Carney admits to potential conflicts of interest with Brookfield

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OTTAWA — Prime Minister Mark Carney said on Tuesday he expects to recuse himself from potential conflicts of interest related to his past work at Brookfield Asset Management.

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During a news conference in Iqaluit where he pledged to increase military presence in the Arctic, Carney said that he expects the ethics commissioner to create “screens” which would ensure he avoids conflicts of interest in the course of his prime ministerial duties.

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“What happens is that there’s a discussion with the ethics commissioner for certain screens around certain issues and that’s a process that is underway,” said Carney.

“I very much respect the system, and those screens become public as they’re developed.”

Carney struggled at first to understand the question that was put to him in French and to answer in that same language but said that “it’s clear” he expects the conflict of interest screen to apply to him if a government decision “has a major impact for Brookfield.”

Asked why he is not disclosing his assets proactively, Carney added that is a question that is for the ethics commissioner.

Carney’s explanation on Tuesday was a departure from the snippiness that was on display the day prior when he was questioned about the value of the assets he put into a blind trust when he became Liberal leader and any potential conflicts of interest that may arise.

On Monday, Carney took issue with the line of questioning and his exchange with two female reporters ended with him telling one of them to “look inside” herself.

“You start from a prior of conflict and ill will,” he told the reporter who challenged him. “I have served in the private sector. I have stood up for Canada. I have left my roles in the private sector at a time of crisis for our country. I’m complying with all the rules.”

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Carney has indeed followed the rules in place. The day he was elected Liberal leader, his team said he put all his assets, other than his “personal real estate,” into a blind trust. He was only required to do so within 120 days of his appointment as prime minister.

The ethics commissioner is expected to publish a summary of his personal and financial information and it will be available to the public in that time frame.

But Conservatives expect Carney to go beyond the current rules. The party’s ethics critic Michael Barrett said Carney should disclose his assets and conflicts of interest before the start of the election, which could be only days away.

“Apparently, Mark Carney doesn’t think that Canadians deserve to know before they vote and, apparently, he thinks answering questions on this subject is beneath him,” he said.

“The question is, why is he so defensive when he’s asked?”

Carney said that he would probably follow a path similar to former prime minister Paul Martin.

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Martin, a multi-millionaire who owned Canada Steamship Lines, put his assets in a “blind trust” when he joined the cabinet. He eventually went on to commit to staying out of some government decisions to avoid conflicts with his business interests as prime minister.

But Conservatives are also drawing a comparison with prime minister Stephen Harper’s former chief of staff, Nigel Wright, who had to abide by a similar screen that prevented him to participate in discussions or decisions related to Onex Corp. — a private equity investor and asset management firm involved in aerospace, health care and even movie theatres.

Wright worked with the ethics commissioner for many months before coming to a satisfactory solution. According to a Harper aide who was there at the time, any potential conflicts of interest were first flagged by the Privy Council Office. An employee in Harper’s office would then have to ensure that Wright would recuse himself from those discussions. Brookfield and Carney have so far refused to say if he still possesses Brookfield assets, but judging by his comments on Tuesday, he still does.

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According to Brookfield’s annual report, Carney was entitled to 209,300 stock options at $35.13 each and 200,000 options at $40.07 each, for a market value of more than $6.8 million as of Dec. 31, 2024. The expiration date on these options is either 2033 or 2034.

But that compensation might pale in comparison to the money he was entitled to as head of transition investing for three of Brookfield Asset Management’s biggest funds.

In that role, he helped raise billions for some of the largest funds in the world focused on the clean energy transition including renewable power, business transformation, carbon capture and storage, renewable natural gas, and nuclear power around the world.

As the co-manager of these funds, he is entitled to potentially tens of millions in “carried interest” which are essentially performance bonuses, according to Bay Street insiders who are in a similar line of work and who spoke to the National Post on background last week.

Barrett wondered how Carney can serve as prime minister when he would potentially have to recuse himself from a range of areas related to clean technologies and net-zero projects that are federally regulated or could be impacted by decisions he can take.

National Post
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