Mr. Speaker, it is my pleasure to rise and speak today to Bill C-23, the fair elections act, which has been introduced by the Minister of State for Democratic Reform.
The fair elections act would ensure that everyday citizens are in charge of democracy by putting special interests on the sidelines and rule breakers out of business. The bill also makes it harder to break the elections law. It closes loopholes to big money. It imposes new penalties on political impostors who make rogue calls, and empowers law enforcement with sharper teeth, a longer reach, and a freer hand.
The fair elections act would protect voters from rogue calls, with a mandatory public registry for mass calling, prison time for impersonating elections officials, and increased penalties. It would give more independence to the Commissioner of Canada Elections, allowing her or him to have control over their staff and investigations, empowering the officer to seek tougher penalties for existing electoral offences, and providing more than a dozen new offences to combat big money, rogue calls, and fraudulent voting.
It would crack down on voter fraud by prohibiting vouching or voter information cards as the only acceptable forms of ID. It would make the rules for elections clear, predictable, and easier to follow. It would ban the use of loans which are often used to evade donation rules. It would repeal the ban on premature transmission of election results, upholding free speech and the realities of technology and communications in the 21st century. It would provide better customer service to voters and establish an extra day of polling.
In the case of disagreements over election expenses, it would allow a member of Parliament to present the disputed case in the courts and to have judges quickly rule on it, before the Chief Electoral Officer seeks the MP's suspension.
What I want to focus on today is something that I know my colleagues in the House are concerned about. We have all seen how big money can influence elections in other countries, and that is something that our government, this government, is committed to preventing in Canada.
Our government is pursuing a principled agenda to strengthen accountability and democracy in Canada. It was our Conservative government that instituted a ban on union and corporate donations to political parties, and this total ban will remain.
The fair elections act would reduce undue influence, both real and apparent, of wealthy interests in the political process. The current rules on political loans do not meet the high standards of accountability, transparency, and integrity that is expected by Canadians.
With the introduction of the fair elections act, we are building on our flagship Federal Accountability Act by bringing greater accountability and transparency to political loans. Everyday Canadians are expected to pay back their loans under strict rules, and the same should apply to politicians. Big money from special interests can drown out the voice of everyday citizens. That is why Canada's laws strive to keep it out.
The fair elections act would ban the use of loans to evade donation rules. It would allow political parties to fund democratic outreach with small increases in the current spending limits, while imposing tougher audits and penalties to enforce those limits. It would also make it easier for small donors to contribute more to democracy through the front door and harder for illegal big money to sneak in through the back door.
Some have used loans that are never repaid to get around the donations limit. If adopted, the fair elections act would put a stop to that by banning the use of loans to get around donation rules. It would do this by requiring uniform and transparent reporting for all political loans. This includes having to disclose the terms of the loan and the identity of the lender. It would bring the practice of issuing loans to political candidates and to parties out into the light. It would make the limit for total loans, loan guarantees, and contributions by individuals equal to the annual contribution limit.
A person with deeper pockets cannot get around the contribution limit by making a loan that they never intend to have paid back to them. It will ensure that if a candidate needs a bigger loan than the individual annual contribution limit, that candidate will have to go to a financial institution or political entity, not just a friend with money. The loan that they receive will have to be at a fair market rate of interest. There will be no more favours in the form of sub-market loans from political friends. That day is over.
It would tighten up the rules on unpaid loans. Candidates will not simply be able to walk away from loans that they have not repaid, which in reality turns that loan into a donation after the fact. If a candidate's loan is written off by the lender, the riding association or the party of that candidate will be held responsible for the unpaid loan. It would also put the political financing rules for party leadership contestants on the same footing as for other political entities.
The current timeframe, which is pre-event, would be changed to a per calendar year basis.
In addition to closing political loans loopholes, the bill would also make sure that political parties are being diligent about ensuring they comply with the law for political financing. The filings that parties have to make regarding their financial affairs should go farther than simply giving the appearance that a party is in compliance with the rules. Canadians should know that the information is accurate and reliable. An auditor should confirm that this is the case.
These audits are important, as some electoral expenses by parties can be reimbursed, but Canadians should have better assurances that taxpayer money to support our democratic system is only being spent under the right circumstances, and only when the expenses are in full compliance with our electoral laws.
The bill would increase the responsibility of the external auditors of political parties. It would require that they also conduct a compliance audit to assess the party's compliance with the political financing rules. The Chief Electoral Officer would have to consider the auditor's assessment of whether a party has complied with the political financing rules in the Elections Act before he or she could certify that the party's election expenses are eligible for reimbursement.
Canadians should also know what their political parties and candidates are spending money on, particularly when they are using voter contact services. The bill would create an obligation for political parties, registered associations, and candidates to identify any expenses in their returns for voter contact services.
Finally, the bill includes a strong financial deterrent to prevent political parties and candidates from exceeding the expense limits.
The potential reimbursement would be reduced for every dollar they overspend by $1 for every $1 that exceeds the maximum amount by less than 5%; $2 for every $1 that exceeds the maximum amount by 5% or more, but less than 10%; $3 for every $1 that exceeds the maximum amount by 10% or more, but less than 12.5%; and $4 for every $1 that exceeds the maximum amount of 12.5%.
I expect that colleagues in all parties can agree that penalties based on the idea that the more one overspends, the more it could cost in the end would indeed be an even greater incentive to ensure that the rules were followed.
I have just spent a fair bit of time outlining the bill and how it would crack down on illegitimate election spending and close financial loopholes, but the fact of the matter is that campaigning in an election does take money. I know that. We all know that. My colleagues in this place certainly know that.
This bill would ensure that money comes from the right place: from individual Canadians. It would help parties and candidates to fund their campaigns by appealing to Canadian voters. Increasing the annual contribution limit for individuals to $1,500 would also make it easier for small donors to contribute more to democracy through the front door.
The bill would also increase the overall spending limit for national and local campaigns by 5% each.
In conclusion, this bill is about ensuring that the interests of Canadian citizens are at the forefront of our election rules. That means not only ensuring fair access to the electoral system and ensuring fraudsters and tricksters are caught, but also that there is no place for big money to exercise undue influence. It means ensuring that political parties and candidates are complying with the political financing rules. It also means making it easier for Canadians who want to contribute financially to our democratic system to do so. This bill puts Canadian voters first.
As we are at second reading of the bill, I encourage members to support the bill at second reading to get the bill before the procedure and House affairs committee, of which I am pleased and honoured to be a member.
I suspect many organizations and individuals will come forward to speak to the bill. I look forward to their input. I look forward to their ideas and suggestions. I look forward to ensuring that when we pass the final version of the fair elections act, it will stand up for fairness and transparency and it will be a great act to ensure that the voting rights and the democratic rights of each and every Canadian are respected.
