Panciuk was playing politics on Veridian appointment, Ellis says

By John R. Moodie

BELLEVILLE – Former Belleville mayor Neil Ellis says Councillor Mitch Panciuk was playing politics when he criticized the proposed appointment of Ellis to the board of Veridian, the electrical supplier for the city, last week.

“It’s a politician being political and it’s unfortunate that that happened,” Ellis told QNet News Tuesday.

Ellis defended his ultimately unsuccessful nomination to the board, saying his expertise and background with the corporation – he previously sat on the board when he was mayor – would have helped at a critical time as Veridian works to acquire several other local electrical utilities from Hydro One.

Last Thursday sparks flew when the proposed appointment of Ellis to Veridian’s board came up for discussion as part of a special council meeting dealing with committee and board appointments.

Panciuk, newly elected to council in November’s municipal election, alleged that Ellis would be in a conflict of interest because, in his previous role as mayor, he was involved in determining the process for who can sit on the Veridian board.

“The problem is that Mr. Ellis, as mayor, advised Veridian how to proceed with the process – for which he then applied for as a private citizen,” said Panciuk.

Veridian chief executive officer Michael Angemeer, who was at the meeting, was asked by council to clarify whether Ellis was involved in setting up the selection process.

“For determining the process, he was involved in it as is required in our shareholders’ agreement,” Angemeer said.

Panciuk also suggested that putting Ellis on the board might be perceived as patronage – that some people would think Ellis got the position in exchange for his support of Taso Christopher during the municipal election.

“From a perception issue many (voters) tell me it looks like political payback or patronage,” Panciuk said. “It will look very badly on this new council. It is a perception issue that we must be aware of. This decision will paint us in an unflattering light and will dog us for the entire term of city council.”

Panciuk also argued that Ellis would not have time to commit to the position because he will be running for the Liberals in the Bay of Quinte riding in the next federal election.

That was when Mayor Christopher interjected.

“Just a second, Councillor Panciuk. Focus on the appointment here, not his future,” said Christopher. “We are not talking about federal election here. We are talking about Veridian appointments.”

Panciuk’s comments caused quite a stir at the council table. The strongest response came from veteran councillor Jack Miller.

“In eight years here I have never heard charges like that, and I would hope you would have some substantiation to it,” said Miller. “I am not sure of the relevance of all of that. I am very disturbed at those charges that you have made.” In an interview after the meeting, Miller added: “I believe the two of them (Panciuk and Ellis) have a history, and I just didn’t think that what was put forward was relevant.”

Miller was not alone. Councillor Garnet Thompson expressed similar concerns, and Councillor Mike Graham questioned the legality of Panciuk making such allegations.

But several councillors questioned the logic of selecting Ellis for the position when he plans to run for federal office in the next election and may not be able to fulfill his obligations to the Veridian board.

“There is a very good chance he will be gone within months, so that’s my concern for not voting” for Ellis,  said Councillor Egerton Boyce.

Miller and Councillor Kelly McCaw expressed similar concerns.

“The commitment has to be there, because an election can be called and then we could be losing that representation,” Miller said.

McCaw added: “Whether Mr. Ellis is elected (to Parliament) or not, he still is not going to have the time of day to represent us properly given the fact he will be campaigning.”

In the end, council decided to reject Ellis’s appointment in a 5-4 vote. City residents Doug Parker and Jack Alexander were selected to fill the citizen appointments to the board.

Ellis told QNet News Tuesday he had wanted to stay on the board to help complete the deal that could see Veridian acquire Hydro One’s Thurlow, Quinte West and Prince Edward County utilities.

Belleville has a 13-per-cent stake in Veridian, so the city and its residents would stand benefit from the deal,  said Ellis.

He realized there was the potential he could not complete the four-year term with Veridian, he said, but felt it was important that he be on the board to see the Hydro One deal completed.

“It wasn’t like I applied and said, ‘I am going to be there for four years.’ It was, ‘Hey, we are in the middle of this and we need expertise,’ ” he said.

If things go according to plan, the deal for the Veridian expansion will take place in the next couple of months, before Belleville sets its budget in the spring and well before the federal election expected this fall, Ellis said.

“Veridian wanted their best people involved in it. If you’re playing in the Olympic gold-medal round, do you put your best line on the ice with the goalie pulled in the last two minutes? I think that is what you do.”

At the council meeting, Veridian’s Angemeer said Ellis’s participation on the board was critical at this moment and that he was an integral part of the merger process.

“I believe that continuity in the board and some of the leadership of the board is important at this time,” he said. “I would want to have the expertise and knowledge around the table that would be advising (city council) and advising (Veridian) to move in the right direction.”