Mr. Speaker, in reference to the comments of the member for Bellechasse, in my case and I hope in the case of every other member of this House, we are here to serve our constituents no matter what their political stripes may be. Whether they are NDP, Bloc, Liberal, Conservative or Reform, I feel it is my obligation to serve my constituents to the best of my ability. I am sure other members of the House feel likewise.
I want to be on record as saying that given my druthers I would advocate doing away with all taxpayer financial support to political election campaigns. I would put the onus on political parties or individual politicians to convince their constituents that their political viewpoints or the capability of a specific candidate are such that citizens would be willing to provide financial backing to put forward those views or to support that candidate.
Because this view does not now seem to be accepted by the current Canadian political establishment and because it is a step in the right direction, I am pleased to address at third reading Bill C-243 which will amend the Canada Elections Act and clamp down on federal election refunds to fringe parties.
In 1974, section 322 of the Canada Elections Act was adopted, establishing an expense related system that allowed any registered party to receive a 22.5 per cent refund if it spent at least 10 per cent of its eligible expenses on its election campaign. At the same time, the new law imposed election campaign spending limits on parties and qualified candidates who received at least 15 per cent of the votes in their electoral district to receive a 50 per cent rebate on their actual campaign expenses.
These reforms were important because they enabled greater public scrutiny and assisted in restoring public confidence in the political and electoral system.
At that time, the face of the Canadian multi-party system was quite different than it is today. Those legislators did not foresee the emergence of multiple fringe parties that have very limited public support, but because of the money they spend during their campaign have under current regulations become eligible for a taxpayer subsidy.
Last fall, as a new member of the Standing Committee on Procedure and House Affairs, I took part in the study of Bill C-319 which has been reintroduced in the new session of Parliament as Bill C-243. During that study, modifications were adopted to ensure that this amendment to the Canada Elections Act will not impede the democratic process nor the ability of concerned citizens to organize and put forward candidates to run on any set platform.
The goal of the amendment is to eliminate federal subsidies to fringe groups that have little or no significant degree of public support. Not only a matter of principle, it is in the interest of effecting greater fiscal responsibility for the taxpayer.
I wish to reaffirm that Reform remains committed to the elimination of all political subsidies. Our party, on forming a government, will eliminate those political subsidies in keeping with our commitment to party policies and principles born through consultation with Canadians.
For more than 20 years now, Canadian taxpayers have paid large election expense reimbursements and tax credits, thus directly
supporting election campaigns and indirectly topping up political war chests between election periods.
Canadian taxpayers object to being forced to finance and thus support political parties they do not wish to support. This is particularly true at a time when it is increasingly obvious that political parties are able to raise the money required to run campaigns.
Would they still be able to raise these funds, particularly the fringe parties, if there were no political contribution income tax deduction available? After the 1993 election, candidates eligible for the Elections Canada reimbursement held an average surplus of $1,518 in their accounts, without the federal subsidy.
Again, in 1993 the top five political parties reported a total income of $63 million in campaign contributions but only actually spent $31 million on the campaign. From these figures, it is evident that the taxpayer could easily have been spared more than $7 million in reimbursements to the top five parties.
Further, knowing a 22.5 per cent reward will be paid based solely on their election expenses, there is little incentive for registered parties to be fiscally responsible in their campaign spending.
Initially, the purpose of the national campaign refund was to ensure national or regional parties were kept alive and well between elections. With new fund raising techniques, these seed funds are no longer necessary. Current statistics indicate all parties could well function without them. The grants are simply not required to obtain voter support.
While it is undoubtedly difficult for political parties to give up what has become a crutch, if the voter support is there the money will follow. Campaigns can be run with less glitz and still be effective.
Clearly, the total elimination of election reimbursements would prove to be the most effective means to level the election playing field. Moving back to the issue at hand, the official registration of an organized political party gives it the right to issue tax receipts for donations and affords that privilege at rates well in excess of those granted to charitable organizations. I think it is unconscionable that contributions to a political party should exceed those given to an organization that is in direct support of people who need that help.
The participation of fringe parties during the last two federal elections has prompted a growing public concern that some groups have used election campaigns as springboards for causes or issues that are largely dismissed by the general population as irrelevant to the political debate.
In proposing the bill, the member for Edmonton Southwest is attempting to gain the consensus of the House in agreeing to take one small step toward an important electoral reform, a reform which will not deny the ability of individuals to form new parties and run candidates in even a relatively small number of ridings but will put an end to one of the identified flagrant abuses of the public purse.
The bill will amend section 322 of the Canada Elections Act by imposing a minimum level of voter support as a condition to receive a refund for election expenses. This will be achieved by eliminating election refunds for registered regional parties which fail to receive at least 5 per cent of the valid votes in the electoral districts in which they run candidates, or authorizing refunds only for registered national parties which receive a minimum of 2 per cent of the total number of valid votes cast in that election. All reimbursement requirements will remain the same.
The bill is of importance to all Canadians and of interest to parties of all political stripes. It will save taxpayers an unnecessary expense. Had it been law in the last general election, about $1 million in election refunds would have been saved. It will not adversely effect regional parties geared to expressing the concerns and representing the interests of that region. It will allow a smaller faction to form a party, field candidates and promote a platform specific to that constituency.
Politicians of all stripes must have the courage to lead by example. This bill represents only a small step in the right direction, but it is an important step because it is clear there is substantial support for the concept of eliminating election subsidies to political fringe groups.
It is my hope, and I have been given reassurance, that the House will today give unanimous support to this important private member's initiative. I am pleased to congratulate hon. members on their sensible reaction to it.
(Motion agreed to, bill read the third time and passed.)