Political Access as Wealth Multiplier Not Wealth Creator

“Desmarais has never become a public politician, though he has been encouraged to do so; yet he understands politics because it’s a part of the power game, and interacts well with politicians, keeping in touch with all who matter. Since the Duplessis days he has made a point of ensuring some personal contact with every Quebec premier, whatever his political stripe, and every Canadian prime minister.”

“He has also invited several retired politicians and senior civil ser¬ vants to occupy senior executive posts or seats on the board of Power Corporation or its subsidiaries. A snapshot of the Power board in 1986 would have captured William Davis, retired Premier of Ontario, in a director’s chair (his predecessor in office, the late John Robarts, also sat on the Power board) and Senator Michael Pitfield, former Clerk of the Privy Council under Pierre Trudeau, who occupied a Power vice-presidency. The financing arrangements of the Quebec Autobus deal comprised a typically creative Desmarais package of personal cash and loans granted him because of his track record as a person who always meets his obligations and keeps his word. Industrial Acceptance Corpora¬ tion, one of his old creditors in Sudbury Bus Lines, which knew and trusted Desmarais, lent him $700,000; British American Oil Company (later Gulf) lent him $800,000 on his promise to buy all his gas from the company, and the Royal Bank lent him $500,000 against proceeds from the sale of Gatineau Bus.”