Money in politics: Liberal donors and Liberal promises

The release of the latest party donations figures is a reminder of how serious the problem of money in politics has become in Canada, and how important it will be for Prime Minister Chrétien to make good on his promise to limit the influence of political donations.

Perusing the list of top Liberal donors over the past few years, two trends emerge. First, corporate contributions are on the rise. In 1994, the Liberals took in $5.9 million in corporate donations, half of their fundraising revenues. Last year, the party reaped $6.4 million from businesses, more than 70 percent of the total take.

Even in absolute terms, the party is raising less than what it used to from individuals, while becoming ever-more dependant on a small number of high-end corporate donors. The Chief Electoral Officer reports that 45 percent of party revenues come from just 3 percent of the donors.

Second, it is abundantly clear that the list of corporate benefactors is largely comprised of those with the greatest stake in government decision-making.

The largest single donor is transportation and aerospace company Bombardier, which gave $142,503.80. The government gives Bombardier a great deal of business, including the recent $100 million purchase of two Challenger jets last March. Bombardier also benefits from Chrétien's efforts to battle the Brazilian government over trade subsidies for the regional jet aircraft market.

Following Bombardier is the Bank of Montreal, and further down the list is its subsidiary BMO Nesbitt Burns and other banks, such as the Bank of Nova Scotia and TD Bank -- all frequent flyers on the list of top Liberal donors. As a whole, the banks gave less to the Liberals this year from previous years, perhaps because Parliament has completed its review of the Bank Act. When this review began in 1997, the Big Five banks doubled their donations, giving more than a record-setting $1 million to the Liberals that year.

The banks also finance the party through loans, and the terms of these loans are not made public. Last year, six banks loaned the Liberals $9.67 million.

Power Corporation is number three on the list. The Montreal-based conglomerate is controlled by the Desmarais family, including Jean Chrétien's son-in-law, André Desmarais. Company vice president John Rae is part of the Liberalsâ election strategy team and is heading the prime minister's leadership defence team.

Shire Biochem (formerly BioChem Pharma) and other pharmaceutical companies, which live and die by Canada's patent laws, are also frequent Liberal donors.

The next donor is Nexen Inc. (formerly Canadian Occidental Petroleum), which has a heavy lobbying presence in Ottawa. Along with other oil companies like Imperial Oil, another top Liberal donor, it lobbies on environmental issues such as global warming and pollution standards.

Further down the list, you'll find broadcasters like the Aspers' CanWest Global Communications empire, Craig Broadcast Systems and Rogers Group of Companies, and telecommunications giants Telus Corporation and Bell Canada. All of these companies rely heavily on public policies that govern the airwaves in order to generate their profits.

It is hard to find a major donor that is not highly dependent on federal government largesse. Virtually all are either regulated industries, recipients of government subsidies or contracts, or those with an enormous stake in government policies. If the list were representative of the Canadian economy, you would expect to see some major retailers, software companies, or restaurant chains. Yet there are few, if any, as these sectors generally do not rely on the kindness of federal government agencies the way regulated industries and recipients of government goodies are.

Slowly creeping up the donor list are companies that have lobbying itself as their business. Donations from hired-gun lobby firms have been rising sharply in recent years, as lobbyists steadily increase their hold on the Liberal government. Last year, lobby firms like Global Public Affairs, GPC Canada, the Capital Hill Group and the Wellington Strategy Group all gave five-digit sums to the Liberals, as did industry lobby groups such as the Canadian Bankers Association, Canadian Association of Petroleum Producers, Canadaâs Research-Based Pharmaceutical Companies, Canadian Medical Association and the Canadian Drug Manufacturers Association. Altogether, lobby groups gave more than $300,000 to the Liberals.

Prime Minister Chrétien's June 11 ethics package includes a promise to place a limit on political contributions. Such a measure is long overdue, but if the limit is placed too high, it will allow businesses to effectively ignore it by donating the maximum amount multiple times through subsidiaries and shell corporations.

Several provinces have effective donations limits. Manitoba and Quebec have a $3,000 limit, and a total ban on donations from corporations, unions, and other organizations. These provinces have recognized the need to limit the influence of money in politics, and acknowledge that the principle of one-person, one-vote should not be compromised by a system that allows for one-dollar, one-vote.

Let's hope the federal government is so enlightened.