A senior aide to Innovation and Advanced Learning Minister Richard Brown has left the department citing concerns over management of the controversial Provincial Nominee Program. And Gordon Cobb confirms he is discussing those issues with the provincial Auditor-General.

“I raised my objections verbally (with Minister Brown) over and over again. Very strongly,” Mr Cobb said in an exclusive interview with The Graphic. “This was a really big disappointment.

“I’m hoping for a shift here. I’m hoping for a fresh approach to the PNP partnership, the whole file. And I can’t make it happen inside so I’ll be open with anybody about what happened.”

Fueling that disappointment is government’s response to new federal regulations, which signaled an end to the nominee program on PEI as it was primarily utilized. He believes the province missed an important opportunity to rebuild the PNP program into an efficient model that would revitalize PEI’s rural economy.

He also believes the Ghiz government has exposed the Island to potentially hundreds of millions in liability, with virtually no system in place to track the efficiency of the program, if foreign nationals nominated by PEI are ultimately rejected for a Canadian visa.

“A good program evaluation would give you indicators of what you delivered. Where did it (money) go? What sector did it go to? Geographically where did it go?” he said.

“I have never seen anything of that like.”

Through a spokesman, Minister Brown refused comment unless first given specific details of the interview topic. The Graphic indicated it pertained to PNP but was unwilling to provide greater detail hours in advance of an interview.

The Graphic’s position arose inpart because Minister Brown has flipped-flopped on whether or not he will comment publicly on PNP. Prior to Christmas he said he would not comment until the Auditor General releases his report. He broke that promise just days later when he opted to respond to a Graphic story in The Guardian.  

In March of last year the federal government published a legal analysis in the Canada Gazette outlining regulatory changes to the nominee program. The new regulations were largely interpreted as a direct attack on PEI, which had successfully manipulated a regulatory loophole to attract investment from hundreds of foreign nationals.

The provincial strategy saw potential immigrants invest $200,000. Of that amount between $30,000 and $50,000 would ultimately be invested in an Island company. The remainder was paid in fees to lawyers, accountants, government and agents who partnered potential immigrants with Island companies.

In return nominees were named to a company’s board of directors but had no direct input into its operation. The program is designed to allow a foreign national to fast track a Canadian visa application.

However, the federal government deemed the Island program a passive investment scheme and in violation of federal regulations.

Mr Cobb urged Minister Brown to follow recommendations contained within an independent consultants report commissioned by the minister in the days following publication of the legal analysis. The report by Charlottetown consulting firm EmaNote attempted to minimize the question of liability by working with the federal government to design and implement a new PNP program.

“The EmaNote report offered a reasonable basis to go forward with the federal government. I didn’t know then how strong some people were holding to the old system.”

As a necessary first step, Mr Cobb urged a major shift in management of the nominee process beginning with the removal of the then deputy minister Brooke MacMillan and Charlottetown lawyer Bill Dow from the file. Mr Cobb says it was known within government that Mr Dow “was in charge of PNP and he made decisions about what happened with the management and direction of the PNP program.” Mr Dow is a close confidant of the premier.

“I said you’ve got to get those guys off the file, and get a new file going and get something constructive going with the feds.”

He advocated a new program – similar to that offered in Manitoba – that would focus on immigrants taking an active day-to-day role in Island companies. Over a 10-year period rural immigration has increased six fold in the western province. “They targeted people who wanted to come to live in rural areas. You get the people for sure and the money for sure. It’s a win-win all around.”

The advice was ignored.

Instead, Minister Brown ordered provincial employees to nominate as many foreign nationals as possible before the loophole closed on September 2, 2008. At the same time the province failed to establish a constructive process with the federal government to rebuild the program.

Mr Cobb says the provincial government – first under the Conservatives and expanded under the Liberals – adopted a sales mentality to PNP. He said the focus should have been on sustainable and gradual economic development.  His concerns escalated when the province brought hundreds of foreign nationals into the program in late summer. In total 1,877 immigrants were jammed through between May and September. 

“The exhilaration was apparent. There was selling going on and I was worried about that. The numbers that were coming through for applications were huge,” he said. “Once you are on a sales model your job is to keep the revenue.”

Mr Cobb, 44, began his career 20 years ago as a political aide to Liberal MP Lawrence MacAulay. Shortly after the Ghiz Liberals swept to power in May 2007, Mr Brown asked Mr Cobb, now a federal civil servant, to transfer to the provincial government for a three-year term. Less than half way through that contract he is leaving. 

“I’m a public servant first. The wrong decision was made back in April and not rectified yet.  There is no structure or process here to improve this. If that had started I wouldn’t be leaving today.”