That is right, Madam Speaker, Madawaska—Restigouche, in New Brunswick, a beautiful place to visit over the summer.
Madam Speaker, Motion No. 11 proposes that, following the next general election, the Standing Committee on Procedure and House Affairs be called upon to consider the effects of the provisions of this bill concerning political financing.
I think this significantly improves Bill C-24. As we know, the bill will result in major changes to the way political activities are financed and to the reporting of financial transactions for all involved in the political process.
As we have heard in committee, these changes will require serious efforts to adjust, particularly at the level of riding associations. The bill proposes major changes to this institution, to bring greater transparency to the transactions made by the associations and greater rigour to their financial management.
The bill also proposes changes which are likely to make these new rules more palatable to those who work, often without pay, in our associations.
I would like to say a word about transparency. Back in the early 1990s, the Lortie Commission said, and I quote:
Full disclosure of information on financial contributions and expenditures is an integral component of an electoral system that inspires public confidence. Essential to enhancing the integrity of the political system are the principles of transparency and public accountability.
Sharing this vision, the Chief Electoral Officer has been harsh in his criticism of the current system. His reference to a “black hole”, by which he means the activities of riding associations, has often been quoted.
Most hon. members will agree with me that there is nothing very mysterious going on in our associations. Complete disclosure, once a year, of the contributions received and expenses incurred by riding associations would show this.
We at the federal level are not the first to demand transparency of our riding associations. Seven provinces already do this. Those of us who represent ridings in Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Alberta and British Columbia can attest that provincial riding associations already have to provide this kind of information every year.
The bill provides that on or before May 31 of every year, the financial agent of each registered association shall submit the association's financial transactions return for the preceding fiscal year to Elections Canada. In that return, the financial agent will provide a statement of contributions received by the association, by class of donor, as well as a list, with names and addresses, of donors who have made contributions of over $200 to the association during the year. This is the same rule that already applies to parties and candidates in an election.
Special rules will also apply for the initial return, when the association registers with Elections Canada. It will not be necessary, at the time of registration, to disclose the source of contributions received before the last general election, simply the total assets of the association, including bank balances.
The bill also provides that if the association is eliminated by changes in electoral boundaries, it will be possible to transfer funds to other riding associations. In that case, the bill recognizes the extent to which it would be difficult for an association receiving funds from another association to be expected to disclose the source of funds. Thus, if the transfer is made within six months after the riding association is eliminated, it will not be necessary to disclose the source of funds but only the total actually received from the former association.
I would like to mention an important improvement that was made to the bill in committee. This improvement will significantly reduce the impact of a electoral boundary review on riding associations.
Under the new rules, the deregistration of an association following the readjustment of electoral boundaries will not be automatic. In fact, it will be possible for the registered association to continue as the association for a particular electoral district simply by filing a notice with the Chief Electoral Officer, without having to deregister and re-register.
Furthermore, it will be possible for an association to pre-register once a representation order has been given, so that the association can be automatically registered once the order comes into force.
The aim of the bill is not only transparency, but also greater responsibility for the riding associations. It makes registered riding associations responsible for respecting certain basic rules of financial administration, such as appointing a financial agent, an electoral district agent and an auditor.
The bill provides for the auditing of the association's accounts if it has accepted contributions of more than $5,000 or incurred expenses of more than $5,000 in a fiscal year. This obligation to conduct an audit therefore applies only to associations that remain active between elections.
Under the bill, those riding associations that must conduct an audit of their books will receive a refund of up to $1,500 of their audit expenses.
The obligation to conduct an audit for riding associations that remain active between elections is not new. This is already being done in the majority of provinces where riding association reports are required.
There are a number of other provisions in the bill concerning riding associations. Seeing that these take up 15 pages, one cannot avoid asking oneself some questions. Most of the provisions, however, are adaptations of the rules that apply to the parties and there are many to protect riding associations in the event of disputes.
There is a special rule for the associations, however: no more than one riding association can be registered in each riding.
Riding associations of registered parties that accept these rules and register with the Chief Electoral Officer will acquire the following rights: the right to accept contributions, the right to provide services and to transfer funds to a candidate supported by the party and, finally, the right to accept surplus electoral funds from a candidate, leadership contestant or nomination contestant.
What is more, they may issue receipts for income tax purposes themselves when they receive contributions. They will no longer need to forward these contributions to the party between election campaigns in order to have receipts issued, or to pay the charges levied by some parties for issuing these receipts.
All in all, I believe that the provisions of this bill, which are aimed at the riding associations, will enhance transparency. They will also facilitate better management of the financial operations of these associations. Finally, in connection with the authorization to issue tax receipts for contributions made outside of election campaign periods, we must admit that this will relieve the associations of a major irritant.
Some of us have justifiable concerns about adding to the burden of the volunteers who run our riding associations. The bill, with all its clauses, does nothing to allay those concerns. On the other hand, if one reads the bill carefully, it is clear that with the exception of some new reporting requirements, the new rules are entirely consistent with good financial administration. In many cases, I bet we will find, in discussing this with our riding association presidents and treasurers, that the association will have already put these rules, or something similar, in place.
Moreover, the addition proposed by Motion No. 11 provides assurance that an examination of these issues will be carried out after the next general election.
Given the importance of the changes proposed by Bill C-24—and I have only addressed the ones affecting the riding associations—I believe this is a wise measure and one which ought to reassure the members of this House.