Public officials should act for the benefit of the public. In their jobs, they shouldn’t do things to benefit themselves, another individual, or a small group of people.
A conflict of interest happens when they have competing interests that could interfere with their ability to be fair and objective when doing their job. Their judgment could be affected by the possibility of benefitting themselves or someone they know, like a friend or relative.
Under the Conflict of Interest Act, appointed federal officials (called public office holders) are in a conflict of interest when they exercise an official power, duty or function that provides an opportunity to further their private interests or those of their relatives or friends, or to improperly further another person’s private interests.
As noted in the Trudeau III Report, this definition includes only real conflicts of interest, not apparent ones. For a conflict of interest to be real, there must be a private interest, the public office holder must know about it, and it must be related to their public duties or responsibilities in a way that can influence how they do their job.
The Conflict of Interest Code for Members of the House of Commons has a similar definition of conflict of interest. It says that when performing parliamentary duties and functions, Members must not act in any way to further their private interests or those of their family, or to improperly further another person’s or entity’s private interests.
The Act and the Code do not define “private interest.”
The Code defines “furthering a private interest.” It says that Members further a person’s private interests (including their own) when their actions result, directly or indirectly, in:
- increasing or protecting the value of the person’s assets (things they own)
- reducing or eliminating their liabilities (debts they owe)
- allowing them to acquire a financial interest (get something that could make or save them money, or increase the value of what they own)
- an increase in their income from employment, a contract, business or profession
- them becoming a director or officer in a company, association or trade union
- them becoming a partner in a partnership
The Act does not have a similar list of what can be considered a private interest. While other types of interests are not specifically ruled out, the Commissioner’s Office has, to date, considered private interests to be financial ones, like those listed in the Code.
Under both the Act and the Code, a “private interest” does not include an interest in a decision or matter that:
- applies to everyone in general (general application exception)
- affects the Member, public office holder or other person as part of a large group of people (broad class exception)
- is about the pay or benefits they get for being a public office holder or Member.
Under the Code, a private interest also does not include being part of a legal action about something a Member did as part of their official duties.