Arbitrator rules Nunavut, N.W.T. senators still owe thousands in expenses

The senators representing Nunavut and the Northwest Territories still owe thousands of dollars each in ineligible Senate expenses.

That's according to former supreme court justice Ian Binnie, who delivered his report to the Senate Board of Internal Economy today detailing his decisions on each of the 14 senators who sought to resolve their disputed expenses by arbitration.

Binnie found that Nunavut Senator Dennis Patterson should repay $13,762 — that's the full amount of a lawyers' bill that Patterson had opted to send to arbitration. The amount owing comes in addition to $9,223 that Patterson already repaid after the auditor general found almost $23,000 in ineligible expenses. 

N.W.T. Senator Nick Sibbeston should pay back $26,924, Binnie found. That's slightly more than half of the $50,102 in ineligible expenses calculated by the auditor general. 

Sibbeston, whose home is in Fort Simpson, N.W.T., claimed travel costs for himself and his wife throughout the territory as well as in southern Canada, but in many circumstances could not account for what senate business he was on.

According to Binnie's report, Sibbeston still maintains that "the auditor general's staff did not understand" the way business works in the North, calling his region an "informal society."

Few specifics on travel

Sibbeston acknowledged that much of his travel combined personal business with Senate business.

"This is not very satisfactory," Binnie concluded, noting that he would have accepted Sibbeston's word on what his travels were for had he been able to provide "a little bit of detail." 

"For the most part," Binnie wrote, Sibbeston could not provide any specifics for trips to Edmonton, calling it a "hunch" that Sibbeston visited patients from the N.W.T. in hospital, or other northerners, while in the city. 

"Yes, because I often do that," the report quoted Sibbeston as saying.

By contrast, Binnie found Sibbeston and his staff assembled "a pretty solid recollection" of his travels in the Northwest Territories, including letters from chiefs, former premiers and other government officials.

The arbitrator also noted the difficulties of travelling in the North, particularly in the winter, citing car breakdowns, storms and unanticipated stopovers.

"In my view, when Senator Sibbeston was engaged in these trips on Senate business... a good deal of latitude should be given to his discretion in making his travel arrangements," Binnie said.

Personal expenses denied

However, Binnie disputed several of Sibbeston's large expense claims for trips to Yellowknife. One was a $4,176 expense for an 11-day trip over New Year's in 2012/2013.

While there was evidence of a New Year's Eve dinner with former premier Stephen Kakfwi, as well as notes confirming hospital visits, Binnie concluded that the "primary purpose" of the trip was personal.

About a week later, Sibbeston claimed a further $4,824 for an eight-day stay in Yellowknife, when the senator listed people he "may have met with" in regards to senate business. Binnie also denied that expense, saying in his report that "none of this justifies eight days of travel status for Senator and Mrs. Sibbeston in Yellowknife."

A $1,472 trip to Quebec City was also denied. In Sibbeston's explanation of the expense he said: "The AG disputed that supporting the N.W.T. ice-sculpture team was not Parliamentary business. I disagree."

Binnie found otherwise, stating in his report, "Travel to Quebec City to cheer on his son who was a member of the N.W.T. ice-sculpture team is not Senate business. Disallowed."

In all, Binnie found $23,171 in expenses were justified. ​

$13K for Iqaluit property ruling

In the case of Senator Patterson, the principal issue was a bill paid to McMillan LLP for "constitutional advice," which Patterson expensed and was paid $13,762. 

Patterson stated that he was trying to receive an outside opinion on whether owning a leasehold home in Iqaluit was sufficient to satisfy the property ownership requirements for a senator in Canada. (Most property in Nunavut is sold under leasehold rather than freehold.)

Patterson recently tabled a private member's bill in the Senate, proposing to repeal a paragraph of the Constitution Act that requires Senate appointees to own at least $4,000 worth of land, saying it's unfair to the many Canadians, including the majority of Nunavummiut, who don't own property.

In Binnie's report, the senator chalked it up to "naiveté" that he didn't question McMillan LLP's "rather high hourly rate of $950."

Binnie found paying the bill "was not a proper use of Senate resources," and ordered Patterson to repay the $13,762.

Patterson said he found the arbitration process "full and fair" and said he will repay the money.

"That was a sizeable amount to pay for any lawyers' opinion and in hindsight I should have probably reconsidered incurring that kind of an expense," he said.

He said he had tried to spread that expense over two fiscal years, which the arbitrator ruled was not permitted.

"I was pleased that the special arbitrator did find, of all the cases reviewed, including mine, there was no bad motive, as he put it, on the part of senators."

Senators will have 30 days to repay any outstanding payments before their salary is garnisheed.