CCPA publications.

In contrast, the Canadian Taxpayers Federation mails its bi-monthly magazine The Taxpayer and its studies free of charge to all federal and provincial elected officials.

"The NDP wasted tens of thousands of tax dollars for information made available free of charge on The CCPA web site," said Vrsnik. "Even if the government wanted to buy a CCPA subscription, there was no need to spend a fortune on multiple copies when the information could easily have been downloaded."


$24,000 ICBC 'Subscription':

British Columbia motorists paid a hefty premium for ICBC to buy a 2-year $24,000 CCPA subscription in 1998 and 1999. Motorists paid for 25 copies of the CCPA Monitor (10 issues per year), the quarterly BC commentary and 12 research reports and books.

"It's puzzling why a public auto insurance company would pay $12,000 per year for dozens of unnecessary copies of CCPA information on "welfare policy, WTO negotiations and tax cuts, " pondered Vrsnik. "ICBC should work toward affordable car insurance premiums instead of wasting motorists' money on lobby groups."

Meanwhile, the now-neutered BC Human Rights Commission paid $11,990 in research fees to CCPA in 2000.


Manitoba NDP support for CCPA:

Another access to information request revealed that the Manitoba NDP paid $15,200 for a CCPA subscription in 2000, $200 for a CCPA conference and $250 for a CCPA membership.

"It looks like the BC government got a raw deal having paid $35,000 annually for a 50-copy subscription while the Manitoba government received twice the copies for half the price," noted Vrsnik. "Sadly, taxpayers from both provinces were truly short changed."