
Despite conflict, council tells Nugent to carry on
Published Wednesday March 25th, 2009


SAINT JOHN - City solicitor John Nugent told common council this week he would be in a conflict of interest when drafting legislative changes to the city's pension plan, but the politicians voted to allow Nugent to carry on with the work anyway.
Council asked Nugent last month to prepare amendments to provincial laws that would change pension benefits, but the city solicitor said in a report Monday night the changes could "cut too close to the bone."
Nugent, a city employee who would be directly affected by any pension reforms, said he had already finished a preliminary draft of the amendments, but he asked council to hire a private lawyer to continue with the work.
"Obviously, providing advice to council with respect to potential changes to my benefits under the plan would place me in a conflict position," Nugent wrote to council.
He said council passed a resolution in 2007 that said the politicians would ask David O'Brien, a lawyer with Saint John-based Barry Spalding, to provide legal advice when the city solicitor was in a conflict of interest.
But council narrowly turned down Nugent's recommendation to seek outside advice and instead voted to allow Nugent to continue his work.
Coun. Bill Farren said he didn't want to spend any more tax dollars on pension reforms when council could not be assured the province would approve the changes.
An MLA must introduce a private member's bill in the legislature and secure a majority vote before the reforms could take place, but Farren was skeptical the bill would pass.
The city's unions have staunchly opposed the pension reforms and Farren said MLAs would not likely endorse a plan that has garnered such resistance.
Farren has said the proposed reforms offer only a piecemeal approach toward reducing the plan's burden on taxpayers while ensuring employees are properly compensated when they retire.
The councillor has said the city could achieve the desired result only by introducing more substantial changes to the plan.
"If any one of the five union groups opposes this, then it's a wash," Farren said. "Now we're going to spend more money to get another lawyer to form in his own words the work that Mr. Nugent has already done - and for what?"
Coun. Bruce Court said he had faith in Nugent's ability to draft changes to the pension plan, but he stressed the city must negotiate with the unions before formally asking the legislature to pass a bill.
"I trust the city solicitor but I am 100 per cent against forced changes to the pension fund without negotiations," Court said.


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The City solicitor has a number of conflicts that should cause him to step aside, including as he noted the fact he benefits from what he would write. More importantly, wasn't he named as one of the people suing Councillor Ferguson who was ordered by Justice McLellan to pay Ferguson's costs? That shows he has a monetary interest in the workings of the Pension Board of which he is a Trustee.
The Municipalities Act states:
90.2(1)Subject to subsection (1.1) and section 90.3, for the purposes of this Act a member or a senior appointed officer has a conflict of interest if
(a) he or a family associate
(a)(ii) has an interest in any other matter in which such council or local board is concerned that would be of financial benefit to him or the family associate;
continued.
90.4(3) Where a member has a conflict of interest with respect to any matter in which the council or local board is concerned and he is present at a meeting of council or the local board, a meeting of a committee of council or the local board, or any other meeting at which business of council or the local board is conducted, at which the matter is a subject of consideration he shall,
(a) as soon as the matter is introduced, disclose that he has a conflict of interest in the matter; and
(b) forthwith withdraw from the meeting room while the matter is under consideration or vote.
The fact the Court of Appeal dismissed the summary Judgement and ordered a full trial does not excuse him as the he is part of an action where costs inevitably will be awarded and win or lose he has a monetary interest in the work he does on behalf of the Plan's future.
CONFLICT Perception = reality!
If it's black with a white stripe down its and it smells like a skunk, it probably is a skunk.
The whole pension plan is un-workable, and eventually a completely different arrangement will have to be made with all city pensioners. The ones that will be hurt most are those already on pension.
We need independant council on this file and an independant review.