Regina is the home of the Royal Canadian Mounted Police. It is also the home of federal Finance Minister Ralph Goodale.
That these two Regina-based institutions would be brought together in the form of a criminal investigation into alleged insider trading — right in the middle of an election campaign — would seem laughable if it weren’t true.
The investigation was launched in late December to determine whether there was a deliberate leak of information on Nov. 23, 2005, the day of Goodale’s announcement — days before the election writ was dropped — that income trusts would not be taxed but the dividend tax rate would be lowered.
Prior to the announcement, there was a flurry of trading in dividend-paying stocks and income trusts. The trusts had been badly beaten up earlier in the year, when Goodale floated the idea of a tax on income trusts, which are not subject to corporate income taxes.
The allegation is that a member of Goodale’s staff or other government insiders may have tipped off certain Bay Street traders, who then bought up shares in companies and trusts that would have benefited from the tax change.
Of course, the allegations have yet to be proven. And, as Goodale and Prime Minister Paul Martin were quick to point out, the RCMP indicated “at this time’’ there is no indication of wrongdoing or illegal activity by anyone involved, including Goodale.
But the RCMP investigation will probably take months and extend well beyond the Jan. 23 election date. As calls for Goodale’s resignation mount, the insider-trading probe is inflicting further damage on the Liberal campaign, which was already floundering because of various missteps by Liberal Party operatives — not to mention the accumulated baggage from the sponsorship scandal.
That such allegations would be levelled against Ottawa’s Mr. Clean — whose 30-year political career has been unblemished by any hint of scandal or impropriety — is hugely ironic.
But those who think Goodale will wilt under the pressure of the RCMP investigation and repeated calls for his resignation do not know the man or his political career.
Born and raised on the family farm near Wilcox, Sask., south of Regina, Goodale was a hard-working, “A” student, who attended university in Regina and then Saskatoon, where he earned a bachelor of laws degree from the University of Saskatchewan.
But politics beckoned and he ran for the federal Liberals in 1974 and won in the huge, largely rural riding of Assiniboia at the age of 24. Swept away in the Tory tide of 1979, Goodale took over as leader of the moribund provincial Liberal Party from 1981 to 1988, and was finally elected to the Saskatchewan legislative assembly in 1986.
Anyone who knew Goodale during his years in the political wilderness — when he was the lone elected Liberal in the province — knows of his mental toughness, iron resolve and “stick-to-it-iveness.”
Although Goodale’s career has been anything but an overnight success, those who know him knew that, ultimately, he would succeed.
And, since the 1993 election, he has gone from success to success, being re-elected in 1997, 2000 and 2004. During those years, he served as minister of agriculture, natural resources, and public works and government services (at which one of his first tasks was cancelling the infamous sponsorship program). He also served a brief stint as government house leader.
In December 2003, Goodale was named finance minister — a tribute to his hard work, competency and long-standing friendship with Martin — and has since brought down three budgets, all balanced and sprinkled with sizable surpluses and tax cuts.
During his years in office, Goodale has earned a reputation for openness and probity. Two years in a row, he was named the Best Cabinet Minister in Ottawa by the parliamentary newspaper, The Hill Times.
Those who know Goodale know he won’t quit without a fight. And, regardless of the outcome of the investigation or the election, he will undoubtedly live to fight another day. IE
Regina icons together in a probe
- By: Bruce Johnstone
- January 30, 2006 October 29, 2019
- 10:22
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