OTTAWA — Prime Minister Jean Chretien has announced new ethics rules for Canadian politicians, a move aimed at quelling accusations of cronyism within his Liberal Party.
The rules announced Tuesday require disclosure of money collected by Cabinet members campaigning for leadership positions within their party. They also limit contact between Cabinet offices and public enterprises.
Chretien also promised changes this fall to the Canada Elections Act that will reform the way all parties raise money. There will be limits on campaign contributions from corporations, labor unions and other groups, forcing a greater reliance on individual donors.
The new rules follow a series of scandals involving Chretien's government.
Last month, Chretien dropped Defense Minister Art Eggleton from his Cabinet after a government ethics counselor found that Eggleton violated ethics guidelines by giving a $24,000 contract to a woman he once dated to compile a 14-page report on post-traumatic stress disorder in the military.
Earlier, a government audit revealed mishandling of contracts worth about $1 million U.S. to a company that supports Chretien's Liberal Party.
Chretien delivered a feisty defense of his own ethical record, including his past lobbying of the federal Business Development Bank for a loan to a businessman.
The incident sparked controversy when it was revealed during the 2000 election campaign. But Chretien insisted he was just doing his duty as an member of Parliament to help a constituent.
The new financing rules were likely to affect former Finance Minister Paul Martin, a Liberal Party rival who has been collecting money for a campaign to succeed Chretien.
Chretien acknowledged he can't force Martin, who is no longer in the Cabinet, to comply with the new guidelines. But he predicted there will be pressure on Martin to play by the same rules.
"There's nothing I can do about it," said Chretien. "But what has been collected in the past, when he was a minister, I hope that he will make it public the same way as the others will make it public."
Opposition critics dismissed the new rules as an attempt to divert attention from the millions in federal advertising and sponsorship dollars that have flowed to Liberal-friendly firms.
Contracts with at least four companies have been referred to the Royal Canadian Mounted Police for possible criminal investigation.
"This is simply a public relations stunt designed to derail us from getting to the bottom of the scandals that have been brought before the House of Commons," said Canadian Alliance Leader Stephen Harper.