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

This bill is from 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 has also written a full legislative summary of the bill.

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.

Similar bills

C-21 (41st Parliament, 1st session) Political Loans Accountability Act
C-19 (40th Parliament, 3rd session) Political Loans Accountability Act
C-54 (39th Parliament, 1st session) An Act to amend the Canada Elections Act (accountability with respect to loans)

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.

Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-29s:

C-29 (2022) Law National Council for Reconciliation Act
C-29 (2021) Law Port of Montreal Operations Act, 2021
C-29 (2016) Law Budget Implementation Act, 2016, No. 2
C-29 (2014) Law Appropriation Act No. 1, 2014-15
C-29 (2011) Law Appropriation Act No. 3, 2011-12
C-29 (2010) Safeguarding Canadians' Personal Information Act

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.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:35 p.m.

Liberal

Alan Tonks Liberal York South—Weston, ON

Mr. Speaker, I can tell from the manner in which the question has been put forward that the member does not share the same experience as perhaps many Canadians have in terms of getting a loan from a bank.

Unless I have misunderstood him, he is suggesting that all Canadians are equal before the banks, but that is not the case. The banks do not particularly care whether in this sense the loan is related to the democratic pursuit of public office. If the member is suggesting that has any added value in the eyes of the banks, it may in the eyes of the bank manager who may have insights in his or her experience, but in terms of an institutional insight, I do not think that I would want to suggest that all Canadians will have that kind of equality.

If we take that line of reasoning, if someone has to get a loan, he or she is not going to have as much ability to do that depending on what the person's economic status is, if the person owns property, if the person has collateral. We cannot do that. We cannot even have someone put up his or her collateral in this instance.

Unless I am not understanding the bill, that is not a reasonable nor is it a fair or equitable position for us to put any Canadian in. If we are talking about bridging our principles with our desire to involve Canadians, it has been said that every private has a field marshal's baton in his knapsack. They all have the ability to stand for public office if they so desire, but at least we should guarantee the tools for them to do that.

In terms of the three years, I am saying it is not clear in the legislation that that can be contracted. If I am wrong on that, then there is one part of it that I feel an amendment has been made which accommodates that. However, that is not the understanding I have of the bill. The understanding I have of the bill is that if it is the bank and the bank wants to arbitrarily call the loan, then the loan will be called. Unless it is very clear and consistent with contract law, then there is a major inconsistency in this bill. I would suggest to the parliamentary secretary that that inconsistency has to be looked at.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:35 p.m.

Liberal

Lloyd St. Amand Liberal Brant, ON

Mr. Speaker, I very much enjoyed the speech of the distinguished member for York South—Weston, and distinguished he is in this House and throughout his career in politics, including his many years in municipal politics. He is extremely well regarded in the Toronto area. Indeed he has brought those same qualities of class and dignity to the House of Commons over the last eight years. He truly knows a lot about integrity, about elections, about financing for elections and matters of that ilk.

My understanding of the legislation at this point is not as deep or as comprehensive as is his. I am not embarrassed in saying that, because he obviously knows this bill thoroughly. As I understand it, if a family member, a friend or an associate wants to lend to a candidate $2,000 on some repayment terms, the legislation will preclude or prohibit the family member, friend or associate from making a loan in excess of $1,100 per year.

I would like to ask the member for York South—Weston, is my understanding correct about that?

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:35 p.m.

Liberal

Alan Tonks Liberal York South—Weston, ON

Mr. Speaker, I would like to thank the member for his compliments.

I had indicated to the parliamentary secretary that the breaks in the connectedness of people to even take out a loan beyond the bank is along the lines that have been suggested. In the past if one contracted for a loan, and if that is established under this legislation, it should not matter whom the loan is with as long as it is within the limits prescribed in the legislation.

The member is quite right that not only are there limits on the amounts, but there is a prohibition with respect to doing that. I have said that it is not only impractical, but it is inequitable.

The legislation tries to make it transparent that unions and businesses and so on should not be able to buy their way into the political process, but it applies the same principle to people who want to get behind people they support. As long as it is transparent and it is established in a contract and there is adjudication and transparent oversight, why should it matter whether it is someone within the limits because it has to be repaid? The bill talks about repayment. That is the issue. As long as the loan is paid back to those people as individual citizens, why should it matter? I just see it as very inconsistent, inequitable and unfair.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:40 p.m.

Liberal

John Maloney Liberal Welland, ON

Mr. Speaker, I think every member in the House supports the idea of openness and transparency in election financing and a restriction on wealthy individuals or corporations that try to influence the political process by giving large sums of money to candidates.

We have agreed to extend the repayment period to three years, but I am still at a loss to understand why the government would oppose annual contributions to a maximum of $1,100 for a candidate until his loan was paid.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:40 p.m.

The Acting Speaker Andrew Scheer

Unfortunately the hon. member did not leave his colleague any time to respond, so we will move on.

Before resuming debate, it is my duty, pursuant to Standing Order 38, to inform the House that the questions to be raised tonight at the time of adjournment are as follows: the hon. member for Labrador, Aboriginal Affairs; the hon. member for Dartmouth—Cole Harbour, Government Policies.

Resuming debate. The hon. member for Esquimalt—Juan de Fuca.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:40 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, it is a pleasure to speak to this bill, which deals with loans, financing and accountability.

To begin, it is important for us to go back to first principles and to look at what accountability is.

Early in its mandate, the Conservative government introduced the so-called Federal Accountability Act, but the bill had very little to do with true accountability. During our speeches I and my colleagues asked government members to define accountability in a general context. Nobody from the government could actually give a definition of what accountability is.

I will paraphrase an expert on this in Canada, Henry McCandless. Mr. McCandless was an assistant deputy minister in the Officer of the Auditor General. He is a very learned person. He wrote a seminal work on public accountability. Mr. McCandless would say that public accountability is the obligation on the part of elected officials, senior public office holders and senior public servants to explain what they are doing, why they are doing it, what it will cost, who will benefit and who will pay.

It would be sensible if the government were to put forth an accountability act that enshrined those principles for all public office holders. If we were to enshrine a true public accountability act, which could be fairly simple, the onus and the line of responsibility from those of us who are elected to those who are unelected members of the public service could be well defined. Most important, the public, the people who pay our salaries and fund this House, the taxpayers, are the individuals who would know very clearly what they could expect from all of us. It would be a liberating thing on the part of the government to introduce a bill such as that.

In defining accountability in this way, we could tell the public exactly what we were doing, why we were doing it, when we were doing it, who would pay for it and what it would cost. Members of the public, the taxpayers, could see when we did or did not do something. The line of responsibility and accountability would be there for all to see. What we were doing would be there for all to see. There would be nothing opaque about it. This is what should have happened with the Federal Accountability Act.

Rather than liberating the House, elected officials and the public service, the new Federal Accountability Act, which has nothing to do with public accountability, has added layer upon layer of responsibility and reporting. It has introduced levels of administration into the system of how the federal government works to such an extent that it is restricting the ability of the public service and the House and its members to work properly.

Why would anybody do this, some would ask. It could be a couple of things. One would be a lack of knowledge, a lack of understanding of what public accountability is. I would say that would be a less likely excuse. Rather, it is an effort to try to undermine the ability to have a strong central government in Canada.

This falls into a larger objective of the Prime Minister, who is a follower of Leo Strauss, an American political philosopher from the early 1900s. Many Canadians will not know that the Prime Minister is a follower of Professor Strauss in terms of his ideology and philosophy. It is the same ideology and philosophy followed by President Bush and Vice-President Cheney, as well as the former secretary of defense, Donald Rumsfeld.

It is important for people to understand that. In understanding what Professor Strauss was articulating is to understand what the Prime Minister is trying to do. It is to understand why we are not seeing the accountability that we ought to see. Instead we are seeing a truncating, restriction and weakening of the federal government.

Professor Strauss believed that the best form of governance is when a very small number of people are predestined and to lead. Professor Strauss believed that was the best form of government and that small group of people could then tell everybody beneath them what to do, what to say and when to say it. Does that sound familiar? It is happening today in the Conservative government. It is a tragedy for all members, but most important, it is a tragedy for Canadian citizens.

However, I feel very sad for the members across the way who cannot do what they need to do to represent their constituents. They are told by the Prime Minister's Office, the half a dozen or so people around the Prime Minister who direct what is happening in the Government of Canada. They tell cabinet ministers what to do and what to say. They tell backbench MPs what to do, what to say and when to say it. As a result, the ability of individual MPs in the government to articulate what their constituents want is severely restricted.

This is very interesting because it flies in the face of the roots of the Conservative Party, which is the Reform Party. The Reform Party believed in something that was very different. It believed in the power of democracy. It believed in the power of the people. It believed that we could generate the best ideas from our populace and, as elected officials, bring those ideas to the floor of the House and represent the will of the people, the ideas of the people, for the betterment of our citizens. That is what the Reform Party stood for. Yet, what we have seen is a metamorphosis, a 180-degree change.

People do not wonder why our current Prime Minister left during his first term in office. He left because his views were diametrically opposed to that of the then leader, Preston Manning, who believed, as a populist, that the power of the people should be brought to the floor of the House.

When our current Prime Minister was elected, he, true to form, did what he said he was going to do. So, in a way, I guess, democracy exercised itself. But I think that many of our citizens do not really understand that. They do not really understand that the current view of our current Prime Minister is diametrically opposed to what the roots of the Reform Party were, which was to have and build our country from the grassroots, from our people, that the power of the people, the wisdom of the people, could be exercised in this House. That is a far cry from what we are seeing today.

In fact, Professor Ned Franks and Professor Donald Savoie, the chair of governance in Canada, have made some very strong statements. They have said that MPs are nobodies on the Hill. That is a play on the term that then Prime Minister Trudeau said years ago, that MPs were nobodies 50-feet off the Hill.

Now, Professor Franks and Professor Savoie have both said that the power of the individual MP, within the context of this House, has so been undermined by the central form of government, the Straussian philosophy, that it has completely changed the complexion of what we believe is a democracy in our country. We have a nominal democracy, and that is really a shame, because what the Prime Minister should be doing is enabling his members of Parliament to bring the best ideas to the floor of this House so that they can represent their constituents.

Disagreement in this House cannot be looked on as some form of weakness on the part of a leader, or on the part of a prime minister, or on the part of anybody in this House. Rather, differences of opinion merely reflect the differences of opinion that we have in our country. Our country is not a homogenous state. Our people are not homogenous. We have a heterogeneous populace with a wide array of ideas that should and ought to be brought to this House.

All of us understand, of course, the importance of a prime minister being able to say to the public, “These are the things that I want to do; these are the things that my party stands for; and these are the things we are going to do”.

It is all well and true to have those as confidence motions. That is fine. But beyond those things that are true confidence motions, they are a very small bundle of policy ideas. Beyond that, members of Parliament should be able to express the wishes and the desires of their citizens in this House, even if it means being different from what the majority of their own party wants. There is nothing wrong with that.

In fact, many of the great ideas that we have seen in the world actually met with significant and sometimes violent resistance when they were put forward. Those have come to pass with time and history to be seen as wise ideas, but at the time that they were initially put forward, people sometimes opposed them strongly, or sometimes violently.

We have an opportunity, and certainly the Prime Minister has an opportunity, to change that. He has an opportunity to liberate our House, to liberate the members in his own caucus, to bring the best ideas to the forefront of our nation, and apply them for the betterment of our citizens.

What we are seeing now in this House bears little resemblance to the needs of the Canadian public. Most of us, and certainly all of us in my caucus, have many ideas as all party members do, but we are trying desperately in my party to bring those ideas to the forefront, to work with the government and offer those solutions that are not only important for our constituents in opposition but, I dare to say, they are important also to the constituents of members across the way.

No party has a hammerlock on good or bad ideas and there are fine ideas on all sides of this House. What the government and the Prime Minister should be doing if they were wise, would be to work with members from across party lines to put ideas forward for the public good. That is not what we are seeing. We are seeing a Prime Minister who is poisoned by partisanship and poisoned by the desire to have control. He is behaving as a control freak, if I can say that, and behaving in a way that is not in the public interest.

Take a look at what is happening in committees. Directives have come down to committee chairs and members of the government in those committees to filibuster. We get paid by taxpayers to serve the public. If the public were to take a look at what is happening in many committees today, they would be shocked and appalled. Witnesses come to those committees from across our land with good ideas and yet what they see--

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:50 p.m.

The Acting Speaker Andrew Scheer

The hon. parliamentary secretary is rising on a point of order?

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:50 p.m.

Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Mr. Speaker, as reticent as I was to interrupt my hon. colleague whose speeches I always enjoy listening to, I find it once again a common occurrence with the hon. member that the relevance of the topic seems to be lacking from the presentation. I know we are here to discuss Bill C-29 and I am wondering whether the hon. member could perhaps get back on topic. It would make his final comments much more enjoyable.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:55 p.m.

The Acting Speaker Andrew Scheer

I would perhaps remind the hon. member that we are at third reading stage of Bill C-29, so if he could bring his remarks as closely as possible to the bill, recognizing that it is at third reading, I think the House would appreciate that.

The hon. member for Esquimalt—Juan de Fuca.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:55 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, I thank my colleague for his comments. The relation between what I am talking about and the ties to accountability really does relate to this bill which is about loans, financing and accountability.

The reason why I am bringing this up is because it is quite heartbreaking, and I lamented that fact in the government's introduction of what it claimed was accountability, which is in the bill, that the accountability really does not have anything to do with true accountability.

I am trying to explain where that comes from going backward in time and backward to the origins and roots of why we are seeing the government not put bills forward with true accountability. Instead, it is putting bills forward that actually restrict and impede the ability of members in the House and the public service to work.

I want to get back to that principle and tie it in with my hon. friend, something that I know affects him and affects all of us. It is the issue of how these changes that the government has been implementing affect the public service. All of us are very privileged to work with public servants. They are some of the finest public servants found in the world. They are honourable, decent, honest, hard-working, and intelligent individuals. Members across all parties would agree that it has been a pure pleasure and a joy to work with them. We admire them for the work that they do, much of it completely unheralded.

Unfortunately, the government is actually undermining the public service, marginalizing it and not listening to it. We cannot have a strong democracy without a strong public service. Internationally, when we are dealing with developing countries, we say that one of the things that a developing country has to achieve is a strong public service. We try to help out. We could do more. But in our own House, we are actually undermining our public service and I will give a couple of examples.

A previous Liberal prime minister introduced the office of the science adviser to the Prime Minister's Office. This was a wise move because all of us here have, in some form, been involved in science, and many of my colleagues have some excellent ideas of the work in this area. We lament the fact that the government not only let go the science adviser, Dr. Arthur Carty, one of the finest scientists in our country, but also removed the entire office of the science adviser to the prime minister.

This is in a place where science and research should have a much greater play in driving public policy. If we get the science and the facts right, they enable us to connect science and facts with some of the best researchers that we have here in Canada and around the world. If we connect that to the creation and building of strong public policy, then what we have is the strongest public policy that we could possibly have in our nation for the best interests of our citizens.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:55 p.m.

Conservative

Tom Lukiwski Conservative Regina—Lumsden—Lake Centre, SK

Mr. Speaker, I rise on a point of order. I hate to interrupt my hon. colleague's presentation, but I am wondering, since we were talking about the relevance of Bill C-29 and in trying to get back to the topic of the bill we are supposed to be discussing, is the member trying to suggest that the science adviser, in some way, shape or form, has loaned the candidate some money? I just do not see the relevance. I cannot quite connect the dots, quite frankly, between what the member is speaking about and the bill we are supposed to be debating.

Mr. Speaker, I wonder if you could assure me that the member will continue with his final comments and be specific to Bill C-29, the bill we are supposed to be debating here.

Canada Elections ActGovernment Orders

June 12th, 2008 / 4:55 p.m.

The Acting Speaker Andrew Scheer

Maybe it would help if I read the citation on relevance at third reading, which is from Marleau and Montpetit at page 533:

Debate on third reading is designed to review the legislative measure in its final form and is strictly confined to the contents of the bill.

The hon. member for Esquimalt—Juan de Fuca has about three minutes left so he could follow the good advice from the parliamentary handbook for the remaining minutes that he has.

Canada Elections ActGovernment Orders

June 12th, 2008 / 5 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, we know that Bill C-29 is certainly aimed at dealing with how campaigns are financed and the borrowing of money. I would like to talk about that in the final moments of my speech.

All of us know very well and support the notion of ensuring that we have a situation where big money and deep pockets cannot affect public legislation and the production of legislation that we have in our country. It is something that all of us support.

In fact, we are thankful that in our country, unlike our friends south of the border and many of our citizens are aware of this, we do have limits on what we can actually spend in terms of an election, determined by the size of our ridings and the number of constituents that we have. We also have limits on what we can actually receive and what people can donate.

The problem is that the government has gone so far to one side on this particular issue that it is actually impeding the ability of ordinary citizens to donate moneys in a democratic environment and to provide financial resources that are required for people to run for public office.

That is not healthy in a democracy. Individual citizens must have the ability to fund, in a reasonable way, people who have chosen to put their lives on the line to run for public office. Unfortunately, what has happened with respect to the government and this bill, and previous bills attached to it, is that the restrictions that have been placed have nothing really to do at all with the ability of trying to remove any kind of influence with respect to money and the development of legislation.

I have been in this House almost 15 years and I have yet to see one case in this House of anybody from any political party somehow profiteering from being in this House and using moneys that they have received to change or affect legislation in the public interest. I have never seen that, and I would venture to say that nobody else in the House here has ever seen it either.

The reason for that is that we already have good checks and balances. We already have, thankfully, good restrictions on the connection between campaign finances and the ability of individuals who are running for office to receive those moneys, and I hope that continues.

In closing, I can only warn and implore the government that if it goes too far in this way, it is doing nothing that deals with public accountability. It is actually restricting a fundamental right of individuals to fund people who are running for public office and restricting the ability of individuals who want to run for public office to do so.

Canada Elections ActGovernment Orders

June 12th, 2008 / 5 p.m.

Regina—Lumsden—Lake Centre Saskatchewan

Conservative

Tom Lukiwski ConservativeParliamentary Secretary to the Leader of the Government in the House of Commons and Minister for Democratic Reform

Mr. Speaker, I congratulate my hon. colleague for giving it the old college try and trying to get back on point, even though he missed it by a few miles. I have a question for the hon. member.

One of the reasons the bill has been brought forward for debate in the House is the fact that, as my hon. colleague rightly pointed out, we want to get away from the situation where big money and wealthy individuals can influence government or candidates.

In the most recent Liberal leadership campaign, we saw where one individual contributed, in some cases, hundreds of thousands of dollars to candidates. We have also seen the situation most recently where some of the Liberal leadership candidates have not repaid their loans on time.

Currently, repayment terms are 18 months and that expired in early June. The legislation before the House would give candidates three years in which to repay loans, three years from either the polling day or the completion of the leadership campaign.

I would simply ask my hon. colleague two questions. First, does he agree that by restricting the ability for wealthy individuals to donate hundreds of thousands of dollars to candidates, which, under the current legislation, could subsequently be written off, would be a good thing? Second, does he not agree that the three year repayment terms would make it more amenable for candidates and members to repay those loans?

Canada Elections ActGovernment Orders

June 12th, 2008 / 5:05 p.m.

Liberal

Keith Martin Liberal Esquimalt—Juan de Fuca, BC

Mr. Speaker, the fact is that we already have a situation where deep pockets cannot affect legislation. We have a situation where deep pockets cannot affect and control those who run and are successful in achieving public office. That is the principle of the matter that I think most fair-minded Canadians would adhere to.

Therefore, what the government is doing has nothing to do with trying to prevent deep pockets from affecting electoral success or government legislation down the line because the ultimate intent of providing those kinds of funds would be to have control over the person or persons who are elected.

The fact is that this is a picayune document that is intended to go after or imperil and penalize those in my party who have chosen, bravely, to run for the leadership of the Liberal Party of Canada. That is what this is all about. Anybody who can see this bill for what it is would know very clearly that it is nothing more than a callous and cynical political exercise that has nothing to do with true accountability or the removal of any kind of influence peddling on government legislation.