Tuesday, November 23, 1999

OTTAWA - Today, at a hearing of the Procedure and House Affairs Committee, Democracy Watch gave its formal response to Bill C-2, the Liberal Party's proposed amendments to the Canada Elections Act. With the support of 38 member groups in the nation-wide Money in Politics Coalition, Democracy Watch highlighted the Bill's failure to address the loopholes in Canada's fundamentally flawed political finance system.

"Bill C-2 will do little to make the federal party finance system more democratic. And it will not reduce the potential for the well-heeled to have undue influence on politicians through big-money donations," stated Aaron Freeman, a Board Member of Democracy Watch and author of Cashing In: Money and Influence in Canadian Politics (to be published in early 2000 by McClelland & Stewart).

Democracy Watch's recommended changes include closing the loopholes in the disclosure regime (including requiring riding associations, MPs between elections and party leadership candidates to disclose their donors in a timely manner), limiting political donations, banning corporate and union donations, and limiting government advertising leading up to an election.

"The failure to limit the influence of moneyed interests in our political finance system undermines the government's ability to protect the public interest again and again," Freeman stated. "The fundamental democratic principle of one person, one vote has been violated and replaced by a corrupt, one dollar, one vote system."

The Liberals hope to rush Bill C-2 through third reading before the winter recess.

"When those with the greatest stake in government decisionmaking are bankrolling the political process, there are serious consequences for all Canadians," Freeman stated, "Any bill dealing with how parties are financed that won't even show us the money should be scrapped."