Cabinet and Senate can still make Elections Bill more open
They should resolve conflicts of interest in the public interest

As Bill C-2 makes its way through the Senate, parliamentarians find themselves is a unique conflict of interest. The bill represents an overhaul of the Canada Elections Act, which among other things contains the rules for party and candidate fundraising. It is the first time Parliament has reviewed these rules in more than 15 years.

In designing new rules, Parliament could have focused on closing the egregious and well-known loopholes in Canada's secretive and undemocratic political finance system. For example, there is absolutely no limit on how much wealthy interests can donate to try to influence politicians, and the law allows donations to remain hidden if they are routed through riding associations, or given to an MP between elections or to a party leadership candidate.

Parliament could have followed the lead of Mexico, which has banned donations from all corporations and other non-voting organizations, and has provided a full system of public financing. Seventy percent of the public subsidy is distributed based on the percentage of the popular vote each party received in the previous election, and the remaining 30 percent is distributed equally among the parties, to give new and smaller parties a chance to participate meaningfully. Quebec also only allows individuals to donate, and limits donations to $3,000 annually.

The failure to close the loopholes and make Canada's system more democratic is perhaps not surprising when one looks at who is making these rules, especially the ministers and senators who carry on fundraising activities for their parties while in office.

The Code of Conduct for public office holders instructs ministers to "arrange their private affairs in a manner that will prevent real, potential or apparent conflicts of interest from arising."

The Code also forbids public office holders from "step[ping] out of their official roles to assist private entities or persons in their dealings with the government," or having even "the appearance of being placed under an obligation to any person or organization."

If a conflict arises between an office holder's private interest and the public interest, the Code states, "the conflict shall be resolved in favour of the public interest."

As some party donors have expressed publicly, they expect something in return for their donation. In other words, "he who pays the piper calls the tune."

Parties, not being a part of the government, are private entities. As a result, when Pri Minister Jean Chrétien, Finance Minister Paul Martin, Health Minister Allan Rock or any other cabinet minister speaks at dinner fundraiser where donors give up to $1,000 a plate, and then he or she helps design the rules that govern party fundraising activities, there is a clear violation of the conflict of interest code in several ways.

Many senators are in a similar conflict. It is no surprise that party loyalty is usually a prerequisite for Senate appointments, and for party fundraisers and organizers, a Senate appointment is considered the ultimate patronage prize. For example, the head of the Senate committee that will review Bill C-2, Lorna Milne, was the Chair of the Liberals' Ontario campaign before her appointment.

Often, senators continue their fundraising activities after they are appointed to the Senate. David Angus, Leo Kolber and Donald Oliver are just a few of the prominent party fundraisers who have remained party bagmen after their Senate appointments.

In light of the subject matter of Bill C-2, and the enormous impact of party fundraising rules on the welfare of the parties, all senators should disclose the fundraising activities they undertake for political parties, candidates for public office, and leadership candidates. Senators should also disclose any remuneration they have received for these activities. Any senator who currently carries on fundraising activities should withdraw from all discussions or votes on Bill C-2, as is required by the rules of the Senate.

The Liberals pushed Bill C-2 through the House of Commons, ignoring broadly supported proposals to make Canada's political finance system transparent and democratic. In its current form the bill serves political parties and politicians, while ignoring the public interest.

However, it's not too late to make changes. As the bill heads to the Senate Committee on Legal and Constitutional Affairs, the Cabinet and all Senators should resolve their conflicts of interest in the public interest, disclose their fundraising activities, and amend Bill C-2 to ban secret and undemocratic donations.