Thursday, April 24, 2003

OTTAWA - Democracy Watch today issued a larger-than-life “Search Warrant” to highlight the loopholes in Canada’s political fundraising law, and the need to close these loopholes in Bill C-24 which when passed will change the law.

“The proposed new fundraising law will still allow for unlimited and secret donations to politicians,” said Aaron Freeman, a Democracy Watch board member and chair of the 50-group Money in Politics Coalition. "If these weaknesses are not corrected, wealthy donors will simply re-direct their donations through the loopholes.”
 
While Democracy Watch supports several measures in Bill C-24 -- such as the requirements disclose donations to nomination contestants, riding associations and party leadership candidates -- several weaknesses remain in the bill.  These include:

• Politicians and parties can continue to use trust funds to receive unlimited and secret donations.  While transfers from these funds to an election campaign fund would be subject to disclosure requirements, these funds could still be used to pay for an almost limitless range of things, including an MP’s personal expenses, retirement, vacations, and even some expenses indirectly related to election.
• Donors and donations will remain secret for up to 18 months after a donation is made, and key information needed to identify donors will not be required to be disclosed.  Disclosure must be timely and complete.
• The bill’s proposed donation limit of $10,000 to each party is excessive, and far beyond what most Canadians can afford. Manitoba and Quebec each have donation limits of $3,000 and the federal limit should not be not be any higher.
• Corporations, unions and other organizations -- that do not vote and often try to funnel donations through multiple subsidiaries -- would still be able to donate up to $1,000 to candidates.  Such entities should be prohibited from making any donations.
• The amount of public financing (an estimated $35 million annually) is excessive, especially the measure providing parties with an annual subsidy of $1.50 per vote received in the previous election.

“Canadians have a right to know the identities of all donors and the date and amount of their donations to politicians and political parties,” said Freeman.  “Paul Martin is revealing himself to be very undemocratic by continuing to refuse to disclose donors and donations he received when he was finance minister.”

The 50-group Money in Politics Coalition, coordinated by Democracy Watch, will continue to push the federal government to correct these undemocratic flaws in Bill C-24 before it is passed by Parliament, and will continue to push for disclosure of all donors and donations.