Federal political financing in Canada
Encyclopedia
The fair and transparent financing of political parties, candidates, and election campaigns is a key determinant in the health and proper functioning of a democracy. How political parties and candidates at the federal level are funded in Canada is described by issues such as funding mechanisms, relative levels of public and private funding, levels of democratic participation, and questions of fairness and transparency.
These two principal sources of funding primarily determine, along with loans and secondary revenue sources, how much money the federal political parties have available to spend.
Table – Primary sources of public and private funding of the federal political parties in 2009
(Source: Elections Canada)
In addition to these two sources of primary funding, political parties and candidates receive significant additional public funding at election times that is based on what they have spent.
The per-vote subsidy (amounting to $27.7 million in 2009), also referred to as the "government allowance", the "quarterly allowance", or the "direct public subsidy", is considered to be the most democratic of the three funding mechanisms: The choices of 100% of voters of eligible parties (99% of all valid votes in the last election,) 13,675,146 individual Canadians, are taken into account, all on an equal-basis.
In contrast, the subsidy of political contributions through tax credits ($28.5-$31 million in 2009) is allocated according to the choices of only a tiny minority of voters (less than 2% in 2009) - and the sizes of their monetary contributions.
The electoral expense reimbursement, which accounts for the largest part of the public financing following an election ($54 million in 2009), reimburses 50%-60% of a party's expenses on elections - the more a party spends during an election, the more public funds they get back.
Table - Public financing of the top five federal political parties in 2009 (in millions)
(Tax credits approximate. Electoral expenses reimbursements include estimated riding/candidate level reimbursements. Sources: Elections Canada, Globe and Mail)
Of the three ways in which federal parties are allocated public funding, the per-vote subsidy is largely seen as the most democratic. 100% of the voters of eligible parties (99% of all voters in the last election) have a say, with their input treated on equal basis (1 voter, 1 vote).
The subsidy entered into effect on January 1, 2004, at $1.75 per vote (indexed to the Consumer Price Index
) as part of a set of amendments made by the Jean Chrétien
government to the Canada Elections Act
which for the first time set limits on political contributions by individuals and organizations (corporations, unions, non-profit groups). The per-vote subsidy was introduced to replace the reliance of political parties and candidates on corporate, union, and wealthy donors in order to reduce the political influence of such donors.
Table - Individual political contributions made to federal political parties in 2009
(Source: Elections Canada, Statement of Contributions Received, Part 2a)
(Note: The actual numbers of unique individual contributors are likely to be less than the totals shown as multiple anonymous contributions of under $20 by the same person are counted as separate contributors, and contributions made by the same person to both the riding level and at the party level, to different ridings, and/or to different parties are also all counted as separate contributors.)
Under this subsidy, the more a party spends, the more they are subsidized. The subsidy therefore magnifies the public funds allocated by tax credits on political contributions and by the per-vote subsidies. It also means that loans to political parties and their candidates can play a significant role in determining how much public money is received by the parties.
During the 2008 election, the Conservatives spent the most, and, as a result, received the largest reimbursements under this public subsidy in 2009.
Table - National and riding electoral expense reimbursements received by the top five federal political parties in 2009 (in millions)
For political contributions up to $400, the tax credit is a very generous 75% - more than twice the tax credit given to donations to charitable organizations.
In 2009, the maximum yearly contribution limit was $1,100 to a given federal political party and $1,100 to a given party's riding associations. For that maximum contribution limit of $1,100, the tax credit is $591.67, representing a subsidy of 53.79%.
Of the $46 million in political contributions received in 2009 by federal party organizations and riding associations, between $28.5 million and $31 million of the contributions was publicly funded - through tax credits amounting to between 62% and 67.5% - while between $15 million and $17.5 million was net private funding.
Table - Public and private financing of the top five federal political parties in 2009 (in millions)
(Public funding includes electoral expenses reimbursements. Tax credits estimated. Sources: Elections Canada, Globe and Mail)
is a major focus for many parties that involves hiring fundraising experts, and employing sophisticated database systems, email lists, newsletters, and telemarketing
.
The Conservative Party, for example, is reported to make phone calls or send letters to about 200,000 people a month, and conducts surveys to collect and feed information on the views of individuals into its database referred to as CIMS, an acronym for "Constituent Information Management System". The information stored in the database is then used to customize mailings and phone calls for each targeted donor to appeal to them specifically on issues that they are known to react more strongly to.
Other associated overhead for fundraising include legal consultation, processing, accounting, auditing, and reporting costs.
Table - Cost of party-level fundraising of the top three federal political parties in 2009
(Sources: Elections Canada, Globe and Mail)
In 2009, the overhead cost of fundraising for the top three parties exceeded the net private funds they raised. They spent a combined $11.2 millon on fundraising at the party level (riding-level expenses not included), according to their 2009 annual party returns, to raise approximately $10.3 million in net private funds.
According to political financing expert Louis Massicotte, a political scientist from Universite Laval
, political systems that rely heavily on political contributions from individuals can encourage corruption
. In 2010-2011, it was discovered that corporations had been funnelling money to major provincial political parties by disguising the corporate funds as individual political contributions made by their employees, circumventing the political fundraising laws. Former employees of one corporation flatly admitted that political contributions had illicitly been made in their name.
At the provincial level in Quebec, the far-reaching influence
of fundraisers over everything from the selection of judges to the distribution of construction contracts fuelled widespread demand for a public inquiry
into political corruption
, and caused the Jean Charest
Liberal government and other major political parties to agree to increase the provincial per-vote subsidy as a way to reduce the influence of party bagmen (influence peddling
political fundraisers) over government decisions and policies.
Table - Disclosure of political contributors in 2009 (all federal parties and riding associations)
(Source: Elections Canada)
In 1997, Industry Minister John Manley
only disclosed the identies of individuals and corporations who contributed $10,150 and $15,800, respectively to his re-election campaign, but where a whopping $74,664 - received through his riding association - had originally come from was kept secret.
In July 2002, Paul Martin
would not reveal the names of donors to his leadership campaign, claiming that new disclosure rules brought in a month earlier applied only to current cabinet and not to a former cabinet minister as he was, and that he did not think it would be fair to name people who had donated to his campaign before the new disclosure rules were in effect.
In October 2002, Stephen Harper
also refused to reveal who had donated to his leadership campaign. While he later quietly posted a few names - those of 54 donors who had given more than $1,075 each - he continued to keep secret the identities of 10 other large donors and the names of more than 9,000 donors who each gave sums of less than $1,000 each.
In 2009, an annual report by Global Integrity
, an independent non-profit organization that tracks corruption
trends around the world, said that Canada posted a slight "downward tick" based on secrecy surrounding political financing and gaps in government accountability.
According to Global Integrity, "Canada is a really interesting case" in that while, it had a generally positive rating, there are "unique gaps in the system that are strange," including the fact that political financing loans to candidates are confidential.
According to Ottawa-based Democracy Watch: "Government integrity continues to be undermined by loopholes that allow secret donations to some candidates."
confirmed in 2007 that individuals could actually contribute as much as $60,500 over the $1,100 limit - simply by donating $200 to each of a party's 308 riding associations - and Elections Canada would never know about it.
This results from the fact that, under current regulations, a party's individual riding associations are only required to report the identities of contributors with total contributions to the riding of over $200. Contributions of $200 or less are allowed to be reported in aggregate, with no break-down by contributor required that would allow for proper cross-checking across a party's ridings associations.
Elections Canada claimed that it currently cannot keep track of donations of $200 or less because "we do not get the receipts" from the individual riding associations.
The NDP called for the loophole to be plugged, but the Harper government refused to close the donation loophole, and rejected calls by the opposition for Elections Canada to be given new measures and tools to be able to detect multiple donations across a party's ridings that exceed the contribution limit.
, one political party, the Conservative Party, has been actively targeting the per-vote subsidy for elimination, while favouring the generous public subsidy of private political contributions. All of the other major Canadian parties - the Liberals, NDP, Bloc, and Green Party - oppose the elimination of the per-vote subsidy.
Stephen Harper first tried to eliminate the per-vote subsidy in November 2008, just after the federal election of October 14, 2008
. He had not brought up the issue before Canadian voters during the election campaign, but on November 27 - only days into his new mandate that began November 18 - he attempted to eliminate the per-vote subsidy through a provision tucked within a fiscal update - and designated the update as a confidence motion that would trigger the fall of the government, and the prospect of another election, unless passed.
Harper's move was seen by opposition members and other observers as a partisan attempt to bankrupt the other political parties and further increase his own party's financial advantage, and as a direct attack on the democratic process.
The move and its packaging as a confidence motion prompted the Liberals and the NDP to take steps toward forming a coalition government
in the event the confidence motion was defeated. Suddenly faced with losing power, Harper took the unprecedented measure of seeking the prorogation of Canada's Parliament
.
Canada's Parliament was shut down from December 4, 2008, to January 26, 2009, allowing Harper to avoid the confidence vote that he would have lost, and he backtracked on his attempt to eliminate the subsidy.
In January 2011, however, Harper again brought back his aim to eliminate the per-vote subsidy, over the opposition of all the other major parties, while he continued to favour the generous public subsidy of political contributions, stating: "There are already generous credits and incentives in the tax system to encourage people to give to political parties today." He vowed that he would make the elimination of the per-vote subsidy a campaign pledge in the next federal election.
Green Party Leader Elizabeth May
spoke against Harper's attempts to eliminate the per-vote subsidy, saying that doing so would once again concentrate influence in the hands of those with deeper pockets, instead of giving voters a voice, and she stated her belief that the 2004 campaign finance reforms that introduced the per-vote subsidy are the "one area we've gotten really right" compared with the United States. Liberal deputy leader Ralph Goodale
stated: "Mr. Harper’s position is, essentially, let the big and the wealthy and the most privileged run the show and all the other voices should simply be silenced."
In spite of the clear opposition by the other parties, in a campaign pledge in April 2011, Stephen Harper vowed to unilaterally eliminate the per-vote subsidy if he wins a majority. He stated: "Canadian political parties already have enormous tax advantages, there are credits when you donate to political parties, there are rebates when political parties do spending."
Bloc Quebecois leader Gilles Duceppe
accused Harper of seeking to cripple all other parties, stating: "Its runs against democracy. Parties trying to break through, like the Greens, would have practically no means. That guy would be happy with no opposition and no Parliament."
Other observers - including Canada's former Chief Electoral Officer
Jean-Pierre Kingsley
- have suggested that the subsidy of political contributions and subsidy of election expenses should also be examined, since both - to a far greater extent - have the effect of forcing taxpayers to fund parties they do not personally support.
A national total of 96,762 individuals also made political contributions at the riding association level to a federal political party, resulting in a 0.4% fraction of registered voters directing over $12 million in subsidized contributions - over 60% of it from public funds - toward their preferred parties.
Combined, the number of unique individuals that made political contributions in 2009 to a federal political party, either at the national party organzition level or riding level, or both, is somewhere between 196,186 and 278,620 individuals - representing between just 0.8% and 1.2% of the number of registered voters from 2008.
Rounding to the nearest percentage, only 1% of registered voters directed $46 million - representing over 62% of the primary funding received by parties - toward their preferred party, with nearly two-thirds of that - $28.5-$31 million - in public funds directed without the consent of 99% of registered voters.
Table - Primary funding sources in 2009 and level of participation
(Source: Elections Canada)
With political contributions, on the other hand, the participants - numbering only a nation-wide total of between 196,186 and 278,620 unique individuals in 2009, and representing less than 1.2% of the number of registered voters - tend to be individuals that have more disposable income: The poor, by and large, do not make political contributions, and, according to University of Calgary
political finance expert Lisa Young, people that have more comfortable means, and that can expect to obtain a larger tax credit against their income, are more likely to make political contributions.
According to McMaster University
political scientist Henry Jacek, political contributions tend to come from the wealthy, and not the poor. It is also clear from other jurisdictions in the world that political donors typically are people that have more disposable income.
While political contributions can only be made by Canadian citizens, there is no age restriction in place, which allows political contributions to be made in the name of children to bypass contribution limits.
In 2006, Liberal leadership candidate Joe Volpe returned $27,000 in political contributions that had been made in the name of children - after it was revealed that his campaign donors included 11-year-old twin boys and a 14-year-old boy who donated $5,400 each, the allowed maximum. The children and several other donors that had contributed the maximum allowable $5,400 each - for a total of $108,000 - were all in some way connected to the top corporate executives of one pharmaceutical company. Yet no law was broken.
The total number of political contributors in 2009 was at most 1.2% of the number of registered voters, but the number of those political contributions made in the name of children, spouses, or relatives is not known, nor is the number of unique families or households involved.
Over half of all the public funding for federal parties in 2009 was effectively directed by less than 1.2% of the number of registered voters in Canada, without participation by 99% of registered voters.
Overall, the subsidy of political contributions resulted in 64.2% of all of the funding in 2009 being directed according to the partisan preferences of less than 1.2% of registered voters.
By the same token, approximately 98-99% of all registered voters would no longer have any participation in how any of the funding is directed - including having no say at all in how any of the taxpayer money involved gets allocated.
In April 2011, Canada's former Chief Electoral Officer
Jean-Pierre Kingsley
, who served in the position for 17 years, stated that if the Conservatives under Stephen Harper eliminate the per-vote subsidy, there would be an increased risk of Canada's political parties turning back toward corporations to obtain money, also to the detriment of Canadian democracy.
The elimination of the per-vote subsidy could also have the effect of further reducing an already low voter turnout
by removing an incentive that encourages many Canadian citizens to vote. Under the first-past-the-post system, the per-vote subsidy ensures that a voter's participation at the ballot box will at least still make a difference even if their preferred riding candidate has very little chance of winning or is assured of a win.
NDP leader Jack Layton voiced his opposition to Harper's plan, saying that "it's wrong", and "opens the door for big money to come back into politics," and he worried about the impact this will have on democracy in Canada.
Harper's move was seen by many as motivated by a desire to destroy the Liberal party and cripple all other parties, not by concern over taxpayer dollars. According to University of Ottawa
professor Errol Mendes: "You can see what's happening here, they're moving toward a process of eventually cutting the feet out from all the major opposition parties."
Interim Liberal leader Bob Rae stated: "I can’t think of anything more wrong than a spirit of vindictiveness at the heart of a majority government." He said the Liberals would oppose the plan, and stated: "The notion that there’s public support for the political process and political parties is widely accepted in a great many democratic countries around the world."
According to political scientist Ned Franks of Queen's University
, the elimination of the per-vote subsidy will mean that political parties with a rich support base will now be far better off than parties whose supporters are poorer or who are not the type to make political donations. He stated that the move greatly favours the Conservative party: "There's only one party who benefits, and — surprise, surprise — it's the Conservatives."
Layton stated the move was anti-democratic since it would benefit parties with access to rich people, and handicap parties with a lower-income voting base. "I think that our democracy is better served if ideas have equal opportunity in the competition for Canadians' consideration, and that's what public financing is designed to do. Take away public financing and what you're basically saying is those with the best ability to raise money get to have their ideas heard, and I don't think that's helpful for a democratic society."
Overview of funding
Canada's federal political parties have as their two primary sources of funding:- Political contributions from individuals subsidized through tax credits – allocated according to monetary contributions.
- Per-vote subsidies – allocated according to the votes of Canadians.
These two principal sources of funding primarily determine, along with loans and secondary revenue sources, how much money the federal political parties have available to spend.
Table – Primary sources of public and private funding of the federal political parties in 2009
| Subsidized political contributions | Per-vote subsidy | Total | |
|---|---|---|---|
| Party level | Riding level | ||
| $33.3 million | $12.7 million | $27.7 million | $73.7 million |
| $46 million | |||
| 62.4% | 37.6% | 100% | |
(Source: Elections Canada)
In addition to these two sources of primary funding, political parties and candidates receive significant additional public funding at election times that is based on what they have spent.
Public funding
Public funding of Canada's federal political parties is allocated in three ways:- Tax credits subsidizing political contributions by individuals - allocated according to monetary contributions.
- Per-vote subsidies - allocated according to the votes of Canadians.
- Electoral expense reimbursements - reimbursements allocated according to party spending during election periods.
The per-vote subsidy (amounting to $27.7 million in 2009), also referred to as the "government allowance", the "quarterly allowance", or the "direct public subsidy", is considered to be the most democratic of the three funding mechanisms: The choices of 100% of voters of eligible parties (99% of all valid votes in the last election,) 13,675,146 individual Canadians, are taken into account, all on an equal-basis.
In contrast, the subsidy of political contributions through tax credits ($28.5-$31 million in 2009) is allocated according to the choices of only a tiny minority of voters (less than 2% in 2009) - and the sizes of their monetary contributions.
The electoral expense reimbursement, which accounts for the largest part of the public financing following an election ($54 million in 2009), reimburses 50%-60% of a party's expenses on elections - the more a party spends during an election, the more public funds they get back.
Table - Public financing of the top five federal political parties in 2009 (in millions)
| Political party | Electoral expense reimbursements | Per-vote subsidy | Public subsidization of political contributions | Total public funding | Share of the public funding of top 5 parties |
|---|---|---|---|---|---|
| Conservative Party Conservative Party of Canada The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum... |
$21.4 | $10.4 | $15.57 | $47.37 | 42.0% |
| Liberal Party Liberal Party of Canada The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative... |
$15.1 | $7.2 | $9.21 | $31.51 | 28.0% |
| New Democratic Party New Democratic Party The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in... |
$12.4 | $5.0 | $3.37 | $20.77 | 18.4% |
| Bloc Québécois Bloc Québécois The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative... |
$4.8 | $2.7 | $0.95 | $8.45 | 7.5% |
| Green Party Green Party of Canada The Green Party of Canada is a Canadian federal political party founded in 1983 with 10,000–12,000 registered members as of October 2008. The Greens advance a broad multi-issue political platform that reflects its core values of ecological wisdom, social justice, grassroots democracy and... |
$1.7 | $1.9 | $0.97 | $4.57 | 4.1% |
| Total (top 5 parties) | $55.4 | $27.2 | $30.07 | $112.7 | |
| Percentage of the overall public funding | 49% | 24% | 27% |
(Tax credits approximate. Electoral expenses reimbursements include estimated riding/candidate level reimbursements. Sources: Elections Canada, Globe and Mail)
Per-vote subsidy
For each registered federal political party that received at least 2% of all valid votes the last general election or at least 5% of the valid votes in the electoral districts in which it had a candidate, the per-vote subsidy, also referred to as the "government allowance", gives the party an inflation-indexed subsidy each year of $2.04 per vote received in the last election.Of the three ways in which federal parties are allocated public funding, the per-vote subsidy is largely seen as the most democratic. 100% of the voters of eligible parties (99% of all voters in the last election) have a say, with their input treated on equal basis (1 voter, 1 vote).
The subsidy entered into effect on January 1, 2004, at $1.75 per vote (indexed to the Consumer Price Index
Consumer price index
A consumer price index measures changes in the price level of consumer goods and services purchased by households. The CPI, in the United States is defined by the Bureau of Labor Statistics as "a measure of the average change over time in the prices paid by urban consumers for a market basket of...
) as part of a set of amendments made by the Jean Chrétien
Jean Chrétien
Joseph Jacques Jean Chrétien , known commonly as Jean Chrétien is a former Canadian politician who was the 20th Prime Minister of Canada. He served in the position for over ten years, from November 4, 1993 to December 12, 2003....
government to the Canada Elections Act
Canada Elections Act
Canada Elections Act is an Act of the Parliament of Canada respecting the election of members of parliament to the Canadian House of Commons, repealing other Acts relating to elections and making consequential amendments to other Acts....
which for the first time set limits on political contributions by individuals and organizations (corporations, unions, non-profit groups). The per-vote subsidy was introduced to replace the reliance of political parties and candidates on corporate, union, and wealthy donors in order to reduce the political influence of such donors.
Subsidy of political contributions
Political contributions are publicly subsidized via a personal income tax credit that credits 75% of the first $400 contributed, 50% of the amount between $400 and $750, and 33.33% of the amount over $750, up to a maximum tax credit of $650 (reached when contributions by an individual total $1,275 in one calendar year.) For the current maximum political contribution of $1,100 that can be given to the national organization of each party, the tax credit is $591.67, representing a subsidy of 53.79%.Table - Individual political contributions made to federal political parties in 2009
| Political party | Party level | Riding level | Total | ||||
|---|---|---|---|---|---|---|---|
| Contributions received | Number of contributors | Percentage of contributors | Contributions received | Number of contributors | Percentage of contributors | Contributions received | |
| Conservative Party Conservative Party of Canada The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum... |
$17,702,201.05 | 101,385 | 55.75% | $5,646,513.18 | 41,227 | 43% | $23,348,714.23 |
| Liberal Party Liberal Party of Canada The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative... |
$9,060,916.11 | 37,876 | 20.83% | $4,760,216.56 | 30,426 | 31% | $13,821,132.67 |
| New Democratic Party New Democratic Party The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in... |
$4,008,521.11 | 23,704 | 13.03% | $1,046,588.50 | 11,484 | 12% | $5,055,109.61 |
| Green Party Green Party of Canada The Green Party of Canada is a Canadian federal political party founded in 1983 with 10,000–12,000 registered members as of October 2008. The Greens advance a broad multi-issue political platform that reflects its core values of ecological wisdom, social justice, grassroots democracy and... |
$1,123,094.64 | 9,115 | 5.01% | $331,588.29 | 5,551 | 6% | $1,454,682.93 |
| Bloc Québécois Bloc Québécois The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative... |
$621,126.24 | 6,052 | 3.33% | $805,538.64 | 7,297 | 8% | $1,426,664.88 |
| Christian Heritage Party Christian Heritage Party of Canada The Christian Heritage Party of Canada, also referred to as CHP Canada, is a federal political party that advocates that Canada be governed according to Biblical principles... |
$284,420.20 | 953 | 0.52% | $102,147.66 | 751 | 1% | $386,567.86 |
| Animal Alliance Environment Animal Alliance Environment Voters Party of Canada The Animal Alliance Environment Voters Party of Canada is a small registered political party in Canada. It was formed by two organizations, the Animal Alliance of Canada and Environment Voters. The latter had previously been organized as a subsidiary of the former... |
$292,950.20 | 1,816 | 1.00% | $0.00 | 0 | 0% | $292,950.20 |
| Communist Party Communist Party of Canada The Communist Party of Canada is a communist political party in Canada. Although is it currently a minor or small political party without representation in the Federal Parliament or in provincial legislatures, historically the Party has elected representatives in Federal Parliament, Ontario... |
$88,184.44 | 628 | 0.35% | $0.00 | 0 | 0% | $88,184.44 |
| Marxist-Leninist Party | $39,130.00 | 85 | 0.05% | $0.00 | 0 | 0% | $39,130.00 |
| Rhinoceros Party | $13,950.00 | 19 | 0.01% | $0.00 | 0 | 0% | $13,950.00 |
| People's Political Power Party People's Political Power of Canada The People’s Political Power Party of Canada is a fringe Canadian federal political party that is no longer recognized by Elections Canada. The party became eligible for registration on April 26, 2006, and was deregistered on April 13, 2011 for failing to nominate a candidate for the 2011 federal... |
$13,288.00 | 20 | 0.01% | $0.00 | 0 | 0% | $13,288.00 |
| Canadian Action Party Canadian Action Party The Canadian Action Party is a Canadian federal political party founded in 1997. It promotes Canadian nationalism, monetary and electoral reform, and opposes neoliberal globalization and free trade agreements.- Background :The Canadian Action Party was founded by Paul T... |
$10,635.00 | 63 | 0.03% | $0.00 | 0 | 0% | $10,635.00 |
| Libertarian Party of Canada Libertarian Party of Canada The Libertarian Party of Canada is a political party in Canada that subscribes to the tenets of the libertarian movement across Canada.-History:... |
$6,587.44 | 40 | 0.02% | $0.00 | 0 | 0% | $6,587.44 |
| Western Block Party Western Block Party The Western Block Party is a political party in Canada founded in 2005 by Doug Christie. The party became officially registered on December 29, 2005.... |
$5,260.00 | 56 | 0.03% | $0.00 | 0 | 0% | $5,260.00 |
| Progressive Canadian Party Progressive Canadian Party The Progressive Canadian Party is a minor federal political party in Canada. It is a centre/centre-right party that was officially registered with Elections Canada, the government's election agency, on March 29, 2004.... |
$5,018.00 | 40 | 0.02% | $2,774.00 | 24 | 0% | $7,792.00 |
| Marijuana Party | $2,610.00 | 6 | 0.00% | $700.00 | 2 | 0% | $3,310.00 |
| Total | $33,277,892.43 | 181,858 | 100% | $12,696,066.83 | 96,762 | 100% | $45,973,959.26 |
(Source: Elections Canada, Statement of Contributions Received, Part 2a)
(Note: The actual numbers of unique individual contributors are likely to be less than the totals shown as multiple anonymous contributions of under $20 by the same person are counted as separate contributors, and contributions made by the same person to both the riding level and at the party level, to different ridings, and/or to different parties are also all counted as separate contributors.)
Electoral expense reimbursement
When an election takes place, perhaps the most significant source of public funding for the federal political parties is the election expenses reimbursement which subsidizes 50% of the national campaign expenses of any party that obtains at least 2 per cent support, or at least 5 per cent in the ridings in which they presented candidates. In addition to this, the parties' riding organizations are also reimbursed 60% of all expenses incurred by their candidates in each riding where they obtained at least 10% of the votes, plus 100% of allowable "personal expenses". The reimbursements are also referred to as "government rebates", "government transfers", or "election rebates".Under this subsidy, the more a party spends, the more they are subsidized. The subsidy therefore magnifies the public funds allocated by tax credits on political contributions and by the per-vote subsidies. It also means that loans to political parties and their candidates can play a significant role in determining how much public money is received by the parties.
During the 2008 election, the Conservatives spent the most, and, as a result, received the largest reimbursements under this public subsidy in 2009.
Table - National and riding electoral expense reimbursements received by the top five federal political parties in 2009 (in millions)
| Political party | National expense reimbursements received | Riding expense reimbursements received | Total expense reimbursements | Share of the reimbursements to top 5 parties |
|---|---|---|---|---|
| Conservative Party Conservative Party of Canada The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum... |
$9.7 | $11.7 | $21.4 | 39% |
| Liberal Party Liberal Party of Canada The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative... |
$7.3 | $7.8 | $15.1 | 27% |
| New Democratic Party New Democratic Party The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in... |
$8.4 | $4.1 | $12.4 | 23% |
| Bloc Québécois Bloc Québécois The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative... |
$2.4 | $2.4 | $4.8 | 9% |
| Green Party Green Party of Canada The Green Party of Canada is a Canadian federal political party founded in 1983 with 10,000–12,000 registered members as of October 2008. The Greens advance a broad multi-issue political platform that reflects its core values of ecological wisdom, social justice, grassroots democracy and... |
$1.1 | $0.6 | $1.7 | 3% |
| Total (top 5 parties) | $28.90 | $26.60 | $55.5 | |
| (Riding expense reimbursements estimated. Source: Globe and Mail) | ||||
Distribution of public funding between the top five parties
Private funding
Private funding of the federal political parties occurs through political contributions made by individuals, but these contributions are vastly subsidized by public funds disbursed through tax credits.For political contributions up to $400, the tax credit is a very generous 75% - more than twice the tax credit given to donations to charitable organizations.
In 2009, the maximum yearly contribution limit was $1,100 to a given federal political party and $1,100 to a given party's riding associations. For that maximum contribution limit of $1,100, the tax credit is $591.67, representing a subsidy of 53.79%.
Of the $46 million in political contributions received in 2009 by federal party organizations and riding associations, between $28.5 million and $31 million of the contributions was publicly funded - through tax credits amounting to between 62% and 67.5% - while between $15 million and $17.5 million was net private funding.
Table - Public and private financing of the top five federal political parties in 2009 (in millions)
| Political party | Total net private funding received | Total public funding received | Total funding received | % private | % public | Votes received in 2008 | Public funding per vote received (in $'s) | Share of the vote (in 2008) | Share of the public funding of top 5 parties |
|---|---|---|---|---|---|---|---|---|---|
| Conservative Party Conservative Party of Canada The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum... |
$7.78 | $47.37 | $55.15 | 14.11% | 85.89% | 5,208,796 | $9.09 per vote | 37.65% | 42.04% |
| Liberal Party Liberal Party of Canada The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative... |
$4.61 | $31.51 | $36.12 | 12.76% | 87.24% | 3,633,185 | $8.67 per vote | 26.26% | 27.97% |
| New Democratic Party New Democratic Party The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in... |
$1.69 | $20.77 | $22.46 | 7.52% | 92.48% | 2,515,561 | $8.26 per vote | 18.18% | 18.43% |
| Bloc Québécois Bloc Québécois The Bloc Québécois is a federal political party in Canada devoted to the protection of Quebec's interests in the House of Commons of Canada, and the promotion of Quebec sovereignty. The Bloc was originally a party made of Quebec nationalists who defected from the federal Progressive Conservative... |
$0.48 | $8.45 | $8.93 | 5.38% | 94.62% | 1,379,991 | $6.12 per vote | 9.98% | 8% |
| Green Party Green Party of Canada The Green Party of Canada is a Canadian federal political party founded in 1983 with 10,000–12,000 registered members as of October 2008. The Greens advance a broad multi-issue political platform that reflects its core values of ecological wisdom, social justice, grassroots democracy and... |
$0.48 | $4.57 | $5.05 | 9.50% | 90.50% | 937,613 | $4.87 per vote | 6.78% | 4.06% |
| Total (top 5 parties) | $15.04 | $112.67 | $127.71 | 11.78% | 88.22% | 13,675,146 | $8.24 per vote |
(Public funding includes electoral expenses reimbursements. Tax credits estimated. Sources: Elections Canada, Globe and Mail)
Cost of fundraising
In order to solicit political monetary contributions, fundraisingFundraising
Fundraising or fund raising is the process of soliciting and gathering voluntary contributions as money or other resources, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies...
is a major focus for many parties that involves hiring fundraising experts, and employing sophisticated database systems, email lists, newsletters, and telemarketing
Telemarketing
Telemarketing is a method of direct marketing in which a salesperson solicits prospective customers to buy products or services, either over the phone or through a subsequent face to face or Web conferencing appointment scheduled during the call.Telemarketing can also include recorded sales pitches...
.
The Conservative Party, for example, is reported to make phone calls or send letters to about 200,000 people a month, and conducts surveys to collect and feed information on the views of individuals into its database referred to as CIMS, an acronym for "Constituent Information Management System". The information stored in the database is then used to customize mailings and phone calls for each targeted donor to appeal to them specifically on issues that they are known to react more strongly to.
Other associated overhead for fundraising include legal consultation, processing, accounting, auditing, and reporting costs.
Table - Cost of party-level fundraising of the top three federal political parties in 2009
| Political party | Contributions raised | Fundraising expenses | % Overhead |
|---|---|---|---|
| Conservative Party Conservative Party of Canada The Conservative Party of Canada , is a political party in Canada which was formed by the merger of the Canadian Alliance and the Progressive Conservative Party of Canada in 2003. It is positioned on the right of the Canadian political spectrum... |
$17,702,201.05 | $7,222,907 | 40.80% |
| Liberal Party Liberal Party of Canada The Liberal Party of Canada , colloquially known as the Grits, is the oldest federally registered party in Canada. In the conventional political spectrum, the party sits between the centre and the centre-left. Historically the Liberal Party has positioned itself to the left of the Conservative... |
$9,060,916.11 | $2,377,395 | 26.24% |
| New Democratic Party New Democratic Party The New Democratic Party , commonly referred to as the NDP, is a federal social-democratic political party in Canada. The interim leader of the NDP is Nycole Turmel who was appointed to the position due to the illness of Jack Layton, who died on August 22, 2011. The provincial wings of the NDP in... |
$4,008,521.11 | $1,594,566 | 39.78% |
| Total (top 3 parties) | $30,771,638.27 | $11,194,868.00 | 36.38% |
(Sources: Elections Canada, Globe and Mail)
In 2009, the overhead cost of fundraising for the top three parties exceeded the net private funds they raised. They spent a combined $11.2 millon on fundraising at the party level (riding-level expenses not included), according to their 2009 annual party returns, to raise approximately $10.3 million in net private funds.
The corrupting influence of political fundraising
In 2006, it was revealed during the Liberal leadership contest that one candidate, Joe Volpe, had received a total of $108,000 in contributions from 20 individuals that were all in some way connected to the top corporate executives of Apotex Pharmaceuticals. Each of the 20 individuals - which included 11-year-old twin boys and a 14-year-old boy - gave exactly $5,400, the maximum allowed at the time.According to political financing expert Louis Massicotte, a political scientist from Universite Laval
Université Laval
Laval University is the oldest centre of education in Canada and was the first institution in North America to offer higher education in French...
, political systems that rely heavily on political contributions from individuals can encourage corruption
Corruption
Corruption usually refers to spiritual or moral impurity.Corruption may also refer to:* Corruption , an American crime film* Corruption , a British horror film...
. In 2010-2011, it was discovered that corporations had been funnelling money to major provincial political parties by disguising the corporate funds as individual political contributions made by their employees, circumventing the political fundraising laws. Former employees of one corporation flatly admitted that political contributions had illicitly been made in their name.
At the provincial level in Quebec, the far-reaching influence
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...
of fundraisers over everything from the selection of judges to the distribution of construction contracts fuelled widespread demand for a public inquiry
Public inquiry
A Tribunal of Inquiry is an official review of events or actions ordered by a government body in Common Law countries such as the United Kingdom, Ireland or Canada. Such a public inquiry differs from a Royal Commission in that a public inquiry accepts evidence and conducts its hearings in a more...
into political corruption
Political corruption
Political corruption is the use of legislated powers by government officials for illegitimate private gain. Misuse of government power for other purposes, such as repression of political opponents and general police brutality, is not considered political corruption. Neither are illegal acts by...
, and caused the Jean Charest
Jean Charest
John James "Jean" Charest, PC, MNA is a Canadian politician who has been the 29th Premier of Quebec since 2003. He was leader of the federal Progressive Conservative Party of Canada from 1993 to 1998 and has been leader of the Quebec Liberal Party since 1998....
Liberal government and other major political parties to agree to increase the provincial per-vote subsidy as a way to reduce the influence of party bagmen (influence peddling
Influence peddling
Influence peddling is the illegal practice of using one's influence in government or connections with persons in authority to obtain favors or preferential treatment for another, usually in return for payment. Also called traffic of influence or trading in influence ...
political fundraisers) over government decisions and policies.
Lack of transparency
Political parties are currently only required to report the identities of contributors that have given a total of over $200 to one riding association or the central organization. For donations of $200 or less, receipts must be kept by the individual riding associations, but Elections Canada has no way to keep track of them. Completely anonymous contributions of $20 or less are permitted.Table - Disclosure of political contributors in 2009 (all federal parties and riding associations)
| Party-level | Riding-level | Combined | ||||
| Number of listed contributors | 40,712 | 22.39% | 16,398 | 16.95% | 57,110 | 20.50% |
| Number of unlisted contributors of amounts of $200 or less | 139,140 | 76.51% | 51,491 | 53.21% | 190,631 | 68.42% |
| Total number of anonymous contributors of amounts of $20 or less | 2,006 | 1.10% | 28,873 | 29.84% | 30,879 | 11.08% |
| Total number of contributors | 181,858 | 96,762 | 278,620 | |||
| Total number of contributors not identified to Election Canada | 141,146 | 77.61% | 80,364 | 83.05% | 221,510 | 79.50% |
(Source: Elections Canada)
In 1997, Industry Minister John Manley
John Manley
John Manley may refer to:* John Manley , English soldier, MP and Postmaster General* John Manley, Canadian politician* John Manley , British archaeologist* John H. Manley, American nuclear physicist...
only disclosed the identies of individuals and corporations who contributed $10,150 and $15,800, respectively to his re-election campaign, but where a whopping $74,664 - received through his riding association - had originally come from was kept secret.
In July 2002, Paul Martin
Paul Martin
Paul Edgar Philippe Martin, PC , also known as Paul Martin, Jr. is a Canadian politician who was the 21st Prime Minister of Canada, as well as leader of the Liberal Party of Canada....
would not reveal the names of donors to his leadership campaign, claiming that new disclosure rules brought in a month earlier applied only to current cabinet and not to a former cabinet minister as he was, and that he did not think it would be fair to name people who had donated to his campaign before the new disclosure rules were in effect.
In October 2002, Stephen Harper
Stephen Harper
Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election...
also refused to reveal who had donated to his leadership campaign. While he later quietly posted a few names - those of 54 donors who had given more than $1,075 each - he continued to keep secret the identities of 10 other large donors and the names of more than 9,000 donors who each gave sums of less than $1,000 each.
In 2009, an annual report by Global Integrity
Global Integrity
Global Integrity is an independent, nonprofit organization tracking governance and corruption trends around the world using local teams of researchers and journalists to monitor openness and accountability...
, an independent non-profit organization that tracks corruption
Corruption
Corruption usually refers to spiritual or moral impurity.Corruption may also refer to:* Corruption , an American crime film* Corruption , a British horror film...
trends around the world, said that Canada posted a slight "downward tick" based on secrecy surrounding political financing and gaps in government accountability.
According to Global Integrity, "Canada is a really interesting case" in that while, it had a generally positive rating, there are "unique gaps in the system that are strange," including the fact that political financing loans to candidates are confidential.
According to Ottawa-based Democracy Watch: "Government integrity continues to be undermined by loopholes that allow secret donations to some candidates."
Loopholes through political contributions limits
Elections CanadaElections Canada
Elections Canada is an independent, non-partisan agency reporting directly to the Parliament of Canada. Its ongoing responsibility is to ensure that Canadians can exercise their choices in federal elections and referenda through an open and impartial process...
confirmed in 2007 that individuals could actually contribute as much as $60,500 over the $1,100 limit - simply by donating $200 to each of a party's 308 riding associations - and Elections Canada would never know about it.
This results from the fact that, under current regulations, a party's individual riding associations are only required to report the identities of contributors with total contributions to the riding of over $200. Contributions of $200 or less are allowed to be reported in aggregate, with no break-down by contributor required that would allow for proper cross-checking across a party's ridings associations.
Elections Canada claimed that it currently cannot keep track of donations of $200 or less because "we do not get the receipts" from the individual riding associations.
The NDP called for the loophole to be plugged, but the Harper government refused to close the donation loophole, and rejected calls by the opposition for Elections Canada to be given new measures and tools to be able to detect multiple donations across a party's ridings that exceed the contribution limit.
Debate over the subsidies
Led by Stephen HarperStephen Harper
Stephen Joseph Harper is the 22nd and current Prime Minister of Canada and leader of the Conservative Party. Harper became prime minister when his party formed a minority government after the 2006 federal election...
, one political party, the Conservative Party, has been actively targeting the per-vote subsidy for elimination, while favouring the generous public subsidy of private political contributions. All of the other major Canadian parties - the Liberals, NDP, Bloc, and Green Party - oppose the elimination of the per-vote subsidy.
Stephen Harper first tried to eliminate the per-vote subsidy in November 2008, just after the federal election of October 14, 2008
Canadian federal election, 2008
The 2008 Canadian federal election was held on Tuesday, October 14, 2008 to elect members to the Canadian House of Commons of the 40th Canadian Parliament after the previous parliament had been dissolved by the Governor General on September 7, 2008...
. He had not brought up the issue before Canadian voters during the election campaign, but on November 27 - only days into his new mandate that began November 18 - he attempted to eliminate the per-vote subsidy through a provision tucked within a fiscal update - and designated the update as a confidence motion that would trigger the fall of the government, and the prospect of another election, unless passed.
Harper's move was seen by opposition members and other observers as a partisan attempt to bankrupt the other political parties and further increase his own party's financial advantage, and as a direct attack on the democratic process.
The move and its packaging as a confidence motion prompted the Liberals and the NDP to take steps toward forming a coalition government
Coalition government
A coalition government is a cabinet of a parliamentary government in which several political parties cooperate. The usual reason given for this arrangement is that no party on its own can achieve a majority in the parliament...
in the event the confidence motion was defeated. Suddenly faced with losing power, Harper took the unprecedented measure of seeking the prorogation of Canada's Parliament
2008–2009 Canadian parliamentary dispute
The 2008–2009 Canadian parliamentary dispute was a political dispute during the 40th Canadian Parliament. It was triggered by the expressed intention of the opposition parties to defeat the Conservative minority government on a motion of non-confidence six weeks after the federal election on...
.
Canada's Parliament was shut down from December 4, 2008, to January 26, 2009, allowing Harper to avoid the confidence vote that he would have lost, and he backtracked on his attempt to eliminate the subsidy.
In January 2011, however, Harper again brought back his aim to eliminate the per-vote subsidy, over the opposition of all the other major parties, while he continued to favour the generous public subsidy of political contributions, stating: "There are already generous credits and incentives in the tax system to encourage people to give to political parties today." He vowed that he would make the elimination of the per-vote subsidy a campaign pledge in the next federal election.
Green Party Leader Elizabeth May
Elizabeth May
Elizabeth Evans May, OC, MP is an American-born Canadian Member of Parliament, environmentalist, writer, activist, lawyer, and the leader of the Green Party of Canada. She was the executive director of the Sierra Club of Canada from 1989 to 2006. She became a Canadian citizen in 1978.May's...
spoke against Harper's attempts to eliminate the per-vote subsidy, saying that doing so would once again concentrate influence in the hands of those with deeper pockets, instead of giving voters a voice, and she stated her belief that the 2004 campaign finance reforms that introduced the per-vote subsidy are the "one area we've gotten really right" compared with the United States. Liberal deputy leader Ralph Goodale
Ralph Goodale
Ralph Edward Goodale, PC, MP was Canada's Minister of Finance from 2003 to 2006 and continues to be a Liberal Member of Parliament...
stated: "Mr. Harper’s position is, essentially, let the big and the wealthy and the most privileged run the show and all the other voices should simply be silenced."
In spite of the clear opposition by the other parties, in a campaign pledge in April 2011, Stephen Harper vowed to unilaterally eliminate the per-vote subsidy if he wins a majority. He stated: "Canadian political parties already have enormous tax advantages, there are credits when you donate to political parties, there are rebates when political parties do spending."
Bloc Quebecois leader Gilles Duceppe
Gilles Duceppe
Gilles Duceppe is a Canadian politician, and proponent of the Québec sovereignty movement. He was a Member of Parliament in the Canadian House of Commons for over 20 years and was the leader of the sovereigntist Bloc Québécois for almost 15 years. He is the son of a well-known Quebec actor, Jean...
accused Harper of seeking to cripple all other parties, stating: "Its runs against democracy. Parties trying to break through, like the Greens, would have practically no means. That guy would be happy with no opposition and no Parliament."
Other observers - including Canada's former Chief Electoral Officer
Chief Electoral Officer (Canada)
The Chief Electoral Officer is the person responsible for overseeing elections in Canada.The position of Chief Electoral Officer was created in 1920 by the Dominion Elections Act. The Chief Electoral Officer is appointed by a resolution of the Canadian House of Commons...
Jean-Pierre Kingsley
Jean-Pierre Kingsley
Jean-Pierre Kingsley was the President and CEO of the International Foundation for Electoral Systems. He was the Chief Electoral Officer of Elections Canada, before he stepped down in December 2006. On April 28, 2009 he announced his resignation as President of IFES. He was succeeded by Bill...
- have suggested that the subsidy of political contributions and subsidy of election expenses should also be examined, since both - to a far greater extent - have the effect of forcing taxpayers to fund parties they do not personally support.
Level of participation in determining the funding of parties
In 2009, a national total of 181,858 individuals (out of 23,677,639 registered voters in 2008) made political contributions to a federal political party organization, resulting in a 0.77% fraction of registered voters directing over $33 million in subsidized contributions - almost two-thirds of it publicly funded - toward their preferred parties. Over 55% of the these individuals were Conservative party supporters.A national total of 96,762 individuals also made political contributions at the riding association level to a federal political party, resulting in a 0.4% fraction of registered voters directing over $12 million in subsidized contributions - over 60% of it from public funds - toward their preferred parties.
Combined, the number of unique individuals that made political contributions in 2009 to a federal political party, either at the national party organzition level or riding level, or both, is somewhere between 196,186 and 278,620 individuals - representing between just 0.8% and 1.2% of the number of registered voters from 2008.
Rounding to the nearest percentage, only 1% of registered voters directed $46 million - representing over 62% of the primary funding received by parties - toward their preferred party, with nearly two-thirds of that - $28.5-$31 million - in public funds directed without the consent of 99% of registered voters.
Table - Primary funding sources in 2009 and level of participation
| Funding method | Number of participants | Level of participation / % controlling (as a % of voters) |
Level of non-participation / % subordinate (as a % of voters) |
Net private funding | Public funding | % of the primary public funding | % of the overall primary funding of parties |
|---|---|---|---|---|---|---|---|
| Subsidized political contributions | 196,186 - 278,620 | 1.4% - 2.0% | 98% - 98.6% | $15.0-$17.5 million | $28.5-$31.0 million | 50.7% - 52.8% | 62.4% |
| Per-vote subsidy | 13,675,146 | 98.9% | 1.1% | - | $27.7 million | 47.2%- 49.3% | 37.6% |
(Source: Elections Canada)
Composition of participation
With the per-vote subsidy, 100% of voters of eligible parties (99% of all valid votes in 2009) participate in determining the distribution of the funds, and do so all on an equal basis. The participants are all the Canadian citizens over the age of 18 that voted in the last federal election, and numbered 13,675,146 Canadians in 2009.With political contributions, on the other hand, the participants - numbering only a nation-wide total of between 196,186 and 278,620 unique individuals in 2009, and representing less than 1.2% of the number of registered voters - tend to be individuals that have more disposable income: The poor, by and large, do not make political contributions, and, according to University of Calgary
University of Calgary
The University of Calgary is a public research university located in Calgary, Alberta, Canada. Founded in 1966 the U of C is composed of 14 faculties and more than 85 research institutes and centres.More than 25,000 undergraduate and 5,500 graduate students are currently...
political finance expert Lisa Young, people that have more comfortable means, and that can expect to obtain a larger tax credit against their income, are more likely to make political contributions.
According to McMaster University
McMaster University
McMaster University is a public research university whose main campus is located in Hamilton, Ontario, Canada. The main campus is located on of land in the residential neighbourhood of Westdale, adjacent to Hamilton's Royal Botanical Gardens...
political scientist Henry Jacek, political contributions tend to come from the wealthy, and not the poor. It is also clear from other jurisdictions in the world that political donors typically are people that have more disposable income.
While political contributions can only be made by Canadian citizens, there is no age restriction in place, which allows political contributions to be made in the name of children to bypass contribution limits.
In 2006, Liberal leadership candidate Joe Volpe returned $27,000 in political contributions that had been made in the name of children - after it was revealed that his campaign donors included 11-year-old twin boys and a 14-year-old boy who donated $5,400 each, the allowed maximum. The children and several other donors that had contributed the maximum allowable $5,400 each - for a total of $108,000 - were all in some way connected to the top corporate executives of one pharmaceutical company. Yet no law was broken.
The total number of political contributors in 2009 was at most 1.2% of the number of registered voters, but the number of those political contributions made in the name of children, spouses, or relatives is not known, nor is the number of unique families or households involved.
Magnification of the choices of political contributors
While only a tiny fraction of registered voters make political contributions, their net contributions get magnified several times over by the public subsidy of political contributions and the public subsidy of election expenses.Over half of all the public funding for federal parties in 2009 was effectively directed by less than 1.2% of the number of registered voters in Canada, without participation by 99% of registered voters.
Overall, the subsidy of political contributions resulted in 64.2% of all of the funding in 2009 being directed according to the partisan preferences of less than 1.2% of registered voters.
Consequences of eliminating the per-vote subsidy
Elimination of the per-vote subsidy, wth all other things remaining equal, would mean that a very small number of individuals - somewhere between 0.8% and 1.2% of registered voters in 2009 - would control and direct 100% of all the funding to their preferred political parties and candidates.By the same token, approximately 98-99% of all registered voters would no longer have any participation in how any of the funding is directed - including having no say at all in how any of the taxpayer money involved gets allocated.
In April 2011, Canada's former Chief Electoral Officer
Chief Electoral Officer (Canada)
The Chief Electoral Officer is the person responsible for overseeing elections in Canada.The position of Chief Electoral Officer was created in 1920 by the Dominion Elections Act. The Chief Electoral Officer is appointed by a resolution of the Canadian House of Commons...
Jean-Pierre Kingsley
Jean-Pierre Kingsley
Jean-Pierre Kingsley was the President and CEO of the International Foundation for Electoral Systems. He was the Chief Electoral Officer of Elections Canada, before he stepped down in December 2006. On April 28, 2009 he announced his resignation as President of IFES. He was succeeded by Bill...
, who served in the position for 17 years, stated that if the Conservatives under Stephen Harper eliminate the per-vote subsidy, there would be an increased risk of Canada's political parties turning back toward corporations to obtain money, also to the detriment of Canadian democracy.
The elimination of the per-vote subsidy could also have the effect of further reducing an already low voter turnout
Voter turnout
Voter turnout is the percentage of eligible voters who cast a ballot in an election . After increasing for many decades, there has been a trend of decreasing voter turnout in most established democracies since the 1960s...
by removing an incentive that encourages many Canadian citizens to vote. Under the first-past-the-post system, the per-vote subsidy ensures that a voter's participation at the ballot box will at least still make a difference even if their preferred riding candidate has very little chance of winning or is assured of a win.
Announced elimination of the per-vote subsidy
On May 25, 2011, just three weeks after the election that gave them majority power, the Conservatives announced that their June 6 federal budget would include the elimination - long-sought-after by Stephen Harper - of the per-vote subsidy.NDP leader Jack Layton voiced his opposition to Harper's plan, saying that "it's wrong", and "opens the door for big money to come back into politics," and he worried about the impact this will have on democracy in Canada.
Harper's move was seen by many as motivated by a desire to destroy the Liberal party and cripple all other parties, not by concern over taxpayer dollars. According to University of Ottawa
University of Ottawa
The University of Ottawa is a bilingual, research-intensive, non-denominational, international university in Ottawa, Ontario. It is one of the oldest universities in Canada. It was originally established as the College of Bytown in 1848 by the Missionary Oblates of Mary Immaculate...
professor Errol Mendes: "You can see what's happening here, they're moving toward a process of eventually cutting the feet out from all the major opposition parties."
Interim Liberal leader Bob Rae stated: "I can’t think of anything more wrong than a spirit of vindictiveness at the heart of a majority government." He said the Liberals would oppose the plan, and stated: "The notion that there’s public support for the political process and political parties is widely accepted in a great many democratic countries around the world."
According to political scientist Ned Franks of Queen's University
Queen's University
Queen's University, , is a public research university located in Kingston, Ontario, Canada. Founded on 16 October 1841, the university pre-dates the founding of Canada by 26 years. Queen's holds more more than of land throughout Ontario as well as Herstmonceux Castle in East Sussex, England...
, the elimination of the per-vote subsidy will mean that political parties with a rich support base will now be far better off than parties whose supporters are poorer or who are not the type to make political donations. He stated that the move greatly favours the Conservative party: "There's only one party who benefits, and — surprise, surprise — it's the Conservatives."
Layton stated the move was anti-democratic since it would benefit parties with access to rich people, and handicap parties with a lower-income voting base. "I think that our democracy is better served if ideas have equal opportunity in the competition for Canadians' consideration, and that's what public financing is designed to do. Take away public financing and what you're basically saying is those with the best ability to raise money get to have their ideas heard, and I don't think that's helpful for a democratic society."
See also
- The 2008–2009 Prorogation of Parliament2008–2009 Canadian parliamentary disputeThe 2008–2009 Canadian parliamentary dispute was a political dispute during the 40th Canadian Parliament. It was triggered by the expressed intention of the opposition parties to defeat the Conservative minority government on a motion of non-confidence six weeks after the federal election on...
- Prorogation in CanadaProrogation in CanadaProrogation is the end of a parliamentary session in the Parliament of Canada and the parliaments of its provinces and territories. It differs from a recess or adjournment, which do not end a session, and from a complete dissolution of parliament, which ends both the session and the entire...
- In and Out scandalIn and Out scandalThe "In and Out" scandal is an ongoing Canadian political scandal involving allegations of improper election spending on the part of the Conservative Party of Canada during the closely contested 2006 federal election. Parliamentary hearings into the issue led to a deadlocking of various committees,...
- Elections in CanadaElections in CanadaCanada holds elections for several levels of government: nationally , provincially and territorially, and municipally. Elections are also held for self governing First Nations and for many other public and private organizations including corporations and trade unions...
- Elections CanadaElections CanadaElections Canada is an independent, non-partisan agency reporting directly to the Parliament of Canada. Its ongoing responsibility is to ensure that Canadians can exercise their choices in federal elections and referenda through an open and impartial process...
- Chief Electoral Officer (Canada)Chief Electoral Officer (Canada)The Chief Electoral Officer is the person responsible for overseeing elections in Canada.The position of Chief Electoral Officer was created in 1920 by the Dominion Elections Act. The Chief Electoral Officer is appointed by a resolution of the Canadian House of Commons...
- Canadian electoral systemCanadian electoral systemThe Canadian electoral system is based on a parliamentary system of government, modelled on that of the United Kingdom.The Canadian federal Parliament consists of:*The sovereign...
- Voter turnout in CanadaVoter turnout in CanadaVoter turnout is the percentage of eligible voters who cast a ballot in an election. The following presents voter turnout figures for Canada's general elections as compiled by Elections Canada....
- Campaign financeCampaign financeCampaign finance refers to all funds that are raised and spent in order to promote candidates, parties or policies in some sort of electoral contest. In modern democracies such funds are not necessarily devoted to election campaigns. Issue campaigns in referendums, party activities and party...
- Political financePolitical financePolitical finance covers all funds that are raised and spent for political purposes. Necessarily such purposes include all political contests for voting by citizens, especially the election campaigns for various public offices that are run by parties and candidates. Moreover all modern democracies...
- Money trailMoney trailThe phrase "money trail" is a catch phrase, used to describe the source of funding for a politician or interest group. Such funding sources are not always obvious and is often only discovered through investigation by journalists, government agencies, or opposition groups...
- Occupy CanadaOccupy CanadaOccupy Canada are a collective of peaceful protests and demonstrations that are part of the larger Occupy Together movement which first manifested in the financial district of New York City with Occupy Wall Street, and subsequently spread to over 900 cities around the world.- The larger movement...
External links
- "Changes needed to democratize Canada's political finance system" and Our Democracy for Sale, Still by Duff Conacher, Democracy Watch
- Per-vote subsidy but a fraction of taxpayer support for political parties The Globe and Mail, January 23, 2011
- Comparing the per-vote subsidies to all federal political subsidies The Hill Times, January 20, 2011
- Expanding the debate on party financing The Globe and Mail, August 12, 2010, updated January 23, 2011
- Elections Canada • Political Financing • Financial Reports Database • Information Sheets
- Lax rules on political financing No. 1 global corruption threat: report CBC News
- Election Financing's Black Hole Maclean's Magazine
- Experts say Tories 'extraordinarily successful' at fundraising on wedge issues, hope and fear The Hill Times, November 22, 2010
- Harper, Quebec differ on per-vote subsidy The Canadian Press, April 1, 2011
- Defence of subsidies for political parties not a sound-bite issue April 2, 2011
- Campaign and Election Finance in Canada
- Democracy and Political Party Financing Chief Electoral Officer's Speech, May 2003
- Political contributions: money, money, money
- Party subsidy is democracy in action Kathleen Cross, Simon Fraser University, April 16, 2011
- Don't scrap the voter subsidy April 12, 2011
- Harper plan would undermine democracy April 13, 2011
- Political parties could be forced to return to big money corporate funding if per-vote subsidies scrapped April 11, 2011
- Conservatives cutting wrong political subsidy David Akin, June 9, 2011