Mr. Speaker, thank you for these few minutes to speak on a bill that will enable us to reform political financing. I would like to speak specifically about my support for Motion No. 11, which calls for a review of the impact of the legislation after the next election.
Canadians justifiably take great pride in their country. They are proud of its reputation for honesty and good government, which sets an example for many new democracies around the world.
This good reputation did not just pop up overnight, however. Rather, it is the result of hard work and sacrifice by ordinary Canadians who took a keen interest in the issues of the day, who got involved, who made a difference by their actions.
The Canadians of 2003 are not much different from their predecessors. They too want to play an active part in bringing about change, but to do so they need to know how the system works.
Political financing is an area in which Canadians are not fully informed. This was obvious when the Government House Leader consulted the experts, provincial leaders and ordinary Canadians on how the present system could be improved.
Many of them pointed out that Canadians did not have enough information on political financing. And they are not always happy about the information they do have. Canadians have the impression that corporations, unions and wealthy individuals, with their generous contributions, sometimes have undue influence over the political system. This is not correct, of course. But, as we all know, perceptions are important and every effort must be made to ensure that Canadians have complete faith in our democratic process.
There is no doubt that the best approach to correcting these misconceptions is for Canadians to be given as much information as possible on the donors, the recipients and the use to which funds are put. This means enforcing better rules for reporting and requiring all involved to declare funding. That is exactly what Bill C-24 proposes: enhanced transparency and tighter rules on reporting.
To begin with, the bill contains some measures aimed at opening up the system, making it more transparent, clarifying unclear points. This makes a lot of sense, since the system is, after all, one of integrity, so why not let the public see what it is all about and allow it to draw its own conclusions?
At the present time, only candidates and political parties have to provide the Chief Electoral Officer with a report of the contributions received and their sources. The rules are patently incomplete, since some important participants are not included in this at all.
To correct this, the bill will extend disclosure requirements to all participants in the electoral process, namely, leadership and nomination contestants, as well as political parties and electoral district associations. And all political participants will be obliged to declare contributions over $200, along with the name and address of the individual or organization making the contribution.
As of January 1, 2005, political parties will also be required to report quarterly on contributions received. In addition, when registering with the Chief Electoral Officer, leadership contestants will be required to declare contributions received, with sources, prior to the date of registration. And in each of the four weeks preceding the nomination convention, candidates must declare the contributions received and their source. Finally, six months after the conclusion of the leadership contest, the candidates must declare to the Chief Electoral Officer any additional contributions and expenditures.
Nomination contestants will also be required to disclose any donations received and their sources, along with expenditures incurred, during the four months following the nomination contest.
When it comes to changes in political funding rules, improved disclosure of contributions, expenditures and other factors cannot in itself boost public confidence.
In order to reduce the system's reliance on large donations from corporations, unions and the wealthy, the bill prohibits corporations and unions from making contributions; a limited exception allows them to contribute up to $1,000 to registered associations, nomination contestants and candidates.
The bill also provides heavy penalties for businesses and unions that try to get around this ban by asking employees and members to make contributions on their behalf. Finally, it caps contributions by individuals at $5,000 per year in response to concerns about the impact of major contributions.
To compensate for the insufficient funds that may result from commitments related to public financing measures, the bill would increase public support. As a result, eligible parties would receive a quarterly allowance of $1.75 per vote; the percentage of election expenses to be reimbursed to the parties would go from 50% to 60% for the next election alone; the definition of election expenses would be broadened to include polls; the election expense limit for parties would be increased; the candidates would also be entitled to a refund of their election expenses, which would go from 50% to 60%; and the minimum allowable expenses would be lowered to 10% so that a greater number of candidates could get a refund of their election expenses.
Furthermore, other measures would encourage more Canadians to contribute. Individual contributions eligible for tax credits of 75% would increase from $200 to $400, and the maximum tax credit for individual contributions would increase from $500 to $650.
In closing, I believe that passing this bill would contribute greatly to strengthening public confidence in political financing in Canada. This would reassure Canadians of the system's fundamental integrity, while providing a better idea of the funds received, the beneficiaries and how the money has been spent.
Furthermore, the bill would make a fundamental change to political party financing across Canada, which would reassure Canadians and the rest of the world that our political system and government are founded on, and will continue to be founded on, very strict ethical standards.
Clearly, everyone would be a winner. But I agree that it would be good to review the effect of these provisions after the next election.
For those reasons, I will support the motion, and I encourage the other members to do the same.