This week The Chief welcomes its newest bi-weekly contributor, Sean Holman, editor of the online provincial political news journal Public Eye (publiceyeonline.com). He can be reached at [email protected].
American rock musician Meat Loaf once declared he would do "anything for love (but I won't do that)."
And the privatization-loving provincial Liberals sang the same tune when confronted with a proposal to sell-off the government's lucrative lottery operations business.
Records obtained exclusively by Public Eye show well-known party supporter Lyall Knott pitched privatizing (or, as he put it, monetize) that business between 2007 and 2008.
In a letter sent to two cabinet ministers with the subject line "Project Windfall," he stated such a move could earn the government $4 billion - money that could be used to pay down the debt.
"There is not a Public Policy reason for the State to be in the business of lottery operations," argued Knott, a lawyer specializing in public-private partnerships.
In fact, according to him, it could be "desirable" for government to distance itself from that business - focusing on its regulation rather than operation.
The reason: accusations the government hadn't done enough to protect consumers from potential fraud by lottery ticket-sellers.
Knott, a partner with Vancouver law firm Clark Wilson LLP, conceded privatizing the lottery business could mean job losses at British Columbia Lottery Corp.
But those losses would be small, according to the letter - which was co-authored by investment banking firm executive Tim Philpotts.
And government's earnings from that business, which netted an estimated $251.2 million in fiscal 2008/09, would increase thanks to the "innovations and creativity of the private sector."
None of those arguments, though, convinced the Campbell administration it should let Knott and Philpotts's companies help privatize its lottery operations.
Responding to their April 22, 2007 letter, then solicitor general John Les wrote argument government should regulate not operate gaming was "interesting."
He also conceded it was legally possible to hire a "non-government body" to "conduct and manage the lottery system on behalf of the Province."
Nevertheless, Les wrote the government wasn't "prepared to consider such a change to the current model given the inherent risks and liability issues involved."
Despite being rebuffed, Knott continued trying to convince government to do just that, sending the solicitor general and then finance minister Carole Taylor a news story reporting on other governments that had leased or sold their lotteries.
But, speaking with Public Eye last week, Knott said the idea - which originated with Philpotts's company Ernst and Young Orenda Corporate Finance Inc. - "simply did not float."
Doing the dirty work for her
Since losing the election, some commentators have called on Carole James to axe her hacks - the senior party and caucus officials who advise her.
But recent departures mean the provincial New Democrat leader soon might not have any hacks left to axe.
Last month, party organization director Nikki Hill told Public Eye she was leaving to "do different things."
Then, New Democrat president Jeff Fox announced he was resigning to avoid any perceived conflict of interest created by marrying top party staffer Laura Nichols.
Nichols has also given her notice because she couldn't commit to sticking around until the 2013 campaign.
Caucus communications director Glen Sanford - who has said he "took the job as a short-term project until the election" - is moving on as well.
And James's chief of staff Ian Reid is going on a leave of absence to treat an ongoing health condition.
That means, if James is looking to axe anyone, she has just four choices left: caucus executive director Mary O'Donoghue; outreach director Raj Sihota; research director Anne-Marie Delorey; and the leader's communications director Jim Rutkowski.
Traveler checks
Shirley Bond was flying high in government's most recent fiscal year, booking $103,082 in travel expenses - more than any other provincial cabinet minister.
It's the first time Bond, who billed $76,443 the year prior, has been in the top spot.
Asked about the increase, Bond told Public Eye, "Simply put, I made more trips back and forth to Prince George which, for me as an MLA, is absolutely critical.
"My job is to be a great constituency MLA," continued Bond. "So I work in Victoria and fly home every week - that's what my constituents expect."
But she said that uptick had nothing to do with the election.
"My election results would indicate that I had a very significant win" - coming in 13 percentage points ahead of her New Democrat challenger Julie Carew.
"And people recognize what a hard worker I am. So that for me is an eight year process not a run-up to an election process," said the MLA.
Bond said her responsibilities as education minister - which include extra visits to school districts and a $5,000 overseas trip to attract more Chinese students to British Columbia - also added to her travel expenses.
