Opinion

Our Democracy for Sale, Still

Secret, big dollar donors still drive politics, despite 'reform.'

By Duff Conacher, 13 Aug 2007, TheTyee.ca

Saucy Pig (second)

Root out moneyed influence.

Federal election law limits some donations to limit unethical influence of wealthy interests, but secret, unlimited donations are still legal

On August 1, the Globe and Mail claimed to have "discovered" in Canada's federal political donations law a loophole that allows a donor to donate more than $60,000 in secret to a political party through small donations to each of the party's riding associations. Actually, this is neither a discovery, nor is it the only or most serious federal secret donations loophole.

The association donation loophole was highlighted in Democracy Watch's 1999 report "For the Best Government Money Can't Buy."

And yes, it is illegal for corporations, unions and other organizations to make donations to parties, riding associations or candidates (since January 1, 2007), and illegal for individuals to exploit this loophole to make donations larger than the legal limits of $1,100 annually to each party, $1,100 annually combined total to each party's associations, and in an election year an additional $1,100 combined total to each party's candidates (all three limits increase each April 1st based on the inflation rate). But these limits cannot be enforced because of weak disclosure and enforcement measures.

The real solution

A follow-up Globe editorial board editorial recommended lowering the non-reportable donation limit for riding associations from $200 back to its pre-2003 level of $100, which would do little to solve the problem as corporations, unions, other organizations or individuals would still be able to donate more than $30,000 to a political party through donations of $99.99 to each of its riding associations without the associations being required to report the donations.

Democracy Watch's 50-member group Money in Politics Coalition has been pushing since 1999 for an actual solution: requiring riding associations to register and disclose all their donors and giving Elections Canada the power and mandate to audit the finances and operations of parties, riding associations and candidates annually to ensure they are following all the rules.

Even if these measures were made law, other even more significant loopholes need to be closed to ensure that federal parties, associations, candidates and government officials are not taking secret donations of money, property or services, loopholes that the Globe and Mail and most other Canadian media, and federal political parties, continue to ignore.

These loopholes, and others closed by recent changes to federal law, are also open in provincial and territorial laws, and include the following:

  • secret, unlimited donations to nomination race and party leadership candidates are allowed (as long as the donation is not used for their campaign)
  • riding associations are allowed to establish a trust fund and take secret, unlimited donations to the fund (and to use the donations for anything other than campaigns)
  • parties, candidates and associations are not required to track or disclose donations of volunteers' services by corporations, unions or other organizations
  • federal MPs are not required to disclose to the federal Ethics Commissioner any property or asset they have that is worth less than $10,000, and the commissioner has no explicit auditing powers to ensure MPs' annual financial statements are accurate
  • contrary to the United Nations Convention Against Corruption (which Canada's federal government has signed but not ratified) and the guidelines of the international Financial Action Task Force (FATF -- headed by a Canadian and currently headquartered in Canada) suspicious deposits to the bank accounts of politicians, and government policy-makers and decision-makers, are not reported for possible investigation.

So while the Globe's editorial claimed that the ban on donations from corporations, unions and other organizations and the limit of $2,200 (the Globe incorrectly claimed the limit was $1,100) on annual individual donations to political parties and riding are "unrealistically low limits" that "encourage individuals to look for ways to skirt the rules, such as small donations to individual associations", in fact, any donor wanting to give secretly could do so much more easily and at greater amounts through the completely legal avenues listed above.

Close the loopholes

With an average annual salary of $35,000, most Canadians can afford at most an annual donation of $1,100 (which is approximately what a donation of $2,200 would cost after donation tax deductions are factored in). To adhere to the democratic principle of one-person, one-vote, all political donation laws in Canada should restrict donations to the same low level as the federal law. Higher donation levels allow only wealthier people to use money as an undemocratic and unethical means to buy influence with candidates, politicians, government officials, riding associations and political parties (and, therefore, with governments).

For decades, all federal political parties (yes, even those who criticize the current federal Conservative government's reluctance to close the association donation loophole) have pretended to be interested in closing all the secret donation loopholes in federal laws.

Most recently, all federal parties pretended to pass an effective "Accountability Act" which in fact left open more than 80 loopholes in the federal government's overall honesty, ethics, openness, representation and waste-prevention accountability systems, loopholes that are recipes for corruption, waste and abuse of the public trust and interest.

Provincial and territorial governments all have a similar number of loopholes in their accountability systems, and their politicians have similarly pretended for decades to be interested in closing these loopholes.

For decades, many of Canada's mainstream media outlets have played along, pretending to pay attention to the loopholes. Canadians deserve better, both from their political parties, and from their media.

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24  Comments:

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  • Chris H

    5 years ago

    Federal vs. Provincial

    If this a problem at the federal level then what can one say about BC! That corporations can bankroll Gordan Campbell is obscene. With the large donations coming in from corporate BC, it becomes a question who is running the province. We already know that these big spenders get more one-on-one "face" time with Ministers and the Premier. It would be nice to have limits in BC like we do at the federal level. You know it won't happen with Campbell in power.

  • Grumpy

    5 years ago

    We do not live in a democracy

    We do not live in a democracy, rather we live under a benign oligarchic dictatorship, with show case elections every 3 to 5 years. In BC, we have a whole level of government (the GVRD or now Metro...) that the taxpayer or citizen has absolutely no say or rights at all!

    Big business love this and handsomely pay into it because it keeps the the profits increasing for them. (Notice how big business did not want BC's auditor general to look at RAV, SkyTrain, and/or TransLink) Big business makes a fortune out of big government projects and the more expensive a project, the more money big business makes.

    We get fools elected, because business gives more money for them to be elected. It is much better having a ;'fool' as a Minister of Transportation, than an intelligent person.

    Municipal governments are worse, where for a few 'tax deductible' gifts to the muni, the person who donates the money, becomes defacto the mayor and council!

    No wonder third world countries laugh at us, as we are no better than they.

  • Grumpy

    5 years ago

    So slimey...

    The real problem is, we can't root out the problem due to 'libel' and 'slander' laws. I can't say that *** ***** gave ** millions to **** for improvements to an ***** and now because of this *** ***** believes he can demand the use of any or all *** ****** in ***** at his wish and command. The same *** ***** has given loads of political donations to the mayor and many in council in ***** which are now voting on a massive **** ***** ******** ****** on ALR land.

    The head bureaucrat of ***** has been seen in *** ***** private box at ****** games. Also the ********** dept. has been co-opted to do private work for the same *** ******.

    You can't say he made his money by dubious means nor that his ******** ***** ******* is a known **** ********.

    No you can't, you can't, or with the Asper Press won't, look into this nor report on this.

    This is how the slime of corruption spreads in politics and not one politician Liberal, NDP, or Conservative want to change it.

    I hope enough self censoring has been done Mr. B! In any case, this is how they get away with it!

  • Fiat lux

    5 years ago

    Let us remember that it was

    Let us remember that it was Harper's National Citizens Coalition under its previous head, David Somerville, who took the government to court, fighting against any restrictions on donations, and mandatory union dues, so Stevie is not going to do anything to stop them.

    When we look at the list of donors to the Campbell gang, we can see where their "sell BC off" plan and campaign originates.

    I often wonder how long it will take for economists and PR hacks to suggest that parliamentary seats should be up for bids, so that the "right people" get into government to make us "more competitive".

    But then isn't this what the SPP is all about ?

    Ed Deak.

  • murdock

    5 years ago

    A couple of solutions...

    Want to end 'corruption'? (or at least stem the rising tide of it)

    First, get back on the GOLD STANDARD, eliminate the ability to creat 'fiat' currency - which is a major reason why the banker crowd is so connected to those 'governments' that have the permission to make more money *OUT OF THIN AIR!*

    Second, at least in Canada; stop putting the 'party affiliation' on the ballots! Stop allowing anyone to advertise under the party banners, because the practice is 'dumbing down' our awareness of the political processes and permitting the greater mass of voters to simply apply thier votes to the 'party' rather than learn anything about the candidate.
    The process of putting that candidate's name on the ballot (a truly corrupt process from the various parties), and the need to know about each and every candidate are not served by our useless 'big media'. By returning to the candidate name only model the need to learn about each name will be 'rediscovered'; there will be no solution to the amount of advertising that sacks of $$$ can buy, the lack of a simple "party name" attached to each candidate will make that sack of $$$ less effective though.

  • alive

    5 years ago

    or NOT

    Quote:
    stop putting the 'party affiliation' on the ballots!

    All that would happen is that no-one would know for sure where any candidate stands on every issue.

    On the other hand if we voted only for the party, and let them decide who actually gets to sit in the chambers, we would know that every issue would at least be decided on a party basis.

    If we disagree with a party policy, the solution is to become active within that party!

    Yes, there would need to be more parties to reflect different thinking, and voters would have to take the time to figure which party represent their point of view.

    What we have is a mess, where candidates in any party have diffferent points of view and seem to feel that their own opinion should override the philosophy of the party as such.

  • skeptikool

    5 years ago

    It's a disease

    It's across the board and it's a disease - lack of accountability.

    I don't doubt that, as with the pharmaceutical industry and the doctors it fetes, these politicians and those with whom they contract, may also sup together.

    And some may ask, "What's that happening under the table?" Fondling? Surely not? But it's sure as hell something.

    Read it and weep:

    http://policyalternatives.ca/index.cfm?act=news&call=1647&pa=CF69F1AA&do=Article

  • bob the cat

    5 years ago

    for sale?

    She`s sold dude lock
    stock
    and barrel

    Everybody knows that the dice are loaded
    Everybody rolls with their fingers crossed
    Everybody knows that the war is over
    Everybody knows the good guys lost
    Everybody knows the fight was fixed
    The poor stay poor, the rich get rich
    That's how it goes
    Everybody knows
    Everybody knows that the boat is leaking
    Everybody knows that the captain lied
    Everybody got this broken feeling
    Like their father or their dog just died

    Leonard Cohen

  • skeptikool

    5 years ago

    A great, great lyric

    Not being much in the music scene, I hadn't heard that one before. Written, I should think, before the advent of electronic voting and tabulation or it would surely have got a line - and being right up there with the loaded dice (dies) and stacked decks.

    Thanks, bob the cat.

    An absolute must:

    http://www.youtube.com/watch?v=PSuhuopoLiI

    Most will probably get, or know, the lyric, but after years of noisy carpentering, a hard copy to follow would have been useful. In any case, it's one you'll want to pass on.

  • NoLeftNutter

    5 years ago

    Shiny Metal?

    Quote:
    First, get back on the GOLD STANDARD, eliminate the ability to creat 'fiat' currency - which is a major reason why the banker crowd is so connected to those 'governments' that have the permission to make more money *OUT OF THIN AIR!* Murdock

    This is an interesting concept, he who has the most shiny metal wins………that’ll stop corruption in politics for sure.

  • murdock

    5 years ago

    welcome to China, cf 1950

    Quote:
    All that would happen is that no-one would know for sure where any candidate stands on every issue.

    On the other hand if we voted only for the party, and let them decide who actually gets to sit in the chambers, we would know that every issue would at least be decided on a party basis.

    writes alive.

    If there were only candidate names on the ballot, instead of both name and party, then the electorate (thee and me) would need to educate ourselves about these people whom are to 'do our business' in Ottawa on behalf of 'the canada'.

    As it is, I agree that the amount of education information is limited; but this is a function of a party-system - there is no need to actually get good candidates if you have a charismatic leader and 12 or so good cabinet members that can generate great sound-bites. Perform a TKO on them and take away the party banners, cut them out from that way to squirrel away the money and make each and every MP candidate what they are supposed to be = a representative of the people and not just a 'fencepost with hair'!

    If the Canadian electoral system switched to a party only voting system, I would make my vote for the last time. The next day I would foment my own revolution with the intent to see that polling station demolished to the foundation.

    There are millions of people in Canada, do you really think that there are only 5 or so 'schools of thought'; represented as the parties among so many?!?!?!

  • murdock

    5 years ago

    Not shiny metal ... a real currency

    Quote:
    This is an interesting concept, he who has the most shiny metal wins………that’ll stop corruption in politics for sure.

    NoLeftNutter misunderstands what a fiat currency is.

    Quote:
    In economics, fiat currency or fiat money is money backed by government demand for it as legal tender in payment of legal liabilities, such as taxes.

    Quote:
    Eventually this leads to no form of payment, redemption or exchange whatsoever being offered by the issuer and a system of irredeemable freely floating national currencies.

    This means: he who owns the printing press owns the money supply.

    The only problem comes when the confidence in that currency vanishes (like the value of that 'imaginary' money).

    here is another definition:

    Quote:
    Money that a government has declared to be legal tender, despite the fact that it has no intrinsic value and is not backed by reserves. Historically, most currencies were based on physical commodities such as gold or silver, but fiat money is based solely on faith.

    So then, NoLeftNutter, do you suggest we start a prayer service for the US dollar (since the US$ is the 'reserve' currency)? You, NoLeftNutter, are placing far, FAR too much FAITH in the printing press...

    Quote:
    Thomas Jefferson is reputed to have said that, “If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered.”

    He foresaw the Federal Reserve and their 'monetary control policy' since the Paris bankers had a field day after the Napoleonic Wars in 'reinventing' the French economy.

    Try understanding the concept before making such quip remarks as "he who has the most shiny metal wins"

    References:
    Fiat Currency
    Fiat Currency
    Fiat Currency
    Fiat Currency
    Fiat Currency
    Fiat Currency
    Fiat Currency

  • Skywalker

    5 years ago

    Better Idea.

    Prohibit all corporate and union donations for election purposes. All donations must be personal and with a limit of say 200 dollars max.. Except for the representatives because now that our representatives are all making six figure salaries let them pay their own election expenses. If after four years they can't save enough (considering it is a partial tax credit) then they shouldn't be in the job.

    You eliminate the "buying of politicians"

  • DJT

    5 years ago

    I personally feel that

    I personally feel that contributions should be required to be anonymous and no longer tax deductible. I guess we'd see then just how "altruistic" big business really is.

    Concurrently, I guess we'd also see just how how altruistic and devoted politicians are. I can think of a few who would probably be gone tomorrow and this province would sure as hell be the better for it.

  • dave49

    5 years ago

    The role of government...?

    It seems that the role of government at the provincial and federal levels in Canada is really no different from that in the USA. It is about creating business opportunities for the big corporations and wealth families. We just run our political system differently than they do south of the border. The results are basically the same. Also, we don't have a politically-connected 'religious right', but some of the new 'Tories' are pretty close.

    It's a sad world our children will inherit. The old saying seems appropos: Blessed are the meek for they shall inherit what the strong don't want.

  • ME2

    5 years ago

    So what's new, then ?

    Mr Conacher holds out the hope that if we can tweak our electoral system, we will gain control over our politicians. In my view, that won’t make a shred of difference, for surprisingly few people recognise that our times are consistent with what has happened to countless societies before us, when power elites finally take over full control, openly manipulating the culture and its resources purely for their own ends.

    I think that most people have come to accept the present system as the best possible, just as people of a few hundred years ago automatically accepted the Divine Right of Kings.

    Which party/politician is offering real change, and how many voters would embrace such an offer anyway ?

    Thus, real change will not occur until a paradigm shift in thinking happens, and I see no signs of such being in the works.

  • NoLeftNutter

    5 years ago

    Take a deep breath. I was

    Take a deep breath. I was commenting that the Gold Standard you propose –

    Quote:
    The gold standard is a monetary system in which the standard economic unit of account is a fixed weight of gold.
    Under the gold standard, currency issuers guarantee to redeem notes, upon demand, in that amount of gold. Governments that employ such a fixed unit of account, and which will redeem their notes to other governments in gold, share a fixed-currency relationship.- WIKI

    Means that the winner is the one with the most shiny metal, and is more useless than Fiat Currency…

    So chill out on the rants when you don’t understand the point being discussed….

  • murdock

    5 years ago

    Private holders have more of the 'shiny metal'

    NoLeftNutter, still missing the major point regarding fiat currency:

    The owner of the printing press of that currency can devalue EVERYTHING that is connected to that currency. This is why the world bullies and neuveau-barbarians want to control the 'national' money-printing governments, this is where the corruption is most rampant.

    This is because private holders have more of the gold in the world than any one single government.

    Private bankers, in Switzerland, would hold far more control over the economic actions of the planet than the 'elected' (and I use that phrase very, very advisedly) governments who can devalue their own currency to obtain temporary private wealth for themselves.

    Private money (in the form of fixed amounts of gold or silver) would mean that the amount of savings you have is REAL, not some imaginary value (that would constantly be devalued) so it is no wonder that all over the world it is real objects, like land, art works, or GOLD that the wealthy are turning to to preserve their wealth, since the $ will soon have less value than the weight of the pixels of that $ symbol on your screen.

    Private money, that turned out to be no supported by GOLD would fall to worthless in less than a heartbeat - especially in the digital connected world that we live in now.

    Continue to keep your $$$ NoLeftNutter, keep the faith and maybe if you pray hard enough the bankers will let you have some value left behind in that $$$.

  • NoLeftNutter

    5 years ago

    Murdock

    Let me see if I have this right. I’m going to trust some private individuals or a Swiss bank or I should invest in art works, land or other shiny things???????

    And what actually makes gold worth what it is?

    I don’t see the demons that you do in our current economic system nor can I understand how what you’re suggesting as an alternative makes any sense…….

  • murdock

    5 years ago

    FIAT CURRENCY, a short history

    from TOILET PAPER MONEY:

    Quote:
    The history of fiat money, to put it kindly, has been one of failure. In fact, EVERY fiat currency since the Romans first began the practice in the first century has ended in devaluation and eventual collapse, of not only the currency, but of the economy that housed the fiat currency as well.

    Rome — The Denarius

    Although Rome didn’t actually have paper money, it provided one of the first examples of true debasement of a currency. The denarius, Rome’s coinage of the time, was, essentially, pure silver at the beginning of the first century A.D. By A.D. 54, Emperor Nero had entered the scene, and the denarius was approximately 94% silver. By around A.D.100, the denarius’ silver content was down to 85%.

    Emperors that succeeded Nero liked the idea of devaluing their currency in order to pay the bills and increase their own wealth. By 218, the denarius was down to 43% silver, and in 244, Emperor Philip the Arab had the silver content dropped to 0.05%. Around the time of Rome’s collapse, the denarius contained only 0.02% silver and virtually nobody accepted it as a medium of exchange or a store of value.

    Quote:
    In present times, we have Zimbabwe, which was once considered the breadbasket of Africa and was one of the wealthiest countries on the continent. Now Mugabe’s attempts at price controls, combined with hyperinflation, have the nation unable to supply the most basic essentials such as bread and clean water.

    In short, so long as we allow the currency to 'float' in value it will only do one thing -> SINK. It is with those whom control the levers of that currency that one must look to solve the devaluation, that is why the corrupt want control of the money presses...they do not want us (thee and me) to have financial control over our lives, which is what we would have if we could count on our savings being worth anything in 10 or 20 years time.

    For the demons, NoLeftNutter, take a look at:
    Toilet Paper Money
    SIDEBAR
    The Failure of Fixed Rates
    Fiat Money Systems

  • murdock

    5 years ago

    What makes GOLD worth it?

    NoLeftNutter asks:

    Quote:
    And what actually makes gold worth what it is?

    This is a straight forward question, and one worth investigating further, as it pertains to this discussion:

    Mayer Amschel Bauer, who founded the Rothschild family had said,
    "Give me control of a nation's money and I care not who makes the laws"

    His son, Amschel Mayer Rothschild said,
    "Permit me to issue and control the money of a nation, and I care not who makes its laws."

    Another son, Nathan Mayer Rothschild bragged,
    "I care not what puppet is placed upon the throne of England to rule the Empire on which the sun never sets. The man who controls Britain's money supply controls the British Empire, and I control the British money supply."

    With a GOLD STANDARD as the money supply, no one individual or even group of focused individuals can possibly control it all.

    Moreover any attempt at devaluation will result in only one thing, a run on that bank and the wiping out of the reputation and therefore the profits of that banker whom tries to devalue.

    This would make the 'printing of money' worthless and therefore take away the incentives that are there in spades right now for the creation of private wealth within the controls over the 'fiat' currencies.

    There has never been a successful fiat currency.

    Not one.

    The failure of every fiat currency in history has been due to miscreant politicians, aided and abetted by clever bankers, creating so much money and credit to finance their various agendas, including enriching themselves and their cronies, that the money in circulation eventually becomes worthless and collapses under its own weight. This idea is best summed up by the phrase "confiscation by inflation": the deft transference of naive citizens' savings to slick operators who understand how to manipulate the financial system.

    The reason we have corruption is that there are BIG PROFITS to be made from controlling the printing of money! Take that away and the reason for much of the corruption goes with it!

    Check out:
    The Gold Treatment

  • Romeogolf

    5 years ago

    Eliminate Donations

    The winning of elections should not be tied to the amount of money a party can raise. This is a recipe for corruption. Winning elections should be based on which party's platform matches the views of the greatest number of voters.

    So how about eliminating donations altogether?

    Elections Canada could fund the election on the basis of giving each eligible party an equal opportunity to present its platform through various media.

    That's very general and needs more detail, but it's a more honest basis for achieving true democracy than our current sham.

  • murdock

    5 years ago

    Brown paper bag?

    Quote:
    So how about eliminating donations altogether?

    opines Romeogolf,

    well then we just go back to the 'back-room' and the 'family compact' altogether.

    At least under the current guise there are some financial checks (no balances) and a chance to get an independant MP or two every other election.

    Without any oversight or monitoring (such as your plan and others given here like no tax breaks for donations = philanthropy being the ideology, NOT! The corporate masters would love to have the free reign to plug the $$$ in where and when needed as that would keep the puppet politicians in their pockets forever!) like we get a smattering of with the tax system there would be nothing in the way of outright auctioning the MP seats.

    With the payout coming in a brown paper bag, delivered in the middle of the night...

  • Romeogolf

    5 years ago

    Re: Brown Paper Bag

    Quote:
    Without any oversight or monitoring (such as your plan and others given here...)

    Just because I didn't mention it, doesn't mean I don't believe there shouldn't be any oversight. I thought I covered this part of it by saying:

    Quote:
    That's very general and needs more detail...

    I think there should be plenty of oversight -- of parties' elections practices, of their books after each election, etc.

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