Mr. Speaker, I will continue the debate on the report stage amendments to Bill C-29.
The government has said that the bill would fill in gaps in existing legislation governing loans to political candidates or parties. However, I point out that the existing law requires full disclosure of these types of loans and has procedures in place governing repayment. However, the bill purports to tweak and ratchet up the degree of regulation involved with these loans.
From a distance, it looks like the Conservative government is trying to do everything it can to lob grenades, regulate and obstruct the way people run for public office federally. I am imputing rationale here, but it is as though the Conservatives are saying they have their financing mechanisms all in place and the rest us can go find our own way. They are going to regulate the field and make it tough for everybody, including arguably, themselves. That is the universe the way they see it. They will continue to regulate and regulate. Every time they see something they do not like, they will pass another law and will continue to pass laws until the thing gets so gummed up that hardly anybody will be able to move on the street. That is my impression of the bill.
I accept it is a tweak, a ratchet up to the existing set of rules. However, I want to try to take a wider angle view of what is going on as it relates to the right of Canadians to participate in the political process.
I think there is some gamesmanship involved. I do not think it is all idealistic attempts to make the universe right. In their efforts at trying to kneecap the other parties, or other people who do not organize their campaigns the way the Conservatives do, are they really in a way obstructing participation in the process? Are we only thinking about existing parties when we make these new rules? Have we forgot about the new parties that have not made it into the system yet?
If we were talking about banking or the mining sector, we would be looking at such issues as obstacles and barriers to entry to ensure competition. We would not clutter the roadway with all kinds of rules and barriers to obstruct new entrants into the mining or banking field. We like to see competition. In adopting these measures in the bill, we would really be regulating. I will give two examples of how I think it may be a problem.
These new rules create barriers to people, although that may have been unintended. I think the intention is to create barriers for all the other political parties that are on the street now and we may have forgot about the ones that are not there yet.
I have two examples on which I want to focus.
First, the bill says that candidates and parties can only borrow from financial institutions. That would be a pretty significant law. In order to borrow from a financial institution, one has to have a credit rating. Does a poor candidate have a better credit rating than a rich candidate? I will leave that question unanswered, but I think the answer is kind of obvious. A poor candidate would not have as good a credit rating. Therefore, with the imposition of the mandatory financing mechanism with the banks and therefore the imputed need for a credit rating, are we imposing a barrier to poor candidates? I think we are. A poor candidate might be able to borrow from a brother-in-law, but might not be able to float a decent loan from the bank for his or her political campaign as he or she goes forward.
All of the existing incumbents in the House have been elected at least once. Most of us know how to finance a campaign or to raise money for it. We all have to do it. It is a very legitimate part of being involved in politics, but I think buried in this section is an adverse effect discrimination. Somebody out there will notice it and someday even the courts may notice it.
I am thinking of women who sometimes have less money and poorer people, who by definition have less money and resources, to participate in politics and sometimes may need a loan to get them over the hump.
Second, if we can only borrow from the banks and financial institutions, then the banks become an integral monopoly source of funding or borrowing for financial campaigns. I wonder how a bank makes a decision about its lending policies, about whether it will only lend to one party or one candidate. If it lends to one, does it have to lend to all? How will the banks handle this imposition of being the sole source for lending to political campaigns? If I were the banks, I would be kind of unhappy about it, because it is forcing banks to make decisions that may be seen to be political.
I mentioned earlier the problem of credit ratings for the poor candidates, the less pecunious candidates, but the banks also have a decision to make between political parties. They may decide to lend $10,000 to one party and $25,000 to the other party or cap everybody at $10,000. Maybe they will decide not lend anybody anything in a political campaign because it is too mucky and too political. They might leave it up to Parliament to figure out how it wants to finance campaigns, but they do not want people going to them. If we do not want candidates to borrow from the brother-in-law or from the friend, too bad.
The banks might not be too happy with this. I do not know for sure, but there may be some push-back there. If a person needs a loan and he or she has to go to a bank and the bank tells that person it does not lend to political candidates or parties, what have we done? We have created a barrier to participation and entry.
The amendments put forward by the government purport to roll back amendments that were put into the bill by the members of the committee. They were good amendments and I would like to keep them there. Therefore, I oppose the government's move to roll them back.
One amendment has to do with the amortization of loans of leadership candidates. Another one has to do with repeat loans during a calendar year, which looks pretty reasonable to me. The other has to do with the deletion of the automatic liability of a political party, as mentioned by the previous speaker, if one of its candidates defaults on repayment of a loan. That is just a dumb mechanism and it should not be there. However, it does relate to my earlier comments about banks and financial institutions. Maybe they would not mind having that automatic liability of the party being there, but I do not think it is a good way to manage the financing.
I therefore oppose the government motions to reinstate provisions of the bill.
For reasons I have stated, there may be some constitutional vulnerability related to the charter in these sections. We will not know until the appropriate case comes along. However, when that case does come along, I hope it is somebody who maybe did not have a lot of money, wanted to borrow money but was unable to do that. I hope the person can show that this relatively dumb, holier than thou government regulation of this part of the political process is seen to be an obstacle to political participation.
I hope my friends in the Conservative Party will see that perhaps they are taking too myopic a view of Canada. They are trying to regulate everything from their view inside their political party, but Canada is really much more diverse and demands a little more freedom than they are willing to accord in terms of the financing of campaigns and participation in the process.