Mr. Speaker, I am very pleased to rise here in the House and to take part in today's debate on Bill C-21. I would like to begin my comments on this bill by paying tribute to a former leader of the New Democratic Party of Canada, who represented the Ottawa Centre riding, for he was the first person to point out that the political donation regime in this country has a very obvious loophole. Mr. Broadbent had the sense to recognize that even though the maximum amounts of money that can be donated to a political campaign or to a political party had been reduced, by allowing these huge loans, which never really have to be paid back, it was obvious that somebody with a lack of ethical standards would take advantage of that loophole and act as though there were no financial limits. I therefore wish to recognize Mr. Broadbent for raising this issue for us in his ethics package.
The reforms to our political financing regime introduced by the Liberal government in 2003 limited donations to political parties from individuals and corporations, but, they did not limit political loans. The Federal Accountability Act, which passed in 2006, amended the political financing regime by lowering private contribution limits from $5,000 to $1,000, but it did not address the question of loans. That explains why we are debating this here today, and that is what Bill C-21 is meant to correct. Everyone agrees that this is a problem. We need to listen to all of the solutions being proposed and, together, come up with the best way to solve the problem.
Bill C-21 proposes prohibiting unions and corporations from granting loans to political parties and election candidates. Most of these changes were requested by the Chief Electoral Officer some years ago. Indeed, in 2007, the Chief Electoral Officer published a report on political financing that included a series of recommendations. The Chief Electoral Officer's proposed changes were aimed at limiting the influence of individuals or corporations on political parties, since this can occur through financing. Bill C-21 is based largely on those recommendations, which is why we support it at second reading.
This bill, if passed, would establish a strict reporting regime for all political loans, which would include the mandatory disclosure of the identity of the lender and the terms of the loan, such as the interest rates. In addition, loans by individuals would be limited to $1,100 and only banks and political parties would be authorized to lend higher amounts. Under this bill, loans from individuals not repaid within 18 months would be considered contributions, and loans not repaid to financial institutions would be transferred to riding associations, which would become responsible for their repayment.
At present, the rules for political loans do not satisfy the standards of accountability, integrity and transparency that Canadians expect of their political process. I cannot emphasize enough how important this is. In that regard, Bill C-21 seems to be a step in the right direction and that is why the NDP will support it. Believe me, we are here to support any good initiative. For once, the government is headed in the right direction.
These new measures will foster greater fairness and ensure that the political process is and will always be in the hands of the people. A campaign should always be about ideas and not about who can spend the most money. That is not what a leadership race should be about. Members must first and foremost be accountable to their voters. It is important to eliminate the possibility of undue influence of elected representatives by corporations.
Bill C-21 would also amend rules for leadership races. In that regard, the most striking example, and the one that has garnered the most public attention, is the Liberal Party of Canada leadership race.
Even if companies and unions did not have the right to contribute a single dollar, they could still lend tens and hundreds of thousands of dollars. Individuals could also lend much more than they were allowed to donate. We do not want to see a repeat of what happened with that party, where six years later, leadership candidates seem to have simply abandoned the idea of repaying their campaign debts. It is completely unacceptable.
If that is the case and a candidate was backed by individuals, then in reality those individuals bankrolled a big part of the candidate's campaign. If the debt is never paid off, then we end up in exactly the situation that we are trying to avoid, which is single individuals, single corporations and single unions providing tens, and possibly hundreds of thousands of dollars to one candidate.
Liberal members point out that Bill C-21 could prevent more women from entering politics. I think that the reverse is true. The bill will level the playing field so that people who are sponsored by companies, as was the case in the Liberal Party of Canada leadership race, will not have a competitive advantage over a woman who does not have this sort of backing. The purpose of Bill C-21 is to eliminate the influence of the wealthy in politics, while the under-representation of women in politics is a complex issue due to many factors that go well beyond political loans.
Some members are wondering how they will be able to raise money if backers are only authorized to donate a maximum of $1,100 per candidate. They are also concerned about the fact that Bill C-21 will prevent donors from making a donation to a leadership contestant if the candidate has outstanding debts.
The Chief Electoral Officer, Marc Mayrand, recently made a very important statement. He said that it is virtually impossible to enforce the law on political loans because it is “not only overly complex, it's incoherent and ineffective.”
We have this expertise, we have recommendations from Elections Canada. This is an example that relates to Bill C-21. However, in all kinds of other scandals where we have to shed light on what happened, it is important—I cannot repeat that enough—for this government to listen to recommendations from Elections Canada and the experts working in the field, to take the necessary action.
A number of these concerns from people in the field are legitimate, and that is why we must carefully examine each clause of this bill. I hope that there will be some latitude in committee to discuss what kind of system to adopt and what protection measures could be implemented. Every time we consider limiting the ways Canadians can collect funds to participate in an election, we must ensure not only that the system is fair, but also that everyone has access to funding, regardless of political affiliation.
We support the idea of eliminating the loophole. However, we feel that some improvements are necessary in order to strengthen our system.
We are very concerned to see banks and other financial institutions become the sole sources of financing without being required to subsidize all parties, regardless of the circumstances. This is a big problem, but we can resolve it. If we want, we can find ways to include conditions that would be acceptable to everyone involved, in order to make things fairer.
I am sure that we could find a solution that would meet the government's objectives—to standardize the financial rules—and ensure that our electoral laws are applied equally across the country, so that in future federal elections, everyone—and I mean everyone—has equal opportunity and those who are supported by certain companies do not have an unfair competitive advantage.
