Bill C-364 (Historical)

An Act to amend the Canada Elections Act and to make a consequential amendment to another Act (political financing)

This enactment amends the Canada Elections Act regarding the contribution limits and the computation of the fund paid to registered political parties. It also makes a consequential amendment to the Income Tax Act as to the eligible amount of a monetary contribution made to a registered party, a registered association or a candidate.

Budget Implementation Act, 2018, No. 1

[Pierre Nantel, NDP, Longueuil—Saint-Hubert, QC]

Mr. Speaker, I thank my colleague for his speech.

The Parliament website informs us that the two last bills that the member spoke about are Bill C-377 and Bill C-364, which are between two and four pages. He must therefore have worked hard to prepare the speech he gave today about a bill that is 556 pages long.

Canada Elections Act

[The Speaker, Liberal, Geoff Regan]

The House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-364 under private members' business.

The House resumed from March 1 consideration of the motion that Bill C-364, An Act to amend the Canada Elections Act and to make a consequential amendment to another Act (political financing), be read the second time and referred to a committee.

[Michel Boudrias, Québec debout, Terrebonne, QC]

I suppose it is more of a right to wrap it up, Mr. Speaker.

Does anyone know what percentage of Canadians support and have confidence in politicians and their promises? It is 3%. I am sure everyone will agree that the people are not exactly giving us top marks. There is definitely room for improvement when it comes to the bonds of trust between us and our constituents. We owe it to them to do better, that is for sure. People are expressing dissatisfaction to an alarming degree and are constantly saying that politicians are sellouts and power can be bought.

Now more than ever, we must ensure that we are beyond reproach, squeaky clean. That is why I am asking my colleagues to do everything they can to separate us as politicians from any appearance of conflict of interest related to money. I have heard some very good arguments in favour of that. We will be voting on the bill I had the honour of introducing, Bill C-364. The bill would restore public per-vote funding for all parties that receive at least 2% of the votes in an election, so it only applies to the serious ones.

However, the maximum amount for donations that can be collected by parties would be reduced from $1,500 per person to a reasonable $500. I am proud to introduce this bill because it serves the interests of the people who vote for me and for my colleagues. To be democratic is to put shared interests before personal interests. That is what I am asking some of my colleagues to do, but not all because some have already seen reason. I am asking those who are still having difficulty seeing the light. I am referring to the two major parties that take turns governing.

Public funding is fundamentally democratic. For every vote received, parties get a small amount of money to finance their activities. We are talking about just under $2 a year, but this makes all the difference. Providing just under $2 in stable and predictable funding for all political parties, from the largest to the smallest, tells people that, yes, it makes a difference when they vote for the party of their choice, no matter the polls and the political landscape of their riding. It tells people that their vote is added to the votes of all those who share their ideals, enabling the party of their choice to operate between election campaigns. It ensures that public debate is vigorous by allowing a plurality of votes and points of view. It also reduces that blight on democracy that is strategic voting, protest voting, or voting for the least objectionable candidate.

Let us work together to restore public funding for political parties. Let us restore it and finally put an end to the deplorable era of cash for access. Let us forget the $1,500-a-head cocktail receptions, where those who can afford it pay for privileged access to decision-makers. We are all members of Parliament, and we all know that politics involves costs. That is a part of politics. We all need to campaign, pay for our signs and offices, and buy our volunteers coffee now and then. We are not trying to take away the right of citizens to contribute financially to a party. We encourage people to donate if they can and want to.

Most families in Terrebonne, the riding I have the honour to represent, do not have $1,500 to spend on meetings with politicians. I would go so far as to say that if families in my area had $1,500 to spare, they would have no trouble thinking of all kinds of smart, sensible things to spend it on. They certainly would not spend it on lunch with a politician. Nor would I, for that matter. That kind of investment is made by people who have personal interests to promote, not by ordinary citizens.

I think the time has come to separate private interests from our democracy. In a way, what this bill does is nationalize our democracy, making sure that it works for all Quebeckers and all Canadians. Let's do the right thing together. Let's nationalize our democracy once and for all, and let's give the power back to the people.

[Andy Fillmore, Liberal, Parliamentary Secretary to the Minister of Democratic Institutions]

Mr. Speaker, I rise today to speak to Bill C-364, introduced by the member for Terrebonne.

This private member's bill, Bill C-364, would amend Canada's Elections Act and Income Tax Act in the following ways.

First, it would substantially lower the contribution limits to political entities. For example, it would reduce the maximum annual contribution that individuals could make to each registered political party from $1,550 down to $500, which is a reduction of more than two-thirds, and would make similar reductions for other political entities, such as candidates and leadership contestants.

Further, it would reinstate the quarterly allowance to political parties. This allowance was introduced initially in 2004 and then phased out in 2015. Finally, it would amend the Income Tax Act to increase the tax credit benefit for those contributing more than $750.

I would like to say that while I appreciate the member for Terrebonne's efforts to improve political financing in Canada, I also want to flag that there are elements of the bill that are cause for concern. First, this legislation is expensive. In fact, the parliamentary budget office website states with respect to the bill:

PBO estimates that, in total, the cost to the federal government will be $45.2 million in 2018, increasing to $46.2 million in 2021. The reintroduction of a quarterly allowance, which is paid from the Consolidated Revenue Fund to registered political parties, represents the overwhelming majority of the cost.

However, this is a time when our government is focusing federal resources on top priority issues like affordable housing, climate action, pharmacare, and help for the middle class and those working hard to join it. These are just a few examples of the work we are embarking on as a result of listening to the concerns of Canadians.

Our government knows that Canadians have good reason to be proud of our democracy. We will always have more work to do to make it even better, and we are going about that work. However, we cannot forget that there are already considerable supports existing in the system, specifically generous tax credits for financial contributors. Candidates and parties are also reimbursed for, or rebated, a significant portion of their campaign expenses from Elections Canada.

The tax credit for donations in 2015 cost the treasury an estimated $55 million. After the 2015 election, $60.7 million was reimbursed to parties and another $42.7 million went to the official agents for candidates' campaigns, for a total cost to Canadians of $158 million. Had Bill C-364 been in place in 2015, the total cost over the subsequent four years would have been $278 million, an increase of 76% over the actual costs. That number does not even include other subsidies contained in the Canada Elections Act, such as the provision of broadcasting time to registered parties.

Another financial concern is that this legislation would give larger tax breaks to those contributing more than $750. The Department of Finance predicts that this could result in a decline in federal revenues by up to $2 million in years when there is a leadership contest under way. I would also argue that this would be a regressive tax change. It would allow wealthier Canadians to receive a larger benefit for their donations.

The bill also removes the ceiling on what could be claimed under its provisions. By extension, this would be most beneficial to the wealthiest Canadians. Yet another concern is that this bill would drop contribution limits to leadership contestants from $1,550 to $1,000.

As members know, 2017 was the 35th anniversary of the Charter of Rights and Freedoms. We all know that Canadians deeply value our charter, and we know it is a model for new democracies around the world. Section 3 of the charter guarantees every eligible Canadian citizen the right to vote and to run in an election. Section 2, which includes the freedoms of association and expression, gives Canadian citizens and permanent residents the right to donate to a party. This right is of course subject to reasonable limitations.

Political parties are a necessary and important part of our democratic process. They unite people who come from different geographic regions. They unite people who have different perspectives. Parties help to mobilize citizens around ideas they cherish. As former Supreme Court Justice Frank Iacobucci said, “Political parties provide individual citizens with an opportunity to express an opinion on the policy and functioning of government.”

Canadians participate in our democracy not just by voting or donating to a party. They can also become politically active as a party volunteer. However, many Canadians do not have either the time or desire to support parties in that way, so for some, donating is how they choose to have their voices heard.

This is one of the big reasons why our government believes strongly in maintaining a balanced, open, and transparent political financing system. Be assured that we are continuing to review the rules for political financing to ensure that Canada has a balanced approach.

Another aspect of political fundraising that our government has been focused on is Bill C-50, which has recently passed third reading in the House of Commons, and is now being deliberated in the Senate. Bill C-50 would ensure that any fundraising activity, which costs more than $200, where a cabinet minister, including the Prime Minister are present, or a party leader or a leadership contestant is in attendance, must be reported five days in advance on the party's website, and the guest list must be disclosed publicly. This kind of reporting will ensure that Canadians have a more open and transparent fundraising system.

What is also interesting about Bill C-50 is that both Conservative Party members, and several newly independent members of this House, voted against this legislation, which, as I mentioned, would increase transparency in our political system. It is important to note that this also includes the member for Terrebonne, whose name is on the very bill we are now debating. He too voted against this important legislation improving our political system for Canadians.

The member for Terrebonne chose to bring Bill C-364 forward to the House. This bill would benefit wealthier donors by increasing their tax credits. As well, he and his colleagues voted against bringing greater transparency to fundraisers. These actions would move our democracy backward, not forward.

In addition to Bill C-50, the Minister of Democratic Institutions is also moving our democracy forward by ensuring more, and not fewer Canadians, have access to voting with as few barriers as possible. This is done through repealing elements of the previous government's so-called Fair Elections Act. We are also moving our democracy forward by focusing on protecting our democratic institutions from foreign influence in our elections.

In partnership with the Communications Security Establishment, we released a first-of-its-kind in the world report on cyber threats to our democracy. As technology changes and evolves, so must our efforts to defend from those wishing to disrupt our Canadian democracy.

To further move our democracy forward, the Prime Minister tasked the Minister of Democratic Institutions to examine and present options for a commission or commissioner to organize leaders' debates during federal elections. In support of that, the minister and I were happy to participate in cross-Canada meetings with stakeholders from the broadcast media, new media, civil society, and academia to listen to their views on this important issue.

Our government is focused on moving forward and not backward. We are focused on strengthening our democratic institutions. We are focused on matters that unite Canadians, and not on those that divide Canadians. For this reason, the government cannot support Bill C-364.

We must ensure that the conditions are fair for political parties, and at the same time recognize that Canadians have a democratic right to actively participate in their democracy by means of reasonable contributions.

[Michael Cooper, Conservative, St. Albert—Edmonton, AB]

Mr. Speaker, I rise to speak to Bill C-364, an act to amend the Canada Elections Act, introduced by the hon. member for Terrebonne.

Bill C-364 seeks to do two things. First, it seeks to re-establish the per-vote subsidy, which provides that after a federal election political parties receive taxpayer subsidies based upon the number of votes they received during the previous election. Second, it seeks to reduce the maximum amount an individual can contribute to a political party from $1,500 to $500.

I oppose Bill C-364 because I do not support the re-establishment of the per-vote subsidy, nor do I believe it makes sense or see any compelling reason for why the maximum limit should be reduced from $1,500 to $500.

The heart of this bill relates to re-establishing the per-vote subsidy, and I want to take a bit of time to talk about why it is I oppose the re-establishment of the per-vote subsidy. In that regard, it is helpful to provide some context in terms of how the per-vote subsidy came to be.

It came to be as part and parcel with political financing reforms introduced by the Chrétien government in 2003, whereby a $5,000 maximum cap was set in terms of contributions to political parties. That change in political financing laws was a step in the right direction, to the Chrétien government's credit. It is something we continued when the previous Conservative government reduced the maximum contribution amount and banned union and corporate donations altogether.

When the $5,000 cap was introduced, it constituted a monumental change in political financing laws in Canada. Indeed, prior to that, there were really no rules or limits. Unions and corporations could donate large sums of money to political parties. In that fundraising environment, it is no surprise that political parties often relied upon a smaller pool of donors who contributed large sums of money, whether it be from corporations, unions, or other wealthy individuals.

Then the rules changed, and changed very quickly, almost overnight. As a result, the per-vote subsidy was introduced to allow political parties to transition and acclimatize to the new rules respecting fundraising activities. It was never intended that the per-vote subsidy would be permanent; rather, it was intended to be an interim measure. It is precisely for that reason the previous Conservative government phased out the per-vote subsidy following the 2011 election.

There are proponents of re-establishing the per-vote subsidy, and they argue that it is a more fair and equitable way in which to finance political parties. I respectfully disagree with that assertion. I say it is an unfair way to finance political parties, starting with asking taxpayers to pick up and subsidize, out of sweat-soaked taxpayers' dollars, political parties. The Parliamentary Budget Officer estimates that re-establishing the per-vote subsidy would cost taxpayers $45 million annually. I can think of a lot of better ways to use 45 million taxpayers' dollars than to subsidize political parties.

Moreover, I would submit that the per-vote subsidy is unfair in as much as the party that receives the largest share of the votes receives the largest subsidy. Why might that be a problem? Is it fair to ask taxpayers to continue to subsidize a political party that they may no longer support, that they may no longer agree with, having regard for the fact that there could be a significant shift in support between elections? I would say that is not fair.

In that regard, as a result, almost always there is a built-in advantage for governing parties over opposition parties. Again, I say that does not sound very fair. That does not sound very equitable. In addition, it provides a significant advantage to established political parties and a significant disadvantage to new parties. After all, a party that competed in a previous election would receive large amounts of taxpayer-subsidized funds, whereas a new party would receive nothing, if it was a new party that did not compete in the previous election.

There are many examples in Canadian history where political parties have emerged to go on to be very successful, whether it be the Reform Party or the Bloc Québécois, of which the member for Terrebonne was a member at least up until yesterday.

For all of those reasons, I would submit that the per-vote subsidy is not fair and is not equitable.

Proponents would go on to say that this bill would help take money out of politics, except that it does not take money out of politics because it provides that individuals can continue to contribute to political parties, as I believe they should. All it does is provide a whole new stream of revenue, courtesy of the taxpayer, to political parties.

Then there are proponents who would say that at least it would diminish the need for the Liberals to engage in their unethical pay-to-play, cash for access, $1,500 fundraisers. I say that we do not need to pass Bill C-364 for the Liberals to end cash for access cash. All that needs to happen is for the Prime Minister to follow his “Open and Accountable Government”. Do members remember that document? It was the code of conduct that the Prime Minister said would bind him, his cabinet ministers, and his parliamentary secretaries.

“Open and Accountable Government” provides that there should be no preferential access to government, and no perception of preferential access to government. Imagine that: the Prime Minister actually doing what he said, keeping his word to Canadians. I know for this Prime Minister, it is a truly novel concept.

For all of those reasons, while I believe this is a well-intentioned bill, I cannot support it.

The House resumed from October 3, 2017, consideration of the motion that Bill C-364, An Act to amend the Canada Elections Act and to make a consequential amendment to another Act (political financing), be read the second time and referred to a committee.

[Wayne Stetski, NDP, Kootenay—Columbia, BC]

Mr. Speaker, I have to admit that when the topic of political financing reform comes up, many Canadians' eyes glaze over. It is not the most exciting subject in front of this Parliament, and yet we have heard about 18 or 19 speakers on this topic pointing out both the strengths and the weaknesses of the bill.

I wish the House rules permitted the same level of debate on some of the very important private members' bills that come before the House. Perhaps we could work together to see that happen in the future.

Bill C-50 is important. We only have to look south of the border to see what happens when there are no controls over who donates to elected representatives or how much they can donate.

During the recent U.S. debate over net neutrality, another exciting subject, companies and groups on both sides of the issue lobbied with their wallets. According to OpenSecrets.org of the 535 members of Congress, 495 received campaign contributions from groups who lobbied the Federal Communications Commission on net neutrality. The telecoms, opposed to net neutrality, donated millions and the Republicans fell in line. The result will be a more limited, more expensive Internet experience for Americans. Thankfully, here in Canada we have largely constrained such obvious vote buying, but that has not always been the case.

In advance of the1872 election, Prime Minister Sir John A. Macdonald and his colleagues sought out campaign contributions from a Montreal shipping magnate named Hugh Allan. Allan donated what would have been a fortune back in 1872, $350,000, to Macdonald's Conservative government and he was rewarded for that donation. The Canadian Encyclopedia says:

After the election, a railway syndicate organized by Allan was rewarded with the lucrative contract to build the Canadian Pacific Railway — the trans-continental railroad promised to British Columbia when it joined Confederation.

More recently, former Prime Minister Brian Mulroney was implicated in a scandal that became known as the Airbus affair.

My own province of British Columbia used to be the case study for what happens when there are insufficient campaign financing laws. In fact, a year ago The New York Times called British Columbia the “wild west” of Canadian political cash, citing the former provincial Liberal government for its many conflicts of interest and describing the “unabashedly cozy relationship between private interests and government officials in the province”. It cited B.C. for having no limits on political donations, and repeated criticisms that under the Christy Clark regime, the provincial government “has been transformed into a lucrative business, dominated by special interests that trade donations for political favours, undermining Canada’s reputation for functional, consensus-driven democracy.”

Thankfully, the new NDP government under Premier John Horgan immediately brought in political finance reforms, including bans on corporate and union donations and limiting individual donations to $1,200 per year. It is good to see civil reforms brought to the wild west.

Meanwhile, with the current federal Liberal government we have seen the cash for access scandal, where lobbyists were sold exclusive access to the Prime Minister by simply buying high-priced tickets to Liberal fundraising events. During the last election, the Liberal Party made a promise to "close political financing loopholes altogether”.

As we look at Bill C-50, the legislation before us today, we see only a timid attempt in that direction. This bill would force some party fundraising events to be advertised five days in advance, and it would ensure that the names of those attending the function are published.

The new rules apply to events attended by cabinet ministers, party leaders, and some leadership candidates. The NDP offered amendments at committee to include parliamentary secretaries and senior political staff but the Liberal members voted down those amendments.

Observers should note that the Liberal government's parliamentary secretaries are subject to the Conflict of Interest Act, but with Bill C-50, they are exempt from the transparency rules aimed at cash for access events. At the end of the day, cash for access events will still go ahead; we will just know a little more about them.

Is the government closing political financing loopholes and meeting its campaign promise? Not at all. What should this bill contain? A 2016 Globe and Mail editorial titled, “Money and politics: How to end the corruption and conflict of interest” said:

Individual donation limits should be low – possibly as low as $100. These rules should apply at all times, including election years and during party leadership campaigns.

While I am not sure about the amount, lowering the limit would absolutely take big money out of the political picture. No longer could wealthier Canadians expect to meet with cabinet ministers or the Prime Minister because only they could afford the steep price tag.

On another issue, a 2017 Senate report titled, “Controlling Foreign Influence in Canadian Elections” found that current law “does not sufficiently protect Canadian elections from being influenced by foreign entities, whether through direct interference or by providing funding to third parties.” Its recommendations, well worth the consideration of this chamber, include a “provision that more clearly states that any attempt made by foreign entities to induce Canadian electors to vote in a particular way is prohibited”, removal of the “six month limitation on the requirement to report contributions made to third parties for the purposes of election advertising”, and “require that Elections Canada perform random audits of third parties’ election advertising expenses and any contributions they have received”. These are provisions I would like to see examined further.

Currently in my riding of Kootenay—Columbia, I am often asked about issues that constituents have learned about through media websites. Unfortunately, in many cases, these news websites turn out to be politically prejudiced, are often racist, and in some cases are heavily influenced by foreign elements. They mislead, scaremonger, and prevent fact-based political discourse.

Finally, I would like to point to Bill C-364, introduced by the member for Terrebonne. His bill would sharply restrict individual donations while bringing back a formula for public subsidies to campaigns. While Bill C-364 has not yet had a rigorous review by this House, it is certainly raising some excellent issues that I would like to have seen considered within Bill C-50.

Too often money equals power, but in this place, money should have no influence. While I will be supporting this bill as at least a first baby step in the right direction, I am disappointed that the Liberal government has missed this opportunity to truly strengthen Canada's political financing laws to truly prevent influence peddling and cash for access.

[David Graham, Liberal, Laurentides—Labelle, QC]

Madam Speaker, it gives me great pleasure to rise on Bill C-364 to discuss election financing law.

To start with, I will not be supporting this bill. That is not because I do not believe in a stronger role for public financing; I do believe that. It is because the alternative is a stronger role for private financing.

The key question I want to address in our democracy is a complete re-evaluation of political fundraising itself. Is fundraising necessary, and if so, what should it look like? Conventional wisdom is that it is. However, I want us to ask the question honestly and objectively.

Political parties need funds to operate and campaign. That is a given. However, what is a fair way to achieve that funding?

First, parties and riding associations should not have to fundraise in competition with each other. The fundraising should come from the riding, with a share sent to the party in order for it to remain a part of the party, with the specific details left up to each party or riding association to figure out. A party is not a party, after all, without ridings and representatives. The parties themselves are only meant to exist as a vehicle for like-minded members to work together, not as a means for members to become like-minded. That is a discussion for another day.

I disagree with the current fundraising model of 100% private funds, coupled with non-refundable tax credits and expense reimbursements that do not give equal ability to all members of society to participate, which is a fundamental tenet of any democracy. Those who have money can participate and get tax credits. Those who do not have money to participate are not eligible for the tax incentive to do so. Therefore, having less means that each dollar costs less fortunate individuals more in absolute terms, and prohibitively more in relative terms. Once again, those who need are at a disadvantage compared to those who do not, and politicians, with their insatiable need for funds, must necessarily gravitate toward those who have.

Many donors donate because they believe in the cause. However, I think it is naive to believe that all donors do. I am sure most of us have received an angry email or phone call at some point from someone who has given money to either our riding or our party saying, “I am a donor and I am angry.” Personally, I do not take well to this kind of message. I want people to donate because they believe in what we are doing and want us to continue, not in order to tell us what we need to do. If they are angry, I want to know that, not because they are donors but because they are citizens. I want that fact detached from the comment, and I want people who did not donate to express themselves with equal fervour. I am here to represent and work for all of my people to the best of my ability, not just those who supported me or may do so in the future.

I also disagree with the concept of annual per-vote funding, the primary objective of Bill C-364, for the simple reason that how people voted in 2015 may not reflect where they want their financial support to go. At that, it may not be the same in 2016, 2017, 2018, or 2019. If people vote for a Liberal candidate to block a Conservative candidate when they actually support the Green Party, why should the money go to the Liberals and not the Green Party in that circumstance? It does not make sense. If we do have per-vote funding, we should also have a preferential ballot so that the money we assign goes to our first pick, even if we have specified additional choices in order to prevent the unfavourable results that can sometimes come from not voting strategically.

On the other hand, I also do not believe that just because one has registered a political party it is automatically entitled to some funding or an equal level of funding as all the others. It must be tied to that party's actual support in some way. Giving the Rhinoceros Party $18 million simply because it is registered may not necessarily serve the interests of democracy, and providing per-party financing may motivate some people to register political parties for the purpose of simply collecting the money without any actual interest in the electoral process. I think these risks are fairly self-evident.

While I know I am very much in the minority on this, my preferred model for addressing all these concerns is to put a question on the tax returns of Canadians that would go something like this, with the numbers being completely arbitrary for the sake of demonstration here today.

With respect to let us say tax return line number 500, an answer to this section is required for my tax return to be accepted as complete. Therefore, the questions might be, “Question 1, I am entitled to direct $25 to a party registered in my riding or to be held in escrow for an independent candidate to be returned or forfeited if the candidate I name does not register to run in the next election: a) Yes, I would like to exercise this right, or b) No, I do not wish to contribute to any political party or independent candidate at this time.” If we check off no, then we are finished and have met our obligations under this section of the return. If we answer yes, that we do wish to direct $25 to a political party, we have three more questions to answer.

The first question would be, “The party or independent candidate I wish to support in my riding is”, then there would be a blank space or drop-down menu with data provided by Elections Canada for electronic filers. The second question would be, “I would like this money to: a) come from general revenues, or b) be added to my own tax assessment.” The final question would be, “I would like the origin of this contribution to be: a) disclosed to the party or independent candidate receiving it, or b) kept anonymous and confidential.”

Splitting up the questions like this allows those who believe it must be their own funds that contribute to political parties to put their money where their mouth is. However, more importantly, it means that someone who does not have two cents, and someone who is a millionaire, have the same weight in the fundraising process.

Everybody has the option but not the requirement to do so anonymously, so the data cannot be automatically used by political parties. Allowing people to say no to donating at all, and not knowing who, should help force all parties to retain a more positive message. Divisive dog-whistle fundraising will not work on an anonymous tax-assessment-based fundraising model. Being negative would serve to discourage people from contributing to political parties overall, with them answering no to the question of whether to give before seeing the options of who to give to.

The pie can be pretty big if Canadians all have a positive view of political parties, rather than the negative views promulgated today by some elements of our political system to sew division and make people hate, rather than to want to work together.

While the Canada Revenue Agency will no doubt be less than excited to get involved in this manner, and there must be careful and specific controls to protect the privacy of the responses to this question, in my view it is the fairest possible way to ensure that political financing is put on an equal basis by all citizens for those they support here and now, at all times, in all parts of the country.

There are no doubt other models and solutions that could be looked at, but I firmly believe that the question must be asked, and I thank the member for Terrebonne for bringing public financing reform forward for us to discuss.

This legislation also reduces the fundraising limits significantly in conjunction with the reintroduction of per-vote funding. The amount of the donation cap is largely irrelevant if there is still an inequity between donors who have means and donors who do not, and so the cap at $500 or $1,500 is largely immaterial to me. Someone who makes enough to pay taxes giving $400 is still out of pocket only $100, while someone who does not make enough to pay taxes giving $400 is out of pocket the full amount, not to mention possibly out of a home or a few meals. Therefore, I find the particular change proposed in the bill to be fairly meaningless. It would not solve any existing problem.

Finally, the member for Terrebonne's bill has an absolute rather than relative coming into force provision. Given that the bill is only at second reading here in the House and has yet to get through the Commons committee, report stage, third reading and referral to the Senate, second reading at the Senate, Senate committee, Senate report stage, Senate third reading, and royal assent, it is not realistic to suggest that the bill could be in force 24 days from now.

Over the past two years, we have made strides forward on these matters. I do not believe my views on fundraising reflect those of very many of my colleagues on any side of the House, but we are seeing changes both here and in several provinces.

Conservative Bill C-23, the so-called Fair Elections Act, reformed fundraising in a whole lot of ways that were detrimental to democratic society, including removing fundraising costs from capped expenses in an election campaign, and upping the donation limit by 25%, and then indexing it by $25 per year instead of by an an inflation-based formula.

I do not wish to re-litigate that particular bill. As the assistant at the time to the Liberal critic for democratic reform, I had more than enough sleepless nights trying to grok every word of that act once, and it certainly contributed to my motivation to seek a seat in this place so that this kind of abuse of democracy could not happen again.

Our own government's Bill C-50 brought in strict reporting requirements for fundraising events involving the key power brokers of government, and those working hard to replace them, which I think is genuinely important.

The thing about fundraising, and public financing of political parties, of course, is that there is no such thing as a perfect answer, only a balance of imperfect solutions. What I am sure of, though, is that Bill C-364 does not address the fundamental inequalities within our existing fundraising and public financing structure for our political system.

[Michel Boudrias, Bloc, Terrebonne, QC]

moved that Bill C-364, An Act to amend the Canada Elections Act and to make a consequential amendment to another Act, be read the second time and referred to a committee.

Madam Speaker, I am pleased to speak today to Bill C-364, which I hope will have the support of all the parties in the House.

In the House, we are all elected representatives of the people. We are here to be their voice and make choices that reflect their concerns and values. In a way, we are the incarnation of the will of the people. It is both a privilege and a duty that we must constantly bear in mind.

However, the public has been losing confidence in us over the years. We hear it at the dinner table at home, in conversations at the office, in the media, and at the corner store checkout. Disparaging politicians has become as commonplace as talking about the weather or the ups and downs of the Montreal Canadiens.

The public is losing confidence in us. More often than not, politicians are accused of being corruptible. It is thought that we are not here for the right reasons and that we have personal interests and hidden agendas.

Unfortunately, the public has the impression that politicians can be bought and that our decisions are up for sale. Commentators often call it public cynicism. We hear this expression often. However, the public is not cynical. It has a moral compass. It can tell the difference between right and wrong. We are the ones suspected of being cynical and being guided by our own interests. Everything is a matter of public perception and public confidence.

All of us have a duty to restore public confidence. Without it, the very legitimacy of the House is at risk. We have a responsibility to be upright and to distance ourselves from the appearance of any conflict of interest, patronage, or situation where we could be seen as returning a favour.

I am not reinventing the wheel. These are comments that we have all heard in our respective ridings. We have a duty to remain beyond reproach and to be as pure as the driven snow. To achieve that, we must start by taking meaningful action and examining the way federal political parties are financed.

Giving money to a political party is a profoundly democratic act. Citizens can contribute to a political party because they believe in its ideas, or perhaps its ideals. It is more than just encouragement; it is a political gesture that implies engagement.

When the foundations of political financing are attacked by diverting funds from the objectives, when political financing is used for personal gain, to put something straight into someone's pocket, it is a direct attack on the very foundations of democracy and our responsibilities.

When it comes to political party financing, the more a party plays fast and loose with the rules, the less popular and accessible it becomes and the more dubious it appears. How are people to believe that everyone has an equal voice in a democracy when political parties are filling their coffers by hosting exclusive parties at $1,500 a head? How can we convince people that decisions are being made solely in the public interest?

Middle-class Canadians do not have access to these private $1,500-a-plate dinners with the Prime Minister, for example. Even people interested in politics see a problem with that. As for our respective party supporters, those who believe in us enough to give of their time and come up with $100, $200, $300, or $400 out of their annual budgets, what opinion do you think these people have of politicians when they see them hamming it up with the elites in the hopes of raking in big cheques?

Here is a good example. On May 19, 2016, at a private $1,500-a-plate dinner, the Prime Minister met Shenglin Xian, a businessman who wanted permission from the government to create a bank, Wealth One, catering to Vancouver’s large Chinese community. On July 7, 2016, the government gave the go-ahead to open the bank. Now, 48 hours before the official announcement, the Prime Minister received $70,000 in contributions, all of it in cheques made out for the maximum legal amount of $1,500.

The Prime Minister received $70,000 for his Montreal riding of Papineau, with practically all of the cheques coming from wealthy Chinese-Canadians from the Vancouver area.

This is quite an extraordinary coincidence. It breeds cynicism. By all appearances, the Prime Minister received payback for creating the Wealth One bank.

We may wonder whether it is moral and whether it is a good idea to have lobbyists in such a close relationship with our nation's leader. We can even wonder whether political donations can help fast track certain projects and whether government decisions can be influenced. There is one thing we can be sure of, and that this is legal. Yes, the practice I just described is 100% legal under the current system.

That is how the major parties get financing these days, since public funding for political parties was eliminated. It made sense for the two major political parties in Canada to eliminate public funding. They have excellent contacts in all the big firms, in all the major banks, and in all the corridors of power where the big deals are done. They do not need donations from ordinary people who want to contribute as much as they can because they believe in protecting the environment, they believe in social justice, or they want to create their own country for their nation.

Fierce competition between major donors is good for the major parties. This gives people the impression that power can be bought. It is important to remember that it was Jean Chrétien, a former Liberal prime minister, who brought in public funding for political parties. In the aftermath of the sponsorship scandal, he understood that in politics it is important to maintain an image of absolute integrity, because the people see that as critically important. This Liberal government could learn a thing or two from that.

With public funding, political parties receive stable funding based precisely on the number of votes they obtain. In that respect, public funding is an incentive to vote, because even though voters know that a candidate will not be elected, every vote received will benefit the party that voters support. Everyone can rest assured that they have not wasted their vote and that their vote counts. It is democratic, and above all ethical, and it is particularly healthy for our democratic values.

With public funding, there is no need to court the elite in the hope of a rich payoff. The big fundraisers for major parties, especially the party in power, often have a direct influence on public policy. They have preferred access to members' caucus, cabinet, and the prime minister's office. The lower the contribution ceiling, the less influence fundraisers have, and the less room there is for lobbies, private interests, and the friends of government.

Also, with public financing, all political options, whatever they are, obtain funding based on the number of citizens who support them. This means, as I said earlier, that citizens know that their votes count. They know that they can choose the political party they want, the one that represents their values, rather than having to mark an x beside the name of the least objectionable candidate for Prime Minister, for example. It is unfortunate to be elected by default because our highly cynical electorate voted for the least objectionable choice.

In one fell swoop, this would encourage a diversity of political opinions and allow small parties to be heard, and even better, this could eventually help usher in a new party, which is in itself very healthy and democratic for a society such as ours.

We are not reinventing the wheel; we can essentially bring back what the Liberals left us. If we restored the old rule, the Liberal legacy, the cost of public financing would be insignificant compared to what the current system costs us.

When political party funding is tied to votes, taxpayers understand that a minuscule share of the taxes they pay to finance political parties essentially goes to the party they supported.

Under the current system, when a rich donor gives $1,500 to a political party, he or she receives a tax credit of $650, which we all pay for collectively. A small portion of our taxes goes to fund parties we do not support. By lowering the limit and bringing back public funding, we are restoring the balance between the voter's will and the taxpayer's contribution. A larger share of our taxes goes straight to the party that stands up for our beliefs. That system is far less costly than the current funding model. The cost of the current system is the legitimacy of Canadian democracy.

I therefore ask my colleagues from all parties to spare a thought today for the women and men they represent in the House. They know them well, and they know who they are dealing with and what kind of values they hold.

I ask them to think about what these women and men expect of them. I ask them to honour the founding values of the House in a meaningful way. I ask them to vote in favour of my bill, of restoring public funding to political parties, of probity and honesty among elected officials, of strong political morality, and of freer democratic expression.

National Sickle Cell Awareness Day Act

[The Deputy Speaker, Conservative, Bruce Stanton]

Before we begin tonight, the Chair would like to take a moment to provide some information to the House regarding the management of private members' business.

As members know, after the order of precedence is replenished, the Chair reviews the new items so as to alert the House to bills that, at first glance, appear to infringe on the financial prerogative of the crown. This allows members the opportunity to intervene in a timely fashion to present their views about the need for those bills to be accompanied by a royal recommendation.

Accordingly, following the October 23, 2017 replenishment of the order of precedence with 15 new items, I wish to inform the House that there are two bills that give the Chair some concern as to the spending provisions they contemplate. They are:

Bill C-364, an act to amend the Canada Elections Act and to make a consequential amendment to another act (political financing) standing in the name of the member for Terrebonne.

Bill C-374, an act to amend the Historic Sites and Monuments Act (composition of the Board) standing in the name of the member for Cloverdale—Langley City.

I would encourage hon. members who would like to make arguments regarding the need for royal recommendations to accompany these bills or any of the other bills now on the order of precedence to do so at an early opportunity.

I thank all hon. members for their attention.

It being 6:14 p.m., the House will now proceed to the consideration of private members' business as listed on today's Order Paper.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you very much, Mr. Christopherson.

As I mentioned in the presentation, Bill C-364 touches the same subject, amending the Election Act, as Bill C-50 and Bill C-33, so there's a bit of an inconsistency between two decisions with bills that have subjects that are similar to the subjects of government bills but are being treated in a different way.

As I said earlier, and I can't stress this enough, the intent of providing more scope for private members' business, as Mr. Christopherson said very eloquently just now, has always been to open the scope for each of us as a private member. It has nothing to do with whatever party we're affiliated with. It has much more to do with our rights as members.

This committee has always been the committee that has stood up for the prerogatives of members of Parliament. You have a very important role to play in that regard. This is, I think, a key circumstance, in that there's a bit of a loophole and that's why you're being asked in a sense to hear this appeal and make what I believe would be the right decision, which is to make Bill C-352 votable, because I think it meets all the tests. It certainly meets the intent as well of where we have evolved on private members' legislation, and you're the ones who can come to the defence of private members' legislation with this appeal that Ms. Malcolmson has brought to your attention.

[David Christopherson, NDP, Hamilton Centre, ON]

Good. Thank you very much.

Colleagues, as much as possible I'm not seeing this as an NDP colleague, but very much trying to see it as Mr. Reid does: this could be anybody, and it's a question of members' rights.

I came from 13 years at Queen's Park, the largest province in Confederation. We didn't have this. When I got here and found out this idea of votable, I was like, “What? You mean somebody else gets to decide whether what I want to do gets put to a vote?” In large part, that's why you come here: it's to make sure you're going to have an impact.

The whole concept blows me away, and in the nearly 14 years I've been here, this is the first time it has come to rear its ugly head in saying to a member that they can't have their bill come forward.

I ask colleagues to stand back and look at it that way and not necessarily as a government or an opposition member. The appeal procedure is there for a reason. Mr. Julian has gone out of his way to remind us that no one, including government, should be able to do through the back door what they're not entitled to do through the front door. It's a basic tenet of how we do our business here.

I don't fault the analysts. They did their job. Now we have an opportunity to do our job. We're not bound by any of that. There's an appeal process for a reason, and if we take that decision today, then Ms. Malcolmson will get her full rights. If we don't, it will go to the House, or at least she has that option, and the House could say they're going to give Ms. Malcolmson her rights. The fact that we had the analysts do their job is not meant to be the end of the line.

I urge colleagues as much as possible to not start going back down the ugly road of deciding whose issues deserve to be debated and voted on. Each of us should have that sovereign right. Few sovereign rights are left to individual members in this system. This is one that I think collectively we need to work hard to preserve.

To round out my comments, Mr. Julian, there was a comparable bill at the subcommittee, Bill C-364, from the member for Terrebonne, and apparently they made the right decision on that one. If you take the circumstances and apply that thinking, it should leave us with a different conclusion here, which is to allow the bill to be voted on.

I ask Mr. Julian to explain quickly what that argument is from his point of view.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Thank you very much, Mr. Chair.

I also want to thank you, Ms. Malcolmson. We are very happy to have an opportunity to speak with you today about why Bill C-352 should be votable in the House of Commons.

Since your committee is in charge of all the prerogatives of Parliament, the decision you have to make is important.

There are three main arguments I would like to put forward at the beginning.

First off, as you will see, Bill C-352 is in fact quite a different piece of legislation from the government bill, Bill C-64, and therefore should not be considered the same question as Bill C-64, which is currently on the Order Paper.

Second, the subcommittee was incorrect in applying the criteria to Bill C-352 because it was similar to Bill C-64 at the same meeting where it applied different criteria, it seemed, to Bill C-364, which was declared votable, despite being on the same subject and amending the same Canada Elections Act as Bill C-50 and Bill C-33. There's an inconsistency there.

Third, allowing the subcommittee decision to stand is allowing the government to violate the separation of private members' business and to let it do through the back door what the rules were designed to forbid through the front door: to deny individual members their right to vote on their preferred item of private members' business.

As we all know, government bills are subject to party discipline. Private members' bills have been the exception to this, and in our bible, which is O'Brien and Bosc, House of Commons Procedure and Practice, it is clear that these rules were developed over decades, leading to a system based on the following fundamental characteristics: each member should have “at least one opportunity per Parliament to have an item of Private Members' Business debated” and voted upon, and “each item in the Order of Precedence would be votable, unless the sponsor opted to make it non-votable.”

The basic premise for PMBs is that government business is fundamentally different from private members' business. This premise was put in place to protect individual initiatives from members against the power of majority governments, including the power to try to knock off a bill.

Now, to emphasize the differences, the House has many rules built in to reflect the separation of government and private members' business. Amendments to private members' motions can only be moved with the consent of the sponsor. PMB recorded divisions, as we know, are done row by row in the chamber, and not by party. The lottery is designed to exclude ministers and parliamentary secretaries from PMBs, and if the committee makes a decision and it is appealed, the appeal is done by secret ballot on the floor of the House of Commons. The only other time this arises is when we elect a Speaker at the beginning of Parliament.

I would like to pass the microphone back now to Ms. Malcolmson, who will explain why Bill C-352 is so different from Bill C-64.

Canada Elections Act

[Michel Boudrias, Bloc, Terrebonne, QC]

moved for leave to introduce Bill C-364, an act to amend the Canada Elections Act and to make a consequential amendment to another Act (political financing).

Mr. Speaker, I am honoured to rise in the House today to introduce a private member's bill to amend the Canada Elections Act to restore public funding for political parties. This issue was previously debated many times here in the House. With the support of all my colleagues across party lines, I hope that we will finally be able to enhance our collective democracy properly. More importantly, however, I hope we can chase away the dark cloud that is hanging over the ethics of political party financing and restore public confidence in our institution.

(Motions deemed adopted, bill read the first time and printed)