Mr. Speaker, in what began two years ago as a good faith effort on the part of the former minister for democratic reform, a system of political loans was inserted into the Canada Elections Act, whereby essentially banks are now the central actor in providing candidates with loans in order to start up campaigns, before they may have raised money. The problem is with a whole series of limitations on how those loans can be guaranteed.
The banks appeared before the procedure and House affairs committee almost two years ago with respect to a previous incarnation of this legislation. They said there would not be the right kind of incentives for a bank to chase down all the guarantors in order to give out these loans. The Chief Electoral Officer said it would be unworkable because those who could guarantee and give loans within their individual donation limits would be impossible to track because of a whole series of fluctuations over the course of a year.
It was unworkable according to the Chief Electoral Officer and unworkable according to the banks.
The result is that those who need loans, especially non-incumbents because they have not yet raised money, are going to be at a disadvantage versus those who have had a chance to raise a lot of money, mostly incumbents, or can receive direct transfers or loans form a well-resourced national party and therefore have no need whatsoever to turn to the banks to help start up their campaign.
I think it is in the result. I do not think this is intentional on the part of the government, although it heard the concerns before. In the result, this bank loan system would give advantage to parties and candidates who are well resourced because access to it would only be needed by those who do not have resources. It would also be the case with this system that, when individuals try to access it, they may find the banks' doors are closed.