Wednesday, April 26, 2000

OTTAWA - Today, Democracy Watch released the letter it has sent to federal Ethics Counsellor Howard Wilson requesting an investigation of whether the federal Cabinet acted in the public interest in rejecting changes to Bill C-2, An Act amending the Canada Elections Act, which contains the fundraising rules for political parties and candidates. (Please contact Democracy Watch to obtain a copy of the letter to Howard Wilson)

In the letter to Howard Wilson, Democracy Watch calls for an investigation of the entire federal Cabinet, especially The Hon. Don Boudria, the minister responsible for Bill C-2, for rejecting broadly supported proposed changes to Bill C-2 such as disclosure of donations to riding associations and MPs between elections; and limits on donations and restrictions on types of donors. Some of these measures were recommended by a 1991 Royal Commission (the Lortie Commission) and by more than one Chief Electoral Officer of Canada; many are supported by opposition parties, and all are supported by Democracy Watch's Money in Politics Coalition, made up of 47 citizen groups from across Canada. Liberal House Leader Don Boudria has even stated his support for changes, as has Liberal Senator Dan Hays, sponsor of the bill in the Senate.

The Conflict of Interest and Post-Employment Code for Public Office Holders requires ministers to "make decisions in the public interest and with regard to the merits of each case" and prohibits ministers from, among other things: assisting private entities, and; being involved in private interests that are affected by government actions. Given that all of the ministers are involved in the federal Liberal Party, which is a private entity, and that rejecting the changes to Bill C-2 helps the Liberals, Democracy Watch believes that the entire Cabinet should be investigated for violating the Code.

"The government has not offered any merit-based arguments showing that secret and undemocratic donations in Canada's political finance system are in the public interest," said Aaron Freeman, Board Member of Democracy Watch. "Making the political finance system transparent and democratic is so broadly supported and so clearly in the public interest that we look forward to the Ethics Counsellor's ruling that the entire Cabinet has violated ethics rules by rejecting proposed changes to Bill C-2 that would close disclosure loopholes and limit donations as a means of influence over government."

Bill C-2 will be in the Senate for report stage and third reading next Tuesday, May 2nd. The Hill Times newspaper has reported that The Hon. Senator Pierre Claude Nolin will propose an amendment to Bill C-2 that, if passed, will require riding associations to report donations annually. Given that Bill C-2 may be passed by the Senate next week, Democracy Watch has requested that Howard Wilson issue his ruling by next Tuesday on whether the Cabinet violated ethics rules by rejecting changes to Bill C-2.