Center for the Study of Ethics in the Professions at IIT

INTRODUCTION

For many years the Public Service of Canada has operated with very few formal published rules of conduct. There have no doubt always been generally accepted assumptions about what a Public Servant could do and what he should not do without prejudicing his usefulness as an employee of the federal government. However, the increasing complexity of modem government has blurred the line between public and private matters to such an extent that a systematic and public set of standards is now required.

In recent months the government presented to Parliament certain proposals to encourage public and parliamentary debate on the issue of conflict of interest as it applies to Members of Parliament and Ministers of the Crown. On July 18, 1973, the Prime Minister announced that a set of guidelines pertaining to conflicts of interest as they apply to public servants would be promulgated. On December 18, 1973 the Governor in Council approved a set of guidelines on this matter and revoked PC 3/1440, dated 21 March 1951 This development provides a timely occasion to republish the various existing authorities pertaining to the conduct of Public Service employees.

BASIS IN LAW

The basic authority to determine rules governing the conduct of employees in the Public Service stems from Section 7 (1) (f) of the Financial Administration Act which states that the Treasury Board may "establish standards of discipline in the public service"... etc.

CONFLICT OF INTEREST

The guidelines on conflict of interest for Public Servants which have been recently approved by the Governor in Council are attached at Annex A . As the title indicates, the guidelines cover only situations of actual or potential conflict of interest, i.e., situations where an individual's duties could permit or appear to permit gain or advantage for the individual or his friends or relatives. It is expected that departments will want to supplement these guidelines with more specific provisions pertaining to their own operations. Examples of areas requiring particular attention are purchasing agents, persons involved in hiring employees, persons involved in the allocation of grants or the awarding of contracts. However, these are only general examples and each department is in the best position to identify those particular areas about which more specific indications are required. It will be important for departments and agencies, after developing more specific guidelines, to consult with their unions as to their application.

In developing any guidelines, the first question to be faced was how comprehensive and detailed they should be and whether much detail would help employees to identify potential areas of conflict. It is believed that a detailed set of guidelines in the Order in Council would not be appropriate nor desirable. Any attempt to identify the totality of potential areas of conflict would be a task of great magnitude, could never be totally comprehensive and would require constant review and interpretation. Instead a more workable approach has been taken to identify certain principles, the violation of which would clearly establish a situation of conflict of interest. With these published principles, the overall intent is established and actual situations can be scrutinized to determine whether the principles are respected.

DISCLOSURE

Paragraph Number 6 of the Order in Council requires the disclosure by all public servants of all holdings of a business, commercial or financial nature to their superior, where such holdings might conceivably be construed as being in actual or potential conflict with the employee's duties. To implement this provision, all public servants will, after discussion with their superior, provide their superior by 30 June 1974, details of their personal holdings which might conceivably be construed as being in actual or potential conflict with his or her duties.

Such disclosure under confidential cover, will be passed to deputy heads who will on receipt advise the employee of the steps to be taken to avoid being placed in a position of having to defend a charge of actual or potential conflict of interest. To encourage full compliance, when an employee prefers not to make disclosure to his immediate superior, his deputy head will designate a person at a higher managerial level to whom the employee may make disclosure.

Prior to accepting a new appointment, employees are expected to make a disclosure of actual or potential areas of conflict involving the new position, as well as at any later date when new personal holdings are acquired or functions or activities of the position are modified. In case of potential conflict, departmental management will, after consultation with the employee, determine what steps must be taken to avoid a conflict of interest situation. Failure to disclose or follow the advice provided subsequent to disclosure will be considered as a breach of conduct.

OFFERS OF REWARD, ETC.

It is an offence under Section IIO(I)(C) of the Criminal Code for an official or employee of the government to demand, accept or offer, or agree to accept from a person who has dealings with the government, a commission, reward, advantage or benefit of any kind directly or indirectly, by himself or through a member of his family or through anyone for his benefit, unless he has the consent in writing of his Deputy Minister or Head of Agency.

CASUAL BENEFITS OR ADVANTAGES

The acceptance by public servants from persons having dealings with the government of sporadic or casual benefits such as hospitality or small gift items may usually be consented to by Deputy Ministers or Branch heads where such benefits or advantages are within the bounds of propriety, are a normal expression of business courtesy or advertising or are within the normal standards of hospitality and are not such as to bring suspicion upon the public servants' objectivity.

COLLECTIVE AGREEMENTS

Some collective agreements contain provisions pertaining to certain aspects of the conduct of employees. Care should be exercised in developing instructions to employees to ensure that such provisions of collective agreements are respected.

POLITICAL ACTIVITY

The standard of conduct on matters involving political activity stems from Section 32 of the Public Service Employment Act and has been published from time to time by the Public Service Commission in its Bulletins as follows:

1967-16 of 9 Aug 67 "Administration of Section 32 of the Public Service Employment Act Political Partisanship" 1970-23 Of 14 Jul 70 "Political Partisanship in connection with Municipal Elections"

1971-30 Of 7 Oct 71 "Section 32 of the Public Service Employment Act Political Partisanship"

EMPLOYEE ORGANIZATION ACTIVITIES

Sections 8, 9 and IO of the Public Service Staff Relations Act identify certain limitations placed on public servants' participation in employee organizations and unions. Also contained in those Sections are provisions against discrimination and intimidation of members involved in the formation or administration of employee organizations or solicitation of membership in employee organizations.

DISCRIMINATION

The subject of discrimination is covered by certain provisions of the Public Service Employment Act (Section 12) and by virtue of the Government's policy of applying to the Public Service the principles of Part I of the Canada Labour Code (Fair Employment Practices). More recently, by PC 1972-2569 dated 9 November 1972, ... the Public Service Commission was assigned responsibility to investigate any complaint of alleged discrimination on the grounds of sex, race, national origin, colour or religion in respect of the application or operation of the Public Service Employment Act.

DISCIPLINE

On February 13, 1967 Treasury Board delegated to departments and agencies the responsibility of developing a formal code of discipline to deal with misconduct where such a departmental code was not in existence, or of revising an existing code in order to ensure effective standards of discipline based on the specific requirements of each operational situation. Departments and agencies will now find it necessary to review their codes of discipline to ensure there is no ambiguity between such codes and the departmental guidelines necessary to implement the contents of this Circular Letter.

OTHER ASPECTS OF PERSONAL CONDUCT

It is not intended at this time to attempt to publish any directive on aspects of personal conduct of public service employees on such matters as appearance, dress or general deportment. The responsibility for developing such standards continues to rest with the management of individual departments.

CONTINUITY

Departments should review and update their existing codes to ensure compliance with the content and the spirit of this Circular Letter, subject to any relevant provisions of collective agreements.

CANCELLATIONS

This Circular Letter supersedes TB Circular 1967-12 dated 6 March 1967, Circular 1968-30 dated 26 April 1968 and Circular 1969-13 dated 6 February 1969

INQUIRIES

Inquiries concerning the subjects covered in this Circular Letter should be directed to the Personnel Policy Branch, Treasury Board Secretariat, except for inquiries concerning political activity and discrimination, which should he referred to the Public Service Commission.

G. F. OSBALDESTON Secretary of the Treasury Board.