Thank you, Chair and committee, for the opportunity to come before you today.
You have a huge bill in front of you. I'm going to dig down or at least somewhat down in one area, the limits on the spending by third parties prior to and during the official election period. This is an area on which I've done research in the past and recently did a fairly large comparative report. It's also one of the major issues that were addressed in the early nineties by the Royal Commission on Electoral Reform and Party Financing, often known as the Lortie commission, on which I served as senior research coordinator.
I'll start with the third party limits during the writ period.
At present, the limit on advertising expenses for a third party nationally is $214,350, of which no more than $4,287 can be spent in a particular riding. The bill you have in front of you will expand the scope of spending, subject to limits, to include partisan activity expenses and election survey expenses, in addition to the advertising expenses that have been covered since 2000. In consequence, the limits have been raised considerably according to the backgrounder that was released when the bill was tabled. The new national limit on third party spending is estimated at around $500,000 for 2019. The level that's printed in the bill, $350,000, is adjusted for inflation from 2000, not from now. I find it reasonable to expand the scope of third party limits because the additional activities, such as surveys, are linked to, and indeed may even support, third party election advertising. The level of the new limits also seems reasonable to me.
There's a related amendment that limits the writ period to 50 days, and this will mean that, for political parties and candidates, a pro-rated increase of the third party limits will no longer be possible. I support this move. The pro-rated-limits provision that was brought in under the previous government was a very odd piece of public policy, and dropping it is definitely a good step, not just for third parties but obviously also for parties and candidates.
I'll now turn to the pre-writ spending limits for third parties.
Before commenting on the scope and level of these limits, I want to say a few words about the rationale for this move and the experience in some other jurisdictions.
On the rationale, the government has decided that spending limits for candidates and parties will be extended to the pre-writ period. I think it's fair to say that this is consistent with Canada's long experience with party and candidate spending limits, which date from 1974, and also with the broad public support for such limits. The new third party limits will apply as of June 30 in an election year, along with candidate and party limits, so they will cover a period of almost four months.
As members know, there's a fairly widely held view that to be effective, limits on party and candidate spending need to be paired with limits on third party spending. They're seen as complementary and, in a sense, mutually supportive. Indeed, the Supreme Court in the 2004 Harper decision stated that third party election spending limits are necessary to protect the integrity of the financing regime applicable to candidates and parties. If party and candidate limits are introduced for the pre-writ period, if that decision has been taken, it follows logically that third party spending or at least some aspects of that spending should also be subject to limits, otherwise that linkage, that complementarity, that exists during the election period will not apply.
Other jurisdictions have taken similar steps. In the U.K., there have been pre-writ spending limits for parties, candidates, and third parties since 2000. They're quite long. They apply for an entire year, give or take a few days depending on when the election is held. In Ontario, pre-writ limits for the three entities were introduced in 2016. They are applying in the election that's ending today, and the period there is six months. In your bill, it's somewhat shorter. It's close to four months. I find the duration in Bill C-76 to be reasonable.
As for the scope, the new limits will cover three areas: partisan activities, partisan advertising, and election surveys. This may appear analogous to the expanded scope of the election limits, but there's an important difference to be noted.
Unlike the definition of election advertising, partisan advertising does not include advertising messages that take a position on an issue with which a party or person is associated. You have, in the copy of my notes, the two definitions appended at the end. This means that if a third party sponsors advertising on an important public policy issue, but the messages do not promote or oppose a registered party or candidate, the cost of such advertising will not count against the pre-writ spending limit for the third party.
To illustrate this, here are a couple of examples of advertising that a third party might sponsor: Message A: Marijuana can harm your children's health, so don't vote Liberal. Message B: The Trudeau Liberal government legalized marijuana, which can harm your children's health.
Based on my reading of Bill C-76, third party spending on the first message would be subject to a limit, but spending on the second message—The Trudeau government legalized marijuana, which can harm your children's health—would not be because there's no promotion of voting for Liberals or against Liberals. This is often referred to as “issue advertising”.
If that kind of a message were sponsored during the official election period, it would count against the third party limit. There's a policy difference between the pre-writ limits and the election limits for third parties.
I'll finish on the question of the level of permitted spending.
The pre-writ limits on third party spending are estimated at about $1 million nationally, and $10,000 in a single electoral district. Third parties' national pre-limit will thus be twice their election limit, and two-thirds of what registered parties will be allowed to spend in the pre-writ period. For the parties, it's estimated at $1.5 million.
Moreover, in light of the difference between the definitions of advertising expenses that I just explained, the pre-writ limits for third parties will cover a narrower range of activities than their election limits, so they have additional room. The spending on issue advertising is not subject to limit. In light of what I just said, I am not convinced it is necessary to set the pre-spending limits for third parties at such a high level.