OTTAWA - Conservative MPs and senators have been meeting with lobbyists for shipyards -- even though the government says it wants lobbyists excluded from a massive $35-billion shipbuilding program.
Canada's shipyards were asked not to use registered lobbyists in their efforts to become one of two winning shipyards in the long-term national shipbuilding procurement strategy, which will construct dozens of vessels for the navy, the coast guard and others.
"Shipyards will be requested to voluntarily agree to NOT engage lobbyists," says a letter of interest Public Works sent to shipyards on Sept. 20, 2010, a copy of which was obtained by The Canadian Press.
But public records show Conservatives had meetings last fall with lobbyists working for Vancouver Shipyards and for Irving Shipbuilding, two of five shipyards that made the government short list.
The lobbying industry is regulated in Canada, and lobbyists are required to report their activities to the Office of the Commissioner of Lobbying.
The official registry of lobbyists lists 60 shipbuilding-related meetings with 65 members of Parliament, senators, political staffers and senior bureaucrats since the government announced its ambitious shipbuilding strategy a year ago.
The registry shows Andrew McArthur of McArthur Consultants lobbied on Irving's behalf on Oct. 18-19 -- days after Public Works announced the shortlisted companies.
Over two days, McArthur lobbied Conservative MPs Phil McColeman, Randy Kamp, Guy Lauzon and Tory Sen. Daniel Lang.
Kamp's and Lauzon's offices say the men actually met with the Navy League of Canada -- which also held an event in Ottawa Oct. 18-19 -- and not McArthur. They say the shipbuilding contract was not discussed. McColeman and Lang didn't respond to requests for comment.
An Irving spokeswoman said the Navy League co-ordinated the meetings as part of a "collaborative effort ... to advance the National Shipbuilding Procurement Strategy."
McArthur was registered to lobby for Irving Shipbuilding until Nov. 9, and is now inactive.
McArthur said the Navy League organized the meetings and he had "no idea" who he was going to meet before he arrived in Ottawa. He said he was at the event in his role as chair of the Shipbuilding Association of Canada, and didn't do any lobbying for Irving.
"I always make sure not to blindside people, and to be fair I said I do work for Irving so they know who they're talking to," McArthur said.
"We had a wrap-up meeting at the very end, and we said, 'Do we have to report them?' And people said 'No,' somebody said, 'Yes.' And it's quite serious if you don't report it, so I thought I'd be on the safe side and report it."
The registry also shows Gary Garnett of CFN Consultants lobbied Conservative MPs Laurie Hawn and LaVar Payne, and Tory Sen. Fabian Manning, on behalf of Seaspan Marine, parent company of Vancouver Shipyards.
Until his registration expired on Oct. 21, the registry shows, Garnett was "seeking potential shipbuilding/shiprepair opportunities with the Government of Canada." He could not be reached for comment.
One of Seaspan's top executives said Garnett attended the Navy League event with a delegation of shipbuilding representatives. John Shaw, vice-president of program management, said the company hired Garnett to give "advice and guidance for what we should do on government work."
Shaw said Garnett wasn't there to lobby for Vancouver Shipyards.
"I know for a fact that Gary did attend and talked to those senators and MPs, and I know for a fact that we did talk about the importance of the navy and the Navy League, and the importance of shipbuilding and the need for new ships for the navy," Shaw said.
He added that Garnett helped Seaspan find its way around Parliament Hill, making introductions with senators and others.
"He was there to show us around the Hill and introduce us and to help support the Navy League," Shaw said. "Full stop."
The lobbying registry does list entries for the Navy League, which promotes maritime affairs and runs cadet programs. But separate entries for the same days show McArthur and Garnett talked with politicians about the "shipbuilding industry" and "government procurement," with no mention of the Navy League.
Payne also said he actually met with the Navy League, and said he could not "recall" them mentioning shipyards. He said he didn't remember meeting CFN Consultants because the notes on his past appointments were in the process being moved to a new Parliament Hill office.
"I actually don't recall them trying to do any lobbying. All I recall is the Navy League being there and discussing about the Navy League and the initiatives they have," the Medicine Hat MP said this week.
"Of course, we do have some navy cadets in Medicine Hat so that's why they would have been there."
Hawn said he met Garnett and a handful of others from the Navy League. He said they talked about the importance of shipbuilding, but no lobbying took place.
"It's just, hey, shipbuilding's important," Hawn said. "It was chatting about that and the Navy League."
Manning declined comment.
Companies also lobbied the government directly, without the hired guns that the government frowns upon.
Vancouver Shipyards had 33 meetings with 36 public-office holders between September and November. Irving Shipbuilding had 23 meetings with 25 officials between June and this February. Some of those meetings included the use of consultant lobbyists.
Those companies did the majority of lobbying, but others on the short list also appear on the registry.
Seaway Marine and Industrial's parent company hired consultant Bart Maves of Braydenbridge to lobby Justice Minister Rob Nicholson in September. They discussed "transportation." Seaway Marine and Industrial is based in St. Catharines, Ont., and Nicholson is the MP for nearby Niagara Falls.
The lobbyist registry lists three entries for Kiewit Offshore Services of Ontario, which has since withdrawn from the competition. According to public filings, they talked about taxes and finance.
There are no entries for Davie Yards of Quebec in the lobbyist registry.
The registry also doesn't include recent, high-profile lobbying by the premiers of British Columbia and Nova Scotia. Nova Scotia's Darrell Dexter lobbied politicians in Ottawa and B.C.'s Christy Clark plans to do the same.
The shipyards have until July 7 to submit their bids to be one of two prime contractors to build new navy warships, coast guard cutters and other vessels.
Public Works, the project's lead department, declined comment.
Public Works Minister Rona Ambrose recently told hundreds of defence industry players that companies "have been asked not to engage lobbyists" in an effort to keep the shipyard competition at "arm's-length of politics."
"It's ludicrous to think you can keep politics out of a $35-billion program," said one defence industry insider on condition of anonymity. He added that companies need lobbyists to fully explain to government the regional economic spinoffs and other advantages they have on offer.
Three firms are currently registered to lobby for the shipyards. Summa Strategies is lobbying for Vancouver Shipyards, and the firms Hillwatch, and Hill and Knowlton Canada, are lobbying for Irving.
Seaspan executive Shaw said the company has retained Summa only to provide advice, not to lobby government.
It appears all lobbying stopped Feb. 10 -- three days after a request for proposals went out to the five shipyards that made the short list. Records show the office of Defence Minister Peter MacKay was lobbyists' favourite destination.
