It's easy to be cynical...

CAs in Public Life

It's easy to be cynical... about politics-just think of the "chad" fiasco in the United States. And from allegations of conflict-of-interest against the Prime Minister in the national arena, to the Fantasy Gardens debacle and budget leaks in BC, the issue of ethics in politics is no less contentious in Canada than in the US. In this negative climate, and with intense demands on an individual's time and energy, what would possess someone to enter the political arena?

Apparently, optimism. The chartered accountants interviewed for this article all share a belief in the individual's ability to effect change. This belief underscores their commitment to public life, and helps to mitigate against its considerable demands.

Phrases such as "contributing... giving back to the community.. experience... concerns about the future..." came up time and again throughout the discussions. "Most of us live in and enjoy British Columbia's rich and equitable society; but not all are so fortunate," says Patrick Wong, CA. "I want to contribute to the society, the province, and the country that have afforded me great opportunities." along has just recently jumped into provincial politics, winning the Liberal nomination in Vancouver Kensington, where he faces the daunting task of unseating incumbent Premier Ujjal Dosanjh.

Vernon city councillor Barry Beardsell, CA, admits: "After sitting on committees such as the Advisory Planning Commission and the Economic Development Commission in two communities, I found that the only effective way to get things done was to get elected and make changes at the Council level."

Both Beardsell and Don Scott, CA, had years of volunteer experience on local boards and commissions before turning to municipal level politics. "I was president of practically everything," says Scott. When he was first elected Mayor of Prince Rupert 16 months ago, Scott took six months leave from his public practice to dedicate all of his energy to his new duties. And when the six months were up? "There was no doubt what needed to be done," says the rookie politician. "Being Mayor was a full-time job." So, after 30 years in business, he retired from his public practice. He now considers his new role to be "CEO" of the city.

Whatever the reasons CAs become involved, it's certainly not for the money, according to Courtenay City councillor Murray Presley, CA, -when you calculate it fully, it probably works out to be not much more than minimum wage." Scott agrees, but is quick to add that "the money becomes secondary because the work is so fulfilling."

Brian Kerr, FCA, the recently nominated Liberal candidate in the South Vancouver Island riding of Malahat-juan de Fuca, says his focus is on "making a difference in the way the economy is managed." He believes his contribution will be to assist in the financial arena during policy discussions with his caucus colleagues. "Financial acumen is essential if we are to allocate our scarce resources efficiently," says Kerr.

All of those interviewed say they recognize how much their CA training and expertise contribute to the skills they bring, or would bring, with them to elected office. It's no secret that the demands on public sector decision-makers far exceed available resources. Chartered accountants clearly bring a great deal to the public policy-making process, and their contribution extends beyond fiscal management expertise. "It's a good marriage between expertise in financial and economic areas, and the needs of the community," says Scott, adding that the tools he uses are ones he developed as a CA.

Vancouver Parks Board veteran Christopher Richardson, FCA, cites his CA training with helping him bring "fact-finding, option identification and evaluation" skills to the table when contentious issues are being discussed. "A clear and businesslike approach will insulate decisions from political whims," he adds. In his experience with the Board, Richardson believes he's been able to bring new ways of exploring funding options to the table, "rather than only the traditional source-the taxpayer."

Richardson says of his involvement as an elected member of the Board: "[It] could consume all my time if I permitted it to." But, he adds, "Like all types of volunteering, you get back far more than what you put in." He cautions that being able to balance family life and work with the demands of public service is essential.

Beardsell echoes Richardson's commitment, saying: "While the demands on my professional time have been significant, I didn't want to do half a job." He waited until all his children had grown up and left home before running for Council, and, even then, made certain his family was supportive of his foray into municipal politics:

Wong has taken a slightly different approach, as his four daughters are still at home. He says his children are both his inspiration and motivation. If he's successful in his bid to become an MLA, he wants not only to use his expertise to help streamline the policy-making process, but also plans to be "an effective voice in Victoria for our profession." He offers this perspective: "A CA turned politician is not an accountant, but is a politician with accounting knowledge."

Presley says that chartered accountants bring integrity to the table. "We are respected as professionals, and this same respect seems to follow into public office." Wong agrees: "CAs are well-suited to be guardians of the public trust." Beardsell believes CAs know how to ask the right questions and are in a position to demand accountability. Kerr reminds any of his colleagues seeking to get involved in public life that "we must be prepared to look at issues from a viewpoint that is different from our training."

All those surveyed strongly encourage others from the profession to get involved in public life. Scott believes CAs might be surprised at just how big a contribution they can make. "I had a sense I could make a difference," he says, "but I didn't know for certain beforehand." After more than a year in the job, he believes his CA training and experience are proving invaluable as he helps guide Prince Rupert away from its heavy dependency on resource-based industries to a more diversified economy.

And while public service can be personally satisfying and fulfilling, there can be a practical side as well. The high public profile often attracts more attention to a CA's practice. Furthermore, as Presley notes, "I now have a better appreciation for the problems of elected officials and government staff. I also have a better understanding of how to deal with government and I will be able to assist clients with their development or expansion proposals."

It's much easier to criticize the status quo than to change it. Time and again, those involved in public policy are under pressures to satisfy the demands of society, while struggling to balance their professional and personal lives. While CA training and experience appear to be definite assets for those entering public life, the members interviewed here share something more fundamental: the belief that progress is still possible in the political arena.

The Role of the Institute in Public Policy

As an organization representing the province's senior accounting professionals, the Institute of Chartered Accountants of BC has both a duty and a responsibility to examine, and comment on, public policy While the Institute brings its expertise to bear on a variety of areas, one of its main concerns is the legislation governing the province's CA members.

As times change, the governing legislation-- the Accountants (Chartered) Act-must be amended in order to continue meeting the best interests of chartered accountants as well as the public. It has been several years since the last updating took place; during that time, new challenges have emerged, particularly in the areas of discipline and cost-recovery from discipline cases. The Institute is now working with the government officials charged with administering professional body legislation-in our case, the Ministry of Advanced Education-to decide upon the necessary amendments. The current political situation has slowed the process somewhat, but the Institute expects discussions to get back on track soon after the provincial election. It's hoped that the necessary changes will be brought forward for formal debate in the provincial legislature in the spring session of 2002.

Beyond our own legislation, the Institute's activities range from promoting better accounting policies, to government budgeting, to pressing for other legislative changes beneficial to accountants, their clients, and the public. For example, the Institute has been urging the provincial government to catch up with other Canadian and American jurisdictions to table Limited Liability Partnership legislation designed to protect members in public practice, especially those who are members of national firms.

Another effort was made to amend the legislation governing cooperatives to ensure that the basic tenet of auditor independence was adhered to; so far, the government has not accepted our position. Work is also being done with the Finance Ministry and other officials to ensure that the Real Estate Act does not prevent CAs from being actively involved with their clients in the sale and purchase of businesses.

As part of its public service, the Institute produces the annual BC Check-Up, a report on living, working, and investing in BC relative to the other "have" provinces and the nation. The reports results are used as the basis for policy recommendations to senior political and bureaucratic officials in Victoria.

Chartered accountants are actively involved in the budget process in BC. Each year, the Institute produces a submission paper with recommendations for the BC budget, and CAs from across the province participate in the government's budget consultation meetings.

In addition, the Institute attends the budget lock-up for professionals in Victoria each year and provides analysis and commentary for the media. Other chartered accountants attend the media lock-up as advisors for specific news organizations, as the reporters try to grapple with the complexities of a $24 billion budget

Most recently, the Institute has helped policy-makers analyze the benefits of tax cuts, and has been vocal in supporting the Auditor General's push to bring the last of the Enns Report's recommendations into force-notably by following GAAP to include schools, universities, colleges and institutes, and health authorities (SUCH) in the government reporting entity.

While some of its messages and comments are not always met with enthusiasm by provincial policy-makers, the Institute's exemplary record of approaching all issues in a fact-based, non-partisan manner is highly respected. It has earned the Institute a reputation befitting its stature as the organization representing the senior level of professional accountants in the province.

Paul Nicholson is a Victoria-based government relations consultant who has been active with the Institute for several years. helping formulate and implement strategies to enhance communications with provincial policy-makers. A former political journalist, he once headed up the Vancouver Sun's bureau in the provincial legislature.

Copyright Institute of Chartered Accountants of British Columbia Apr 2001
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