Side hustles A-OK by law

There may be political constraints that prevent backbenchers from supplementing their member’s pay, but legally there is nothing to stop them from having a side hustle.

The Conflict of Interest (Members and Ministers) Act says MLAs must be conscious of the possibility of a conflict of interest and act appropriately if one arises.

An MLA is in a conflict when they exercise an official power, duty or function that provides an opportunity to further their private interests or those of their family or to improperly further another person’s private interests.

In other words, a conflict exists if there is an opportunity for an MLA to prefer a private interest over the public interest.

The law restricts the activities of cabinet ministers and the leaders of recognized opposition parties. They can’t, for example, hold shares in private corporations and can’t engage in employment or the practice of a profession if doing so is likely to conflict, or be seen to conflict, with their official duties.

Other MLAs are not subject to these constraints.

“The constraints on MLAs earning outside income are mainly political, not legal,” said Paul Thomas, who has observed Manitoba politics for decades. He said it’s a judgment call about what is a politically acceptable source and type of supplementary income.

“Parties can set ethical norms or expectations in terms of what sorts of outside activities are deemed legitimate and/or might give rise to controversies,” the political studies professor emeritus said.

Rural MLAs can continue to operate family farms, he said.

The timing of legislative sessions was once organized around seeding and harvesting. Passive income from investments seems to be acceptable as long as conflict of interest rules aren’t violated, Thomas noted.

“Running a small business, like an insurance company, is seen as admirable. Defending criminal offenders may be OK in principle, but obviously risks controversy.”

Fort Garry MLA Mark Wasyliw, a criminal defence lawyer, who was ejected Monday from the NDP caucus said he’s a full-time MLA who takes on a “handful” of cases to supplement his income. As a full-time lawyer, he was a high-income earner. “To go down to a base MLA salary is a huge reduction,” that would impact his family, he said.

The base salary is $106,603.

“It seems like a lot of money but (for those) coming from a professional background – it prevents people from turning to public service,” Wasyliw said. “There’s a whole range of professionals you don’t see at the legislative assembly.” It’s why there aren’t more doctor, dentist and accountant MLAs, he suggested. The legislative assembly attracts more teachers and nurses because it’s a lateral salary move, he said.

Thomas said the circumstances of all 57 MLAs are not the same.

“For some, personal wealth means that they can sacrifice income to perform a public service role for a period of time.” For others, it’s their sole source of income. Thomas said there is “widespread cynicism” that politicians benefit excessively from serving in public office.

“In my view this is wrong. Given the responsibilities of politicians, the sacrifices involved in terms of their private lives, and the precarious nature of their employment, most are not overpaid,” the professor said.

“Of course, like other taxpayers, I have my own opinions on a few who do not provide full value for public money.”

carol.sanders@freepress.mb.ca

Carol Sanders

Carol Sanders
Legislature reporter

Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol.

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