Patrick Kinsella's lawyer denies in court his client had anything to do with BC Rail sale; defence argues otherwise

A lawyer for BC Liberal insider Patrick Kinsella says there is "no evidence that he was part of the sale process" in the $1 billion BC Rail privatization but defence lawyers in the BC Legislature raid case argued otherwise Friday.

James Sullivan, representing Kinsella, was opposing a defence application in front of BC Supreme Court Justice Elizabeth Bennett to obtain the records of Kinsella's companies in connection to his $297,000 contract with BC Rail.

And defence counsel Michael Bolton, representing David Basi - the former BC Liberal ministerial assistant facing breach of trust and fraud charges along with fellow ex-MA Bob Virk - also said he wants any records Kinsella has connected to CN Rail as well.

Bennett heard spirited arguments from Sullivan, Bolton and Kevin McCullough, counsel for Virk, about the potential relevance of evidence Kinsella may posess.

"We're seeking from Mr. Kinsella records that relate to the Progressive Group and Progressive Holdings from 2001 to 2005, all communications, correspondence, invoices, cheques and briefing reports connected to Mr. Kinsella's dealings with BC Rail, connected to the sale of BC Rail and the divestiture of the Roberts Bank Subport," Bolton said.

"We're also seeking communcations related to the CN Rail purchase of BC Rail and connections with CN Rail during that period," he added.

Bolton said the defence also wanted to know whether Kinsella was "an agent, advisor, consultant or lobbyist for CN Rail on these issues."

That statement brought a strong objection from Sullivan.

"Our position is that there is absolutely no evidence to any of this," he told Bennett. "My friend is putting information in front of you for which there is no evidence."

Bennett replied that the in the defence application they had "made a number of statements where you've referred to Mr. Kinsella...."

That in turn brought McCullough to his feet.

"That Mr. Kinsella was the BC Liberal Party campaign co-chair? That's widely known!" McCullough exclaimed. "How is it Mr. Sullivan can help you at all for likely relevance?"

Bolton then told Sullivan that: " A number of the facts in the application regarding the bidding process are correct and have been supported by the evidence."

But Sullivan was not satisfied.

"We object to all of the material - we don't think you should consider any of it," Sullivan said.

That prompted Bolton to rise and use some colourful language to describe Kinsella's role.

"I feel confident that everything in this application is supported by the evidence or is notorious public information, such as Mr. Kinsella's role as BC Liberal Party campaign co-chair," Bolton said.

Bennett intervened: "I don't need you to editorialize."

But Bolton continued: "The government ran in the 1996 election saying they'd sell BC Rail and lost. In 2001 the Liberals promised no sale and won."

"It's a notorious fact that this was a highly politicized process. Kinsella played a signficant role, whether you call him a lobbyist or consultant, for BC Rail, for four years after the election. We can give you articles about whether Mr. Kinsella should have registered as a lobbyist," Bolton said.

Sullivan objected again.

"Here's the problem - they say 'Mr. Kinsella was there' - there was no evidence he was part of the sale process," Sullivan said.

But Bennett said he would have his chance to reply later.

Bolton continued: "I dont' suggest Mr. Kinsella was doing anything other than his ordinary business, or that he was in any way engaged in any criminal activity. I don't think anything Mr. Kinsella did amounted to a criminal offence, not that we know of."

The hearing continues.

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