The Stel Salaried Pensioners Organization wishes to thank The Hamilton Spectator for permission to post the following article by Reporter Joan Walters in the February 20, 2004 edition
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Feb. 20, 2004. 12:47 AM |
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Keyes Says PM Has Stelco Conflict |
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Revenue Minister says Martin's ties to creditor
disqualify him |
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By Joan Walters |
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A senior cabinet minister says Prime Minister Paul Martin will never be able to participate in any discussions or decisions about the survival of Stelco. Hamilton's Stan Keyes says that if Stelco ever comes up at the Liberal cabinet table, Martin will have to excuse himself because of family ties to Canada Steamship Lines (CSL) Inc., which is a major creditor of Stelco. The remarks -- the first time a Liberal insider has commented publicly on the prime minister's potential conflict -- enraged NDP Leader Jack Layton. "I would say it's an emergency for Stelco and for Hamilton that the prime minister of this country cannot weigh in and use the force of his office to deal with a crisis," Layton said. "It is a tragedy that he will have to excuse himself from a whole series of vitally important issues to Canadians, not the least of which is the fate of one of our major industries." Keyes' comments, made to The Spectator, were significant because they came from one of Martin's closest political lieutenants. More important, Keyes is the first federal official to state outright that Martin will have to steer clear of Stelco because of the link between the steelmaker and the family-owned firm. Even federal ethics counsellor Harold Wilson has refused to say whether Martin will have to bow out of discussions and decisions on Stelco because the steelmaker has not asked yet for anything from the federal government. Keyes' comments came on the same day Stelco was granted three more months of court-ordered protection against creditors. It went into bankruptcy protection on Jan. 29. There is no question the ownership circumstance creates a potential conflict, said Keyes, the minister of national revenue and MP for Hamilton West. "It's clear that even though the prime minister no longer has ownership of the company, there is a proximity of his sons owning the company," said Keyes. "He (Martin) would withdraw and then the deputy prime minister would take over," Keyes said. "When you think about what the prime minister is putting forward as far as accountability, transparency, responsibility . . . I am 100 per cent certain he would step away from the table to allow cabinet to make that decision without his participation." An official in the prime minister's office said he was not aware of Keyes' comments but that the situation is "still hypothetical." Layton said Keyes' remarks confirm what New Democrats have said for months -- that potential conflicts over CSL have become so serious, the Martin family should just sell the shipping line. The issue has simmered in Parliament for weeks, with opposition demands for CSL ownership changes. For the last decade, CSL has been managed by a board of directors and executive team at arm's length from Martin, who is kept away from daily operating matters. When he was finance minister, he was required to withdraw from decisions on steel industry protection because of CSL's contracts with Stelco and other firms. In August, under fire from opposition members, Martin sold the company to his three sons. CSL is a major supplier to Stelco, which is going through formal restructuring under federal bankruptcy protection law. Yesterday, CSL officially registered as one of Stelco's creditors, a move insolvency experts said was evidence the shipping line has a significant unpaid claim. Stelco said the total dollar amount of claims against it will not be fully calculated for weeks and it would not release the value of any claim at this time. Stelco also said it would not disclose the amount it spends annually with CSL. But several experienced insolvency practitioners say it is unlikely a major supplier like CSL would retain a big law firm, at a potential cost of $50,000 to $100,000, for a small claim. "So that suggests they have a fair stake in the process," one expert said. A CSL spokesperson said the company always uses lawyers in cases where it is a creditor in a restructuring, but declined to comment further. CSL transports 2.1 million tonnes of coal and iron ore to Stelco annually. The potential problem is the perception that there might be a conflict between the public interest in rescuing the steelmaker and the private family interests of the shipping firm. Keyes said that means the prime minister should not participate in any discussions. "I haven't talked to him (Martin) personally about Stelco because it's jumping the gun," Keyes said. "There is no request (from Stelco) yet. But this is the way things should be done." jwalters@thespec.com 905-526-3302 |