Bill C-50 (Historical)

An Act to amend the Canada Elections Act (political financing)

This enactment amends the Canada Elections Act to
(a) enact an advertising and reporting regime for fundraising events attended by Ministers, party leaders or leadership contestants; and
(b) harmonize the rules applicable to contest expenses of nomination contestants and leadership contestants with the rules applicable to election expenses of candidates.

Canada Elections Act

[An hon. member]

Get a life.

[John Nater, Conservative, Perth—Wellington, ON]

My colleague is telling me to get a life.

It is an excellent piece of work. I am thankful to all those involved. It will stand the test of time as an important document.

Let us go to the subject at hand, Bill C-50.

The member for Saanich—Gulf Islands briefly mentioned in her comments Bill C-33, and I was intrigued today in question period when the Minister of Democratic Institutions mentioned Bill C-33. In fact, I will quote her from the blues. She said, “My job is to strengthen and protect our democratic institutions and ensure they represent the values of Canadians. Through the introduction of Bill C-33 and Bill C-50, we are moving to accomplish that mandate.”

How important is Bill C-33 to the government? It received first reading on November 24, 2016, 14 months ago. Where is that bill today? It still sits at first reading, having never been brought forward for second reading. This is reflective of the entire government's legislative agenda. It introduces certain pieces of legislation to great fanfare, yet there they sit 14 months later, unmoved, at the same stage as they were when they were first introduced. This is reflective of the entire government's agenda, but most particularly of the democratic institutions' agenda.

Let us contrast that with our former Conservative government's agenda. The very first piece of legislation introduced in 2006 was Bill C-2, the Federal Accountability Act. What did that do? It banned corporate donations and union donations, and placed a hard cap on the maximum that an individual could donate.

The Liberal government, in the introduction of Bill C-50, is simply trying to legitimize its cash for access events. It is trying to legitimize its pay-to-play events. It is trying to legitimize that which it should not have been doing in the first place, by its own rules and its own document “Open and Accountable Government”.

I would like to quote from this document. The prelude states:

Open and Accountable Government sets out core principles regarding the roles and responsibilities of Ministers in Canada’s system of responsible parliamentary government.

Under Annex B, “Fundraising and Dealing with Lobbyists: Best Practices for Ministers and Parliamentary Secretaries”, the very first paragraph states:

Ministers and Parliamentary Secretaries must avoid conflict of interest, the appearance of conflict of interest and situations that have the potential to involve conflicts of interest.

This legislation would not have been needed had the Prime Minister accepted his own words, and had he and his ministers followed their own document and simply done what they were asked to do.

It goes on to state:

Ministers and Parliamentary Secretaries must ensure that political fundraising activities or considerations do not affect, or appear to affect, the exercise of their official duties or the access of individuals or organizations to government.

On this specific point, the Liberal government, the Prime Minister, and his cabinet have failed to live up to the standards that the Prime Minister himself set in “Open and Accountable Government”. The Prime Minister laid out his vision. He promised to be open and transparent, and then the Liberals broke their own rules.

This is not the first time we have seen this. We have seen it time and time again over the two years this government has been in office. The Liberals are constantly placing themselves in the appearance or potential of conflict of interest. All week in this House we have heard questions asking the Prime Minister and the government House leader about the Prime Minister's unethical trip to the Aga Khan's island, for which he was found guilty on four separate counts under the Conflict of Interest Act.

The government, in only two short years, is achieving a level of ethics lapses that took the Chrétien-Martin Liberals a full 13 years to get to. It has accomplished that in two years.

Let us talk about this piece of legislation and some of the exemptions and exceptions that the government has brought forward in Bill C-50. There is one particular exception, what I like to call the Laurier Club loophole. This legislation applies to donor appreciation events, except when those events take place at conventions.

People may be wondering, what exactly is the Laurier Club? I have an answer. I went on the Liberal Party's website and found a little information about it. For the low price of $1,500 a year, anyone can become a member of the Laurier Club.

[Kelly McCauley, Conservative, Edmonton West, AB]

Wow, where do I sign up?

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, I believe people can sign up on the Liberal Party website.

What do people get for becoming members of the Laurier Club? They get this: “Invitations to Laurier Club events across the country, hearing from leading voices on our Liberal team”. They get access to senior members of the Liberal Party and the Liberal government. In fact, there is a Laurier Club event tonight in Edmonton. For those who are interested, I am sure there is still time to register for that event. My colleague from Edmonton West says that perhaps both Edmonton Liberals will show up at that event.

I find this interesting. Just last week, the chief of staff to the Minister of National Defence tweeted about the convention the Liberal Party is having later this year in Halifax. She said, “if there was a time to join Laurier Club, now is the time”. She was highlighting the Liberal convention.

I am sure we could all read different options into that, but I believe the testament there is very much that if people want to meet senior Liberals, they should join the Laurier Club and attend the national convention, and they will have access to senior decision-makers within the Liberal Party of Canada. That is accepted. It is exempted from this piece of legislation. The Laurier Club loophole allows that to happen.

There is another exception in this piece of legislation. I like to call this exception the Joe Volpe clause. It prohibits the publication of names of people under the age of 18. I know that all members of this House recall the 2006 Liberal leadership race and Joe Volpe's endeavours to raise money, including from those who were 11 years of age. In honour of Mr. Volpe, we should refer to that clause as the Joe Volpe clause.

I am not going to get into any clauses about those who have passed on. I believe that this would perhaps also be called the Joe Volpe clause, but it is not dealt with in this particular piece of legislation.

There is also a part of the legislation that requires five days' notice. The notice has to be placed on the website five days in advance. Publicizing these events is a positive step. It is not a bad thing. However, another loophole comes into place. There is no provision for a long-standing event to be sold to party members and encouraged, and then at the last minute, lo and behold, the Prime Minister is attending, under the five-day limit, or the Minister of Finance or another senior Liberal minister is attending the event within the five-day period.

There is no provision in the bill to remedy that. This is a matter that I brought up at the procedure and House affairs committee, and it was not dealt with in this legislation. While the minister and the government hold this piece of legislation out as a great step forward in openness and transparency, it is simply window dressing to cover up the Liberals' past cash for access events, their pay-to-play events, and their way of getting $1,500 out of senior donors and high donors to their party and giving them access to senior people within the Liberal Party, including the Prime Minister.

This is unneeded. We will be voting against this piece of legislation. I am sure hon. members will join me in doing so.

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

Mr. Speaker, I wonder if the member for Perth—Wellington could share with the House why he feels that his party's leader should be entitled to such secretive fundraisers.

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, let us be very clear. Our party and our leader follow the rules that are on the books and that are legislated by the House. The member opposite is talking about an event that took place several months ago, before this legislation was even dealt with by committee. It is like saying that the Magna Carta does not exist because King John was not given five days' notice of the event. We cannot retroactively legislate.

The Parliamentary Secretary to the Minister of Democratic Institutions is just trying to sling mud at our leader with his comments, because he and his party know that we are going to be working hard in the next two years and that in 2019 we will be forming the next government.

[Pierre-Luc Dusseault, NDP, Sherbrooke, QC]

Mr. Speaker, I thank my colleague for his remarks. I would like to hear his comments on what seems to me to be a lamentable failure of Liberal promises regarding electoral reform and the Democratic Institutions file as a whole. The Liberals have almost no record to present. To date, the only accomplishment they can show Canadians since their election in 2015 is this bill, which is quite modest, not to say bad, given their promises.

What does my colleague think about the Liberal record on electoral reform and democratic institutions, when expectations were so high? After the 2015 election, expectations were very high that the Liberal government would produce results by the next election.

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, I thank my colleague from Sherbrooke for his question. He is right, the Liberal government made a lot of promises during the 2015 election campaign, but did not keep them. The Liberals promised many things during the election campaign, but did not follow through on them once they formed government.

Electoral reform is one example. The government created a committee of the House and said that the 2015 election would be the last election under first past the post. The Liberals said one thing and did the complete opposite. These are the same Liberals we have seen in the past. They have not changed.

[Elizabeth May, Green, Saanich—Gulf Islands, BC]

Mr. Speaker, I believe my colleague just referred to the first past the post electoral system.

It is not something that trips off the tongue easily even for the Québécois, but that is the current dysfunctional voting system we have.

I appreciate that the hon. member for Perth—Wellington raised, as I did, a really substantive piece of legislation. I do not know why Bill C-33 has been stalled for so long at first reading. I wonder if he could give me a sense of the reason.

The member for Perth—Wellington and I worked together on electoral reform on various committees. He is a sterling fellow. I do not want to put him on the spot on behalf of his whole party. Bill C-33 is trying to repair a lot of what many of us in the opposition at the time felt was damage to our electoral system. Does my colleague know the current intention, and how does he personally feel he will vote on Bill C-33?

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, the million-dollar question is, where is Bill C-33? It was introduced in November 2016, and yet here it is, stalled. There has been no debate at second reading. It has not even reached the point where we can get it to committee and discuss it. Our party is open to debating Bill C-33, but we have not been given the chance to debate it. It is sitting awaiting second reading, unmoved, unloved, completely stalled. I would have to ask the government, where is Bill C-33?

Where are so many other bills that the government has introduced and let sit stagnant on the Order Paper?

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, I rise today to speak to Bill C-50, an act to amend the Canada Elections Act (political financing). This bill proposes amending the Canada Elections Act to bring an unprecedented level of openness and transparency to federal political fundraisers. The legislation is just one of many steps that we are taking as a government to raise the bar on transparency, accountability, and integrity of our public institutions and the democratic process.

The year 2017 marked the 35th anniversary of the Charter of Rights and Freedoms, which was signed on a blustery day in April on the front lawn of Parliament just a few steps from where we are right now. Canadians cherish our charter and rightly so. It is a model for democracies around the world.

Section 3 of the charter guarantees every citizen the right to vote and to run in an election. This fundamental democratic right, guaranteed to all Canadians, is one of our most cherished civic rights. The simple act of voting is an exercise of democratic freedom that unites all of us as Canadians. The Charter of Rights and Freedoms also enshrines the freedoms of association and expression. Section 2 of the charter has been interpreted to include the right of Canadian citizens and permanent residents to make a donation to a party and to participate in fundraising activities. Of course, these rights are both subject to the reasonable limitations that might be imposed in a free and democratic society.

Political parties represent a vital part of our democratic system. They unite people from different parts of the country with a variety of different perspectives and backgrounds and experiences. Parties mobilize ordinary citizens to champion policies and ideas and they foster the kind of vigorous public debate about ideas that is at the heart of our healthy democracy. Voting in an election for a candidate is one of the ways Canadians play an active and engaged role in this society. We see this as an opportunity to make our country a better place for our children and our grandchildren. Some Canadians even choose to work or volunteer in a political party or a candidate's campaign, and for many of us here in this room, we probably know few people who do not. We engage all of our friends and family to help us in our political activities, and many of the people whom we meet are either our volunteers or people who work against us in campaigns.

It is true that it is a broad expanse of the Canadian population that participates in political activity at the municipal and provincial levels, and also here at the federal level, but not everyone has the time or inclination to become involved in politics in that respect. Still, people may want to have their voices heard, so for many Canadians, making a financial contribution to a political campaign is a meaningful way for them to play a direct role in our democracy. It is an important forum of democratic expression. Choosing to support a political party or a candidate is something we must continue to uphold and protect. Everyone in this place knows that donations given by people who believe in us, who believe in what we stand for and what our parties stand for, help make our work possible, and we must continue to ensure that Canadians are free to contribute to political parties and candidates openly and transparently.

It bears noting that Canada is known around the world for the rigour of its political financing regime. Donations from corporations and from unions are prohibited under the existing legislation. To further level the playing field, there are strict limits on the contributions an individual can make. Canadian citizens and permanent residents can each contribute a maximum this year of $1,575 to each registered party. They can donate a total of $1,575 to the leadership contestants in a particular contest. In addition, they can donate a total of $1,575 to contestants for nomination, candidates, and/or riding associations of each registered party. Contributions are reported to Elections Canada and the name, municipality, province, and postal code of those who contribute more than $200 are posted online.

Bill C-50 would build on this existing regime so that when a fundraising event requires an attendee to contribute or pay a ticket price totalling more than $200, the name and partial address of each attendee, with certain exceptions, would be published online. The exceptions are youth under 18, volunteers, event staff, media, someone assisting a person with a disability, and support staff for a minister or party leader in attendance.

Canadians take political financing seriously. There are significant consequences for disobeying the law, and that is why currently the Canada Elections Act provides tough sanctions for those who break the rules. Although Canadians can be proud of our already strict regulations for political financing, we recognize that they have a right to know even more and perhaps in a more timely fashion when it comes to political fundraising events. Bill C-50 aims to provide Canadians with more information quicker about political financing events in order to continue to enhance trust and confidence in our democratic institutions.

If passed, Bill C-50 would allow Canadians to learn when a political fundraiser has a ticket price or requires contributions above $200, that it is happening, and who attended. The legislation would apply to all fundraising activities attended by cabinet ministers, including the Prime Minister, party leaders, and leadership contestants who meet these criteria.

This provision also applies to appreciation events for donors to a political party or contestant. This legislation would apply only to parties with a seat in the House of Commons. It would require parties to advertise fundraising events at least five days in advance. Canadians would know about a political fundraiser before the event takes place, which would give them the opportunity to inquire about a ticket if they so choose.

Bill C-50 would also give journalists the ability to determine when and where fundraisers are happening. At the same time, political parties would retain the flexibility to set their own rules for providing media access and accreditation. Parties would be required to report the names and partial addresses of attendees to Elections Canada within 30 days of the event. That information would then become public in a much more timely fashion than currently is the case.

The bill would also introduce new offences under the Canada Elections Act for those who do not respect the rules and require the return of any money collected at the event. These sanctions would apply to political parties and event organizers rather than the senior political leaders invited to the events.

We propose a maximum $1,000 fine on summary conviction for offences introduced under Bill C-50. Of course, this is in addition to returning the funds raised. This new level of transparency would further enhance Canadians' trust in government, and that is good for everyone.

If passed, Bill C-50 would deliver on the government's promise to bring greater transparency to Canada's political financing system and thus strengthen our democratic institutions. As I have said, this is just one of the efforts that we are putting into place. The government is also taking action to increase voter participation and enhance the integrity of elections through Bill C-33, an act to amend the Canada Elections Act, and the government has partnered with the Communications Security Establishment to protect democracy from cyber-threats.

While we know that Canadians have confidence in our democracy, we recognize that there is always room for improvement. Shining a light on political fundraising activities as and when they happen builds upon our already strong and robust system for political financing in Canada. It should be welcomed by everyone in the House.

[Sheri Benson, NDP, Saskatoon West, SK]

Mr. Speaker, I am hoping that what I am going to say does not sound a bit tongue in cheek or cheeky, but social work interns come in and they are able to do a practicum in my office because I was a social worker before I became a parliamentarian. Part of the conversation I have with those students is the difference between Parliament and government. Often community members sort of confuse the two, such as what a minister is, they are in government, and a member of Parliament is in Parliament.

I am having a hard time with the opposite side's response to the bill in blurring the lines between what we are talking about and that is talking about cash for access for government ministers. That is a whole different conversation from talking about political financing of party leaders and candidates having fundraisers. I feel that government ministers should not be involved in political financing. People should not be allowed to pay a certain amount of money to have access to a government minister. I want to hear the member's comments about the distinction between those roles.

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, obviously there are roles that relate to conflict of interest and ethics, and those are dealt with under that act. The changes we are talking about today are ones that relate to changes to political financing. The member's question is one that certainly should come up in any review of the conflict of interest and ethics considerations.

With respect to how these changes will help Canadians by providing them more transparency, maybe I could just walk through the process. Under the current rules, if someone donates $200 to a political party, that amount, the information, and the names are already going to be collected. They will ultimately be disclosed to Elections Canada, and then published at some point in time six to nine months after the end of the fiscal year. It makes it difficult then for Canadians to know at the time whether or not people are attending these events, who those people might be, and to make their own determination as to whether anything improper has occurred or could be occurring.

The changes we are putting in now require that when these fundraisers take place, this information will be made available to the media in advance. The media will know where and when the events are taking place so they can attend, if they are accredited, and they can report at the event. Then of course the information will be compiled and provided to Elections Canada within 30 days of the event so Canadians can see who attended.

It will be up to Canadians then, in addition to any other ethics considerations that might fall under a separate regime, to make up their own minds on whether they feel it is appropriate and if they continue to have faith and trust in the system. I believe they will because they will have the information at their fingertips, and the light of transparency will render it clean.

[John Nater, Conservative, Perth—Wellington, ON]

Mr. Speaker, I am not sure why the member is not the government minister for Newfoundland and Labrador. I think he would make a great minister representing his province.

Under the legislation, money gained through an illegal fundraiser has to be paid back. Along a similar vein, if a trip is taken to an island and the Ethics Commissioner finds it to be illegal, should that $215,000 also be paid back to the taxpayers?

[Nick Whalen, Liberal, St. John's East, NL]

Mr. Speaker, I will start with the member's comment. The Minister of Veterans Affairs and Associate Minister of National Defence is a fantastic hard-working individual, and he has certainly earned his place to sit in cabinet. He represents Newfoundland and Labrador very well.

With respect to the question as to costs assumed and controlled by a separate level of government that determines the Prime Minister's safety, we all want a prime minister, regardless of what party he or she is in, to be safe and protected, and to have those safety and security considerations managed by the RCMP, which they do. The Prime Minister has followed the rules set out. He has apologized, and he suffers the consequences in public life of having made a mistake.