Debates of May 28th, 2007

The House resumed consideration of the motion that Bill C-10, An Act to amend the Criminal Code (minimum penalties for offences involving firearms) and to make a consequential amendment to another Act, be read the third time and passed.

Criminal Code

[The Speaker, Liberal, Peter Milliken]

Is the House ready for the question?

[Some hon. members]

Question.

[The Speaker, Liberal, Peter Milliken]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Speaker, Liberal, Peter Milliken]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Speaker, Liberal, Peter Milliken]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Speaker, Liberal, Peter Milliken]

In my opinion the nays have it.

And five or more members having risen:

[The Speaker, Liberal, Peter Milliken]

Call in the members.

And the bells having rung:

At the request of the chief government whip the vote on the motion before the House will be deferred until tomorrow at the conclusion of the time provided for government orders.

The House resumed from May 11 consideration of the motion that Bill C-54, An Act to amend the Canada Elections Act (accountability with respect to loans), be read the second time and referred to a committee.

Canada Elections Act

[Réal Ménard, Bloc, Hochelaga, QC]

Mr. Speaker, I am pleased to speak to Bill C-54, which deals with electoral democracy, one of three such bills introduced by the government.

Electoral democracy is an extremely important issue. However, I must remind members, with sadness, that this is a corrective measure. In fact, had the government listened to the opposition parties, it would not have adopted Bill C-2 with the kind of haste that shows a certain lack of professionalism. During consideration of Bill C-2, representations were made regarding various shortcomings in that bill. One of them dealt with this possible loophole whereby people were using loans to circumvent the $1,100 ceiling on political contributions by individuals and the ban on contributions to political parties or leadership candidates by corporate entities. Candidates to elected office would take out personal loans from friends, from their entourage, which was a form of indirect financing.

Bill C-54 would close that loophole by proposing four objectives that I will share with the House. The bill would put in place a uniform and transparent disclosure system for all loans to political entities, including the compulsory disclosure of loans terms and conditions, and of lenders' and guarantors' names.

Bill C-54 would prevent unions and corporate bodies, with a few exceptions, not only from making political donations according to the Accountability Act, but also from loaning money to individuals.

Third, guaranteed loans for contributions coming from an individual could not exceed $1,000, which is the limit set in the Accountability Act. There is harmonization between what can be donated to a registered political party and the amount individuals can lend to candidates and registered parties.

Fourth, only financial institutions, at commercial interest rates, and other political entities may lend more than $1,000. Rules concerning outstanding loans would be reinforced to avoid candidates escaping their obligations. Loans still outstanding after 18 months would be considered political donations. Riding associations or, where there are none, political parties themselves, would have to reimburse loans not repaid by their candidates.

The bill would correct a loophole, an omission, found in the Accountability Act. The bill on accountability gave us the opportunity to reflect on the whole question of democracy. There can be no real level playing field if there is no control over donations from political parties.

My father was a labourer and I do not have any personal wealth. I must be able to run for office and be elected without any political wealth. No one would like to live with the American model where senators, to be elected to the Congress, must invest several millions of dollars. When, for campaigning, one must have personal wealth or invest several millions of dollars, what does this mean for democracy? It means that one becomes a spokesperson for registered lobbies. Thus, lobbies fund politicians.

The House of Commons, as well as the National Assembly, must be a place where arbitration occurs. Parliamentarians, no matter their political affiliation, must never become prisoners of lobby groups. Oil companies, banks or any other lobby group cannot fund parliamentarians, because, when we have to assess a bill, we must be able to do so without any strings attached. When the price to pay in a democracy requires investing millions of dollars to ensure that we get re-elected, we are not without any strings attached. This is a nice legacy that was given to us by the former prime minister, Jean Chrétien, who followed the model established by Mr. René Lévesque. We will remember René Lévesque—what a great Quebec premier—who was strong, who inspired Jean Chrétien, at least on this issue, of course. Jean Chrétien got his inspiration from René Lévesque, who, very early in his political career, had decided to put an end to slush funds and to regulate and provide a framework for funding from corporations, lobby groups and individuals, to really stick to the notion that, in a democracy, the primary value that must guide us is equal opportunity. That is the first legislation that the Parti Québécois passed in 1976.

Of course, there are great moments in democracy, but there are also painful moments. As I was travelling from Montreal to Ottawa by train yesterday—and I am sure that my colleague from Abitibi—Témiscamingue will agree with me—I was re-reading the proceedings from a symposium which took place at the Université du Québec à Montréal in 1992 about the democratic referendum process. We know very well that the liberal government led by Jean Chrétien literally stole the referendum from Quebeckers. The rules which should govern any democratic referendum were flouted.

As members will recall, Robert Burns, who was the Minister responsible for the Reform of Democratic Institutions in the René Lévesque government, had the Referendum Act passed. Drawing from the experience in other countries, he had first drafted a green paper and submitted it to a public consultation. There have been few referendums in Quebec and in Canada. There was a referendum on Prohibition, which was won by the yes side, and Prohibition was ended. There were also two other referendums in 1980 and in 1995. Since Pauline Marois will likely become the new leader of the Parti Québécois, a new thinking exercise is about to start among the sovereigntists, and we are quite optimistic. We believe that, in the short term, there could be a referendum on the political future of Quebec. Inviting our fellow citizens to a rendezvous with history is a great moment in democracy.

We all know that the sovereigntist movement in Quebec is deeply rooted in democracy, given that three different leaders founded political parties for Quebeckers to democratically express themselves about this great project of making Quebec a sovereign state. Who are those leaders?

There is, of course, Pierre Bourgault, who was a powerful orator, profound, a very good platform presence. There were people who even compared him to Henri Bourassa. Mr. Speaker, you will surely recall Henri Bourassa not because you knew him, but because you have certainly read his speeches. He was definitely an extremely powerful orator.

There were three sovereignist leaders who founded political parties to enable the citizens of Quebec to consider the sovereignist option. There was Pierre Bourgault, René Lévesque, of whom I spoke earlier, and the third, whom I knew somewhat more intimately because he was the leader of my political party, is none other than Lucien Bouchard.

You will recall that Lucien Bouchard was the leader of the official opposition in 1993. What a wonderful time it was in October 1993, when the voters of Quebec gave the Bloc Québécois the responsibility of serving as the official opposition. I remember that there were 54 members of our party seated at the other end of the House. We had succeeded in electing Osvaldo Nunez in the riding of Bourassa. We had won the riding of Anjou and the riding of Ahuntsic. It was the start of a great movement of national affirmation that has never been interrupted, but which has varied in intensity.

All of that leads me to say that we support Bill C-54, An Act to amend the Canada Elections Act regarding limits on loans to candidates. However, I want to remind members that there have been some great moments in Canadian democracy: the legacy of Jean Chrétien limiting the contribution of individuals to $1,100 is certainly a great moment, but there have also been moments that have greatly tarnished democracy. Unfortunately, I feel I must recall that the federal Liberals did not observe the Referendum Act.

I, myself, am writing a text that I hope to see published in coming days, and which concerns some ideas for renewing the sovereigntist movement. I hope that the member for Abitibi—Témiscamingue will do me the honour of reading it for I know he has a keen intellect and that he literally reads everything that comes into his hands. I have asked the Library of Parliament how much the federal government spent during the 1995 referendum. If I were to make a little survey among the many members of this House who are listening to me—and I thank them for doing so— to know how much the federal government spent illegally, because that was not accounted for either on the “Yes” side or the “No” side, what would be the answer?

Mr. Speaker, do you think they spent $5 million? That was the ceiling allowed under the Referendum Act. Do you think they spent $10 million or even $15 million? Well, they spent $31 million: $16 million during the referendum campaign and $12 million on promoting Canadian unity. Obviously they have the right to be federalists. Remember what Lucien Bouchard said at the Dorval airport the day after the referendum was lost to the yes side in 1995. He said that no is no, but when the day comes that it is yes, it will be yes.

The sad part about the example I am giving you of this anti-democratic bungle, this shameful behaviour by the federal Liberals by which they did not respect Quebec's referendum legislation, is that they invested heavily in propaganda and these expenses were not accounted for. They achieved this in a number of ways. How can we forget Chuck Guité. I even wonder if the name “Chuck Guité” is parliamentary since there is so much disgrace associated with his name. If ever this name becomes synonymous with disgust and becomes unparliamentary, do let me know, Mr. Speaker.

Chuck Guité was the one who broke every accounting rule imaginable and who rented every available billboard in Quebec. At the time the Clerk of the Privy Council told Prime Minister Jean Chrétien that he could not allow the national unity reserve to go unchecked.

All that to say that among the unfortunate experiences of anti-democratic bungles, there was the non respect of the 1995 referendum when three major misdeeds and abuses of democracy occurred.

First, Chuck Guité rented billboards. Then, the investigations indicate that the electoral body was unduly and artificially inflated by allowing people to vote who, if normal administrative channels had been followed, would not have had the right to vote. People were naturalized, of course. The problem is not that they were naturalized—we want to allow everyone to exercise their right to vote—but that normal administrative channels were not followed.

The Referendum Act has great democratic value.

We had the yes side and the no side. The government informed the National Assembly of the question to be debated for 35 hours. The president of the National Assembly apportioned the speaking time among the parties, the time allocated to the government and to the opposition being proportionate to the number of seats held by each.

At the time, Rodrigue Biron from the Union nationale sat at the National Assembly, as did socreds, although they were no longer called that, and their leader was Fabien Roy. The debate went on for 35 hours.

While the government has the prerogative to announce the question to be voted on at the time of a referendum, it is not allowed to spend more than those opposing its option. There lies the strength of Quebec's referendum democracy.

The yes side and the no side had equal opportunities. Both sides could speak at the National Assembly, and the public funding available to them was distributed fairly.

I am having a hard time getting over this stolen referendum in 1995. It eventually led to the sponsorship scandal. As we know, the Liberals in Quebec were all but decimated. I think there are more Bengal tigers at the Biodome, in my neighbourhood, than there are Liberals in Quebec. This goes to show the magnitude of public chastisement. It does not take anything away from the merit of the individuals involved, but it means that, next time the National Assembly decides to hold a referendum, the rules of the game will have to be adhered to.

In this Parliament, we have three bills in support of referendum democracy: one—Bill C-54—concerns loans to individuals; another concerns the selection of senators at the other place; and yet another, which we in the Bloc Québécois also support, concerns fixed election dates, something that already exists in a number of provinces. That shields us from all the scenarios of partisan vagaries, where the Prime Minister tends to call an election when his party is ahead in the polls.

I will conclude on that and I will gladly answer any questions.

[Marc Lemay, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, I listened carefully to the speech made by my colleague. Unfortunately, the member will not become a member of the Barreau du Québec because he does not want to, not because he is unable to. He does not want to take the bar exam, even though he just completed a law degree, which may be why he is speaking to us with such eloquence today.

Let us move on to serious things and talk about Option Canada, a subject I know he can debate at length. My colleague talked about what happened, about the various referendums, about how certain members of the federal government—a Liberal government at that time—got their hands on a large sum of money to—and I will use the same word that was used by my colleague from Hochelaga—steal the referendum.

What does he think about Option Canada, an initiative where funds were misappropriated without any regard for the Quebec Referendum Act?

[Réal Ménard, Bloc, Hochelaga, QC]

Mr. Speaker, I thank my colleague for his question. One of his endearing character traits is the balance he achieves between his passion for defence attorneys and his role as a member of the House of Commons. I thank him for never crossing the line that would make him a greater advocate for the people before the courts than for his constituents.

As for his disappointment that I will not be taking the bar exams, I will simply say that one cannot do everything in one's life. I cannot keep in shape, represent the people of Hochelaga, be the critic for justice, take care of Montreal and do the bar exams all at the same time. There are limits to what a man can do. However, I thank the member for his good wishes.

He is quite right to remind us that Option Canada, which has been denounced by the Auditor General, is one more example of an anti-democratic flaw. I personally think that all the bills we study that concern our democratic institutions should make us wish to see the Referendum Act respected. I will add that, like my colleague, I am anxious to read the Grenier report tomorrow. I hope that it will include a few lessons. It could even cause the government to change a few laws. Some individuals will be publicly blamed. I am anxious to see to what extent Mr. Justice Grenier's words will cause certain persons to express their regrets, for not respecting the National Assembly's Referendum Act

[Paul Dewar, NDP, Ottawa Centre, ON]

Mr. Speaker, I am in support of Bill C-54 and I will outline my reasons and perhaps make a couple of suggestions. I will have the opportunity to formally do that in committee but to get things rolling it is important to put some of those ideas forward in debate.

The one thing we have seen in the history of federal politics in Canada is the problem of big money influencing government, which usually results in the equation of big money plus influencing government equals corruption. We saw the Pacific scandal just after this nation was assembled. The pipeline debate certainly uncovered many problems of the association between government and money. We saw that most recently in Canada with the previous government.

One of the things we need to do is take out not only the fact that this can exist through the rules and that there will be manipulation but the perception by citizens that all of us in this place are running our campaigns fairly and cleanly, and we have not seen that. Canadians have the perception right now that there is a problem between parliamentarians and MPs who run for office and money. This bill would take away people's temptation to access loans from friends who have money to give them an advantage over those of us who do not.

Most of us observed, sadly, the most recent Liberal leadership campaign as an example. We certainly saw it with the member for Eglinton—Lawrence and others who had access to money and loans in ways that most of us would not bother trying to access. What it did was taint the whole process of how we, in the case of the leadership contest, elect leaders.

That was not the first case where this happened. We saw people, because of who they knew, accessing hundreds of thousands of dollars in loans for their leadership. The problem with that, which we have discussed in the House and in committee, is that if I receive hundreds of thousands of dollars in a loan from a friend and decide that I cannot pay it back, there is no recourse. The money is simply a loan that I did not pay back or an IOU that I did not honour.

If one were to explain that, most people would see that as simply a donation. A loan that was not paid back means money in one's pocket from someone else's pocket. That is the direct connection between how funds were raised for leadership contests and that at the end of the day the person responsible for paying back the loan really did not have to.

I recall extremely clearly that during the debate on Bill C-2, the government's accountability act, we presented an amendment because we saw that big money was influencing leadership contests. We saw that it was wrong so we introduced an amendment, which is very similar to what we have in front of us, but that is not a problem. It is something we are willing to share with the government. In fact, we have seen that happen on numerous occasions with the present government and previous governments.

However, it is passing strange that at the time the government did not see the importance of passing such an amendment to the accountability act. We had previously put forward the idea of banning union and corporate donations and thought it made infinite sense to close the loan loophole. At the time the Conservative and Liberal Parties voted against that amendment. We are happy that the government, through this bill, has seen the error of its ways and has provided us with a way to close the loan loophole.

When people have access to money, and in this case loans, there is not a lot of difference between handing that money over in a straightforward manner and doing it through a loophole. We saw this in the most recent leadership contest for the Liberal Party. It is also important to note that this has happened in the past with the Conservative Party.

It is important for us to take a look at what will happen not just in the future in terms of loans, but also to look at what has recently happened. When the Prime Minister ran for the leadership of the Conservative Party, many of us called for full disclosure of his donations. I think Canadians would like to have a gander at that. It is part of the idea of transparency.

When people donate to parties and leadership candidates, taxpayers pay money for that. It is a tax write-off. Most people will know that when a donation like that is written off, be it for the leader of the Conservative Party, or for the Liberal Party, or for the NDP, or any other party, taxpayer money is put down. Most reasonable people would say that should be transparent. Canadians should be able to see who donated money. This is extremely important when a party is nominating someone for prime minister.

I think back to not only the most recent leadership contest, but the previous leadership contest for the Liberal Party. We know there was really only one candidate and that candidate raised over $10 million. It turned out not to be a contest at all. That money did not only come out of the pocket of the leader at the time. It was also donations made on the taxpayers' dime. Why? Because of this rebate.

We have to understand that this tax credit is taxpayer money. This means that taxpayers are participating in the donation scheme. We believe leadership contests, like the last Conservative Party contest, should be transparent. We should see the full list of donors and exact numbers. Hopefully, we can agree to this in committee. The reasonable thing to do is to look at the bill not just from this point forward, but also to look at what has happened in the most recent past.

Democratic reform was one of the centrepieces in our ethics package that my predecessor, Mr. Broadbent, brought forward before the last election. We are delighted to see that the government has seen fit to take on some of those ideas. I think of the scrutiny of lobbying where there is still more to do. I think of access to information. The government has really failed on that. The government brought forward fixed election dates and we support that of course. It was something that we put forward.

Mr. Broadbent brought forward the whole issue of loans in leadership contests and loans in general. We know the member for Mississauga—Streetsville had some problems in the recent election in terms of how he declared the finances for his campaign. This bill would provide Canadians with the opportunity to have a clear and transparent view of how their dollars are being used to support candidates in the election process. That is fair, transparent and just.

Mr. Broadbent made the ethics package debatable. A number of people saw the idea as something that should have happened a long time ago. When I went door to door and talked to people about our ethics package, they were hopeful the whole thing would be adopted.

The fact that we are adopting the idea of covering the loans loophole and shutting it down will be welcomed. Canadians will want to see us go back in time, not only deal with the present and a go forward basis. They will want to see us look back to how money was spent in the most recent Liberal leadership contest, with the most recent election and with the most recent leadership contest with the Conservative Party.

This is simply to ensure, as I mentioned at the beginning of my comments, that not only are the rules fair, but that the perception by citizens of their elected members is clear and pristine, that there is no shadow of a doubt as to where people received money from and that there is 100% integrity in the system. We need to do that. Democratic reform is not only about making every vote count. We believe it is something we can achieve by bringing in proportionality to the system. We also believe there should be a full view of the donations that presently elected members received or someone who participated in a leadership contest received.

The history of election financing was mentioned by one of the Bloc members, who said that this was dealt with in the 1970s in Quebec. Premier Doer of Manitoba followed suit when that province closed all loopholes and ensured that there were no donations from both unions and corporations. That was one of the first things his government did. Manitoba, as well as other jurisdictions, also dealt with the loan issue. This is not cutting edge. We are catching up, and now is the time to do so.

Some things the government can do to further the cause of accountability, when looking at financing, is to ensure that not only will the loan loophole be closed, but ensure that the Chief Electoral Officer has some oversight as well. I think this would be welcomed, particularly in the area of leadership contests.

We only have to think of the recent leadership contests of both the Conservative Party and the Liberal Party. There was no transparent view or window into the financing of those leadership contests. We know millions of dollars were raised. I have already mentioned that these dollars were raised not only by individuals, but with the support of taxpayers because of the way funds are credited when people donate.

What the government really needs to do is to ensure that not only is the loan loophole closed, but that the Chief Electoral Officer has oversight to leadership contests as well. This would be another addition that would be welcomed. I know the NDP made very clear who donated to whom. It was transparent and there were no question marks. It can be done and should be done.

For the whole notion of reaffirming confidence in federal politics, this should have been done before. The NDP tried to get an amendment through in Bill C-2.

If the government wants to become accountable with respect to loans in a genuine way, we have to ensure that it allows people the ability to run for office. I know in our party one of the things we have taken on fervently is to ensure that for people who do not have the money to run for a nomination and to run for office, we must be able to support them, people who traditionally have been on the outside of politics and unable to participate.

One thing the NDP has done, particular for women candidates, is provided them with financial support. This is not done outside the party structure. It ensures that women have financial means and it provides support when needed.

We do this because it is not enough to say that we want more women nominated and elected. We have to address where there are gaps. We know historically there has been a gap for women running in politics because of their lack of access to money. This is underlined when there are predominantly male candidates, and we saw this in the leadership contest, who have access to these loans. They have friends who can loan them hundreds of thousands of dollars.

For many women, traditionally, that has not been the case. They have been unable to access money to the degree that men have in terms of the kind of loan loophole we have seen.

We need to do more to address that. We need to see more support for people who have had challenges in terms of being nominated and elected. I think of women and people from ethnocultural communities. I think of our Inuit first nations aboriginal peoples as well. This is one facet, one idea, where the time has come to close a loophole. However, we should also address the barriers that exist for those who have challenges of being nominated. That would be the next step.

In terms of what can be done to further the cause of transparency and accountability in election financing, we need to address not only what loopholes exist, how money is raised and who can donate, but we also have to ensure that all Canadians from coast to coast to coast are aware of this. When someone donates money, part of the public purse donates. We do this because we want to make the process more fair.

The first steps were taken in the seventies in Quebec, followed by the Doer government in Manitoba. This is what we are attempting to do here. I give Mr. Chrétien the credit for starting this federally, and we supported that. However, Canadians need to know that when people donate, there is a tax credit. We need to have all the evidence and information out there, so people know what they are supporting.

For many people, the problem in confidence and perception of politics is they are not fully aware of how the system works, and I do not fault Canadians. We were not as transparent as we should have been. The loan loophole is an excellent example. It is a quiet secret, this parlour conversation that went on for years about not worrying about getting money because something could be done. I think those days are over. We have to be clean, clear and concise with Canadians about how elections are funded. When people make a donation, there is a tax credit.

I know in my campaign that was something we told people so they would donate, but other Canadians who do not donate need to know that is how the system functions. We need to do a public relations exercise to say that we have closed these loopholes and that we have come in with these changes because we want to ensure there is more confidence in the system.

We need to bring the bill forward to committee, make some of the changes the NDP are suggesting, provide Canadians with the information and ensure that absolute transparency is there. We need to look to the recent leadership contests and ensure that all leadership contestants are clear about who lent them money and that this needs to be repaid. Ordinary Canadians need to know, without a doubt, how much money was donated to which candidate and exactly from where that money came. If there were loans, not only will we close those loopholes, but we will ensure it is known who received money from whom and when in the most recent contest.

The NDP supports the bill. In fact, it was our amendment at committee. We are glad to see the government has seen the light and will shine it on the electoral system. I look for the support of the other parties to get behind it as well.

[Marc Lemay, Bloc, Abitibi—Témiscamingue, QC]

Mr. Speaker, it is my pleasure to rise today on this bill and continue in somewhat the same vein as my colleague in the NDP.

In my occupation as a criminal lawyer, it is often said that the judges before whom we stand must not only be impartial but also appear impartial, free of any partisanship and able to listen to the arguments of both opposing lawyers. As we know, in the criminal law there is a crown prosecutor and a defence attorney. The court, presided over by the judge, must therefore be totally impartial.

Why do I digress in this way? Because Bill C-54 is very interesting. It recalls a bit of Quebec’s past, quite a few years ago. Without delving too deeply into history, we should remember the 1970s in Quebec. There were political parties and what was called the famous secret fund of one party.

We had a television series called Duplessis. Here we could see the hon. Donald Martineau getting a cut on all the contracts awarded by the Duplessis government. This helped to replenish the campaign funds. So anyone who wanted a government contract, therefore, had to donate to the campaign fund. The approach that the Union nationale developed in Quebec was to take its cut directly on the contracts that were awarded. We are talking here about 1945, 1950 or 1955. Unfortunately, though, this continued into the 1960s in Quebec. It was not until the Parti Québécois came to power in 1976 that a bill was introduced in 1977 under the hon. René Lévesque to clean up party finances and put an end to secret funds.

Unfortunately, secret funds still exist, or at least still existed until Bill C-2 was passed. Our friends in the Liberal Party took ample advantage of them, as did the Conservative Party. I will return to this in a minute.

What Mr. Jean Chrétien left us when he departed was a new law on party finances. It is probably the only thing that history will retain of Mr. Jean Chrétien’s presence here.

[An hon. member]

Oh, oh!

[Marc Lemay, Bloc, Abitibi—Témiscamingue, QC]

Well, in any event that is what we will remember, no matter what the member for Hull—Aylmer may think. It is about the only thing that we recall about Jean Chrétien. He cleaned up the financing of political parties. Despite what the hon. member for Hull—Aylmer says, he must also understand that was the end of secret funds.

They found a new way of operating. The Conservatives tabled a bill that, on the face of it, was rather brilliant, Bill C-2. They proceeded quickly. It was urgent because it was an election promise by the Prime Minister and it was absolutely essential that it be passed quickly. I do not know whether you remember it, Mr. Speaker. Since I am a lawyer, just for fun I took a look at it. It must have been almost as thick as the Income Tax Act, about four inches. It amended nearly 200 federal laws. The concept was enormous. The basic idea was excellent, to clean up financing.

They called it the Accountability Act. It was intended to restrict financing and ensure that no one could ever again get around a law that made it possible to donate large sums of money about which nothing was ever heard. But then something happened. We became aware of something, and I am not the one who says so. Our good Liberal friends found a way to do it. I imagine that the lawyer who found this way of doing it must have been paid a great deal more than we are. They found a good solution: loans. They call it a loan and they do not mention it again.

For those who are watching us on television, here is how it works. Suppose, for example that I am Bob Rae or the honourable member for Saint-Laurent—Cartierville, who is currently the leader of the opposition. Bob Rae received $705,000 and the honourable member for Saint-Laurent—Cartierville received $655,000. How did they proceed during the leadership campaign? By means of loans.

What took place? Someone loaned the money. My name is Joe Blow and I really like a leadership candidate or a candidate for election but I can no longer make a donation of $20,000, or $50,000 or $100,000, as was previously the case with the Liberals and some Conservatives. So, what can I do? I give him a loan. Nobody ensures that the loan will be repaid. So, if the loan is not repaid, what does the loan become? It becomes a donation, but we do not say that. That is how the Liberals have been financed, and how, for the most part, they financed the party’s latest leadership campaign. Obviously, we obtained this information from a source, namely the Ottawa Citizen. There should be no doubt about that. It is not the newspaper that I read every day but I do read it occasionally. We can read right there that considerable sums of money were loaned to them. That is where this Bill C-54 comes into play.

If my name is Bob Rae and I receive a $580,000 loan at a 5% interest rate from someone named John Rae, who, by some unfortunate chance, is a former vice-president of Power Corporation, would I not have a debt toward this individual? The hon. member for Saint-Laurent—Cartierville received a sum of money—I asked a question and we did not get the answer—from someone named Stephen Bronfman. He received $50,000 from that man for his leadership campaign. If he has not paid it back, would the hon. member for Saint-Laurent—Cartierville not have a debt toward this individual should he become prime minister one day?

This is the message that I am trying to convey to the public and this is the purpose of Bill C-54. I agree with my colleagues from the NDP, and this is something we said during the study of Bill C-2. We said that there was a loophole, because it was possible to circumvent the rules by making a loan. Let us take a look beyond this legislation.

What does the Quebec Election Act say concerning loans? They are not contributions. I will read section 88, and I will try to read it slowly, so my friends opposite and especially my good Liberal friends can understand it. It says: “... are not contributions: volunteer work and the goods or services produced by such work”. Thus, the work of volunteers who are in our offices is not a contribution.

The act also refers to “anonymous donations collected at a meeting or rally held for political purposes”. There is nothing complicated there. After delivering an extraordinary speech, I pass the hat around and I collect $150 or $200. There is no problem, because this is not a contribution under the act—I am talking about the Quebec act.

The act also refers to “a loan granted for political purposes by an elector or a bank, trust company or financial services cooperative at the current market rate of interest at the time it is granted, or a guarantee granted by an elector as surety;”

I now turn to section 105, which reads:

“Every loan shall be evidenced in a writing setting out the name and address of the lender, the date, amount...”

Section 106 is interesting. Again, I am talking about the Quebec Election Act:

“The official representative shall, at least once a year, pay the interest due on the loans he has contracted.”

Therefore, we will support Bill C-54, so that it is reviewed at second reading. This bill is interesting, because we would have liked to know, from our Liberal friends, and of course our Conservative friends, who are getting loans, how the Prime Minister's leadership campaign was funded. According to some data, we are talking here about an amount of $1.1 million. Who provided financial support to the Prime Minister? I imagine that all those who are listening to us would also like to know the answer to that question.

With all due respect to this House, I believe that before going any further we have to stop playing hide-and-seek. Everyone in this House and outside, including those who are listening today, knows that it takes money to run an election campaign. Some ceilings have been set. Now, an election campaign is said to cost $89,000 per riding, depending on its size. How are we going to fund election campaigns?

We must stop playing hide-and-seek by saying “I will get a loan from someone and forget to repay it. Since that someone really likes me, he too will forget about it”. Unfortunately, this is how election campaigns have been funded all too often in the past.

We will have to take a good look at this bill to see how it deals with this. I would like to draw members' attention to a government press release about this bill that reads in part as follows:

Only financial institutions (at commercial rates of interest) and other political entities could make loans beyond that amount. Rules for the treatment of unpaid loans would be tightened to ensure candidates cannot walk away from unpaid loans.

Loans that are not repaid after 18 months would be considered political contributions. In my opinion, this is an important point. We have to clean up politics.

Why do we politicians have such a poor image? Because too often, we conceal things from voters. We do not tell them the whole truth. We do not reveal everything about where the money for an election campaign came from. People still have this idea of the party slush fund, where someone says, “I'll give you $1,000. I expect you to do things for me, and once you're in power, I'll have an in with you and be able to get favours”. This has to stop.

I hope that this bill will help us clean up politics. The Conservatives' idea behind Bill C-54 is good. However, I hope that when the bill goes to committee, protection for whistleblowers can be added and reform of the Access to Information Act discussed.

I will start with the reform of the Access to Information Act. It is thanks to this legislation that we have all the information we have today and that journalists can obtain that information. We often hear that thanks to the Access to Information Act, information has been uncovered or obtained, or that information obtained under the Access to Information Act has revealed something. The Access to Information Act must be reformed so that it can go even further in controlling ethics.

Our good friends, the Conservatives, who boast about how they have cleaned up government, need to do their part as well. They have not done much to protect whistleblowers. When the bill goes to committee, the committee will have to find a way to strengthen that protection. People who work in departments and witness goings-on in political offices that are illicit or illegal or violate current legislation should be protected.

Whistleblowers are entitled to $1,500 for legal costs. Let us add a zero to that. One thousand five hundred dollars is not much, since there is no lawyer who will work for less than $100 an hour. This means that the person would be entitled to 15 hours. We know the whistleblowing procedures, what those who work in political offices or within a department experience, which we must respect when they decide to publicly blow the whistle or send information. They must be protected. I think this $1,500 limit for recourse must absolutely be increased. I strongly suggest that it be increased to $15,000. There would be no problem. We will see how this will be debated in committee, but I think this limit must absolutely be increased.

I hope my Conservative friends who are listening will understand that the public sector integrity commissioner must be given the power to enforce the Public Service Disclosure Protection Act. To ensure that the translation is correct, I will repeat. The public sector integrity commissioner must be given the power to enforce the Public Service Disclosure Protection Act. It is this public sector integrity commissioner who must be in charge of getting things in order and enforcing this act.

I hope my Conservative friends will understand this as well, and that the members of the committee will consider the suggestion to make it impossible for the government to exclude crown corporations and any other entity from the application of the Public Service Disclosure Protection Act. Crown corporations—VIA Rail, Air Canada or any other company under federal jurisdiction—must have access.

I will close by saying that we will be in favour of this bill, the purpose of which is to counter the misappropriation or bypassing of campaign financing rules, because it is very important. We also agree with this bill because it will fix the problem of loans, which helped bypass the political contribution restrictions.

[The Acting Speaker, Conservative, Royal Galipeau]

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker, Conservative, Royal Galipeau]

The question is on the motion. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

[The Acting Speaker, Conservative, Royal Galipeau]

I declare the motion carried. Accordingly, the bill stands referred to the Standing Committee on Procedure and House Affairs.

(Motion agreed to and bill referred to a committee)

Air Canada Public Participation Act

[Lawrence Cannon, Conservative, Minister of Transport]

moved that Bill C-29, An Act to amend the Air Canada Public Participation Act, be read the second time and referred to a committee.

Mr. Speaker, I am pleased to rise here today in support of Bill C-29, an act to amend the Air Canada Public Participation Act.

This government is firmly committed to supporting our country's linguistic duality.

This bill is an important part of this government's efforts to promote and protect the linguistic rights of all Canadians. Respecting the French fact is what a federalism of openness is all about.

The proposed amendments are in line with the government's response to the report of the Standing Committee on Official Languages entitled “Application of the Official Languages Act to ACE Aviation Holdings Inc. following the Restructuring of Air Canada”.

On April 10, 1937, long before we were born, Parliament created a national airline in order to provide essential air transportation, cargo and mail services across Canada. That airline would one day become known as Air Canada.

As a crown corporation, the airline has been subject to the Official Languages Act since that legislation came into effect in 1969.

When Air Canada was privatized in 1988, various public welfare obligations, particularly the obligation to respect the Official Languages Act, were imposed on the airline because of its status as a former federal crown corporation.

The government felt at the time that the various rights granted by the act, namely, the language of work and the obligation to serve the public in both official languages, had to be maintained for Air Canada employees and all Canadians.

This is also one of the determining factors in the government's current decision to ensure that the airline upholds its linguistic obligations.

The Government of Canada really cares about preserving the value and spirit of Canada's linguistic duality, so dear to Canadians.

As recently as the year 2000, language obligations were further enhanced when Air Canada acquired Canadian Airlines International. Along with other modifications, the Air Canada Public Participation Act was amended to place a duty on Air Canada to ensure that its airline subsidiaries, which were the carriers that now make up Air Canada Jazz, provided bilingual service to the public pursuant to the Official Languages Act.

As we know, Air Canada filed for bankruptcy protection under the Companies' Creditors Arrangement Act on April 1, 2003. For the next 18 months the company underwent a period of significant restructuring. Air Canada successfully emerged from bankruptcy protection in 2004, but the Air Canada that emerged from restructuring did not look the same as the organization before restructuring. As a result, some of the provisions in the Air Canada Public Participation Act relating to official languages ceased to apply.

For example, as a result of spinning off what had been internal divisions of Air Canada into separate companies, language of work protection and service to the public obligations no longer apply to spun-off post-restructuring entities such as Air Canada Cargo, Air Canada Technical Services and Air Canada Ground Handling Services.

However, obligations under the Air Canada Public Participation Act to adhere to the provisions of the Official Languages Act continue to apply to Air Canada, the mainline carrier.

Air Canada main component is required to keep its head office in Montreal and its maintenance centres in Montreal, Winnipeg and Mississauga. However, due to its reorganization, the size and staff of Air Canada main component have been cut in half.

At present, the law no longer applies to the limited partnerships that are now part of the holding company established in 2004, ACE Aviation Holdings Inc., which is not subject to official languages obligations. Furthermore, ACE Aviation Holdings, which is now the parent company for the entire group of Air Canada companies, is not required to keep its head office in Montreal.

Air Canada main component is no longer required to ensure that Air Canada Jazz, a regional carrier for Air Canada, provides service to the public in both official languages, as it is no longer a subsidiary of the Air Canada carrier, but rather a company in its group.

In May 2005, the former government tabled Bill C-47 which made a certain number of amendments to the Air Canada Public Participation Act. This bill would have restored most of the linguistic obligations that applied to the Air Canada family of companies prior to restructuring.

As members may recall, all parties in the House broadly supported the amendments proposed in Bill C-47, but that bill died on the order paper, leaving a legislative gap in the scope of the application of the Official Languages Act to a restructured Air Canada.

On June 15, 2006, the Standing Committee on Official Languages tabled a report concerning the application of the Official Languages Act to ACE Aviation Holdings Inc. In its report, the committee recommended that the government table a new bill similar in scope and application to Bill C-47, in order to restore the linguistic obligations of the Air Canada group of companies.

On October 16, our government tabled a response to the Standing Committee on Official Languages. I would like to quote part of that response if I may:

The Government believes that the linguistic rights that have been acquired by Air Canada should continue to be preserved.

As a symbol of Canada around the world, the carrier should continue to be bound by the obligation to adhere to linguistic obligations it agreed to when it became a private company in the late 1980s and as subsequently amended.

Today, the government is seeking support for Bill C-29, a bill that responds to the recommendations of the Standing Committee on Official Languages.

The proposed bill stipulates that Air Canada Jazz and any future airline affiliated with ACE Aviation Holdings Inc. will be subject to Part IV, that is, to the Official Languages Act provisions governing service to the public.

ACE Aviation Holdings Inc. will be obligated to ensure communications with the public in both official languages and to keep its head office in Montreal. This provision will ensure that obligations similar to those Air Canada was subject to as the parent organization of a group of companies prior to restructuring will also apply to the new parent company of all of the holdings within this structure.

Under the new legislation, former divisions of Air Canada that became limited partnerships, that is, technical services, cargo, and ground handling, and which are federally regulated undertakings, will be subject to the Official Languages Act in its entirety.

I believe that this bill makes it very clear that our government is committed to this country's official languages. It has considered the recommendations put forward by the Standing Committee on Official Languages, and it is restoring the pre-restructuring language rights of Canadians who work for Air Canada or who travel aboard its aircraft.