Vivian Krause, the self-proclaimed independent researcher and writer who’s taken to task David Suzuki, host of the popular TV show “The Nature of Things,” is questioning the entire nature of giving in Canada.
Krause, speaking at a recent Vancouver Board of Trade luncheon, is challenging the mandate of foundations, foreign funding of Canadian non-profits engaged in issues advocacy and the transparency of local environmental groups.
Krause has garnered public attention by disclosing that large American funding agencies such as Pew Charitable Trusts and the Rockefeller Brothers Fund have sent $300 million to Canadian environmental groups since 2000. She’s also raised eyebrows with suppositions on their ulterior motives. Krause says these foundations have significant influence on environmental groups operating in Canada and wants both the names and spending of foundation donors to be required disclosure. She also has Ottawa’s ears: Krause was recently invited to speak to the Senate Finance Committee, where she hoped to address the need for the Canadian Revenue Agency (CRA) to create more regimented transparency rules among NGOs.
“Transparency is important because the money involved here is big,” Krause told the luncheon crowd. “Almost all of my research is based on American tax returns, and I don’t think as a Canadian I should need to go to a foreign country to find out what’s going on in my own.”
Both Krause and environmental groups agree her research gained the spotlight after public opposition helped persuade President Barack Obama to stall the Keystone XL pipeline last November.
“No one paid any attention to my research until the Keystone pipeline fell through. On both sides of the border all of a sudden people realized how powerful the environmental movement had become,” Krause told Business in Vancouver. “And that’s when they started to think … who’s funding them? What’s this all about, right?”
“The oil industry and government recognize people power can actually beat Big Oil and now they’re worried,” said Greenpeace Canada spokesman Keith Stewart.
In January, with all eyes on Enbridge’s (TSX:ENB) Northern Gateway pipeline proposal, Minister of Natural Resources Joe Oliver issued an open letter denouncing environmental groups as foreign-funded “radical” organizations determined to “hijack” Canada’s need to develop natural resources.
In March, the federal budget earmarked $8 million to the CRA to step up audits and enact other compliance measures targeting groups that accept foreign funding for alleged political activities.
Kathryn Harrison, a UBC professor of Canadian and environmental politics, agrees greater transparency and accountability would be beneficial. However, keying in on environmental groups advocating against the tar sands or Northern Gateway pipeline is “awfully selective.”
“We’re focused so much on the influence of foreign dollars on the Canadian environmental community, but we don’t seem to be nearly so concerned about foreign investment in major Canadian industries or the influence of foreign customers on how we develop our economy,” she said. “If we’re worried about foreign money, let’s be worried about all the different ways in which foreign money influences Canadian politics, including through wholly or partially foreign owned companies that make donations to political parties and that meet with ministers that participate in hearings and lobbying.”
Environmental groups counter that foundation funding, or foreign moneys, make up a minor amount of their total donor amount. Stewart said only 5% of Greenpeace Canada’s income is derived from Canadian and foreign foundations and would welcome naming names.
Sierra Club BC executive director George Heyman said foreign funding accounts for approximately 20% of the organization’s annual take and its website discloses supporting foundations.
Krause has built contentious cases suggesting that U.S. funding of Canadian environmental groups is a covert means to preserve American interests.
She contends that:
•U.S.-funded opposition to B.C. salmon farms benefited Alaska’s fisheries;
•U.S. financial support of the creation of the Great Bear Rainforest has blocked shipping of potential Canadian oil exports; and
•American-funded opposition to the Gateway Project prevents Canadian oil exports to Asia and preserves U.S. energy security.
However, environmental groups have been quick to point out that these same U.S. foundations opposed the Keystone XL pipeline to refineries in Texas.
Krause told Business in Vancouver that U.S. foundations are steering the mandate of Canadian environmental groups. As such, she suggests foreign funding is putting the sovereignty of Canada’s resources at risk.
However, Canadian industry and environmental groups have become global in their revenue streams.
According to statistics from the Canadian Association of Petroleum Producers (CAAP), oilsands companies are 40% controlled by foreign interests, while non-Canadians account for 67% of these companies’ share ownership.
CAAP advocates on behalf of these foreign-blended companies.
Heyman said environmental groups receive foreign funding because the environment is a global concern.
But Krause contends that Canadian and U.S. foundations should stick to charity work and avoid supporting environmental groups who advocate.
The environment is the smallest of Vancouver Foundation’s nine fields of interest, representing an annual spend of $400,000 to $500,000. Andria Teather, vice-president of grants and community initiatives, says the environment plays a key role in their pursuit of creating “healthy, vibrant, livable communities.”
Krause underlines that her independent work is unfunded. Krause’s board of trade luncheon was anonymously sponsored. However, it was later learned that two of the three sponsors were mining group Hunter Dickenson Inc. and one of its companies, Taseko Mines (TSX:TKO). The third sponsor remains unknown.
Sean Magee, executive vice-president of communications and public affairs for Hunter Dickenson, said the company shares some of Krause’s key underlying themes.
“From our perspective we certainly recognize and appreciate the role of watchdogs groups in public discussion in Canada,” said Magee.
“The issue for us is more around transparency and accountability. These groups are raising and expending money to influence the public discussion … and there should be transparency and accountability for how those monies are spent.” •
