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Linking Mulroney’s Agenda With the Harper Government’s Agenda

An e-mail from the Canadian Association of Income Trust Investor’s President and CEO began making the rounds shortly after the Harper government declared former Prime Minister Brian Mulroney persona non grata.  Faced with the growing controversies around Karlheinz Schriber’s testimony about handing over hundreds of thousands of dollars in unmarked bills to Mulroney, the Harper government, which defeated the previous Liberal administration for engaging in the same kind of corruption, has been desperate to suggest there have been no official links between Mulroney and the current Conservatives.

The Canadian Association of Income Trust Investors has something of a stake in discrediting the Harper government, which broke an election promise by clamping down on income trust activity.  That being said, the e-mail is interesting in its bald description of the kind of facts usually not spoken about in official circles, namely, the number of corporate boards Mulroney sits as a director and how these interests he represents intersect with the Harper government’s agenda.

These include:

1. Archer Daniels Midland Company (ADM), which intersects with Harper’s personal vendetta against the Canadian Wheat Board.  (ADM, one of the world’s largest agricultural processors of soybeans, corn, wheat and cocoa, also has a substantial share in Viterra, the grain company formed through the merger of Saskatchewan Wheat Pool and Agricore United.  ADM would make hundreds of millions of dollars a year in additional revenues if the CWB’s marketing monopoly is eliminated).

2. Barrick Gold Corporation, which intersects with Harper’s recent visit to Africa.  While much hyped as a visit linked to aid projects, the e-mail points out that it was a meeting with officials from a dozen Canadian investors, led by mining giant Barrick Gold Corp., that dominated the trip.

3. The Blackstone Group L.P. intersects with the Harper government’s policy to eliminate the 15 per cent withholding tax on interest paid by private equity firms on leveraged buyout debt.  “Plus,” the e-mail notes, “Stephen Harper’s policy to tax income trusts (and restrict their growth) in the hands of Canadian Investors and not in the hands foreign private equity, which has resulted in the perfect event driven arbitrage situation for foreign private equity firms like Blackstone to pick of these sitting ducks. To date their has been $65 billion in takeover activity caused by this policy. Over half of it by private equity via leveraged buyout loans.”

4. Quebecor Inc. intersects with recent revelations that Mulroney lobbied Harper government ministers on deregulating the wireless industry, through which Quebecor is poised to make hundreds of millions of dollars.


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