An Act to amend the Canada Elections Act (accountability with respect to loans)

This bill was last introduced in the 39th Parliament, 2nd Session, which ended in September 2008.

Sponsor

Peter Van Loan  Conservative

Status

Second reading (Senate), as of June 26, 2008
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Canada Elections Act to enact rules concerning loans, guarantees and suretyships with respect to registered parties, registered associations, candidates, leadership contestants and nomination contestants.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

June 17, 2008 Passed That the Bill be now read a third time and do pass.
June 10, 2008 Passed That Bill C-29, An Act to amend the Canada Elections Act (accountability with respect to loans), as amended, be concurred in at report stage with further amendments.
June 10, 2008 Passed That Bill C-29, in Clause 5, be amended by replacing lines 32 to 35 on page 5 with the following: “Officer shall inform the lender of his or her decision; furthermore, the candidate's registered association or, if there is no registered association, the registered party becomes liable for the unpaid amount as if the association or party had guaranteed the loan.”
June 10, 2008 Passed That Bill C-29, in Clause 5, be amended by replacing lines 29 to 35 on page 4 with the following: “case of a candidate, the selection date as defined in section 478.01 in the case of a nomination contestant, the end of the leadership contest in the case of a leadership contestant, and the end of the fiscal period during which the loan was made in the case of a registered party and registered association, is deemed to be a contribution of the”
June 10, 2008 Passed That Bill C-29, in Clause 4, be amended by deleting lines 13 to 17 on page 2.

Business of the HouseOral Questions

May 15th, 2008 / 3 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, in keeping with our theme for this week, which is strengthening democracy and human rights, today we will continue to debate Bill C-47, which is a bill to provide basic rights to on reserve individuals to protect them and their children in the event of a relationship breakdown, which are rights that Canadians off reserve enjoy every day.

We will debate our bill to give effect to the Tsawwassen First Nation Final Agreement, Bill C-34, and Bill C-21, which would extend the protection of the Canadian Human Rights Act to aboriginals living on reserve.

We will also debate Bill C-29, which is our bill to close the loophole that was used most recently by Liberal leadership candidates to bypass the personal contribution limit provisions of the election financing laws with large personal loans from wealthy, powerful individuals, and Bill C-19, which is our bill to limit the terms of senators to eight years from the current maximum of 45.

Next week will be honouring our monarch week. Members of Parliament will return to their ridings to join constituents in celebrating Queen Victoria, our sovereign with whom Sir John A. Macdonald worked in establishing Confederation, and honouring our contemporary head of state, Her Majesty Queen Elizabeth II.

The week the House returns will be sound economic management without a carbon tax week. The highlight of the week will be the return of the budget bill to this House on May 28.

This bill proposes a balanced budget, controlled spending, investments in priority areas and lower taxes, all without forcing Canadian families to pay a tax on carbon, gas and heating. Furthermore, the budget implementation bill proposes much needed changes to the immigration system. These measures will help us ensure the competitiveness of our economy. I would like to assure this House that we are determined to see this bill pass before the House rises for the summer.

We will start the week by debating, at third reading, Bill C-33, our biofuels bill to require that by 2010 5% of gasoline and by 2012 2% of diesel and home heating oil will be comprised of renewable fuels, with our hope that there will be no carbon tax on them.

We will debate Bill C-55, our bill to implement the free trade agreement with the states of the European Free Trade Association.

This free trade agreement, the first in six years, reflects our desire to find new markets for Canadian products and services.

We will also debate Bill C-5 dealing with nuclear liability issues for our energy sector; Bill C-7 to modernize our aeronautics sector; Bill C-43 to modernize our customs rules; Bill C-39 to modernize the Canada Grain Act for farmers; Bill C-46 to give farmers more choice in marketing grain; Bill C-14, which allows enterprises choice for communicating with their customers through the mail; and Bill C-32 to modernize our fisheries sector.

The opposition House leader raises the question of two evenings being set aside for committee of the whole. He is quite right. Those two evenings will have to be set aside sometime between now and May 31.

With regard to the notes that were quoted from by the Prime Minister and the Parliamentary Secretary to the Minister of Foreign Affairs, they were their notes and referred of course to announcements that clearly have been made about the need and the imperative of restoring our military's equipment and needs in the way in which the Canadian government is doing so.

Business of the HouseOral Questions

April 3rd, 2008 / 3 p.m.
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York—Simcoe Ontario

Conservative

Peter Van Loan ConservativeLeader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I would like to start by thanking the opposition House leader for performing his basic parliamentary duty by asking the Thursday question. We have missed it once or twice. I believe it is important that this government have the opportunity to inform the House of its legislative agenda for the coming week.

Today we have started to debate the budget implementation bill. It incorporates the measures that were announced in budget 2008 and adopted by this House on two different occasions.

These are prudent, focused, responsible measures, including the tax-free savings account, $350 million for the Canada student grant program, and more money for police officers, the environment, health, and infrastructure for our cities.

We will continue to debate the bill tomorrow as well as throughout next week. The government has read reports that the opposition is going to delay and obstruct the passage of the bill. I hope that does not happen.

Next week will be improving the health and safety of Canadians week. A number of measures will be announced to accomplish this goal.

I cannot provide any details on these exact measures, but I am sure hon. members will agree that these are excellent initiatives that will improve the health and safety of Canadians.

Next week we will also debate changes to the Judges Act, Bill C-31; the Senate amendments to Bill C-13, our legislation to amend the Criminal Code in relation to criminal procedure, language of the accused, sentencing and other matters; and Bill C-23, which amends the Canada Marine Act.

The government will also debate—and pass, we hope—important bills to enhance the economy and accountability. There will be Bill C-33 to regulate a renewable content of 5% in gasoline by 2010, and a 2% requirement for renewable content in diesel fuel and heating oil by 2012.

We will also debate Bill C-5, which deals with responsibility in the event of a nuclear incident, Bill C-7, which amends the Aeronautics Act, and Bill C-29, to create a standard process for dealing with loans made to political parties, candidates and associations.

I would like to indicate that next Tuesday will be an allotted day.

In terms of the question on creating a committee of the House regarding Afghanistan, I thank the member for his question. We did receive a letter from him asking about that yesterday. We appreciate the support of this House of Commons for the motion, which has allowed the Prime Minister to travel to Bucharest and obtain the commitments that have been obtained from our NATO allies and allow that mission to continue.

We do believe it is important for that committee to be formed so it can operate shortly, and we will be proceeding with that soon.

Canada Elections ActGovernment Orders

February 14th, 2008 / 5:10 p.m.
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Liberal

Alan Tonks Liberal York South—Weston, ON

Mr. Speaker, I have been following this debate and am very pleased to make a few comments with respect to Bill C-29 and try to make it understandable for the viewers watching the proceedings.

To do that, I would like to sum up from my perspective how I view the whole issue with respect to accountability in election financing.

The public knows that as it stands right now there are huge restrictions with respect to how a candidate can raise the funds necessary to run an election. The public should be aware that under the Election Expenses Act there is a cap on how much can be spent in an election. There is a very clear and very transparent reporting process that the chief financial officer has to go through.

In fact, in my riding, my chief financial officer, who is a layperson, a long-time dedicated person in the riding and not an accountant, has said that the reporting procedures are becoming so exhaustive that one almost has to be an accountant. That is the degree of scrutiny that this is given. My reply to it is that we have to work around that issue because it is in the public interest to be totally transparent.

We are also aware that under the former regime unions and corporations had a cap on what they could contribute. In the regime that is now being entrenched in this bill, unions and corporations cannot make contributions. Also, there is a very clear stipulation that the cap on personal donations is $1,100.

I review those things because I always thought that public life and public service was one of the highest honours that an individual could be involved in and that could be granted to an individual. Therefore, anything that deals with the mechanics of taking out loans or whatever should be so clear and so transparent, but accessible and easy to do, and it should not be a disincentive for individuals to come forward and want to be part of one of the greatest traditions, which is the democratic tradition of seeking office, be it municipal, provincial or federal, or at the school board level or in other elected office.

I come from a very working class riding. When I reflect on my nearly 30 years of elected public office and reflect on the nature of support that I have been given, I can say that it has come from the people of our riding. At no time can I remember huge donations and so on.

However, I welcome a transparent regime. Having said that, I might say that this bill is transparent, that this is putting caps on amounts, tightening up and so on, but it gives me some concern. It gives the appearance that we are all equal and that we all have access to a bank and perhaps access to guarantors who have the means to do that. It gives the appearance that there is equity where in fact there is not. We know there is not.

When one wants to put on a cap of $1,100, how many members have constituents who can avail themselves of the cap? The reality is usually $100, $50 or $25. The reality is little fundraisers that raise perhaps $2,000 or $3,000 at the most, but often they raise $400 or $500. That is the reality. That reality is reported in the existing legislation.

Also, if an association takes out a loan, it or the party is going to be held liable, but it is the association in the first instance. It will be held liable. I would ask members about this. In their associations, how many people have the capacity to want to be liable if, let us say, a loan that is taken out is not repaid? It could happen for whatever reason, such as death. It could happen for a number of reasons.

If we are elected, we are accountable, because someone is going to come over and say to us, listen, that loan has not been paid back and that seat will be lost. That is a consequence. That sure would plug the gap that might exist if we were worried that candidates would not pay back the loan.

Mark you, Mr. Speaker, I am saying that it is very clear that one has to report it, so the issue is on consequence. If one did not get elected but still had exceeded and had not paid the loan, one's association is liable for it.

We know that the banks are going to come back for it. In this regime being put forward here, the banks are a lending institution at whatever the interest rate is. In my experience, I have had the opportunity to raise money from people and report it, people who have had confidence in me, as all my colleagues have experienced.

It seems to me that this legislation is wrong-headed in the sense that it looks as if we are all trying to circumvent the law. That was the characterization that was made, albeit in a different context: that we are trying to circumvent the reporting process. We are not. There is an exhaustive reporting process and yet we are coming forward and saying this because the consequences have not been implemented as clearly as they should be by the Chief Electoral Officer and a case was cited.

What is at fault is that the consequences should be laid out in a clearer way if we are not satisfied with the adjudication that took place, but that is not what is being done. What is being done is a whole new regime that looks like it treats us all fairly and equitably, but ignores the reality that right across this country, from coast to coast to coast, there are communities of very fragile and limited means. Yet the associations are going to be held liable if anything should go wrong.

It is almost a washing of hands with a bureaucratic mechanism. It is not intentional, but the end result will be the same. It will be a disincentive for people who want to be part of the process of being on an association, I would think, and I am saying this from the experience that I have had with the kinds of social and economic backgrounds of the people, God bless them, who sit on the executive of my association. I am sure that is the case in many of the constituencies.

There have been amendments made that I think are excellent. I will be supporting the bill, but I have to say that I think it places a cloud on this because there have been consequences that were disproportionate to what occurred with respect to the reporting, but the reporting is very comprehensive.

If there is any fault, it is that we just did not put down what the consequences would be if there were a deliberate circumventing of the law. What we have here, I think, is just overly bureaucratic and will not encourage people to be part of the democratic process in standing for candidacy or being part of local associations.

Canada Elections ActGovernment Orders

February 14th, 2008 / 4:45 p.m.
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Bloc

Bernard Bigras Bloc Rosemont—La Petite-Patrie, QC

Mr. Speaker, it is my great pleasure today to speak to Bill C-29, An Act to amend the Canada Elections Act (accountability with respect to loans).

First, I would like, as my colleagues have done, to remind the House that our party supports Bill C-29, which will partially fill some of the gaps in Bill C-2, which we considered earlier. While Bill C-29 fills some of those gaps, it does not fix all of the problems. There are things that we thought it was very important to fix some time ago and that we would have liked to see in Bill C-29 that are unfortunately not there. However, this bill does fill one important gap by providing better rules governing loans, to ensure that the ceilings are not deliberately circumvented.

As I said earlier, Bill C-29 fills some of the gaps in Bill C-2, but it does not fix everything. One of the things we would have liked to see incorporated in this bill is stronger provisions relating to protection for whistleblowers. Second, we would have liked to see reform of the Access to Information Act, because as we know the Information Commissioner has repeatedly pointed out that various measures were completely unacceptable and prevented members of the public from obtaining documents even though they should be available to the general public.

Unfortunately, we have seen this government, and not just this government but also the previous government, bring in a reform of the Access to Information Act in 2005 that essentially had two consequences. The reform proposed by the Liberals meant that administrative charges doubled for requests by the public and by groups and journalists, generally for information from various departments. Second, we realized, and we continue to realize, that when we, as elected members, make access to information requests, we run into certain exceptions. Very often, those exceptions are used by the government to make sure that documents that should be made public are unfortunately not accessible. In my opinion, that demonstrates once again that this government is completely lacking in transparency with respect to government decision-making and with respect to documents that are available to them and that could be used to inform the public about major issues.

We will recall that the government and the Conservative Party promised in the last election campaign to overhaul the Access to Information Act. On that point, I will quote a passage from the Conservative platform in the last election campaign.

The Conservative government had promised to reform the Access to Information Act. Here is what it said at that time: “A Conservative government will implement the Information Commissioner's recommendations for reform of the Access to Information Act.”

We must recall what the Information Commissioner said. He replied that the reason we need action and not further studies is because governments continue to distrust and resist the Access to Information Act and the oversight of the Information Commissioner.

Thus, a reform of the Access to Information Act is what was needed, and what is still needed. This reform needs to go even further than what the Liberal government proposed in 2005. Unfortunately, the current government is not fulfilling its obligations and not respecting the commitments it made to the people of Quebec and Canada during the last election campaign.

Let us not forget that Bill C-29 could have been an opportunity for this government to begin this overhaul of the Access to Information Act, thereby allowing the public to obtain essential documents in order to better understand the government decision-making process.

We also would have liked to see this bill protect whistleblowers. When there is a legal challenge, these whistleblowers cannot act and cannot defend themselves on an equal footing with other citizens or organizations that have ample means with which to defend themselves. Unfortunately, these whistelblowers will only be reimbursed for up to $1,500 in legal fees, which is a ridiculous amount for such coverage.

This demonstrates that, despite the sponsorship scandal, this government did not listen to the wishes of either the public or Justice Gomery, who called for greater transparency and greater reform. A few weeks ago, I heard Justice Gomery again say that too much power is concentrated and centralized in the Prime Minister's Office and that it was not healthy for a democracy. We would have therefore liked to see greater access and better coverage of legal fees for whistleblowers when the time comes to seek legal counsel.

We would have liked more guarantees to protect all Canadians who report wrongdoing within the government, not just public servants. Currently public servants enjoy some protection, but I think anyone who witnesses wrongdoing should benefit from the same protection under the current legislation as public servants.

Finally, and it is unfortunate, this bill fails to prevent the government from excluding crown corporations and other entities from the application of the Public Service Disclosure Protection Act. Quite often these crown corporations give out contracts or sometimes appoint cronies as CEOs at the behest of the government. We must make sure the government cannot exclude these crown corporations from the Public Service Disclosure Protection Act.

Bill C-2 is good, but it could be better. Bill C-29 is not good enough either. However, we agree that we need to have as many legislative guarantees as possible in order to prevent political parties, and leadership candidates in particular, from circumventing the ceilings. Furthermore, I must say it is totally unacceptable that these ceilings can be circumvented by taking out personal loans. Just look at the last leadership race when Bob Rae received loans totalling $705,000 and the creditors were John Rae and Bob Rae himself, who gave $125,000 to his own campaign. We must not be able to do indirectly what we are not allowed to do directly.

In closing, we support Bill C-29, but we would like to see better protection for whistleblowers and also a reform of the Access to Information Act.

Canada Elections ActGovernment Orders

February 14th, 2008 / 4:45 p.m.
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Liberal

Roy Cullen Liberal Etobicoke North, ON

Mr. Speaker, the gentleman in question will have to comply with the current law which deals with loans, and whatever happens with Bill C-29, he will have to comply with that. I am sure he will do exactly that.

The event of last night, my understanding is that it went ahead, but I could me mistaken--

Canada Elections ActGovernment Orders

February 14th, 2008 / 4:35 p.m.
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Oshawa Ontario

Conservative

Colin Carrie ConservativeParliamentary Secretary to the Minister of Industry

Mr. Speaker, we have to look at the times that we live in. We have just gone through one of the largest scandals in Canada with the sponsorship scandal.

This week the Liberal Party was holding a fundraiser and the sky was the limit. Liberal members were trying to work the loophole that the member was honestly talking about. The public really wants to see the government and all members working together to close as many loopholes as we can.

My colleague wanted to know why the government is doing it like this. The government is acting to ensure that political entities and wealthy interests cannot circumvent the contribution limits. In other words, loans that are made without reasonable expectation of repayment are essentially disguised contributions that could circumvent political financing rules.

The member talked about his own party's leadership campaign. Bob Rae received $845,000 in loans, $200,000 from his own brother. The change in Bill C-29 would ensure that candidates could not write-off unpaid loans after spending the money. Can the member say that he supports this?

Canada Elections ActGovernment Orders

February 14th, 2008 / 4:25 p.m.
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Liberal

Roy Cullen Liberal Etobicoke North, ON

Mr. Speaker, I am happy to speak to Bill C-29, An Act to amend the Canada Elections Act (accountability with respect to loans).

Certainly the party on this side supports transparency and accountability with respect to election financing and the Canada Elections Act. At committee, I understand, there were amendments made. That is why the caucus on this side will support the bill, with the amendments, but I gather the government will be challenging some of those amendments. That would be unfortunate. We will have to see where that takes us.

The other thing I need to say in regard to the bill is that although it is being presented by the Conservative Party as some new and revolutionary way of proceeding with this type of arrangement with respect to loans to candidates, et cetera, many aspects of the bill are in fact similar to what is already in force and what was in force under the leadership of our Liberal government.

Having said that, I think the bill makes things clearer in some areas. In that sense perhaps it is an improvement, but I do not think Canadians will be deceived by the fact that many of the provisions outlined in the bill are already in the law.

Perhaps I should step back a bit. As I understand it, what the bill is trying to deal with is the fact of a candidate running in a federal election, for example, where the rules are very strict--and so they should be--with respect to how people can accept donations or from whom they can accept donations. Those rules are fairly clear.

The intent, as I understand it, is that this bill tries to deal with people who might try to sidestep those rules by receiving loans from parties from whom they otherwise would not be able to receive loans, or by receiving loans at interest rates that are less than fair market value, which itself would constitute a benefit, et cetera.

Or the loan might be advanced during a campaign and then be forgiven. For example, the candidate who had access to the loan money might find that suddenly a year later the person from whom the candidate received the loan is washing his or her hands of it. The candidate might be told that he or she does not have to repay the loan. That would become a contribution. If the amount of the loan exceeds the amounts currently allowed under the Canada Elections Act, then surely the law would also apply to a loan that is forgiven, and surely a lower interest rate loan at less than fair market value would also constitute a benefit.

I think it is a good thing that people are not able to get around the rules or do things through the back door that they cannot do through the front door. To the extent that this bill clarifies those particular aspects, that is a positive development. However, under the existing act, the loans could not be forgiven without consequence, nor could loans be granted under the current provisions of the law if they exceed the donation limits.

This really goes back to our government's Bill C-24, An Act to amend the Canada Elections Act and the Income Tax Act (political financing). Our government began that process and that bill was passed into law. It severely restricted the amounts that could be donated to candidates or parties by corporations and unions, and it also restricted the amounts that could be paid by individuals.

The Conservative government, in Bill C-2, the Federal Accountability Act, has made further changes to that, and in fact reduced the personal contributions from $5,000 to $1,100 per year, per party. What has happened, of course, is that it has made it more difficult for political parties to raise money.

The provisions of Bill C-24 and Bill C-2 allow for Elections Canada to reimburse candidates based on how many votes they received in an election, so essentially what has happened is the burden and the cost of election campaigning has been transferred from corporations, unions, and to some extent individuals, to the taxpayers at large.

One can debate that philosophy. I for one think it is unfortunate that corporations and unions are precluded from participating in the political process. I would agree that limits need to be placed on that, but I wonder why it is so horrible for corporate Canada and the unions to not be able to support financially political parties or candidates of their choice within certain limits.

Nonetheless, Bill C-24 has passed and is the law of Canada, and Bill C-2 makes further changes to that particular regime.

However, I find it strangely ironic that this party brings in this bill, Bill C-29, and argues that it is a whole new regime with respect to loans and elections. As I said earlier, it is not really that new, but at the same time the leader of that party, the Prime Minister, has refused to disclose the names of all the individuals and organizations that donated to his leadership campaign in 2002. That strikes me as being very hypocritical.

Our party went through a leadership campaign a couple of years ago. All the participants made full disclosure of the sources of their funding and it is a matter of public record. However, for some reason the leader of the Conservative Party of Canada refuses to disclose the names of those people who donated to his leadership campaign. By refusing to do that, it raises questions about who was behind his leadership bid.

It may raise questions inappropriately because perhaps everything was totally appropriate, but by virtue of the refusal to disclose, it sort of leaves questions in people's minds of who was actually supporting his leadership bid, and whether they had a particular agenda that they were promoting or advancing.

If we have full transparency and disclosure, I think we take away that kind of ambiguity. I for one am in favour of full transparency and accountability.

Under the old rules, if a corporation wanted to donate to my election campaign, that donation would be fully disclosed by Elections Canada. It would be on my website. It would be everywhere.

If the voters of Etobicoke North did not think it was appropriate for me to accept $500 from BASF Canada because they thought I had a hidden agenda and the company was buying my influence about something, then that is a fair debate. I would be happy to have that debate.

Full transparency and accountability are absolute musts. Members of Parliament should be prepared to defend their actions in an election and in the House.

It has sometimes been said that this place is like living in a fish bowl. If people are interested in what we are doing, they can find out exactly what we are doing. If we travel or someone has sponsored our travel, that information is on the public record. The Office of the Ethics Commissioner has a whole variety of reports that are available publicly. I think that is totally appropriate.

People should not be able to take advantage of loopholes in legislation and stay clear of contribution limits by taking loans from people. That is in the current legislation. If Bill C-29 clarifies that, then that would be a positive development.

Our critic has worked hard on this file. A number of positive amendments were made at committee. I hope the government reflects on those amendments and does not try to reverse them because they would improve the bill. With that caveat, I will be supporting the bill when it comes to the House at a later stage.

Canada Elections ActGovernment Orders

February 14th, 2008 / 4:15 p.m.
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Bloc

Meili Faille Bloc Vaudreuil—Soulanges, QC

Mr. Speaker, I am pleased to join my colleagues in speaking to this bill in the House.

The Bloc Québécois will vote in favour of Bill C-29. The Bloc is in favour of a bill that would prevent people from bypassing campaign financing rules. Our position has not changed, unlike what the government is trying to do by introducing its three motions that are on the order paper.

Last session, this bill was called Bill C-54. I say that for the benefit of those listening and watching at home. The government simply introduced a new version containing the amendments made in committee, amendments that were adopted, by the way.

This bill is necessary to close some loopholes in the Federal Accountability Act, Bill C-2, which the government wanted to rush through. We believe that it is necessary to regulate loans in order to prevent financing limits from being circumvented. Contributions to political parties from individuals are limited to $1,100, and contributions from unions or businesses are no longer allowed. These contributions are close to zero. So, an individual can contribute up to $1,100 to a political party, and businesses and unions are not allowed to finance a political party. Examples were given in the May 9, 2007 Ottawa Citizen. This is one of the sources that reported on this problem. It provided examples of expenses and looked at whether or not they were permitted under the Federal Accountability Act.

The Liberal Party of Canada allowed candidates, including Bob Rae and the current Leader of the Opposition to take out loans of around $705,000 and $655,000, respectively. We also saw that creditors made loans of $25,000, $50,000, $100,000 or $150,000.

It was clear that the candidates for leadership of the Liberal Party had found a way to fund their campaigns without relying on grassroots funding. We want this ceiling. These contribution limits are the result of a battle the Bloc Québécois has fought since it has been here. These limits were set several years ago, and we will do everything in our power in this House to make sure no one circumvents the law. We will not support regulations that would amount to backsliding. We want grassroots funding and limits on individual contributions, as we have had in Quebec for 30 years.

The content of the bill is fairly simple. The bill would establish a uniform, transparent disclosure system for all loans to political entities, including mandatory disclosure of terms. People would therefore have the right to know the identity of all lenders and loan guarantors. The bill provides that only financial institutions, at a commercial interest rate, or political entities would be authorized to make loans of more than $1,100.

The rules that apply to unpaid loans would be tightened so that candidates could not shirk their obligations.

Riding associations—or the party itself, when there are no associations—would become liable for loans candidates did not repay.

We are currently examining a request by the government concerning how candidates' unpaid loans would be treated.

In its current form, the bill provides that loans that were not repaid after 18 months would be considered political contributions.

This brings me to the three motions on the order paper, and I will explain the position of the Bloc Québécois on each one. The three motions are amendments to the bill. We have problems with two of them. The third does not present a problem because it makes clarifications that are in line with the amendment tabled in committee.

The problem with the first motion is that the government wants to limit contributions to a given candidate to $1,000 for the entire leadership race. We would prefer that each $1,000 donation from an individual be made according to existing rules governing political contributions, that is, on the basis of a fiscal year. That way, if a leadership race were to take place over two fiscal years, a total of $2,000 could be donated. We are therefore against the government's amendment.

We think that the amendment proposed in committee is logical because the contribution limits in the Elections Act are annual. This would provide for a contribution system identical to that for individuals. We do not want two different kinds of funding for two different kinds of elections, whether for a leadership race or a general election.

The second amendment, the one we agree with based on our analysis, is the one about deadlines. Earlier, I said that the bill proposed an 18-month deadline for paying back a loan. Here, the government is proposing much more precise wording, and we have no problem with that. For a nomination contestant, the three-year period would apply as of the selection date; for a leadership candidate, it would be three years after the end of the race; and for a political party, it would be three years after the end of the fiscal year. What the government is asking for here is quite reasonable.

We do have a problem with the motion that proposes rejecting all of the Bloc Québécois amendments. This is very straightforward. The government wants to make political parties responsible for debts contracted by their candidates. We oppose that proposal. We think it is illogical to try to force a political party to take on its candidates' debts when the political party has no way to limit a candidate's expenditures. The example given was a simple one. A political party cannot currently do anything to prevent a candidate from taking out a $60,000 loan. In a case like that, the government's motion would be unreasonable.

The government motion allows an individual to borrow an unlimited amount in the name of a separate entity. To illustrate this, it is as though I were to borrow a large sum of money and when it came time to pay it back and I was unable to do so, I said it was up to my neighbour to pay it back, even though he knew nothing about the loan. We think this is nonsense and we would like to keep the bill the way it is concerning that particular clause.

I see I have one minute left. In conclusion, here is our problem with the last motion. In committee, the government introduced the Bloc Québécois' amendment. It was in favour of doing things the way we had proposed. Now, though, after reviewing the bill in committee, it has changed its position. That is another reason why we will oppose this amendment, although we are in favour of the bill.

The Conservative Party has had many problems these last few days. This whole issue of transparency and ethics has to go beyond mere slogans.

Canada Elections ActGovernment Orders

February 14th, 2008 / 3:45 p.m.
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Bloc

Nicole Demers Bloc Laval, QC

Mr. Speaker, although I am usually quite happy to rise in this House to debate various bills dealing with social problems, I find it difficult to debate this bill because, for me, anything that has to do with money and math is esoteric. It is all Greek to me. It is a language that I do not understand at all. In that regard, the chair of the Standing Committee on the Status of Women could corroborate. I have to work very hard to understand anything concerning money.

What I do understand, however, is that the government was too anxious to put through Bill C-2 and that the bill has several shortcomings. That does not surprise me, but what I do find surprising is that the government now wants to address some of those shortcomings. Indeed, over the past two years, none of the objectives of Bill C-2 has been met in its original form. The purpose of the bill was to guarantee a responsible, transparent government that would never commit any wrongdoings as serious as those we had seen in the past. We now see that that is not the case and we must quickly put forward another bill to correct the shortcomings. Let us hope that Bill C-29 will correct these deficiencies, not only in words or in the text of the legislation, but also in action.

Contrary to what my colleague just said, if a young woman from Rimouski went to a bank to get a loan so that she could run in a federal election, I do not think she would have the problems he was describing. In Quebec, the caisses populaires have a social duty and must lend 60% of the amount that a person is entitled to receive from the Chief Electoral Officer for federal elections. So we have something here that is probably already better than what exists in the ROC, the rest of Canada. We have created financial institutions for ourselves in Quebec and passed laws that prevent the kind of abuses they are trying to prevent today with Bill C-29.

At the same time, though, as they try to prevent abuses, they are handicapping the political parties a bit by removing their ability to decide—along with the— whether he or she can borrow money. According to the bill, the parties would be responsible for the money their candidates borrowed. That is totally absurd. I wonder whether the party of which I am a proud member would have been able to meet my needs when I decided to enter politics. I made my own decisions about how much money I needed, an amount that was very personal. It is not up to the parties to foot the bill for people who decide to run for them in elections.

A candidate is chosen and talks with his party. He determines his strategy together and in collaboration with his party, but ultimately, it is the candidate who decides how much he wants to spend on his election campaign. If the political party were made responsible for the money that a candidate spends, we would be opening the door to major abuses.

It is the same as if I decided to buy a new house and told the bank it could have confidence in me because the Speaker of the House of Commons likes it and supports my getting a loan. Since you are a solid citizen, the bank would give me the money. That would be a bit ridiculous.

Once again, we see the party in power, the Conservatives, trying to put more restrictive rules in place when they do not follow their own rules. It is rather paradoxical. When we adopt rules, we should start by following them ourselves before insisting that other people should follow them or thinking that a new rule should be invented to prevent one party or another from making progress.

That is the impression given by this bill.

Bill C-54, which was introduced in the last session, was very similar to this bill. It was examined in committee and debated on several occasions. In fact, an amendment from the Bloc Québécois had been incorporated into the bill. As a result, it was a better bill that provided a great deal more latitude to political parties, to individuals and to companies. We know that we must act responsibly.

Now, the government has tabled other amendments, which are unacceptable, to prevent us from acting in a way that any political party should have to right to act.

In Quebec, we have had regulations governing political funding for more than 30 years. René Lévesque was very conscious of the difficulties and temptations that political parties, individuals and legislature members must deal with. Some members or ministers think they have a great deal more power because their party is in office. That is not how we are supposed to think. We are supposed to take our responsibilities very seriously. Unfortunately, too many people do not do that.

Therefore, we have created a very strict framework that requires parties, members of the legislature and individuals to follow the rules. Those rules have been followed for more than 30 years and that works very well in Quebec, contrary to what some government members here have said. If there is electoral fraud in Quebec it does not happen often. When there is fraud it is discovered immediately, and not two, three or four years later, because we have provided the tools to do that.

The government seems to forget that in the past two years it introduced Bill C-2 to deal with some of the difficulties that parliamentarians might encounter. But they have not even respected the spirit of Bill C-2.

We have heard of influence-peddling in recent weeks. We have also seen appointments that are clearly favouritism. In the past few weeks, we have seen contracts awarded to third parties in ways that do not comply with the regulations. Those contracts were for just under $25,000, which made it possible to award more contracts, to more people, without following the usual procedures.

In my opinion, when we create legislation it is because we recognize that we have a responsibility toward our fellow citizens. If we only do it to look good, would it not be better to think seriously before trying to put through a bill? Would it not be better, as a political body—I am speaking of the government—to look deeply into its conscience to ensure that Bill C-2 is respected?

They tell us all day long that they brought forward Bill C-2, but for the past two years that bill has been laughed at and ignored by the government in power. For two years they have twisted that bill in all kinds of ways. Now, they want to make amendments to Bill C-29 in order to make life difficult for the political parties that are not in power. It is ridiculous.

Part of this bill is certainly important. We will vote in favour of that important part; but the majority of the amendments that have been added are not acceptable to us because they simply do not make sense. We want nothing to do with those.

We do not want those.

Canada Elections ActGovernment Orders

February 14th, 2008 / 3:30 p.m.
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Liberal

Derek Lee Liberal Scarborough—Rouge River, ON

Mr. Speaker, I will continue the debate on the report stage amendments to Bill C-29.

The government has said that the bill would fill in gaps in existing legislation governing loans to political candidates or parties. However, I point out that the existing law requires full disclosure of these types of loans and has procedures in place governing repayment. However, the bill purports to tweak and ratchet up the degree of regulation involved with these loans.

From a distance, it looks like the Conservative government is trying to do everything it can to lob grenades, regulate and obstruct the way people run for public office federally. I am imputing rationale here, but it is as though the Conservatives are saying they have their financing mechanisms all in place and the rest us can go find our own way. They are going to regulate the field and make it tough for everybody, including arguably, themselves. That is the universe the way they see it. They will continue to regulate and regulate. Every time they see something they do not like, they will pass another law and will continue to pass laws until the thing gets so gummed up that hardly anybody will be able to move on the street. That is my impression of the bill.

I accept it is a tweak, a ratchet up to the existing set of rules. However, I want to try to take a wider angle view of what is going on as it relates to the right of Canadians to participate in the political process.

I think there is some gamesmanship involved. I do not think it is all idealistic attempts to make the universe right. In their efforts at trying to kneecap the other parties, or other people who do not organize their campaigns the way the Conservatives do, are they really in a way obstructing participation in the process? Are we only thinking about existing parties when we make these new rules? Have we forgot about the new parties that have not made it into the system yet?

If we were talking about banking or the mining sector, we would be looking at such issues as obstacles and barriers to entry to ensure competition. We would not clutter the roadway with all kinds of rules and barriers to obstruct new entrants into the mining or banking field. We like to see competition. In adopting these measures in the bill, we would really be regulating. I will give two examples of how I think it may be a problem.

These new rules create barriers to people, although that may have been unintended. I think the intention is to create barriers for all the other political parties that are on the street now and we may have forgot about the ones that are not there yet.

I have two examples on which I want to focus.

First, the bill says that candidates and parties can only borrow from financial institutions. That would be a pretty significant law. In order to borrow from a financial institution, one has to have a credit rating. Does a poor candidate have a better credit rating than a rich candidate? I will leave that question unanswered, but I think the answer is kind of obvious. A poor candidate would not have as good a credit rating. Therefore, with the imposition of the mandatory financing mechanism with the banks and therefore the imputed need for a credit rating, are we imposing a barrier to poor candidates? I think we are. A poor candidate might be able to borrow from a brother-in-law, but might not be able to float a decent loan from the bank for his or her political campaign as he or she goes forward.

All of the existing incumbents in the House have been elected at least once. Most of us know how to finance a campaign or to raise money for it. We all have to do it. It is a very legitimate part of being involved in politics, but I think buried in this section is an adverse effect discrimination. Somebody out there will notice it and someday even the courts may notice it.

I am thinking of women who sometimes have less money and poorer people, who by definition have less money and resources, to participate in politics and sometimes may need a loan to get them over the hump.

Second, if we can only borrow from the banks and financial institutions, then the banks become an integral monopoly source of funding or borrowing for financial campaigns. I wonder how a bank makes a decision about its lending policies, about whether it will only lend to one party or one candidate. If it lends to one, does it have to lend to all? How will the banks handle this imposition of being the sole source for lending to political campaigns? If I were the banks, I would be kind of unhappy about it, because it is forcing banks to make decisions that may be seen to be political.

I mentioned earlier the problem of credit ratings for the poor candidates, the less pecunious candidates, but the banks also have a decision to make between political parties. They may decide to lend $10,000 to one party and $25,000 to the other party or cap everybody at $10,000. Maybe they will decide not lend anybody anything in a political campaign because it is too mucky and too political. They might leave it up to Parliament to figure out how it wants to finance campaigns, but they do not want people going to them. If we do not want candidates to borrow from the brother-in-law or from the friend, too bad.

The banks might not be too happy with this. I do not know for sure, but there may be some push-back there. If a person needs a loan and he or she has to go to a bank and the bank tells that person it does not lend to political candidates or parties, what have we done? We have created a barrier to participation and entry.

The amendments put forward by the government purport to roll back amendments that were put into the bill by the members of the committee. They were good amendments and I would like to keep them there. Therefore, I oppose the government's move to roll them back.

One amendment has to do with the amortization of loans of leadership candidates. Another one has to do with repeat loans during a calendar year, which looks pretty reasonable to me. The other has to do with the deletion of the automatic liability of a political party, as mentioned by the previous speaker, if one of its candidates defaults on repayment of a loan. That is just a dumb mechanism and it should not be there. However, it does relate to my earlier comments about banks and financial institutions. Maybe they would not mind having that automatic liability of the party being there, but I do not think it is a good way to manage the financing.

I therefore oppose the government motions to reinstate provisions of the bill.

For reasons I have stated, there may be some constitutional vulnerability related to the charter in these sections. We will not know until the appropriate case comes along. However, when that case does come along, I hope it is somebody who maybe did not have a lot of money, wanted to borrow money but was unable to do that. I hope the person can show that this relatively dumb, holier than thou government regulation of this part of the political process is seen to be an obstacle to political participation.

I hope my friends in the Conservative Party will see that perhaps they are taking too myopic a view of Canada. They are trying to regulate everything from their view inside their political party, but Canada is really much more diverse and demands a little more freedom than they are willing to accord in terms of the financing of campaigns and participation in the process.

The House resumed consideration of Bill C-29, An Act to amend the Canada Elections Act (accountability with respect to loans) as reported by a committee with amendments, and of the motions in Group No. 1.

Canada Elections ActGovernment Orders

February 14th, 2008 / 1:35 p.m.
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Bloc

Réal Ménard Bloc Hochelaga, QC

Mr. Speaker, I do not need to tell you how pleased I am to be taking part in the debate on Bill C-29.

When you are a member of Parliament, there is not much that is more important than the quality of democratic life.

The members of the Bloc Québécois, who are all Quebeckers, because we field candidates only in Quebec, are obviously thinking of the legacy of René Lévesque. I am certain that the mention of his name is extremely inspiring to all the members, because René Lévesque made a huge contribution to cleaning up election practices by putting an end to secret funding. The older among us, including my colleague from Abitibi—Baie-James—Nunavik—Eeyou, will remember that the 1976 Parti Québécois leadership campaign centred around this issue. There was one slogan that went: “For a clean, clean, clean fund”.

Today, it seems funny to refer to that time, because practices in Quebec have changed so much, in a non-partisan way. No one in the National Assembly of Quebec would want to go back to a system where corporations and individuals could make unreported contributions.

Still, the idea of establishing limits is quite new in our federal legislation. There has been a federal Elections Act for a very long time, but it did not have any control over contributions until the final years of the Chrétien government. We have to acknowledge in a non-partisan way that that was an interesting way to ensure democracy.

One might ask why, in a democracy, we have to know the rules of the game and limit contributions to a political party to $1,100 per individual, for example. This needs to be done because we would not want to live in a democracy where members of Parliament become spokespersons for lobby groups, as in the United States. I remember meeting a U.S. senator. It takes millions and millions of dollars to get elected in the United States. Because candidates receive contributions, they are required to become declared lobbyists for a specific lobby group.

The beauty of our electoral system, which is not perfect and could use some amendments, is that someone like me, the son of a labourer with no personal wealth, got elected last time by spending $25,000. For the most part, my contributions came from public fundraising. We can get elected without having any ties whatsoever to lobby groups. I am not saying that those groups cannot make contributions to have their point of view represented. However, it is possible to get elected in a political system without any ties to lobby groups. That is the best guarantee the public has. When we rise in the House to take a position on an issue, we do so without any ulterior motive and only with the interests of our constituents in mind. The more responsibility we have and the closer we get to the top, the more important it is for these examples of integrity to be absolutely respected.

That is why the Bloc Québécois has repeatedly called on the present Prime Minister to disclose all the sources of funding for his Canadian Alliance leadership campaign in 2002. This would be a sign of democratic respect that we recognize and that demonstrates transparency. As the Gomery report put it, we believe it would be a sign of democracy, transparency and sound responsibility to know who financed the present Prime Minister in his leadership bid in 2002.

The bill that is before us, and that the Bloc Québécois supports, is a bill that goes farther still.

Jean Chrétien introduced one bill, and after that there was Bill C-2 which went a little farther. I would note, as an aside, that it was a source of some disappointment. We would have hoped that the Access to Information Act would be modernized. After all, we have been talking about that for two decades.

We are well aware that journalists, and some members of the public, are concerned about the way this government is restricting the dissemination of information. We are well aware that people expect the Access to Information Act to be modernized. The Liberals did not do it and the Conservatives are dragging their feet on it, but it would be a good thing if this were done very quickly.

Even though the Access to Information Act has not been modernized, Bill C-2 still put transparency mechanisms in place that the Bloc Québécois supported at the time. I am thinking, for example, of whistleblowing in the public service and the budget oversight mechanisms under the responsibility of the Library of Parliament. So it seemed to us to be moving in the right direction.

Today we are going farther. We are calling for an end to a practice that can also generate controversy, that can also be ambiguous and that can also be questionable in terms of transparency. We want to prevent party leaders and people who have responsibilities and who want to be elected in political parties from being able to circumvent the rules and get access to funding beyond what is permitted or otherwise than through public funding, by accepting personal loans.

Today's bill will, first, limit the personal loans that can be taken out to the extremely precise figure of $1,100, the same as for personal contributions. Obviously there is a disclosure mechanism and mandatory registration. More importantly, repayment will be monitored. If I understand correctly, if a personal loan taken out by an elected member is not repaid within 18 months, it will have to be considered to be a contribution to the party, and an entire process will be set in motion.

It seems that the government has begun by imitating what was done in Quebec, finally putting an end to funding by corporations, unions and businesses, and accepting contributions from individuals only. The cap has been set at $1,100 to minimize the potential for influence peddling. Today, we are going even further by ensuring that personal loans—access to funding—will not be possible.

I hasten to add that this mechanism is a good one for purposes of transparency. It is good because it will allow us to become elected representatives who owe nothing to lobby groups. But this reform would not have been viable without public funding for political parties. Democracy does indeed have a price.

If we want people to get involved in public life, we have to talk about balancing work and family. Some members of my party have studied this issue. We want women to hold public office, but we know that they do not have equal opportunity. Even though there have been significant changes, women often have responsibilities that men have not fully taken on. Truly equal opportunity demands public funding so that political parties can benefit from a kind of war chest provided by public coffers as a starting point.

We are always on the lookout for improvements and concerned about cleaning up electoral practices. I think that the bill before us would contribute to that goal.

Mr. Speaker, given the frank camaraderie that has characterized our work over the past few days, and given that I have worked so hard on my speech, would you be so kind as to find out whether there is consent for me to go on for another 10 minutes?

Canada Elections ActGovernment Orders

February 14th, 2008 / 1:20 p.m.
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Liberal

Brian Murphy Liberal Moncton—Riverview—Dieppe, NB

Mr. Speaker, it is my pleasure to speak to Bill C-29.

Under the wavering light of this corner of the House, I hope my comments are clear and constant in suggesting that the bill, as it came through committee, was the proper bill. What the government is trying to do now is ignore the good democratic conditions and precedents of good committee work.

The bill in review aims to establish a system of improved accountability. It certainly did that as it came out of committee. Its key elements include creating a uniform and transparent reporting regime for all loans to political entities, including mandatory disclosure of terms and the identity of all lenders and loan guarantors.

That much makes a lot of sense. It would also ensure that total loans, loan guarantees and contributions by individuals could not exceed the annual contribution limit for individuals established in the Canada Elections Act.

It would also allow only financial institutions and political entities the capacity to make loans beyond the annual contribution limit for individuals and only at commercial or market rates of interest.

Tightening the rules for the treatment of unpaid loans to ensure candidates cannot walk away from unpaid loans was also an aim of this bill as it came back from committee. It would ultimately, as in its original sense, hold riding associations responsible for unpaid loans taken out by candidates. This is one of the cruxes of the problem, and I will get to the democratic deficit and the lack of participation that we have by good candidates in the electoral process if the government's designs are to be carried through.

The bill, by way of history, was first presented to the House during the first session of this Parliament as Bill C-54 and reintroduced in November of the past year with essentially the same content as Bill C-54.

The bill was very seriously examined during meetings of the Standing Committee on Procedure and House Affairs. The members worked very hard and came to agree upon different elements. There was a great deal, I say in a spirit of non-partisanship, of unanimity with respect to some of the time limit terms and some of the technical aspects. It was thought, certainly by opposition members, that there was a good deal of consensus and agreement on a few other outstanding matters that were embodied in amendments to the bill.

On this side we thought the bill as amended, as it comes back from committee, is something that we, in the great traditions of the Liberal Party, in the great traditions of democratic reform and keeping the balance that allows people to participate in the democratic process, could support.

At those committee meetings, improvements were made, not the least of which, as a significant improvement, was now to have unpaid amounts of a loan to be considered contributions after three years from the date the loan was made. The original proposal was 18 months.

Now the government House leader, the minister responsible for undemocratic reform, is presenting motions that will completely disregard the other amendments that were passed at committee.

Government Motion No. 1 would delete the Liberal amendment to allow for annual contributions to a leadership candidate. Under this amendment, for example, person A would be allowed to donate $1,000, or $1,100 as the case may be, to leadership candidate B in each calendar year until leadership candidate B paid his or her campaign debt and formally and finally closed his or her leadership campaign.

Government Motion No. 2 would make it necessary for loans to be repaid annually rather than at the point when the loan becomes due. This effectively would prevent candidates from taking extended repayment loans. It acts as a foreclosure on the normal commercial manner in which loans are undertaken and paid back. It says that the way the market works with respect to loaning a person money to fund a campaign shall not be respected. It makes no sense to set up an artificial limit on repayment when the market will deal with that issue.

After all, the movement is from a loan from a friend to a loan from a commercial lender at a commercial rate. I do not know if there was enough evidence from the banking community on this but it would seem to me that the banks are not in the business of giving loans that are high risk. They are not in the business of giving loans to people who cannot repay them.

Why is it that Parliament shall say to the bankers of this country that they do not know how to underwrite risk and that Parliament will make it shorter in duration for the banks and different than the market conditions. It is clearly against the forces of the market, which I thought the party on the other side favoured, and it is clearly undemocratic because it will put a chill on candidates presenting themselves for election.

Considering the fact that elections are not something that somebody can plan for, I think we are living that right now, but often, in the normal course of events, we can plan when we want to buy a house, a car, start a family or put our kids through college, as the case may be. Those are events we can plan and save for and, from time to time, we can make loans from commercial lenders at commercial rates. However, it is very difficult for someone who is not in the House right now and who wants to stand as a candidate to predict when he or she may need to get a loan for a campaign or, as the case may be, a leadership race.

Because the election may be called at any time, January, April or October, it is unreasonable for someone to be asked to pay off a loan before the time limit established by the loan contract itself. We on this side stand for the principles of the market. The free market shall dictate when a loan is given and how it is prepaid. Why is the government interloping and saying to the free market, the lenders in this country, that the government knows best?

Here we see the Conservative government is pushing hard on its perception and not its reality of accountability.

The Accountability Act, Bill C-2, which was presented and passed, was really the window dressing for the government's new regime and for its patina, if one likes, of sincerity. I say patina because it is a very thin layer that can be pierced very easily and beneath the patina we can see the substance. Without proper regulations backing up Bill C-2, the Accountability Act, it is a very hollow instrument. It does not have any of the reality backing up the rhetoric with which it was introduced.

It would be an absolute hindrance, in terms of accountability, for us to say that these government amendments help the democratic process. It would be an absolute hindrance for anyone presenting themselves to have to focus on repaying the loan by the end of the fiscal year if that is not the date that was agreed upon by the lender.

Moving to government Motion No. 3, it would delete the Bloc Québécois amendment that would remove liability from registered political parties for loans taken out by candidates.

We can imagine that we are 308 members in the House, not all filled at the time, but all of us have different constituencies and all of us have been successful in getting here, some by a wide margin and some by a very large margin.

If one is contesting a riding that one does not hold, the spectre of the political association being responsible for one's debt, if one is unsuccessful, is again very undemocratic because it would pit the association against the candidate. In a riding where it is impossible to win, or does not look very likely that one could win, we can see very clearly that the bill and the government Motion No. 3 puts a chill on democratic involvement and is in fact very undemocratic. One would wonder why it is included.

Why would the Conservative government, which does not hold all the seats in Parliament and, in fact, will never hold many of the seats in Parliament, wants to put a chill on its own candidates in pitting their Conservative associations against their candidates? One wonders why because it does not do anything to help the participation of new candidates in ridings.

In short, we are not in support of these amendments that the government has reintroduced at report stage. We think t the committee worked very well and that its wishes and its motions should be respected.

The House resumed consideration of Bill C-29, An Act to amend the Canada Elections Act (accountability with respect to loans), as reported (with amendment) from the committee, and of the motions in Group No. 1.

Canada Elections ActGovernment Orders

February 12th, 2008 / 5:25 p.m.
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Bloc

Pierre Paquette Bloc Joliette, QC

Mr. Speaker, I am pleased to speak to this debate on Bill C-29, which is in fact the amended version of Bill C-54 that was debated in the previous session. All parties agreed to pick up the debate where we left off before resuming this new session. As was the case in the previous session, we will support the bill even though, and I will come back to this, we think it is important that a number of the amendments we made to it—I am talking about the opposition parties, but the Bloc Québécois in particular—be maintained despite the government's desire to drop them for reasons that are completely unclear to me.

We were in favour of this bill and we still are. The purpose of the bill is to prevent individuals from bypassing campaign financing rules. The bill now includes a ceiling of $1,100 for individuals. Companies and corporations are no longer able to make donations to political associations. We agree with this principle that has existed in Quebec for 30 years now. This was one of the first accomplishments of the Parti Québécois under the leadership of René Lévesque.

As such, we agree with the idea that once a number of rules are in place governing political party fundraising and the amounts that individual voters can contribute, people should not have opportunities to get around the law by taking out loans, thereby sidestepping the will of Parliament, particularly the House of Commons, to ensure that the rules of the game are more or less the same for all political parties.

I have been watching what is going on with the primaries in the United States and the mind-boggling amounts of money the candidates are spending. This is not even the race for the presidency of the United States. These are just the Democratic and Republican nomination races. It is clear that that much money results in inequality that prevents some people from participating in the races from the very beginning.

Of course, in both Canada and Quebec, fundraising efforts do have to be significant. Everyone in this House knows that and participates in it. Still, the amount of money each of us can use for our election campaigns is within reach, even for individuals who do not have a personal fortune at their disposal or a network of acquaintances to secure the loans or donations they need to launch a campaign. For example, the value of some contributions made to both the Conservative and Liberal leadership races, which took place before Bill C-2 was passed, is still unknown.

It is clear to us that candidates should not be allowed to use loans to sidestep the caps that put an end to corporate backing and limit individual contributions.

The bill also solves another problem with the Federal Accountability Act, Bill C-2, about which I spoke earlier. When Bill C-2 was being studied—and this was denounced by all opposition parties—the Conservative government was much more interested in quickly passing the bill in order to inform citizens that it had fulfilled its first promise. Unfortunately, this haste resulted in a certain number of deficiencies. I am referring to loans to political entities. The bill fell somewhat short in terms of the ethics promised. We really did have to revisit the shortcomings of Bill C-2. I remind the House that, at the time, the opposition parties, the media, the political observers and organizations such as Democracy Watch pointed out the problem but the government refused to take action.

Once again, as is often the case in this Parliament, each party had to study the advantages and the disadvantages of the deficiencies resulting from the Conservatives' haste. We supported the bill because we were generally in favour of the underlying principle.

Bill C-29 also solves the problem of loans—it is at the heart of the bill—whereby the limits for personal political contributions could be circumvented. Several ethical difficulties were not addressed by Bill C-2. I am thinking, for instance, of poor protection for whistleblowers and the failure to reform the Access to Information Act.

Bill C-29 incorporates the only change proposed by the Bloc Québécois when Bill C-54 was studied in committee. This amendment ensured that the political party would not be responsible for the debts of candidates. The government wants to change that. We do not really understand the government's intentions. It wants to force a political party to guarantee, without prior knowledge, the debts of a candidate who, without making any effort to raise funds, decides to borrow from a bank the maximum amount allowed under the Canada Elections Act.

We therefore proposed an amendment, with which the government seemed to agree, or at least the opposition parties, the Liberals and the NDP, did. Now the government is questioning our amendment. Therefore, we will vote against this government motion.

It is rather irrational and illogical that a political party would be responsible for debts incurred by its candidates without the party knowing. We think the Bloc's amendment should be upheld so that the bill makes sense. I hope the two other opposition parties will still be in favour of it, as they were when Bill C-54 was being examined in committee.

The Bloc Québécois is almost entirely financed by individuals. An candidate could borrow $50,000 from the bank to run his election campaign. If he did not repay the loan, the bank could go after the political party. I think allowing this would be almost immoral. It means that every citizen who donates $5 to our party would also have to support this candidate who might have gotten into debt irresponsibly.

I think that even though we agree with the spirit of the bill and will vote in favour of it, the government should rethink its decision to remove the amendment proposed by the Bloc and adopted by the committee. It should go back to something that makes much more sense and that would be more respectful towards the thousands of small donors who are the financing backbone of the Bloc Québécois, and I imagine this is the case with the other parties.

I will not go on any longer. That was my basic message. We will have to hope that the government comes to its senses and accepts the bill with the amendment proposed by the Bloc and adopted in committee.