Monday, May 29, 2000

OTTAWA - Democracy Watch today called on the Senate to pass a series of amendments to Bill C-2 introduced by Senator Pierre Claude Nolin to close a key loophole in Canada's system for regulating political fundraising.

"Senator Nolin's amendments are a common-sense way to make disclosure less of an option and more of a requirement," said Aaron Freeman, a Democracy Watch board member.

Bill C-2 overhauls the Canada Elections Act, which contains the rules governing political finance. The bill would leave in place many of the well-identified and well-used loopholes in the political donations disclosure regime. For example, the bill fails to require disclosure of donations made to party leadership candidates, MPs between elections and riding associations.

Senator Nolin has proposed amendments to close one gap in disclosure rules, the riding association loophole, which has been referred to by academics and Canada's Chief Electoral Officer as the "black hole" of political fundraising. Six provinces require riding associations to report their donors, and the federal Royal Commission on Electoral Finance, known as the Lortie Commission, recommended closing this loophole in its 1991 report. Closing this gap in disclosure is also one of the 16 recommendations endorsed by a coalition of 47 organizations led by Democracy Watch that has been pushing for a more transparent and democratic political finance system.

"In politics, he who pays the piper calls the tune," said Freeman. "The loopholes in the fundraising disclosure regime allow secret donations -- a recipe for corruption and undue influence."

The Nolin amendments are supported by many senators, and were seconded by Marcel Prud'homme, a former Liberal cabinet minister who sits as an independent senator. But Liberal House Leader Don Boudria has made it clear that he will instruct senators from his party to vote against the amendments, even though he can't offer any logical or valid reasons for doing so.

"If this amendment is voted down, Canadians should ask federal politicians, especially Liberals, serious questions. What do they have to hide? And why do they insist on allowing their financial backers to remain anonymous?" said Freeman.

Debate on the Nolin amendments continues Tuesday in the Senate, with a final vote on Bill C-2 scheduled for Wednesday, May 31, 2000.