By Mike De Souza
CALGARY, Oct 13 (Reuters) - Canada's Conservative government
rejected advice from its bureaucrats warning it was
"inappropriate" to use a sole-source contract to hire a
consultant to review the country's Arctic drilling legislation,
according to a memo obtained by Reuters.
The memo, released under Canada's Access to Information Act,
was prepared for Aboriginal Affairs and Northern Development
Minister Bernard Valcourt by his department. He is running again
in Canada's Oct. 19 election.
Canada is reviewing Arctic drilling at a time when low oil
prices and tougher regulation following offshore spills are
prompting companies like Imperial Oil Ltd IMO.TO , Exxon Mobil (N:XOM)
Corp XOM.N , BP Plc BP.L and Chevron Corp (N:CVX) CVX.N to put
projects on hold and seek concessions.
ID:nL1N1041BF ID:nL3N11Y1Y7
The memo, sent to Valcourt in late June, warned it would be
"inappropriate" to hire the consultant, Rowland Harrison,
without any open competition since this would violate federal
rules for contracts worth more than C$25,000 ($19,157.09).
Valcourt rejected the advice, opting to appoint the former
member of the federal energy regulator who was described by the
department as a "scholar" of Canada's energy regulatory regime
with more expertise than other candidates who were considered.
Asked about the memo, Valcourt's office referred questions
to his department, which said its advice was based on a
"misunderstanding" about whether the consultant's mandate
included engagement with stakeholders.
The revelations come as the Conservative government, plagued
by a series of ethics scandals, battles to hang on to power
after nearly a decade in office. The opposition Liberals and New
Democrats have accused it of weakening environmental laws in
response to industry lobbying.
Canada's former parliamentary budget officer, Kevin Page,
said it was not common for cabinet ministers to reject advice
from bureaucrats seeking a competitive procurement process.
The department gave Valcourt background information with the
memo explaining how Harrison could engage with stakeholders and
produce a report in response to industry lobbying.
It also told Valcourt that an independent expert would help
"lend credibility" to recommendations expected to help companies
finalize investment decisions.
Other documents said Harrison's core roles would include
intervening "when political issues arise," delivering news to
stakeholders, and acting as a spokesman in consultation with
Valcourt's office or department.
Environmental group Greenpeace, which is opposed to Arctic
drilling, questioned Harrison's independence, noting that the
lawyer was a member of the National Energy Board in 2011, when
previously-released government documents described the federal
regulator as an "ally" of the oil industry.
"It seems clear Minister Valcourt wanted to get Mr. Harrison
into the driver's seat for this review as quickly as possible
without any questions or scrutiny," Greenpeace campaigner Alex
Speers-Roesch said.
Harrison did not respond to requests for comment.
($1 = 1.3050 Canadian dollars)
(Editing by Jeffrey Hodgson and Paul Simao)