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Canada report

Computer security questioned

By JIM FOX
Published February 20, 2005

Canada's auditor general has uncovered more problems with Liberal government operations, including the vulnerability of sensitive information to computer hackers.

Sheila Fraser also found that billions of tax dollars are making their way to federal foundations without public scrutiny.

Unlike last year's blockbuster revelations that $100-million was improperly given to Liberal-friendly companies in the "sponsorship scandal," this report suggested troubling possibilities.

Fraser warned about accountability as surplus funds are given to federal agencies acting outside parliamentary and public scrutiny.

These include the Millennium Scholarship Foundation, which received $2.5-billion, and $3.6-billion for the Foundation for Innovation.

"No money is hidden; public reports are made," Prime Minister Paul Martin said of the report.

It is also troubling that the government hasn't met "its own minimum standards" for information technology security, Fraser said.

"The government is vulnerable presently to attacks (by hackers). If you can shut down systems, you can do a lot of havoc," she said.

Gov. General Adrienne Clarkson, who has been criticized for lavish spending, has apologized to a student whose question resulted in a tour being cut short.

Jeremy Patfield, 15, and students from John Dryden Public School in Whitby, Ontario, were touring Clarkson's official residence. When Jeremy saw Clarkson, he asked: "Is that the woman that spends the money on the queen when she comes to visit?"

A tour guide overheard the comment and ended the group's visit.

"I'm doubly embarrassed because someone asked a question - in my home - and doesn't get the answer," Clarkson said.

The former broadcaster, now representative of Queen Elizabeth II in Canada, defended "the boy's, and anybody's, right to ask questions about how government money is spent."

As a result, the three-day suspension imposed on Jeremy was reversed.

How are Canadians reacting to the contract impasse that has canceled the National Hockey League season? Canadian Press writer Bruce Cheadle said: "Its passing left barely a ripple across a nation of confirmed hockey lovers. True, the professional game's demise - the first uncontested Stanley Cup in 86 years - was front-page news from Victoria to St. Johns, Newfoundland. Yet the only real angst . . . came from disenfranchised NHL players, executives and sports reporters, whose livelihoods have been put on hold."

Social activists say the Canadian government will run up $45-billion in budget surpluses in the next three years that should be spent to fight poverty, boost education and improve child care. The Canadian Centre for Policy Alternatives says the Liberals downplay revenues and overestimate expenses so they can avoid social spending. Official estimates foresee a budget surplus of $5-billion over that period.

Canada's soldiers, sailors and air crews are expecting a healthy raise in Wednesday's federal budget. Defense sources say Finance Minister Ralph Goodale's fiscal plan will contain a 6.5 percent across-the-board pay hike retroactive to April 1, 2004.

Interest rates aren't going up any time soon as long as the dollar stays higher, Bank of Canada Gov. David Dodge says.

The bank's key rate remains at 2.5 percent, while the prime lending rate is 4.25 percent.

Canada's dollar is higher at 81.12 U.S. cents, while the U.S. dollar is $1.2327 Canadian, before bank exchange fees.

Stock markets are higher, with Toronto's composite index at 9,656 points and the Canadian Venture Exchange at 1,935 points.

Lotto 6-49: (Wednesday) 4, 5, 17, 18, 34 and 38; bonus 1. (Feb. 12) 5, 12, 16, 26, 37 and 43; bonus 40.

Jim Fox can be reached at canadareport@hotmail.com

[Last modified February 20, 2005, 00:54:14]