The London Free Press, The Canadian Press, 2/7/2008

OTTAWA -- Canadian businesses will be asked to be more forthcoming in reporting contact with the federal government or face harsher penalties under changes to the Lobbying Act coming into force today.

The new requirements are not expected to be onerous, but it should cause executives to reconsider their dealings with cabinet ministers and senior officials, says Ben Mills, a lawyer with McCarthy Tetrault who specializes in lobbying legislation.

"It's not groundbreaking, but things have definitely changed," he said. "When government changes the offence provision and the penalties, that's a clear signal that they view it more seriously and are probably more inclined to pursue greater enforcement."

Penalties for violations have been doubled to $50,000 for a summary conviction and $200,000 for an indictable offence, with potential jail terms remaining six months and two years respectively.

The new act is a culmination of the Conservative government's campaign promise to clean up government after a series of Liberal scandals.

The key provisions were not directed at corporations, but rather in what was seen as a too thin line between public and private that saw senior public servants, politicians and their staff translate their experience and contacts in government into quick and lucrative lobbying jobs after leaving government.

The statute calls for a five-year "cooling off" period preventing designated public office holders from becoming lobbyists.

The biggest change for businesses is they must report any conversation on a pre-arranged meeting with senior officials or ministers and their staff, listing both the person contacted and the nature of the lobbying. Previously, lobbyists needed to just report generally on the subject and departments being approached.