Boudreau recuses himself from Parlee Beach controversy

Health Minister Victor Boudreau is recusing himself from the Parlee Beach file and will no longer have any role in government decisions on the watertesting controversy there.

Boudreau told CBC News he made the decision after a working group of civil servants began considering a moratorium on development at the beach. That would affect his 20 per cent ownership stake in a proposed campground.

• Water monitoring at Parlee Beach failed to meet Canadian guidelines
• Parlee Beach staff followed water-quality guidelines, says Boudreau

He said he met with the province's conflict of interest commissioner and decided to recuse himself. He will no longer be briefed on the issue and won't take part in cabinet discussions about it.

"I don't want to be the distraction on this very important issue," he said.

"That perception is the issue, and if the perception is the issue, and the perception is what's going to be prevent us from getting to the bottom of it, then I'm prepared to recuse myself from all activities relating to this committee."

Rousselle takes lead on beach issue

As of this week, Environment Minister Serge Rousselle will act as health minister on all issues relating to Parlee Beach and the high levels of fecal contamination there, including the possible moratorium on development and the flaws in the testing there last year.

Conflict of interest commissioner Alexandre Deschnes said in a letter to Boudreau that "in my view, the perception of conflict of interest is unavoidable."

Boudreau said that he and Deschnes agreed "there was no conflict in terms of the law but there could be the perception."

The working group of staff from Boudreau's department and the tourism and environment departments is looking at how to avoid last summer's mistakes in the water testing system, whiletrying to find the source of the fecal contamination.

Parlee Beach is one of the province's top tourist destinations and a key part of the economy in Boudreau's ShediacCap Pel riding.

Investor in proposed campground

Boudreau doesn't believe he's been in a conflict before now

8 years ago

Duration 1:04

The health minister is an investor in a campground on the beach but said he doesnt believe hes in a conflict before now because he hasnt made any actual decisions about Parlee Beach.

Boudreau is also an investor in the proposed 750site campground, which has been approved by Shediac town council but is opposed by some residents and other campground owners.

Boudreau put his stake in the project in a blind trust when he became health minister in 2014. A trustee looks after his investment and is not allowed to discuss it with Boudreau.

But critics said that didn't go far enough.

Section Four of New Brunswick's conflict of interest law for MLAs and ministers says an elected member should not "make a decision or participatein making a decision" that could "further the member's private interest."

If it were a decision that would only affect mine, whether positively or negatively, that might obviously be different.-Victor Boudreau

Deschnes said in a March 2 letter to Boudreau after they met that "one could argue that your decisions as minister of health apply to the public in general or concern people in a large group and consequently don't constitute a 'private interest' under section four."

But even if the law "seems to permit your participation," Deschnes recommended Boudreau recuse himself to avoid the perception of conflict.

Some area residents believe the high fecal counts last summer are because of a surge of development at the beach. They worried Boudreau's decisions on new rules, including a possible development freeze, would be influenced by his business investment.

Boudreau said he learned of the possibility of a development freeze at Parlee on Feb. 28 and he met with Deschnes as soon as he was available, on March 2. He said they talked for 45 minutes.

Gallant agrees to recusal

After they agreed he should recuse himself, Boudreau said he immediately contacted Premier Brian Gallant's office. Gallant agreed to the recusal.

Boudreau said he shared Deschnes's interpretation that he wouldn't be in a conflict because his decisions would affect a large number of people and not just his own business interests.

"If it were a decision that would only affect mine, whether positively or negatively, that might obviously be different," he said.

He also said he doesn't believe he's been in a conflict before now because he hasn't had to make any actual decisions about Parlee Beach.

Boudreau said when the campground business got started, he was one of four investors who held 20 per cent. One other investor had 10 per cent and two held five per cent each. He said because it's in a blind trust, he doesn't even know if his share is still 20 per cent.

Besides Michel Boudreau, the lead developer for the project, the others are silent investors who aren't obligated to identify themselves publicly. Boudreau said Tuesday he'd respect their wishes.

The conflict law's blind trust rules allow Boudreau to sell his stake in the project at any time. He said he hasn't given any thought to doing that.

But he said if there is a moratorium on development at Parlee Beach and the campground never goes ahead, "I'm fine with that. Since the project's been put in a blind trust, it's somebody else's worry, and we'll deal with the situation as it is once I'm done in politics."