- Aug 20, 2000
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Taxpayer boost for parties
New bill would ban donations by business, unions
Legislation introduced yesterday would ban donations from corporations and unions to political parties. They can contribute up to $1,000 in total to a party's candidates, nomination contestants and riding associations.
And for the first time, the government is putting a cap of $10,000 a year for individual contributions.
The legislation is designed to address the public perception that money buys power in Ottawa, the government said.
"There is enormous cynicism about the political system in Canada," Eddie Goldenberg, the Prime Minister's senior policy adviser, explained in a media briefing.
Taxpayers' support for political parties in the next election will hit $80 million as a result of the sweeping changes. The 2000 federal election cost taxpayers about $39 million, largely through tax credits paid to contributors.
Parties would get annual allowances based on $1.50 per vote received by the party in the previous general election, provided the party has received either 2 per cent of the votes cast nationally or 5 per cent of votes in the ridings where the party ran a candidate.
Major points:
[*]Prohibit corporations, labour unions or associations from donating any funds to political parties or candidates in a party's leadership campaign. But it would allow businesses and unions to give up to $1,000 a year to the candidates or riding associations of each federal party. With 12 parties currently registered, total donations from a business, union or association would therefore be capped at $12,000 annually.
[*]Prohibit individuals from contributing more than $10,000 a year to each party and their candidates. With 12 registered parties, individuals could donate a total of $120,000 annually.
[*]Includes penalties of up to five years in prison and a $5,000 fine for companies convicted of violating new rules to prevent the funnelling of illegal donations to politicians through employees or other individuals.
[*]Outlaws the use of trust funds by MPs to create political war chests, a practice that has allowed MPs to use unreceipted donations to pay for projects other than campaigning.
[*]Extends the same disclosure requirements on donations and expenses that apply to election campaigns to nomination and leadership campaigns. Riding associations would also have to disclose spending.
[*]Sets up a system that will use federal taxpayers' funds to replace the money parties and candidates can no longer raise privately. Payments will be based on the number of votes received in the most recent federal election.
[*]For nomination campaigns in each riding, it caps the candidates' allowed expenses at half of what was spent by the candidate in the last general election. This is designed to aid female candidates, who have more trouble raising money.
[*]Increases tax credits to encourage individuals to donate to MPs, candidates and political parties.
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What do you think, guys? Obviously I'm not too crazy about the doubled burdened on taxpayers for supporting parties at the federal level, but at the same time the rules sound good...in theory. The major runaround I was concerned about - companies funneling donations through individuals - seems well covered by the added potential penalty and disclosure.
It may be a mess getting this through the Commons, though. We'll see just how hypocritical our politicians get when this one comes up.
New bill would ban donations by business, unions
Legislation introduced yesterday would ban donations from corporations and unions to political parties. They can contribute up to $1,000 in total to a party's candidates, nomination contestants and riding associations.
And for the first time, the government is putting a cap of $10,000 a year for individual contributions.
The legislation is designed to address the public perception that money buys power in Ottawa, the government said.
"There is enormous cynicism about the political system in Canada," Eddie Goldenberg, the Prime Minister's senior policy adviser, explained in a media briefing.
Taxpayers' support for political parties in the next election will hit $80 million as a result of the sweeping changes. The 2000 federal election cost taxpayers about $39 million, largely through tax credits paid to contributors.
Parties would get annual allowances based on $1.50 per vote received by the party in the previous general election, provided the party has received either 2 per cent of the votes cast nationally or 5 per cent of votes in the ridings where the party ran a candidate.
Major points:
[*]Prohibit corporations, labour unions or associations from donating any funds to political parties or candidates in a party's leadership campaign. But it would allow businesses and unions to give up to $1,000 a year to the candidates or riding associations of each federal party. With 12 parties currently registered, total donations from a business, union or association would therefore be capped at $12,000 annually.
[*]Prohibit individuals from contributing more than $10,000 a year to each party and their candidates. With 12 registered parties, individuals could donate a total of $120,000 annually.
[*]Includes penalties of up to five years in prison and a $5,000 fine for companies convicted of violating new rules to prevent the funnelling of illegal donations to politicians through employees or other individuals.
[*]Outlaws the use of trust funds by MPs to create political war chests, a practice that has allowed MPs to use unreceipted donations to pay for projects other than campaigning.
[*]Extends the same disclosure requirements on donations and expenses that apply to election campaigns to nomination and leadership campaigns. Riding associations would also have to disclose spending.
[*]Sets up a system that will use federal taxpayers' funds to replace the money parties and candidates can no longer raise privately. Payments will be based on the number of votes received in the most recent federal election.
[*]For nomination campaigns in each riding, it caps the candidates' allowed expenses at half of what was spent by the candidate in the last general election. This is designed to aid female candidates, who have more trouble raising money.
[*]Increases tax credits to encourage individuals to donate to MPs, candidates and political parties.
---
What do you think, guys? Obviously I'm not too crazy about the doubled burdened on taxpayers for supporting parties at the federal level, but at the same time the rules sound good...in theory. The major runaround I was concerned about - companies funneling donations through individuals - seems well covered by the added potential penalty and disclosure.
It may be a mess getting this through the Commons, though. We'll see just how hypocritical our politicians get when this one comes up.
Putting campaign financing into the realm of Individuals only really helps, IMO, to give voice back to the people, rather than some piece of paper that has a louder voice, but just mimmicks some partisans we never see. Power to the People! 
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