Individuals, not companies,
to finance federal election

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     For the first time, individuals and the taxpayers, not big business, will be filling party election coffers.
     Under the new federal election finance law, only individuals, not unions or corporations, can donate to Canada's national political parties. Individuals will be limited to $5,000 per party per year. This limit includes the national party, its candidates, constituency associations and candidates for leadership or nomination.
     The exception is that corporations and unions can give up to $1,000 to a party's local candidates.
     Before, there were no limits on the size of contributions, and the Liberals received almost 60 per cent of their donations from corporations. The New Democrats, who have supported limits on donations banning donations from companies or unions, received 60 per cent from individuals, mostly in $50 and $100 amounts.
     Now, registered parties will receive $1.75 for each vote. Based on the results of the previous election, the Liberals will be up about $8 million. The Alliance/Conservatives will be up at least $10 million. The New Democrats will come out a little less than even.
     Dick Proctor (NDP MP, Palliser) criticized the bill for allowing union and corporate contributions at all, especially as the two groups are treated unfairly. The $1,000 limit will be the total allowed for all sectors of the union. However, a franchise operation, like McDonald's for example, could have each franchise give $1,000.
     The NDP is asking union locals not to donate to any riding campaign, so that there is no chance of breaking the law. The new law also means that union members can only work on campaigns as volunteers. The riding campaigns will have to pick up the tab for any paid time.
     Eric Hebert, assistant federal secretary of Canada's New Democrats, says the party is also asking locals to talk with their members about taking out membership in the NDP. Union affiliation to the NDP is now based on the number of NDP members in the union. More NDP union members gives the union a bigger voice in party affairs.
     Hebert acknowledges the changes in the law will mean some changes in how the NDP operates. He says, "The role of volunteers is essential; the role of members is essential. It puts more pressure on all of us to be out there raising money from real people."
     But that's as it should be. "We've got to get big money out of politics," Hebert says.
     Despite its limitations, the NDP supported the new law, as it is a step toward more transparency and less influence from big donors. Dick Proctor says, "The focus in future, I believe, will be to encourage union members to become more directly involved in the party and, if they so choose, to make donations on an individual basis."


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