Mr. Speaker, I am pleased to rise on behalf of the constituents of Surrey Central to participate in the debate on Bill C-24, an act to amend the Canada Elections Act and the Income Tax Act, political financing.
The purpose of Bill C-24 is: (a) to restrict the amount of contributions allowed to political parties, riding associations and candidates, including candidates for nomination for party leadership; (b) to compensate the political parties for the anticipated loss in revenue from large corporate and union donations by way of direct public financing; and (c) to extend the regulatory aspects of the Canada Elections Act in terms of registration and financial accounting to riding associations as well as nomination and leadership candidates.
The bill is yet another instance of the Liberals realizing their past mistakes, taking a good idea and turning it into a bad law. A candidate with money has a campaign, whereas without money has a cause.
It may be true that money is the mother's milk of politics but I believe political fundraising has contributed to the growing cynicism about public life.
Right or wrong, Canadians believe that money buys influence, and we cannot blame them. A recent study revealed that of the top 25 federal government contractors, 17 are major donors to the federal Liberal Party. Moreover these companies donate to the Liberal Party, versus all other parties, at a ratio of 6:1. At the candidate level the ratio is 30:1.
Major donors are not at all representative of the Canadian economy. Rather almost uniformly they tend to be government contractors, regulated industries and companies seeking changes from the government.
When I was the official opposition's critic for CIDA in 2000, I found out that Tecsult, a Quebec firm which had been getting repeat contracts from CIDA, was awarded contracts since 1993 worth $134 million and the same conglomerate gave to the Liberal Party and its candidates donations worth $137,000 since 1995. Since we first raised this matter in 1997, Tecsult and its affiliates were called Geratec. That firm was dissolved shortly thereafter but CIDA kept paying out millions of taxpayer dollars to the same principals.
Why was the CIDA minister allowed to siphon off taxpayer funds to these firms in exchange for Liberal donations? There are many examples like this.
The Prime Minister is determined to pass Bill C-24 even having gone so far as to threaten an election over the bill. Why after 10 years as the head of the government has he finally become so passionate over campaign finance reform? That is the big question. It seems it took the Prime Minister until he was just about to leave the tunnel to finally see the light at the end of it. Maybe the Prime Minister wants to take care of his good political friend, the former finance minister, whose mind he can read and whom he is so obviously determined to assist in any way possible.
The Prime Minister's sudden conversion probably has everything to do with cleaning up the image of the government which has been for so long plagued with scandal after scandal, corruption, cronyism with every suggestion that it has been helping Liberal friends. The Prime Minister should be restoring transparency and accountability to the political process. This bill is too little too late.
My major objection to Bill C-24 is that it removes the incentive to go out to ordinary Canadians and raise money from individual donors. In fact discourages and thus limits individual participation in the political process.
Rather than being dependent upon donations, parties and politicians will become dependent upon the public treasury. That seems like a very Liberal idea.
The public should contribute to parties voluntarily, not by law. The government acknowledges that under this legislation political parties and candidates would be 90% on the public take, up from 60% today.
The bill would double the amount that can be claimed against the full 75% tax credit for political contributions, versus the 16% credit for contributions to other deserving causes such as curing cancer, from $200 to $400. For example, if the party received a $400 donation, the contributor would only pay $100. The tax man would pay the remaining $300. This measure could add approximately $15 million in taxpayer subsidies to the parties in a non-election year and approximately $40 million in an election year.
That is not all. Under the legislation a party would be reimbursed 50% of its election expenses, up from 22% under the current law. This change means that, using the same previously mentioned $400 contribution, when spent, the party would receive another $200 from the taxpayer. Of the original $400 in sum, the taxpayer would be on the hook for $500. For larger donations the credit would be proportionately smaller. It gets even worse.
Under the proposed legislation, political parties would be permitted an annual allowance based upon the number of votes received in the previous election provided the party received either 2% of the votes cast nationally or 5% of the votes in the riding where it ran candidates. For every vote received, a party would get $1.50 per year. Even those who agree with public financing, which I do not, should find $1.50 per vote excessive.
Let us use the results of the last federal election as a benchmark, but it should be kept in mind that election witnessed the lowest voter turnout in recent history so the numbers could easily be higher in future elections. This would have amounted to a public subsidy of more than $20 million to the parties each year.
First the Liberals pass a law against so-called third party advertising forbidding Canadians to spend their own money on a cause they believe in. Now they are forcing the same Canadians to spend their money on a cause they may not believe in.
The Canadian Alliance believes that political parties should be more dependent upon financial support from grassroots members of political parties. People will give money to a party that provides them with a voice and an opportunity to bring about real change in the way the country is governed. That is why we have had such success in attracting individual donations. In 2001 the Canadian Alliance had 49,000 different contributors whereas the Liberals had only 6,500.
This would also put independent candidates and the small and new fringe parties at a disadvantage. They would not have an equal and fair chance during an election. The governing party, the largest party in the House, would continue to enjoy an advantage in the cycle for a long time to come.
The government has long believed it can spend Canadians' money more wisely than Canadians themselves can. That attitude needs to change. Canadians can decide for themselves to whom they want to give their money. They do not need the government to decide for them.
There are many other weaknesses I could point out. Recently it has come to my attention that some members have accumulated large trust funds containing hundreds of thousands of dollars. That is not fair. The provision is impossible to meaningfully enforce so that there could be some accountability.
I will oppose the bill as it increases taxpayer funded subsidies to political parties. I can support in principle limitations on corporate, union and individual donations. I rigorously condemn the enhanced public funding of political parties, especially where it is unrelated to actual financial contributions from a party's supporters.
We are prepared to accept the current reimbursement formula for candidates and parties for direct election expenses. We will seek amendments in committee to tighten up an attempt to prevent indirect contributions through trust funds to make the provisions of the bill fairer to smaller parties and non-incumbents and to limit taxpayer contributions to parties they do not support.
Therefore I will oppose the bill.