Tories to outlaw political loans from unions and corporations
john ibbitson Ottawa— Globe and Mail Wednesday, November 2, 2011
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Corporations and unions will be banned from lending money to political parties and candidates, under Conservative legislation introduced Wednesday.
Loans from individuals will also be severely curtailed, and political parties will be liable for any campaign debts that leadership candidates accumulate but cannot pay off.
The goal of the legislation, which was introduced into the House Wednesday by Democratic Reform Minister Tim Uppal, is “to reduce the potential for undue influence of wealthy interests in the political process,” according a government release.
But the effect could be to further hobble the finances of the opposition parties. In particular, it could influence the financing of the upcoming Liberal leadership race.
The Political Loans Accountability Act, which will certainly be passed by this majority Conservative government, is the latest item in a raft of laws aimed at reforming campaign financing.
Jean Chrétien’s Liberal government banned corporate and union donations to parties in the wake of the sponsorship scandal.
When the Conservatives came to power, the Harper government lowered the maximum individual contribution to what is now $1,100 annually. Finance Minister Jim Flaherty’s latest budget fulfills a Tory campaign promise to gradually eliminate the public funding that replaced corporate and union donations.
But it is still possible for an individual, business or union to lend money to a party or candidate. Under the new law, corporate and union loans will be banned outright.
Individuals can still lend money, but loans and donations combined will not be allowed to exceed the $1,100 annual limit.
Banks and other accredited financial institutions will be able to lend money to parties and candidates, and political parties can lend money to constituency associations or candidates. But the terms must be publicly disclosed, including amount, interest rate and the names of the lenders and guarantors.
Constituency associations and political parties will be liable for any loans that candidates are unable to pay off through fundraising. Several candidates from the 2006 Liberal leadership campaign still haven’t succeeded in paying off their debts. Since that matter is before the courts, it is unclear whether the Liberal Party might ultimately become liable for those debts.
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john ibbitson Ottawa— Globe and Mail Wednesday, November 2, 2011
Article Link
Corporations and unions will be banned from lending money to political parties and candidates, under Conservative legislation introduced Wednesday.
Loans from individuals will also be severely curtailed, and political parties will be liable for any campaign debts that leadership candidates accumulate but cannot pay off.
The goal of the legislation, which was introduced into the House Wednesday by Democratic Reform Minister Tim Uppal, is “to reduce the potential for undue influence of wealthy interests in the political process,” according a government release.
But the effect could be to further hobble the finances of the opposition parties. In particular, it could influence the financing of the upcoming Liberal leadership race.
The Political Loans Accountability Act, which will certainly be passed by this majority Conservative government, is the latest item in a raft of laws aimed at reforming campaign financing.
Jean Chrétien’s Liberal government banned corporate and union donations to parties in the wake of the sponsorship scandal.
When the Conservatives came to power, the Harper government lowered the maximum individual contribution to what is now $1,100 annually. Finance Minister Jim Flaherty’s latest budget fulfills a Tory campaign promise to gradually eliminate the public funding that replaced corporate and union donations.
But it is still possible for an individual, business or union to lend money to a party or candidate. Under the new law, corporate and union loans will be banned outright.
Individuals can still lend money, but loans and donations combined will not be allowed to exceed the $1,100 annual limit.
Banks and other accredited financial institutions will be able to lend money to parties and candidates, and political parties can lend money to constituency associations or candidates. But the terms must be publicly disclosed, including amount, interest rate and the names of the lenders and guarantors.
Constituency associations and political parties will be liable for any loans that candidates are unable to pay off through fundraising. Several candidates from the 2006 Liberal leadership campaign still haven’t succeeded in paying off their debts. Since that matter is before the courts, it is unclear whether the Liberal Party might ultimately become liable for those debts.
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