Mr. Speaker, I am pleased to share my time with the hon. member for Terrebonne—Blainville.
Bill C-21, Political Loans Accountability Act, contains a series of measures to tighten the political financing rules. Among other things, the bill proposes to prohibit political entities from receiving corporate or union loans. Financial institutions, individuals, political parties and associations will still be authorized to grant or guarantee loans, as long as the terms of the loan, such as the interest rate, are divulged and everything is put down in writing.
As my colleague mentioned, Bill C-21 is a step in the right direction. The bill, to its credit, prevents situations like the one the Liberal Party currently finds itself in from happening again. Let us remember that, six years after the leadership race, many candidates still have not reimbursed the total amount of the loans they received to run their campaigns.
The issue even went before the Supreme Court of Ontario, which recently found the failed candidates with loans in arrears guilty of violating the Canada Elections Act. The court sentenced them to pay a fine of $1,000 or to serve three months in prison. It is important to note that, under Bill C-21, these loans that were not repaid would be considered political contributions after a period of three years.
In the report that he submitted to Parliament in 2007, the Chief Electoral Officer of Canada said:
The loans granted by lenders—who are not in the business of lending, who lend money at non-commercial rates, with terms that are not available to others, or in cases where there is little prospect of reimbursement—may be perceived as a means to influence the political entity to which the funds are provided.
The Chief Electoral Officer highlighted a weakness in our election financing system: lenders might try to influence political entities. That weakness had to be remedied. We have a duty and a responsibility to do everything we can to limit the influence of outsiders over political entities in this country. Bill C-21 proposes a solution worthy of consideration, and that is why, as was noted earlier, we are going to support it at second reading.
Once it is sent to committee, we will be able to improve it. While Bill C-21 means we are taking a step in the right direction, it is still in need of improvement. Yes, we support it, and I hope the Conservative Party will also be open to our solutions. For example, limiting the number of potential lenders is a good idea in theory, but in practice, problems might arise.
Take the case of financial institutions. As the bill now stands, there is nothing that provides for establishing rules that can guarantee a degree of impartiality on the part of the banks in granting loans.
Bill C-21 contains nothing that could guarantee that this process is fair to all candidates, regardless of party. The minister himself said in the past that he did not see the benefit of making the banks subject to a regulatory framework under Bill C-21. That is quite surprising to hear from the minister, because if his objective is to make the process transparent and democratic, it would be to our benefit to see this kind of thing in the bill.
Without clear rules to guarantee that the lending process is fair, we can easily imagine that the banks might be, let us say, more inclined to lend to certain candidates than to others.
That is not to say that this would happen systematically, but the risk of a bank denying a candidate a loan for political reasons exists, and that should never be the case. It is important to address that issue. Without clear rules, we are opening the door to the possibility of a bank denying a loan to a political entity on the grounds that it advocates an agenda the bank considers to be against its interests.
For example, would a bank agree to lend to a political entity that was proposing higher taxes on its profits? Perhaps; it might. The risk of it refusing based on the ideas advocated by the entity in question is our justification for making amendments to the bill. That is exactly the situation that has to be avoided.
Mr. Speaker, you will tell us that the banks are already free to grant or deny a loan to whomever they see fit. Fine. But by limiting the number of entities that are entitled to make loans, Bill C-21 places more power in the hands of the financial institutions. That power must not have an impact on candidates’ ability to finance their campaigns. That would completely defeat the objectives and the intent of the bill.
I hope that the minister and his Conservative colleagues will agree to work with the official opposition to prevent Bill C-21 from creating two classes of candidates: those who have no trouble raising campaign funds because they advocate ideas that will help banks make money, and all the other candidates.
After introducing the bill, the Conservatives issued a news release stating their intent to implement high standards of integrity in the political process. That is all well and good, but the government must work with all parties to ensure that integrity in the political process is achieved.
If that is truly their intention, why did they recently condemn public funding of political parties, which had the advantage of avoiding and eliminating any possibility of allegiance or political scandal?
It seems to me that the best way to curb private money's influence in the political sphere is to remove private money from the equation. Unfortunately, that is not the approach the government chose.
The NDP believes that any action taken to ensure that political funding and loans are as transparent as possible is a very good thing.
That is why, as another colleague said, we will support Bill C-21 at second reading. I sincerely hope that the Conservatives will be open to the changes we propose in committee, even though that has not been our experience in the past, I must say. We all have an interest in guaranteeing the independence of the people's representatives in this country. It is our duty to be above reproach, and we must prevent politicians from using their influence to obtain favours.