OTTAWA - The Harper government wants the two companies that will eventually lead Canada's lucrative shipbuilding industry to sign away their legal right to consult lobbyists, The Canadian Press has learned.
That's among measures being taken by the government in the last year to block registered lobbyists from consulting with companies vying to be the two main players in Canada's new, $35-billion national shipbuilding procurement strategy.
Angry lobbyists have fought back by ignoring government demands and continuing to work for the companies that hired them.
They've also privately taken the government to task for attempting to undermine their legal right to provide expert advice on negotiating with government, and ultimately attempting to influence policy.
Documents obtained by The Canadian Press detail the sometimes bitter, behind-the-scenes battle between lobbyists and Public Works, the department leading the shipbuilding procurement along with Defence, Industry and Fisheries and Oceans.
If Public Works has its way, lobbyists would be shut out as part of an agreement between the successful bidders and the government.
"The Company agrees that it will not use any lobbyist to pursue any matter that arises under or in relation to this Agreement without Canada's prior consent," says a draft agreement Public Works wants the winning companies to sign.
Ottawa will ultimately select two prime contractors for its 20-year national shipbuilding strategy. The shipyards will build new navy warships, coast guard cutters and other vessels.
Public Works Minister Rona Ambrose ruffled feathers recently when she told hundreds of defence industry players at a military trade show that companies that want to bid on the shipyards contract "have been asked not to engage lobbyists" in order that the competition be "completely arm's-length of politics."
Out of the public eye, the government has gone to even greater lengths -- repeatedly hammering home the anti-lobbying theme in a head-on confrontation with lobbyists.
In an Oct. 28 letter, Andrew Treusch, associate deputy minister at Public Works, asked companies to "voluntarily" agree not use lobbyists when bidding on the shipbuilding contract.
On Dec. 3, the Government Relations Institute of Canada -- the lobby group for lobbyists -- fired back with a scathing letter that said the use of lobbyists would not "compromise" the shipbuilding strategy.
"Moreover, your request that companies 'voluntarily' refrain from using lobbyists does not reflect the spirit or letter of the statement in the preamble of the Lobbying Act that '... lobbying public office holders is a legitimate activity,"' wrote Charles King, the institute's president.
"To the contrary, it would appear from your request that (Public Works) considers lobbying public office holders to be an illegitimate activity that is to be avoided in the interests of accountability and transparency."
King demanded answers to several questions, including:
-- whether the government recognizes that lobbying public office holders is a legitimate activity, and if so, why ask them to voluntarily refrain from using them?
-- whether companies that use lobbyists would have the same standing in the bidding process as companies that did not.
The following day, the government held its third meeting with the shipyards on its shortlist of qualified companies, part of an effort to solicit feedback from the industry. One slide, part of the government's PowerPoint presentation, left no doubt about the government's position:
"No use of lobbyist."
It appears all lobbying abruptly stopped Feb. 10, three days after a request for proposals went out to the five shortlisted shipyards.
Six days later -- and more than two months after the institute's original complaint -- Public Works replied, but did not back down from its tough line.
"My comments should not be perceived as stating that lobbying is not a legitimate activity," Treusch wrote.
He called the shipbuilding strategy a "historic initiative" that was progressing well with five, day-long consultations with the five short-listed companies (one has since withdrawn). All have commented "favourably and publicly" on the fairness and transparency of the process.
"Thus, given the elaborate process of engagement outlined above, we asked that the shipyards involved voluntarily agree not to engage lobbyists," Treusch wrote.
He said the government had "no specific guidance" for companies, adding that "because the request is voluntary, no distinction will be made during the bid evaluation."
Months earlier, Public Works asked Canada's shipyards not to use registered lobbyists in their efforts to make a short list of five companies that have until July 7 to bid on the shipbuilding contracts.
The four companies in the running are Vancouver Shipyards, New Brunswick's Irving Shipbuilding, Davie Yards of Quebec and Ontario's Seaway Marine and Industrial. A fifth short-listed company, Kiewit Offshore Services of Ontario, has since withdrawn.
A top executive with Seaspan Marine, whose holdings include Vancouver Shipyards, suggested the no-lobbying clause was up for negotiation. But John Shaw, vice-president of program management, wouldn't tip his hand.
"I'm not going to speculate on what we'll agree and disagree on any contracts. I'm sorry. It's a long way from being picked," Shaw said in an interview.
"If you're selected, you then enter into negotiations with the government over many different terms and conditions, and at the end of it, we will agree with the government on a contract."
The registry of lobbyists lists 60 meetings with 65 members of Parliament, senators, political staffers and senior bureaucrats since the government announced the shipbuilding strategy last June.
Lobbyists and leading business figures would not speak on the record because there will be plenty more contracts to tendered in the new shipyards in the coming decades, to build everything from outer hulls of various vessels, their high-tech systems to their furniture.
Jim Patrick, treasurer of the government relations institute, said Ottawa's attempts to ban lobbyists will leave companies at a disadvantage when it comes to negotiating future shipyard contracts.
"Nobody should go to court without a lawyer who understands court procedure. Nobody should negotiate with the government without a lobbyist who understands government procedure," Patrick said in an interview.
"They can help shipyards manage the maze of red tape so they can focus on what they do, which is building ships and not navigating the bureaucracy."
Ambrose was asked about the lobbying in the House of Commons on Thursday.
"This is an arm's-length process that's actually managed by the shipbuilding secretariat. They are the ones that will be evaluating the bids and determining the winners based on the merits of their proposals," Ambrose said.
"In fact, the federal cabinet will not be involved in this decision."
