Former finance minister's 'shell game' with Canada Steamship Lines

Catholic New Times, June 1, 2003 by Rosemary Ganley

Catholic ethicists, to say nothing of ordinary citizens longing for honesty and fairness in pubic life, were mightily troubled by the revelations about Liberal leadership contender and former Finance Minister Paul Martin and his company, Canada Steamship Lines (CSL) in the CBC-TV Disclosure program, aired nationally on April 1.

Investigative journalist Mark Kelley, recently unleashed from his bland, CBC Toronto, atrium-based hosting of CBC Newsworld Morning has found his niche on Disclosure.

Producer Tony Burman and Mother Corp are to be hailed for giving Kelley the go-ahead on this crucial and sensitive assignment: looking into the Martin family holdings and the way they have allegedly benefited from his time in politics.

There were suspicious moments in late March when the Canadian public was told the program was put on hold after an alleged telephone call from Paul Martin's office to the CBC, but it went forward, just in time for Liberal delegates now lining up to register for the expected November gala coronation of Martin as Liberal leader and Prime Minister-in-waiting to take a wake-up call,

Never mind the sentimental "I've always loved ships" rhetoric. The data on Disclosure shows that CSL owns 18 ships registered under the Canadian flag, and therefore subject to Canadian labour, environmental and tax laws. Fair enough. But another 16 ships fly the flag of convenience of Barbados, where such provisions do not apply. Canadian crews do not need to be hired. Canadian standards do not need to be applied. Worst of all, profits from the Barbados- flagged ships can be repatriated to Canada without the payment of taxes. Quite a dodge.

Not surprising that business, by nature, seeks its best situations, but surprising and reprehensible that a person of influence seeking the confidence of the voters of Canada may at the same time be involved in a business that dodges tax.

One pointed out by Auditors General Denis Desautels and Sheila Fraser and a Parliamentary Committee who have been going after this situation. "When taxes are not paid, either other taxpayers bear a disproportionate burden or public expenditures go down." The recent behaviour of Canada Steamship Lines should now become widely known, especially by those 59 constituency presidents across Canada who have declared their support for Martin's leadership bid.

When the loophole which permitted a similar tax dodge for CSL ships flagged in Liberia was closed, CSL moved its "shell companies" to Barbados where the loophole still exists, according to Disclosure's producers. There the matter sits.

In one telling scene in the Disclosure segment, Mark Kelley who has been refused all interviews with Paul Martin for the item, stands on the street in La Salle, Que. on St. Patrick's Day, where, all in paddy green, the contender is marshal of the March 17 parade. Covered in populist Catholic legitimacy, he sends an aide to Kelley to say he will not meet him. In another scene, the Ethics Counsellor, Prime Ministerial appointee Howard Wilson fails to answer all questions regarding Mr Martin's involvement in tax law changes. His performance does not inspire public confidence.

Mr. Martin is a prominent graduate of St Michael's College, University of Toronto, frequently honoured by his alma mater.

As legal as his company's tactics may have been, who has been making the laws? Catholic social teaching requires much more.