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

This bill was last introduced in the 42nd Parliament, 1st Session, which ended in September 2019.

Sponsor

Karina Gould  Liberal

Status

This bill has received Royal Assent and is now law.

Summary

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

This enactment amends the Canada Elections Act to
(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.

Elsewhere

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

Votes

Feb. 13, 2018 Passed 3rd reading and adoption of Bill C-50, An Act to amend the Canada Elections Act (political financing)
Feb. 6, 2018 Passed Concurrence at report stage of Bill C-50, An Act to amend the Canada Elections Act (political financing)
Feb. 6, 2018 Failed Bill C-50, An Act to amend the Canada Elections Act (political financing) (report stage amendment)
Feb. 6, 2018 Failed Bill C-50, An Act to amend the Canada Elections Act (political financing) (report stage amendment)
June 15, 2017 Passed 2nd reading of Bill C-50, An Act to amend the Canada Elections Act (political financing)

Canada Elections ActGovernment Orders

February 5th, 2018 / 3:15 p.m.
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Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Mr. Speaker, we certainly would not want to hold up question period, so I was happy to yield at that time.

With the three minutes I have left, I would like to pick up on what I was saying. I was speaking of the background and the history of this legislation, and the issue purported by the Liberals to solve, being that the Liberals are the only party with the problem with fundraising.

The calls to eliminate, to question, and to be concerned about the conflict of interest inherent in cash-for-access fundraising were the reasons for this legislation. The Liberals had to do something. They had to be seen as doing something about a practice that only the Liberal Party party takes part in, so they tabled the bill we are now debating.

As I said before question period, Bill C-50 is not necessary. The government could at any point simply choose not to shake down its own lobbyists and stakeholders for money for the party. It could simply choose to not allow that of members of its own cabinet, who have the power to dispense contracts, to hire people into the public sector, to make judicial appointments, to put out cash to subsidize businesses. A minister of the crown has these powers. Members of the opposition do not have these powers. Leaders of opposition parties do not have these powers. Government backbenchers do not have these powers. A minister of the crown has these powers.

It is the swinging back that we have heard, and I am sure we will hear more in a minute or so, that this is something about anything other than cash-for-access fundraising. It is just silly.

I will conclude by reiterating that I do not intend to support this legislation. To do so would be to lend credibility to a government that is merely seeking cover for a practice that Canadians find odious, that nobody besides members of the opposite party think is okay. I am not going to allow them to use the passage of this legislation to say they have somehow sanitized and legitimized the practice of cash for access.

The House resumed consideration of Bill C-50, An Act to amend the Canada Elections Act (political financing), as reported (with amendment) from the committee, and of the motions in Group No. 1.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:50 p.m.
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Conservative

Pat Kelly Conservative Calgary Rocky Ridge, AB

Mr. Speaker, today we are debating Bill C-50. This is a bill that some of my Conservatives colleagues, and I believe the member for Barrie—Innisfil, may have called yet another Seinfeld bill, a bill about nothing.

This is a bill that does not do much other than, from the government's side, try to give some type of legitimacy to their practice of exchanging cash for access. The steps toward transparency, given the existing law, are very minor in nature and do nothing to address what the previous speaker characterized as the elephant in the room, which is the exchange of cash for access.

For the benefit of those who have not followed the debate or are not aware of some of the background, it is necessary to understand the background to grasp how almost meaningless this bill is. The current laws on election finance already limit financial contributions to those from individuals only, and they limit them to just over $1,500 per person. They expressly ban donations from corporations and from unions. They ban anonymous contributions of over $20, and they require public disclosure of any contribution over $200.

All of these transparency pieces that we hear from the government members in debate on this bill, which they congratulate themselves for, exist in the current law. We will just be changing the dates, making reporting happen a little sooner than otherwise would happen. Already, anybody who contributes $200 or more to a political party is subject to disclosure. This transparency piece that the government members speak of already exists. Everyone is already going to disclose if they give over $200 to a political party.

These rules all came into place early in the previous Parliament. The previous Parliament had a mess of ethical scandal to clean up when it came into government, and the new and current electoral fundraising laws are a part of that.

In the previous Parliament under the rules, cash for access was not an issue. It was understood by members of the previous government that their prime minister, Stephen Harper, would not tolerate it. I have spoken to my colleagues on this side who were ministers in the previous government, and they are absolutely appalled by the cash-for-access system that the Liberal Party and its government have, because they know it is wrong. The ministers in the previous government knew they would be cut off at the ankles if they tried to shake down their stakeholders and lobbyists for money by doing cash-for-access fundraising. It was a practice that was not done under the current law, and only began when the Liberal government took office.

This bill purports to be a solution to a problem that only exists for one party, the Liberal Party of Canada. This bill is unworthy of support because it is designed to give cover for a practice that will then be carried on. Liberals will no doubt later congratulate themselves on passing this bill and then claim that there is nothing wrong with cash for access; they changed the date with which the reporting has to happen and compelled themselves to start holding their events more publicly, and to not, for example, use search engine protocols to bury results when people look for Liberal fundraisers.

As has been remarked on in some of the previous speeches, the Liberals ran on a grand platform and promised a number of things, including electoral reform. Some members in the country ran on a pro-pipeline agenda, and others were anti-pipeline, promising different things in different parts of the country. They promised limited deficits and a balanced budget within two years, after running a maximum $10-billion deficit. Liberals promised access to information reform.

Liberals also boldly declared, with the Prime Minister himself promising to lead, that they would have the most open and transparent government in Canadian history. That is now the punchline of a bad joke in the wake of his own conduct, the findings of him having been in conflict of interest and violating four sections of the code on his vacation, as well as the whole cash-for-access system, which took form very quickly after Liberals came into office.

It was through the media that Canadians came to understand the scope and breadth of cash-for-access fundraising that was taking place. We heard about episodes that the member for Lanark—Frontenac—Kingston spoke of earlier, when he talked about how Chinese nationals, who are not allowed under the existing law to contribute to political parties, were meeting privately, in private homes, to lobby the government and the Prime Minister directly. We have heard about the Minister of Justice having a cozy fundraising event at a Bay Street law firm with other lawyers and perhaps future judicial applicants. We have heard about the finance minister and his cash-for-access fundraising, and the industry minister. This is widespread.

This was a central part of the Liberals' fundraising apparatus that only came to a halt, sort of, when it came to light through media reports beginning in the late spring of 2016. Today we have this bill before us, and I am sure the Liberals will congratulate themselves for having dealt with this criticism, but it leaves the elephant in the room. Cash-for-access fundraising is wrong, and this bill would not make it right.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:35 p.m.
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Liberal

Pam Goldsmith-Jones Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

Mr. Speaker, I certainly can. Today, the Prime Minister's open town halls are open invitations to all Canadians to bring all points of view to him. I have never experienced something as open as this and it is a stark contrast to what we experienced with the previous government.

That is why Bill C-50 is part of also increasing participation, also increasing access, also being available to journalists and questions. I cannot count the number of times with the previous government that I was so let down because of not being able to ask, as a public office holder myself, the former prime minister a question about things that matter so much to Canadians.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:35 p.m.
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Halifax Nova Scotia

Liberal

Andy Fillmore LiberalParliamentary Secretary to the Minister of Democratic Institutions

Mr. Speaker, the official opposition members have paradoxically exercised themselves with great vigour to decry the elements of transparency and openness proposed in Bill C-50, while they themselves are practising a closed style and opacity. I wonder if the parliamentary secretary could share any first-hand experience that she has with just how open and transparent our Prime Minister truly is.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:35 p.m.
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Liberal

Pam Goldsmith-Jones Liberal West Vancouver—Sunshine Coast—Sea to Sky Country, BC

Mr. Speaker, I do not accept the terminology that my hon. colleague is using. For any event that we attend, if the tickets are $200 more, every single person who attended would be known. Certainly this government is already applying the rules that we propose under Bill C-50, and we look forward to the support of each and every member of Parliament.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:30 p.m.
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Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, with respect to Bill C-50, parliamentary secretaries are excluded from the legislation. I would like to ask the hon. member if she would go to a cash for access event if she was invited.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:25 p.m.
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West Vancouver—Sunshine Coast—Sea to Sky Country B.C.

Liberal

Pam Goldsmith-Jones LiberalParliamentary Secretary to the Minister of International Trade

Mr. Speaker, I rise today to speak to Bill C-50, an act to amend the Canada Elections Act in relation to political financing. This bill proposes to amend the Canada Elections Act to bring unprecedented openness and transparency to federal political fundraising. The legislation is the latest step the Government of Canada is taking to improve upon transparency, accountability, and integrity in our public institutions and toward strengthening the democratic process. I would like to thank the minister and her parliamentary secretary for their work.

In 2017, Canadians celebrated the 35th anniversary of the Charter of Rights and Freedoms. The charter is a model for democracies around the world. Section 3 of the charter guarantees every citizen the right to vote and to run in elections. This fundamental democratic right guaranteed to all Canadians is central, obviously, to our democracy. When candidates for a federally elected office engage in raising funds to run a campaign and when donors contribute, it is critical to ensure that the processes are open, transparent, and accountable. The integrity of our political system depends on being vigilant and on continuous improvement in recognition of the fact that the public trust is earned and re-earned every day.

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 political party and to participate in fundraising activities, subject to reasonable limits. Political parties are a vital part of our democratic system. They unite and mobilize people from different regions and with a variety of different perspectives, backgrounds, and experiences to volunteer, champion policies, have new ideas, and foster and engage in public debate.

Voting in an election for a candidate is one of the ways we play an active role in our society. Volunteering for a political party or campaign is another way. Certainly, making a financial contribution to a political campaign is a way to play a direct role in the democratic process. Upholding and protecting the integrity of the political campaign contribution process is our collective responsibility as members of Parliament. We must continue to ensure that Canadians are free to contribute to political parties and candidates.

Canada is known around the world for the rigour of its political financing regime, and this comes from our constant attention. Donations from corporations and unions are prohibited under existing legislation and there are strict limits on the contributions an individual can make. Canadian citizens and permanent residents can contribute a maximum of $1,575 annually to each registered party. They can donate $1,575, in total, to all leadership contestants in a particular contest, and 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 names, municipalities, provinces, and postal codes of those who contribute more than $200 are published.

Bill C-50 builds on the existing rules. When a fundraising event requires someone 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. The exceptions are young people 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 fundraising 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. Though Canadians can be proud of our already strict regulations for political financing, we recognize that they have the right to know even more when it comes to political fundraising events. Bill C-50 would provide Canadians with more information about political fundraising 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 that has a ticket price or requires a contribution of $200 or more is happening and who attended. This legislation would apply to all fundraising activities attended by cabinet ministers, including the prime minister, party leaders, and leadership contestants who meet the criteria. It would also apply to appreciation events for donors to a political party or contestant. This legislation would only apply 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, giving them an opportunity to participate and even observe.

Bill C-50 gives 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.

The bill would also introduce new offences in 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 event. We propose a maximum $1,000 fine on summary conviction for offences introduced under Bill C-50.

This new level of transparency recognizes that the public trust is always being built, and delivers on the government's promise to bring greater transparency to Canada's political financing system and thus strengthen our democratic institutions. We are also taking action to increase voter participation and enhance the integrity of elections through Bill C-33. The government is partnered with the Communications Security Establishment to protect Canada's democracy from cyber-threats.

While we know that Canadians have every reason to be proud of our democracy, which together we build every day, we recognize there is always room for improvement. Shining a light on political fundraising activities builds upon our already strong and robust system for political financing in Canada.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1:10 p.m.
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Conservative

Scott Reid Conservative Lanark—Frontenac—Kingston, ON

Mr. Speaker, I want to address Bill C-50 by articulating what I believe is its central purpose, which is not to remedy an absence in the law that has resulted in unlawful behaviour. Rather, it is to deal with an issue that was never unlawful; it was something that did not pass the sniff test and was not considered acceptable by Canadians.

Therefore, the goal of the bill is to put in some new and completely insignificant reporting requirements about who attends cash for access or pay-to-play fundraisers. It puts some minimal limitations on where they can be held, and has a few other little bells and whistles of that sort. It does so for the purpose of saying that the government has done something to address what the Canadian public regards as an ethical problem even though, strictly speaking, it is not a legal problem.

The goal here is to normalize or legitimatize a practice that Canadians have said is not normal and not legitimate, which is holding fundraising dinners at which individuals pay up to $1,500 a pop to meet someone as eminent as the Prime Minister or the Minister of Finance, people who have a direct impact on issues of immediate importance to their enterprises. Sometimes we will see multiple people from the same company buying tickets, effectively grouping together, as a way of maximizing the potential interests that the Prime Minister or the Minister of Finance would have in talking to them. In doing so, the government is saying that this practice, once it reports on it, will become legitimate, or at least it hopes Canadians will regard it as legitimate.

I want to make the suggestion that Canadians' rejection of this practice as illegitimate is well-founded. It is quite deep. I certainly hope the legislation will not overcome the concerns Canadians have.

Let me read a bit from an article by The Hill Times a few months ago. It talks about a particular event held at a prominent law firm in Toronto where the justice minister was present. The attendance fee was over $1,000 a ticket. The Hill Times wrote, “So [the] Justice Minister...wasn’t breaking any rule by being the guest of honour at the pricey fundraiser organized by a Bay Street law firm. It just smells really bad and violates the spirit of the government’s own code of conduct.”

Canadians think it is illegal, they are surprised to learn it is not illegal, and now, with this process of requiring some reporting, the government can say that it is explicitly legal. We heard it in the minister's response about those sneaky opposition leaders out there who were having their own fundraisers, with the same sort of things occurring. The minister who raised this earlier apparently believes or wants us to believe that leaders of the opposition or of third parties are capable of delivering favours and that people would buy tickets based upon that. Of course that is nonsense. It is a diversion from the fundamental ethical problem, which is that ministers can deliver favours. I am not saying that the ministers have delivered favours. How would I know? However, clearly, some of the people who have been buying tickets believe it is a possibility, and the Canadian public emphatically believes it is a possibility.

Maybe the Canadian public is all wrong and stupid. That is certainly a prominent theme in Liberal policy, or policy adjustments with the current government. I mean the Canadian public was all wrong about electoral reform, for example. Let me tell people what those stupid, poorly-thought-out Canadians think.

I will quote again. The Globe and Mail states:

A Nanos public-opinion survey, conducted for The Globe and Mail from Nov. 26 to 30 [of 2016] shows that 62 per cent of Canadians disapprove of the Liberal Party's practice of charging people $1,500 a ticket to meet in private with...[the Prime Minister] and senior cabinet ministers who oversee major spending or policy-making decisions.

Maybe 60% of Canadians are wrong again, but maybe there is the possibility that people are not wrong, that they are upset, and that this exercise of pulling the wool over their eyes is inappropriate, illegitimate in itself.

Why does this fail the sniff test? Why do Canadians think this is not the right way to do fundraising? The answer to that, I think, is illustrated by a number of examples I can offer of specific Liberal fundraisers. These were the source of the ethical conundrum.

Chinese billionaires, and when I say Chinese, I mean someone who is a citizen of the People's Republic of China, not a citizen of Canada, attended Liberal fundraisers even though they were not allowed to donate. They were not Canadian citizens. One such individual, Zhang Bin, who is also a Communist Party apparatchik, attended a May 19, 2016 event, at which a cabinet minister was present. We were told that Mr. Zhang and a business partner, just to sweeten the deal, donated $200,000 to the Pierre Elliott Trudeau Foundation, and donated $50,000 to build a statute of the current Prime Minister's father.

Another example was on November 7, 2016, in B.C. B.C. multimillionaire Miaofei Pan hosted a fundraiser at his West Vancouver mansion. This was going on at the same time the federal government was in the process of reviewing the $1 billion bid by China's Anbang Insurance Group to purchase one of British Columbia's largest retirement home nursing care chains, which it did.

The government's behaviour also fails to live up to the highfalutin rhetoric in the mandate letters to all ministers, which say:

To be worthy of Canadians’ trust, we must always act with integrity. This is not merely a matter of adopting the right rules, or of ensuring technical compliance with those rules. As Ministers, you and your staff must uphold the highest standards of honesty and impartiality, and both the performance of your official duties and the arrangement of your private affairs should bear the closest public scrutiny. This is an obligation that is not fully discharged by simply acting within the law.

The mandate letters are publicly available and this can be read in every letter.

Clearly, having these fundraisers does not achieve that target. The Liberals are completely failing to achieve their targets, so they are trying misdirect, saying they have a new set of rules that make it all okay. I do not know, maybe this will work; maybe it will not work. The question is why the Liberals are trying it in the first place.

The answer is that this is the backbone of Liberal fundraising. Attendance figures suggest that the party brings in somewhere between $50,000 and $120,000 per event when the Prime Minister or the Minister of Finance is in attendance. The Liberal Party needs these events to keep its fundraising up. It has not developed successively a mechanism for going after a large number of smaller donations or of getting this size of donation in the absence of this kind of event.

That is a problem for the Liberal Party, I grant that. However, may I suggest for the Liberal Party that developing a grassroots appeal will not be done by holding this kind of event and then trying to cover it up. On the contrary, a populist appeal necessarily involves trying to reach out at the grassroots level. The Liberals are doing better than they did in the past, in all fairness, but that is where they should be concentrating. They should not be concentrating on trying to epitomize pay-for-play or cash for access, something Canadians have spoken against so very strongly.

Canada Elections ActGovernment Orders

February 5th, 2018 / 1 p.m.
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Liberal

Nathaniel Erskine-Smith Liberal Beaches—East York, ON

Mr. Speaker, before I begin my speech, I note that the parliamentary secretary and I agreed on ground rules for the fundraiser I held. We agreed that we would not talk about cannabis, despite a mutual interest in discussing it. Also, just so the record is clear, the cost of that event was $150, or $20 for monthly supporters, which might make it the cheapest cash for access in the history of Canadian politics. I also note that the individual who was quoted in the Globe bought a ticket under a different name, and we refunded the money as soon as we found out who she was.

Bill C-50 would improve our political financing rules, which are already some of the strongest in the world. Our stable democracy, including our open and fair elections, in many ways depends on these rules, enforced as they are by a truly independent watchdog in Elections Canada. Of course, while the rules that underpin our elections are fair, our electoral system more generally remains less fair than it could or should be. Under first past the post, there will always be a significant gap between election outcomes and voter intentions.

I did not think it fair for the Harper administration to hold 100% of the power in government, including complete control in this House, with less than 40% of ballot box support. I do not think it is any fairer for us, as Liberals, to do the same. As our lives have moved online, we have seen communities of people from different geographies coalesce around different issues and common experiences, yet our electoral system largely ignores this reality and these communities.

I recognize that this government does not intend to revisit this issue, but I want to lend my voice in support of current efforts in British Columbia. I hope that BC shows us a way forward, bringing the same leadership to our country on electoral reform they have brought on carbon pricing.

In contrast to the sweeping change of electoral reform, Bill C-50 is a series of tweaks, thankfully in the right direction. We already have political financing rules to be proud of here in Canada. No one can buy an election here. We ban corporate and union donations. We cap annual personal donations at $1,550, with a set escalator of $25 a year, and we have strict spending limits. In a traditional writ period, the expenditure limit for local candidates is around $100,000.

I played baseball in Oxford for a year while completing my master in laws. I was a pitcher, and our catcher was from Mississippi. He had volunteered on the Obama campaign on the west coast, perhaps because it was lonely in Mississippi. We talked about our mutual interest in politics and about the idea of elected office. When I explained the hard cap on riding spending, he could not stop laughing. He joked that the same amount of our spending limit is one bad radio spot for them.

As a member of the board of young MPs for the Inter-Parliamentary Union, I helped organize a conference of young MPs here in Ottawa this past November. We were joined by 120 MPs from over 50 countries. In between sessions, we compared notes on political financing rules. If our rules were emulated around the world, the ideal of democracy would be significantly strengthened in practice.

A fair and participatory democracy depends on the rough equality of the strength of our voices in the political process. As Ronald Dworkin has put it, in calling for a more ambitious conception of democracy, it is “one that understands democracy as a partnership in collective self-government in which all citizens are given the opportunity to be active and equal partners”. As our Supreme Court has put it, “The advancement of equality and fairness in elections ultimately encourages public confidence in the electoral system.”

We need only look south of the border to see what can take place absent such rules. Unfortunately, we are unlikely to see positive and lasting change in our American ally until Citizens United is revisited. Again, in the words of Dworkin:

The most effective way to prevent money from dominating politics, and to prevent powerful corporations, unions, and other groups from receiving favors for contributions, is to lessen politicians' need for money, and the most effective way to do that is to limit what politicians may spend.

Given the importance of our strict political financing rules, it is necessary to revisit them on occasion, with a view to strengthening them further. Such is the case with Bill C-50. Bill C-50 rightly addresses public concerns about large donors receiving preferential access.

The bill would improve transparency. For political fundraising events at over $200 a ticket, Bill C-50 would require the attendee list of the event to be disclosed publicly. It would ensure that fundraising events would no longer be held informally or privately, where a minister or leader is concerned, as Bill C-50 would require that all such events be posted publicly in advance of the event's scheduled date. This is as it should be. It would not be a major change, but Bill C-50 would make a set of strong rules even stronger.

Having listened to the debate here in the House, and having read the testimony at committee, I am struck by how lucky we are to live in Canada. In Iran, thousands of protesters have recently taken to the streets. Women have been arrested for defying a law that requires them to wear headscarves. I stand with all defenders of democracy around the world, including in Iran, who exercise the basic human right of free speech in the name of democracy.

The right of political participation is, as Jeremy Waldron notes, the “right of rights”. We should defend such participation at every opportunity and equally defend demands for such participation where it is currently absent.

I just received an email this morning from a constituent, who has been involved with the elections in Kenya. He writes, “a senior political leader in the Kenyan opposition...was arrested last Friday after administering the presidential oath of office to the opposition leader...Later in the day, a court ordered that [he] be released on bail. To date, the Kenyan government has failed to do so. This morning, it defied a court order that he be brought to court. As a consequence, the Inspector General of Police has been found in contempt and ordered to produce him tomorrow.” This is outrageous, and the Kenyan government should act expeditiously to respect the rule of law and the separation of powers.

Again, we must stand firmly in support of these ideals and in support of activists around the world who demand a voice in the political process, the right to vote, and other core rights and freedoms.

Here we are debating, among other things, the difference between a $100 or $200 ticket price threshold for public disclosure of attendee lists. It is not a trivial debate by any means, but it is a luxury of living in Canada.

Of course, we should not turn down an opportunity to improve our rules simply because the rules, and the enforcement of the rules, are worse elsewhere. Therefore, I will add my own suggestion for improving political financing for our government to consider. We should cancel all political tax credits and direct all such funds through restoring the per-vote subsidy.

The Department of Finance estimates that the total tax expenditure for political tax credits is $30 million per year. As we remind our supporters every December and in every over-the-top email blitz, political tax credits are incredibly generous, exceedingly and unnecessarily more generous than the credits available for charitable donations. Meanwhile, the federal cost of restoring the per-vote subsidy to its pre-phase out level, adjusted for inflation, is estimated at $39.2 million as of 2017, according to a Library of Parliament analysis conducted at the request of my office.

The simplest solution would be to restore the per-vote subsidy in an amount equal to that saved by the cancellation of the political tax credit. Our balance sheet remains the same, but political financing becomes fairer. While it is not electoral reform, it would, in its own way, make every vote count.

Canada Elections ActGovernment Orders

February 5th, 2018 / 12:55 p.m.
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Burlington Ontario

Liberal

Karina Gould LiberalMinister of Democratic Institutions

Mr. Speaker, I can absolutely say that this is not a cynical bill. This is a bill that is making a substantial difference. It is unfortunate to hear from my colleague across the way on this topic in such a cynical manner, because to be perfectly honest, fundraising is an activity that all political parties undertake.

I want to make one correction. We know that no foreigner can make a contribution. It is against the law. That is something all political parties uphold.

Second is that parties would actually report who attended an event, when it took place, and where it took place. This is important, because this is information Canadians have not had before.

Bill C-50 aims to make fundraising events more open and transparent. All I hear from the opposition members is that they do not believe in more openness or transparency. We know for a fact that the Leader of the Opposition was holding fundraising events in secret this summer and refused to provide details.

Does my hon. colleague not believe that more openness and transparency about fundraising is a good thing? That is exactly what the bill aims to do.

Canada Elections ActGovernment Orders

February 5th, 2018 / 12:45 p.m.
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Conservative

Michael Cooper Conservative St. Albert—Edmonton, AB

Mr. Speaker, I rise to speak to on Bill C-50an act to amend the Canada Elections Act (political financing).

Bill C-50, more particularly, would require require certain public notification and reporting in respect of certain political fundraising events. In that regard, Bill C-50 would require that where a cabinet minister or party leader or leadership candidate attends a political fundraising event, and where the ticket price for the event is more than $200, that public notification would be required and a report would be sent to Elections Canada on the event.

The government has sold this bill as a bill to increase transparency, accountability, and to strengthen Canada's political financing laws. I say that one should not buy into the bill of goods that the government is trying to sell to Canadians. This bill is not about increased transparency. It is not about increased accountability. It is not about strengthening Canada's political financing laws. Rather, what Bill C-50 is about is legitimizing and sanitizing the government and the Liberal Party's sordid cash-for-access racket. That is what Bill C-50 is about.

Why would the government, by way of legislation, seek to legitimize cash for access? As my colleague, the hon. member for Banff—Airdrie has pointed out, the government has found its hand caught in the cookie jar one too many times. The government has been caught with its hand in the cookie jar, and as much as the Prime Minister has said one thing, he has then done another. We have a Prime Minister who, after all, more or less disavowed cash-for-access fundraising and then proceeded to engage in cash-for-access fundraising. He not only engaged in cash-for-access fundraising but perfected cash-for-access fundraising.

To understand the degree to which the Prime Minister broke his word to the Canadian public, one need only look back to the 2015 election, when he told Canadians to elect him and that he would deliver the most open, most transparent, and most accountable government in Canadian history. To try to demonstrate that he meant what he said and said what he meant, the Prime Minister, upon appointing his cabinet, unveiled a document called “Open and Accountable Government”.

“Open and Accountable Government” was the code of conduct, the standards of conduct, by which the Prime Minister said that he, his ministers, and parliamentary secretaries would be held to. “Open and Accountable Government” did deal with sets of standards, standards of conduct, for cabinet ministers, for the Prime Minister, and for parliamentary secretaries, specifically relating to political fundraising.

It is important to speak to and review some of what “Open and Accountable Government” said to understand how blatantly and how flagrantly this Prime Minister has broken his word to the Canadian people. “Open and Accountable Government” says, among other things, “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.” However, it gets better. It says, “There should be no preferential access to government, or appearance of preferential access..”.

Moreover, “Open and Accountable Government” states that department stakeholders, including lobbyists, should not be targeted for the solicitation of political funds. That is what “Open and Accountable Government” says. That is the standard the Prime Minister set for himself and his cabinet, so it begs the question: what did the Prime Minister do following the issuance of that standard? The answer is that the Prime Minister ignored “Open and Accountable Government”.

It was as if “Open and Accountable Government” had never been written. As my friend, the member for Barrie—Innisfil, said, it was not worth the paper it was written on, because almost immediately, the Prime Minister doubled down with cash for access event after cash for access event. Indeed, in 2016, the Liberal Party held more than 100 cash for access events, like one held in May 2016, in Toronto, with none other than Mr. Sanctimony himself, the Prime Minister, who was at the residence of a Chinese billionaire. There were other Chinese billionaires there, each of whom paid $1,500 to the Liberal Party of Canada. There they had an evening with the Prime Minister, making dumplings and having the ear of the Prime Minister, and, I am sure, spending a wonderful evening with him.

Among those in attendance was none other than the chief investor in the Wealth One Bank of Canada, a bank that was seeking a banking licence in Canada at the time of the cash for access fundraiser. What a sweet deal: $1,500 to the Liberal Party and an opportunity to spend the evening with the Prime Minister to talk about Wealth One Bank. Sure enough, the licence was approved.

At the very same event, there was a Chinese Communist official. He was not a Canadian citizen, so he could not send the money directly to the Liberal Party. The Liberal Party said not to worry about it. Two weeks later, that same individual wrote a $200,000 cheque to the Pierre Elliott Trudeau Foundation. I guess we are supposed to assume that it was a coincidence that he would spend the evening with the Prime Minister and two weeks later decide to write a $200,000 cheque to the Pierre Elliott Trudeau Foundation.

My friend from Barrie—Innisfil says that we could not make this up. Well, we really could not, because it is just incredible. It speaks to the hypocrisy, to the lack of ethical conduct, on the part of the government.

Here we are today with Bill C-50. What does it do? It requires public notification five days before an event. I say, big deal. It requires reporting to Elections Canada of an event. I do not know if it occurred to the government, but every single political contribution is already reported to Elections Canada, so in terms of substantive improvements to political financing laws in Canada, the bill falls short.

It is nothing more than smoke and mirrors so that the Prime Minister can pretend that he is doing something about political financing, all the while giving himself a blank cheque to engage in the most sordid types of political fundraising activities. This is a cynical bill, and Canadians deserve more than a cynical bill from a cynical and ethically challenged government.

Canada Elections ActGovernment Orders

February 5th, 2018 / 12:40 p.m.
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Liberal

Filomena Tassi Liberal Hamilton West—Ancaster—Dundas, ON

Mr. Speaker, let me begin by saying how disappointed I am that the opposition members are not supporting this legislation, which I think is a tremendous move towards having greater openness and transparency and which is something they are asking for. I am wondering what is at the root of them not supporting it. Is it that they do not want the opposition to have to disclose the information that is being asked for in Bill C-50?

This is about openness and transparency. It is about ensuring that the website shows what events are going to be held. It is about ensuring that the attendees who have paid over $200 for events are noted and there is a list so that people know.

I do not understand. Therefore, my direct question to the member is this. Is he not supporting this legislation because the opposition members do not want to provide lists of who attend their fundraisers for over $200 or more?

Canada Elections ActGovernment Orders

February 5th, 2018 / 12:30 p.m.
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Conservative

John Brassard Conservative Barrie—Innisfil, ON

Mr. Speaker, I am glad to have the opportunity to speak today to Bill C-50.

I am in a unique position given the fact that I am a member of Parliament from Ontario. Having seen what went on with the provincial Liberals, I can speak to the issue of cash for access and how it relates federally given the examples that happened in Ontario.

As I was going about the last election, meeting with residents of my riding, engaging in town halls and all-candidates debates, I remember warning those who would consider voting Liberal of the fact that the same players from Ontario would be involved not only with the Liberal election campaign but also within the Prime Minister's Office, and that certainly has shown itself to be true. The cash for access scheme originated in Ontario. Ontario was ground zero for cash for access.

What does cash for access mean? It means that ministers, the premier, and parliamentary secretaries would sell access to themselves to those stakeholders who were willing to pay up to the maximum amount. Ontario had no maximum amount at that time. I recall some people at small intimate settings were paying in excess of $5,000. Imagine what a fundraiser that would be. Ministers in Ontario had the opportunity to sit in private settings and sell access to their time for $5,000, and in some cases, it was more than that. It was a heck of a fundraiser for the Ontario Liberal Party, which on some nights could get upwards of $50,000 to $100,000.

Let us fast-forward to after the election. Those same players who came from Queen's Park, Gerald Butts and Katie Telford, who formalized and legitimized the plan in Ontario, came to the Prime Minister's Office and the first thing they did was to concoct the same plan federally, a plan that saw the Prime Minister and ministers of the crown engage in private cash for access fundraisers. The difference was that there was a limit here federally and the limit was $1,500, a bit more above that.

In Ontario, they called this “the system”. Ministers would sell access to themselves in most cases to stakeholders and those stakeholders would be able to bend a minister's ear for whatever project, whatever dealings, whatever issue he or she had with the government. The minister would be paid and that money would go directly into a Liberal bank account. The same plan happened here.

This amounts to political extortion. It is about extorting money from those who have business dealings with the government so that those individuals can gain access to ministers and in some cases the Prime Minister.

The issue was really one of hypocrisy on the part of the government and that is why we are in this position right now with Bill C-50. The Liberals are trying to correct a problem that they created. I will remind the House what the Prime Minister told his ministers in their mandate letters about perception, real or otherwise, and about undue influence. Cash for access provides undue influence.

The member for Central Nova said he could not see how $1,500 could influence a minister of the crown. It is not just the $1,500 but rather the multiples of $1,500. We saw examples of that during the height of this cash for access scheme. The height of public awareness of this scheme was when the Prime Minister was at a private event with some stakeholders from the Chinese community. A gentleman by the name of Shenglin Xian, along with the other people there, donated the maximum amount. Mr. Xian had business in front of the government. His business was that he wanted to open a bank. Mr. Xian received approval for the bank and it was opened shortly after this meeting.

It is important to understand that ministers of the crown are very powerful. They control multi-billion dollar budgets. With one fell swoop of a pen, a minister, the Prime Minister, and the government can approve whatever business those people have. Also, the money is going into Liberal bank accounts. It is not going into the coffers of the government. These are people who are paying for access to put money into the Liberal bank accounts.

We have seen examples of this happen with other ministers. The Minister of Justice held a meeting at a Bay Street law firm. There were lots of lawyers there. I do not think they were talking about the Blue Jays, or the Maple Leafs and how they were doing. They were talking government business. In some cases, some of those lawyers who would pay the $1,500 perhaps had applications for the bench. This is why this is wrong.

What the Liberals are proposing now is to take it out of the shadows, where it was and put it in public, but that legitimizes and formalizes it. Why are they doing that? It is so they can hide behind it, so if there are any further complaints, if anyone else has a problem with cash for access, they can say they changed the rules and that the rules are clear.

In Ontario, there was so much public backlash that they actually banned cash for access. They made it so that no more could ministers or members of the provincial legislature even go to these cash for access fundraisers. Therefore, if the government is truly showing some virtue on this, it should just ban them altogether and go back to the donation process that exists today.

Of course, the Liberals want to use every advantage they can to try to extort as much money as they can from these stakeholders, because they know from a fundraising standpoint that they lag far behind the Conservatives and our grassroots donors who support our party year in and year out because they agree with the policies, principles, and values of conservatism. The Liberals want to extort people. They want to say, perhaps to the marijuana industry, perhaps to more lawyers, “Give us money, and you can have access to us and bend our ears”. How is that going to apply to middle-class Canadians and those working hard to join them? It will not, because most of the people in my riding cannot afford to go to one of these Liberal fundraisers.

The other interesting part about this, and this is the thing that really concerns me, is that it does not include parliamentary secretaries. The bill says the reporting mechanism will happen for the Prime Minister and for cabinet ministers, but it will not happen for parliamentary secretaries. Why not? That is a fair question. In fact, when I talked to the member for Banff—Airdrie, this was one of the amendments that was put forward. In fact, it was a recommendation of the Ethics Commissioner.

I have heard the argument that the Ethics Commissioner agrees with most parts of this, but this is the one area she does not agree with. Why not include parliamentary secretaries in Bill C-50? One could speculate that perhaps the reason is that, if the Prime Minister cannot do it and cabinet ministers cannot have a cash for access event in private with stakeholders and people who have business in front of the government, they want to send their parliamentary secretaries, because they, through the line, will have the ear of a cabinet minister who will eventually have the ear of the Prime Minister with respect to those people who are involved.

There are significant challenges with Bill C-50. The fact is that the government wants to legitimize and formalize the cash for access scheme so it can use it as a shield later on. If something comes up, the Liberals could then say they changed the rules, everyone knows the rules, and they are applying the rules. If they were going to apply the rules in this case, they certainly should have done it when the Prime Minister wrote his mandate letters to say that the perception, real or otherwise, of undue influence should not happen within his government. They changed that.

There is no reason to believe they are going to follow the rules in Bill C-50. This is hypocrisy as its best. They are formalizing and legalizing what will continue to be political extortion on the part of the government of stakeholders and those having business with the government.

Canada Elections ActGovernment Orders

February 5th, 2018 / 12:25 p.m.
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NDP

Pierre-Luc Dusseault NDP Sherbrooke, QC

Mr. Speaker, I thank my colleague for his intervention. My question relates to the substance of the issue, the motivation for the bill, specifically the fundraising events that suggest the possibility of access to ministers and the Prime Minister in exchange for a substantial amount of money.

I am wondering whether my colleague is okay with that practice, since all Bill C-50 does is formalize the practice and make it more transparent. The bill gives the public more information, but it does not change anything about the fundamental issue, since it allows for the practice to continue.

Basically, I want to know my colleague's thoughts on a political party engaging in cash for access. Does he agree with this practice? My question refers more to the substance, rather than the form, of the bill before us today.