Cabinet selection

Though somewhat muted by the higher profile issues in the naming of David Emerson and Michael Fortier to the cabinet, the posting of O'Connor to the position of Minister of National Defence by Prime Minister Harper was met with controversy. Harkening back to ethics and accountability issues including a promised crackdown on lobbying and reforms to lobbying legislation^[3] that Harper raised during the 2006 federal election, O'Connor's employment as a lobbyist for several major defence industry companies including some of the world's largest military contractors, such as General Dynamics, BAE Systems and Airbus as recently as 2004 was seen by many as peculiar. Some feared that with the posting the minister would often be dealing with the very companies for whom he advised and assisted in soliciting defence contracts; seemingly putting him in constant peril of conflict-of-interest issues.^[4] However, the aim of the Accountability Act is to prevent people from moving from government to lobbying, and not the opposite as was the case with O'Connor (at least not this time, although in the past he went from Brigadier General in the Canadian Forces to lobbyist).

There were potential conflict-of-interest issues early in his term, as one of the first major issues the Conservatives pledged they would sort out was the replacement of the Forces' 'tactical airlift' fleet. One of the most prominent companies bidding for the contract to replace the present fleet of C-130 Hercules Turboprops is Airbus S.A.S. for whom O'Connor worked as a lobbyist until February 2004, lobbying the former Liberal government to purchase the airplane that would become the Airbus A400M for its tactical airlift fleet.^[5]

Minister of National Defence

Within months of Gordon O'Connor becoming Minister of National Defence, the Canadian Government announced the purchase of 4 C-17 Globemaster IIIs, manufactured by Boeing Integrated Defense Systems for $3.4 billion,^[6] 16 CH-47 Chinook medium lift helicopters, also from Boeing Integrated Defense Systems, for $4.7 billion,^[7] 17 C-130Js from Lockheed Martin for $4.9 billion,^[6] 2300 Medium-Sized Logistics Trucks for $1.1 billion,^[8] and $2.9 billion for 3 Joint Support Ships,^[9] for a total of $17 billion.

O'Connor announced on May 30, 2006, that the Canadian Forces would be restricting usage of the Mercedes G-Wagon to on-base operations only, after a number of Canadian soldiers were killed while travelling in the lightly armoured vehicle. However, three months later it was revealed that no such order was ever given, and the controversial vehicles were still being used in combat operations.^[10]

In a major cabinet shuffle on August 14, 2007, Prime Minister Harper moved O'Connor to the position of Minister of National Revenue, replacing him in the defence portfolio with former Foreign Minister Peter MacKay.^[11][12]

Afghanistan

In May 2005, Canada's practice of transferring persons detained by the Canadian Forces in Afghanistan to units of the Afghan police came under question when some prisoners said they were beaten and abused. O'Connor told Parliament that the International Committee of the Red Cross: "The Red Cross or the Red Crescent is responsible to supervise their treatment once the prisoners are in the hands of the Afghan authorities. If there is something wrong with their treatment, the Red Cross or Red Crescent would inform us and we would take action."

This statement was later denied by the ICRC, which stated that it was "informed of the agreement, but ... not a party to it and ... not monitoring the implementation of it." The ICRC also advised that, in accordance with its normal operating procedure, it would not notify any foreign government (Canada included) of abuse found in Afghan prisons.^[13]

On March 13, O'Connor travelled to Kandahar to meet with Abdul Noorzai of the Afghan Independent Human Rights Commission, "look the man in the eyes", and gain assurances that detainees were being supervised.^[14]

O'Connor subsequently acknowledged in an official release that his statement in Parliament was not true, and that the ICRC was not monitoring detainees and not informing Canada as he claimed.^[15]

Additional controversy was generated in the week of April 23 when The Globe and Mail reported that 30 Afghan men formerly under Canadian custody alleged they had been tortured by their Afghan captors.^[16] Two days later, another Globe story ran on a government report from which "negative references to acts such as torture, abuse, and extra judicial killings were blacked out without an explanation."^[17][18] The difficulties faced by O'Connor were exacerbated after various government ministers and Stephen Harper himself gave apparently conflicting testimony on the existence and nature of the agreement with Afghan forces to supervise detainees.^[19]

Following these revelations, the opposition parties unanimously demanded O'Connor's resignation; a demand echoed by some press commentators such as Andrew Coyne. Stephen Harper resisted calls for O'Connor's dismissal.^[20]

O'Connor also faced criticism for remarks that Canada was in Afghanistan as an act of retribution for 9/11.^[21][22]

Letter to Donald Rumsfeld

In December 2006, O'Connor wrote to outgoing United States Secretary of Defense Donald Rumsfeld praising his "vision", "many achievements", and "significant contribution", adding: "Here we have been privileged to benefit from your leadership" in "the campaign against terror." Some critics argued the letter was excessively flattering and went beyond the demands of courtesy.^[23][24]

Forgiving tax bills

As Minister of National Revenue, O'Connor issued a remission order forgiving the tax bills of 35 former SDL Optics Inc. employees. The employees had used stock options to buy shares in their company for a fraction of their market value. The options were taxable and the shareholders owed hundreds of thousands of dollars in taxes.

O'Connor's order was made against the advice of Canada Revenue Agency commissioner William Baker. Tax professionals called it favouritism and "purely political."^[25] Most of the affected employees lived in the riding of fellow Conservative Cabinet Minister Gary Lunn.