Thursday, April 5, 2001

OTTAWA - Today, Democracy Watch called on federal Ethics Counsellor Howard Wilson to issue his long-overdue ruling on a complaint Democracy Watch filed in March 2000 concerning Ministers' fundraising activities. In a letter dated March 20, 2000, Democracy Watch called for an investigation of Prime Minister Chrétien, Finance Minister Paul Martin, Health Minister Allan Rock and their ministerial staff for any involvement in fundraising activities for any political party, riding association, or other organization. The Ethics Counsellor committed to respond to Democracy Watch in a letter dated March 29, 2000 (PLEASE contact Democracy Watch for copy of Ethics Counsellor's letter).

Democracy Watch believes these activities violate the Conflict of Interest and Post-Employment Code for Public Office Holders, which prohibits ministers from: assisting private entities (political parties are private entities), and; being involved in private interests that are affected by government actions (political parties are governed by the Canada Elections Act and other federal laws).

"Ethics rules require ministers to act only in the public interest," said Aaron Freeman, Board Member of Democracy Watch. "When they help raise money for their private political party, the public interest is sacrificed in favour of the Liberal Party's desire to raise money in secret from wealthy interests and large corporations."

Yesterday, Elections Canada released the records of donations made during last November's federal election. The records reveal the many loopholes in the political finance system that allow secret and undemocratic donations. For example, the records show that Government House Leader Don Boudria, the minister responsible for political finance rules, received half of his total election campaign funds from his riding association in one donation of $35,000, but the identities of those who donated the $35,000 to his riding association remain a secret.

Democracy Watch, backed by the nation-wide, 50-member group Money in Politics Coalition, is calling on the federal government to make the following changes (among others) to federal political finance rules through current Bill C-9, which amends the Canada Elections Act:

• Corporations, unions, and other entities that do not vote should be prohibited from donating to political parties, candidates and riding associations, as in Quebec and Manitoba.
• Limits should be set on political donations at a level that is affordable for the average Canadian, and public financing provided for parties based upon support for each party.
• Riding associations should be required to register and disclose all their donors and MPs should be required to disclose all their donors between elections.
• Donor disclosure requirements should include a total of donations made, and information to identify every donor, and donations should be disclosed quarterly, as in the U.S.
• Party leadership races should be subject to donation limits and disclosure requirements.