“It’s a small price to pay right now for the long term benefits that we’ll receive” said event organizer on day of event

People who assist parties, candidates or politicians with fundraising or campaigning are prohibited from lobbying them or their staff for 5 years, and so should their companies – Clearwater is now registered to lobby Prime Minister Trudeau’s office

Lobbying Commissioner should recuse herself from ruling on complaint because she received 6-month contract from Liberal Cabinet in December

Federal political parties should change political finance system to stop big money’s unethical influence by matching Quebec’s $100 annual donation limit and other world-leading measures

FOR IMMEDIATE RELEASE:
Wednesday, March 29, 2017

OTTAWA – Today, Democracy Watch released the letter it received from the federal Commissioner of Lobbying Karen Shepherd confirming her office is investigating the complaint Democracy Watch filed on March 1, 2017. The complaint raised questions about an August 25, 2014 fundraising event for the Liberal Party of Canada hosted by Clearwater Seafoods co-founder and board member (and, according to media reports, possible major shareholder) Mickey MacDonald at his home and attended by Justin Trudeau.

According to an article in the Globe and Mail, a ticket for the event cost $1,000 and 75 to 80 people attended (the Chronicle Herald reported the ticket price as $1,200). In a piece on CTV Halifax news on the day of the event Mr. MacDonald is quoted as saying about the event that “It’s a small price to pay right now for the long term benefits that we’ll receive.”

Democracy Watch called on Lobbying Commissioner Karen Shepherd to recuse herself from ruling on issues concerning the Liberal Cabinet because the Cabinet gave her the gift of six-month contract in mid-December worth about $90,000.

According to an article in the Halifax Chronicle Herald, Mickey MacDonald was a major shareholder of Clearwater as of April 2013. According to that article and a February 2011 Globe and Mail article containing several statements from Mr. MacDonald, he was a co-founder of Clearwater along with his brother Colin (who is currently chairman of Clearwater) and John Risley who is also a board member. According to Clearwater’s website, Mr. MacDonald is a member of the company’s board of directors.

At the time of the event, Clearwater was not registered to lobby the federal government. In May 2015, according to the Registry of Lobbyists (which, due to loopholes in the Lobbying Act, does not include all lobbying activities), Clearwater hired consultant lobbyists Phil von Finckenstein and Gordon Quaiatinni of Maple Leaf Strategies to lobby several federal government institutions including the Prime Minister’s Office, and their registrations continue until today. In May 2016, another Maple Leaf Strategies consultant lobbyists registered to lobby the Prime Minister’s Office on behalf of Clearwater, Kellie Major.

“Federal lobbying ethics rules and the Lobbying Commissioner say it is illegal for anyone to help a party, candidate or politician with fundraising or campaigning and then be involved in lobbying them any time within the next five years because of the apparent conflict of interest their help creates for the politician,” said Duff Conacher, Co-founder of Democracy Watch. “The question for the Lobbying Commissioner to consider is whether Mr. MacDonald’s fundraising event attended by Justin Trudeau in August 2014 that raised tens of thousands of dollars for the federal Liberal Party created an apparent conflict of interest that means Clearwater Seafoods is prohibited from lobbying the Prime Minister’s Office until 2019.”

“Democracy Watch’s position is a person directly associated with a company or other organization who helps raise money for a politician who then becomes Prime Minister creates an apparent conflict of interest that violates the ethics rules and means the company can’t lobby the federal government at all, given that the Prime Minister appoints all Cabinet ministers and takes part in all Cabinet decisions,” said Conacher.

“If the Lobbying Commissioner decides that someone directly associated with company who is not registered as a lobbyist can raise money for a political party or politician without violating lobbyist ethics rules, it will create a huge that many companies will likely exploit,” said Conacher.

The Lobbying Commissioner office confirmed in a letter dated October 25, 2016 that it is investigating Democracy Watch’s complaint about the situation revealed in an October 25th Globe and Mail article involving Barry Sherman, the chairman of generic drug manufacturer Apotex Inc., assisting with selling tickets for a $500-per-ticket fundraising event to be held in Toronto on November 7, 2016 featuring Finance Minister Bill Morneau while Apotex is registered to lobby, and is lobbying, Finance Canada.

The Lobbying Commissioner office also confirmed in a letter dated November 18, 2016 that it is investigating Democracy Watch’s complaint about about an August 26, 2015 fundraising event for the Liberal Party of Canada hosted by Apotex Inc. chairman Barry Sherman at his home and attended by Justin Trudeau and then-candidate, now-Liberal MP Michael Levitt.

Because of loopholes in the federal Lobbying Act, and weak enforcement, there are likely many people lobbying who are not registered and who are therefore not covered by the Lobbyists’ Code rules. Even people caught violating the Code face no penalty. A May 2012 House Committee report recommended closing some of the loopholes and giving the Lobbying Commissioner the power to impose penalties on violators.

“Federal parties need to work together to close the loopholes in the lobbying law that allow for secret, unethical lobbying, and to strengthen enforcement and ensure that every lobbyist who violates the rules is penalized with a high fine,” said Conacher.

Democracy Watch also called on federal political parties to stop the unethical influence of big money in federal politics by making the same world-leading changes to the federal political donation system as Quebec made in 2013 when it lowered its individual donation limit to $100 annually to each party, with an additional $100 allowed to be donated to an independent candidate, and required donations to be verified by Elections Quebec before being transferred to parties and candidates.

Democracy Watch detailed in a January 27th news release how much the federal Liberal’s proposal to make some cash-for-access events more transparent is a charade that won’t stop cash for access or the unethical influence of big money donations, and what changes are actually needed to stop these undemocratic activities.

“The only way to stop the unethical and undemocratic influence of big money in federal politics is to stop big money donations,” said Conacher. “Any political party that refuses to support key changes to the federal political finance system changes is essentially admitting they are up for sale and that they approve of the unethical and undemocratic best-government-money-can-buy approach to politics.”

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Government Ethics Campaign and Money in Politics Campaign

Ethics Commissioner just disclosed new travel list showing 32 Liberal, Conservative and NDP MPs took trips paid for by registered lobbyists in 2016

FOR IMMEDIATE RELEASE:
Tuesday, March 28, 2017

OTTAWA – Today, Democracy Watch called on federal Commissioner of Lobbying Karen Shepherd to rule on the complaint it filed last May about the gifts of paid travel that various lobbying organizations have given to MPs (and a few senators) since spring 2009. Democracy Watch believes the gifts violate a rule in the Lobbyists’ Code of Conduct that prohibits lobbyists from doing anything that would put an MP, senator or other public office holder in even the appearance of a conflict of interest.

Federal Ethics Commissioner Mary Dawson just released the 2016 sponsored travel list, and it shows that 32 Liberal, Conservative and NDP MPs took trips paid for by registered lobbyists. Another 11 Liberal, Conservative and NDP MPs took a trip sponsored by the Chinese International Economic Cooperation Association. In its complaint last year, Democracy Watch requested that the Commissioner of Lobbying investigate the Association and a few other groups that gave so many MPs trips each year it seems like they possibly should be registered as lobbyists.

Democracy Watch’s complaint listed 16 businesses and lobby organizations from various sectors that are registered in the federal Registry of Lobbyists and that, since 2009 according to the Sponsored Travel reports and registry of federal Conflict of Interest and Ethics Commissioner Mary Dawson, have paid for trips by MPs (and in one case, also by senators). Sometimes the MP’s spouse or staff has accompanied the MP or senator on the trip, and often the trips have cost thousands of dollars.

As well, the complaint listed six other lobby organizations that are not registered in the Registry of Lobbyists but have given many paid trips to many MPs (and, in one case, also to senators) from 2009 to 2016. The complaint requested an investigation to determine whether any of these organizations have done enough lobbying to require that they should have registered their lobbying under the Lobbying Act at any time in the past seven years.

“Federal ethics rules say it is illegal for lobbyists to do anything that puts an MP or government official in even an appearance of a conflict of interest, and paying for an MP’s trip that costs thousands of dollars definitely crosses that line,” said Duff Conacher, Co-founder of Democracy Watch. “Unfortunately the Commissioner of Lobbying has continued her very weak enforcement record by failing to rule on Democracy Watch’s complaint about these unethical trips.”

Democracy Watch is also concerned about Commissioner Shepherd’s very weak enforcement record, and its position is that in order to have proper enforcement of the Lobbying Act and the Lobbyists’ Code Commissioner Shepherd must be replaced by someone who has a demonstrated strong enforcement attitude and record. Ethics Commissioner Dawson also has a very weak enforcement record (including ruling in 2010 that it is fine for Cabinet ministers to have lobbyists who are lobbying them raise thousands of dollars for them).

The Trudeau Cabinet and MPs soon appoint a new Ethics Commissioner and Commissioner of Lobbying, and Democracy Watch filed a complaint about the Cabinet reappointing the two commissioners in December. Democracy Watch is calling for a new appointment system that matches Ontario’s best-practice system for provincial judicial appointments, in which an independent committee conducts a merit-based search for a short-list of candidates, with Cabinet required to choose from the committee’s list.

“Cabinet ministers are in a conflict of interest when choosing their own watchdogs, and the only way the Trudeau Liberals can keep their promise of merit-based Cabinet appointments is to change the federal appointment system to Ontario’s independent and effective judicial appointment system,” said Conacher.

Democracy Watch also called on MPs and senators to act with integrity, finally, and eliminate the rules in their ethics codes that say they are allowed to accept the gift of paid travel from anyone. Democracy Watch and the nation-wide, 31-member group Government Ethics Coalition will continue pushing for these and other key changes to federal ethics rules, and enforcement and penalties, so that Canadians will finally have the ethical government they deserve.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Government Ethics Campaign and Stop Bad Government Appointments Campaign

Committee reviewing federal whistleblower protection law right now – strong recommendations needed to push Trudeau Liberals to make key changes

Governments across Canada need to make same changes to ensure government and business whistleblowers are fully protected, as banking scandal shows

FOR IMMEDIATE RELEASE:
Tuesday, March 21, 2017

OTTAWA – Today, Democracy Watch testified before the House of Commons Government Operations Committee as it reviews the federal public sector whistleblower protection law. Democracy Watch submission included the Change.org petition that 21,000 voters have signed in the past few weeks calling for 17 key changes by the federal governmentto protect people who blow the whistle on government and big business abuse, waste and law-breaking. As the current banking service scandal shows, such protection is much needed.

The 17 key changes include: ensuring everyone is covered by the protection law and system, including political staff; allowing everyone to file their complaint directly and anonymously with the protection commissioner or agency; ensuring the protection commissioner is fully independently appointed and empowered to impose penalties (as Ontario appoints and empowers judges); requiring the protection commissioner/agency to conduct audits and rule on all complaints publicly in a timely manner (with the identity of all wrongdoers made public); compensating whistleblowers for legal advice, and rewarding them adequately if their claims are proven; allowing them to appeal to court if they disagree with the protection commissioner’s ruling, and, ensuring an independent audit of the protection system at least every three years.

“The federal Liberals claimed in their 2015 election platform that greater openness and transparency are fundamental to restoring trust in Canada’s democracy but if they don’t strengthen whistleblower protection they will break their open government promise,” said Duff Conacher, Co-founder of Democracy Watch. “As the current banking service scandal shows, the federal government also needs to pass a law protecting all federally regulated workers, and provincial governments need to make changes to protect everyone in their province who blows the whistle on wrongdoing in politics and business.”

People have tried to protect Canadians by blowing the whistle on governments wasting billions of dollars, approving dangerous drugs, and covering up scandals, and on big businesses gouging them, selling them hazardous products, and covering up pollution and oil spills.

These whistleblowers have been harassed, fired from their jobs, sued, silenced and hurt by governments and big businesses – all because Canadian whistleblower protection laws are weak and enforcement is negligently bad.

The federal Liberals failed to include any promises to strengthen whistleblower protection in their 2015 election platform. The federal Conservatives did little to strengthen whistleblower protection from 2006 to 2015, and actually covered up scandals involving the Public Sector Integrity Commissioner (who enforces the federal law). Other federal parties have done little to push for key changes.

Provincial governments across Canada have also failed to protect government and business whistleblowers fully and effectively, although the Ontario Securities Commission took a big step forward in protecting securities law whistleblowers with a new program launched in July 2016 which offers up to $5 million as a reward for whistleblowers whose claims are proven (which has led to calls to reward securities law whistleblowers in other provinces and to reward Competition Act whistleblowers).

Democracy Watch will continue its ProtectWhistleblowers.ca letter-writing campaign and petition until these changes are made across Canada.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Protect Whistleblowers Who Protect You Campaign

Documents needed to determine extent of conflict of interest for Premier Clark, and Minister Polak, and Minister Coleman – exactly how much were Kinder Morgan and pipeline-connected companies’ involved in fundraising event activities for the Liberals, in addition to the more than $550,000 they donated in the past five years?

FOR IMMEDIATE RELEASE:
Thursday, March 16, 2017

OTTAWA – Today, Democracy Watch and the PIPE UP Network applied to the B.C. Supreme Court for an order requiring the B.C. Liberal Party to disclose all the fundraising activities Kinder Morgan and pipeline-connected companies were involved in during the past five years with the Party, activities that create an appearance of a conflict of interest that would prohibit Premier Christy Clark, Environment Minister Mary Polak and Natural Gas Development Minister Rich Coleman from deciding the pipeline approval.

The application is the next step in Democracy Watch and PIPE UP’s lawsuit that alleges Premier Clark and the ministers were in an apparent conflict of interest when they approved the Kinder Morgan Trans Mountain pipeline in January because of the more than $550,000 donated by pipeline-connected companies to the B.C. Liberals in the past five years. Premier Clark’s conflict was compounded by the fact that she benefited personally from the donations as she received a $50,000 salary each year from the party, a total salary of $300,000, during the same years the donations were made.

“The B.C. Liberals have hidden as many details as they can about their fundraising events and activities over the past few years, which should make B.C. voters wonder what they are hiding,” said Duff Conacher, Co-founder of Democracy Watch. “We hope the Liberals will do the right thing and finally disclose details about all fundraising activities pipeline-connected companies have been involved in for the Liberals since 2012.”

“Documents dealing with pipeline company donations to the B.C. Liberal Party, and whether the Premier knew of the donations and attended pay-for-access events with Kinder Morgan, are both relevant and necessary to the determination of bias,” said Jason Gratl, legal counsel for the lawsuit. “It remains to be seen whether the Liberal Party will resist transparency about the Premier’s knowledge of payments to the party and her personal efforts to secure donations from Kinder Morgan and pipeline shippers.”

– 30 –

FOR MORE INFORMATION, CONTACT:

Duff Conacher, Democracy Watch, Cell: 416-546-3443

Lynn Perrin, PIPE UP Network, Tel: 604-309-9369

Jason Gratl, legal counsel, Tel: 604-317-1919

Democracy Watch’s Government Ethics Campaign and Money in Politics Campaign

Finance Minister reviewing Bank Act right now – 24,000 sign petition calling for creation of financial consumer group, making FCAC and Ombudsman actual watchdogs, audits of profits and lending, and increasing minimum penalties

Financial Consumer Agency of Canada (FCAC) made big mistake tipping off banks that they will be inspected in April – has only prosecuted 2 banks since 2003

Big bank profits up to $10.5 billion already this year – were $37.35 billion in 2016 ($2 billion higher than in 2015, and more than double their 2010 profits) – higher than comparable banks in all other countries

FOR IMMEDIATE RELEASE:
Thursday, March 16, 2017

OTTAWA – Today, in response to CBC’s reports of employees at all of Canada’s big five banks breaking the law, and the Finance Minister Bill Morneau’s current review of the Bank Act and other financial sector laws, Democracy Watch formally launched it’s 2017 Bank Accountability Campaign and Change.org petition that 24,000 people have signed in the past week calling for 10 key changes to stop bank gouging and abuse that would:

1. Require banks, trust and insurance companies to promote in their mailings and emails to customers that they can join a national Financial Consumer Organization (FCO – as recommended by the MacKay Task Force, and the House Finance and Senate Banking committees);
2. Strengthen key consumer protection rules, and require the Financial Consumer Agency of Canada (FCAC) to do unannounced, mystery-shopper audits to find violations, and to identify violators and fine them (the FCAC hasn’t done unannounced audits in a decade, and has just tipped off the banks about their upcoming audit);
3. Require all banks to be covered by the Ombudsman for Banking Services and Investments (the Conservatives let TD and Royal leave OBSI in 2012 and choose their own complaint judges);
4. Require the FCAC or Competition Bureau to conduct regular independent audits of the profits in each banking division, and savings from withdrawal of services, and require banks to lower prices and interest rates wherever excessive profits are found (i.e. profits higher than 15% annually in any division);
5. Require the banks to disclose detailed information annually about their service and lending records (as the U.S. has required banks to do for 30 years), and require corrective action whenever banks discriminate against customers, and;
6. Given the big banks each make billions in profit annually, increase the meaningless maximum fine of $500,000 for violations to $50 million.

According to Finance Canada, Canada’s big banks control 93 per cent of all banking assets, and are more profitable than comparable banks in other countries, small banks in Canada, and Canada’s corporate sector overall. Their control of the market essentially allows them to gouge and abuse customers with excessive fees, high interest rates (especially on credit cards), and government action is the only thing that will stop them.

Canada’s big banks paid their CEOs about $10 million each in 2015, and gave them bonuses that totalled more than $10 million (51% higher than in 2008).

“Will the federal Liberals continue to protect big bank executives and their multi-million salaries or will they make real changes to protect 30 million bank customers from gouging and abuse, especially by requiring banks and insurance companies to promote a national financial consumer group in their mailings and emails to their customers,” said Duff Conacher, Co-founder of Democracy Watch. “At little or no cost to the federal government or the financial services industry, financial consumers across Canada can be given a very easy way to band together to help and protect themselves through joining a national financial consumer organization they fund and run – all the federal government has to do is require the banks and insurance companies to inform their customers about the group.”

The federal government bailed out the banks with $114 billion in mortgage purchases during the financial industry fraud crisis in 2009. It hasn’t required the banks to do anything in return for that bailout, or for the protections from foreign competition that the government gave the banks in 1967, and continues to maintain.

Incredibly, the Financial Consumer Agency of Canada (FCAC) announced yesterday that it will inspect the banks’ selling practices in April. “The FCAC has made a big mistake announcing an inspection a month in advance as they have just tipped off the banks and given them time to cover up and clean up their wrongdoing,” said Conacher. “It’s as bad as the police giving advance notice that they are setting up a speed trap on a highway — you don’t catch anyone violating the law that way.”

The FCAC has a very weak enforcement record since it was created in 2003. It has made only 125 compliance rulings, is prohibited from naming a law-violating bank unless it prosecutes the bank, and it has has only prosecuted 2 banks (neither of them a Big 6 Bank).

“The fact that the media revealed the latest wrongdoing by the banks instead of the Financial Consumer Agency of Canada shows that the agency is a lapdog not an effective watchdog, and the banks are not even required to be covered by the Ombudsman for Banking Services and Investments,” said Conacher. “The FCAC must be required to conduct unannounced mystery-shopper audits regularly, and all banks must be covered by the OBSI, and both agencies must be required to identify and penalize banks that violate the law with multi-million dollar fines”.

According to the Bank of Canada, the banks currently have about $1.3 trillion in business loans. That makes the recently announced, so-called Canadian Business Growth Fund of (eventually) $1 billion a sad joke as it will amount to only 0.1% of total bank lending. Given that the fund is a joint initiative of Finance Minister Morneau and the big banks, it is clear that the federal Liberals are trying to fool Canadians into applauding the banks for this largely meaningless initiative.

“Instead of helping the banks promote a very small loan fund to help grow entrepreneurial businesses, the federal government should do what the U.S. government did 30 years ago and pass a community reinvestment law requiring the banks to disclose detailed information that will allow the public to judge whether they are discriminating against borrowers such as women entrepreneurs, and requiring the banks to take corrective action whenever discrimination is found,” said Conacher.

“Every dollar of excessive profit for the banks, and every person and business the banks unjustifiably cut off from credit, costs the Canadian economy because it means that the banks are overcharging for their essential services and loans, and choking off spending and job creation,” said Conacher.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

See more details about the federal government’s negligence in ensuring banks serve
everyone fairly and well at fair prices and interest rates in this 2012 news release

Democracy Watch’s Bank Accountability Campaign

Elections Quebec audit found $12.8 million in likely illegally funneled donations, and Elections Alberta 2010-2011 audit found dozens of illegal donations

B.C. political parties should also democratize province’s political finance system to match Quebec’s $100 annual donation limit and other world-leading measures

FOR IMMEDIATE RELEASE:
Wednesday, March 15, 2017

OTTAWA – Today, Democracy Watch called for a special prosecutor to be appointed to help prevent political interference in the cases where lobbyists made donations and were reimbursed by their clients. All violators identified in the Globe and Mail’s March 10th article, and any others who can be proven to have violated the donations law, must be prosecuted before election day.

Democracy Watch also called on Elections B.C. to issue a special public report before election day on all large individual donations that were likely funnelled from businesses or unions through their executives (or their family members), employees or lobbyists since the 2013 election. This report can easily be done, and should have been done every year in the past by Elections B.C., by comparing the donation database with the lobbyists registry database, and with the business registry database, and with the list of executives of B.C.’s unions. The audit should examine donations to parties and candidates.

Elections Quebec did a similar audit in 2011 and found $12.8 million in likely illegally funnelled donations from businesses through their executives and employees since 2006. When Elections Alberta did an audit in 2012 it found dozens of illegal donations.

While Elections B.C. has referred the cases to the RCMP for investigation, under B.C.’s provincial Elections Act section 252, the Chief Electoral Officer (CEO) of Elections B.C. must approve all prosecutions of violations. Because so few such cases have been in the courts in the past, the policy of the CEO must be to request prosecution of all of the individuals involved and let the courts decide whether they violated the law.

“A special prosecutor must be appointed to help prevent political interference in these cases, and before election day Elections B.C. and the prosecutor must prosecute everyone they can clearly prove made an illegal donation,” said Duff Conacher, Co-founder of Democracy Watch. “Elections B.C. must finally enforce the law effectively by auditing donation lists to find all likely illegally funneled donations since the 2013 election, and issuing a public report before election day.”

“It would not only be negligent for Elections B.C. to let anyone who has violated the rules off the hook with just a warning, instead of requesting that they be prosecuted, it will also encourage more violations in the future,” said Conacher. “It would be also negligent for Elections B.C. to fail to audit donations back to 2013 to determine how many illegally funnelled donations have been made to parties and candidates.”

Elections B.C. should then follow up on that report by investigating and requesting a prosecution of everyone who has been involved in an illegally concealed donation scheme in the past four years.

Democracy Watch and the PIPE UP Network are currently challenging in court the B.C. Liberal Cabinet’s approval of the Kinder Morgan Trans Mountain pipeline because of the appearance of conflict of interest caused by more than $550,000 in donations to the B.C. Liberals from pipeline related companies in the past few years.

Democracy Watch is also challenging in court the B.C. Conflict of Interest Commissioner’s ruling that no conflicts of interest were caused by B.C. Premier Christy Clark’s high-priced, exclusive fundraising events.

Democracy Watch and the nation-wide Money in Politics Coalition also called on the B.C. political parties to make the same world-leading changes to the province’s political donation system (including at the municipal level) as Quebec made in 2013 when it lowered its individual donation limit to $100 annually, and required donations to be verified by Elections Quebec before being transferred to parties and candidates.

Democracy Watch detailed in a March 13th news release how inadequate the B.C. Liberals proposed changes are, and what key changes are needed stop cash for access and the unethical influence of big money donations in B.C. politics. More than 6,000 B.C. voters have called for these changes through Democracy Watch’s Change.org petition.

“The only way to stop the unethical and undemocratic influence of big money in B.C. politics is to stop big money donations and loans,” said Conacher.

– 30 –

FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Government Ethics Campaign and Money in Politics Campaign

50-group coalition, and more than 6,000 B.C. voters, call for immediately annual donation and loan limit for individuals (including candidates) of $100 (as in Quebec), stronger enforcement and penalties for violations, and annual per-vote and donation-matching public funding only if parties can prove it’s needed

Unethical influence of big money in B.C. politics can be stopped right now with low donation limit, as federal, Quebec and Alberta political donations scandals show

High donation limit will mean ongoing illegal funneling of donations by businesses and unions – as happened in Quebec and at the federal level – and ongoing unethical influence by wealthy donors (in 2015, federal Liberals received almost 23% of their donations from just over 4% of wealthy donors who gave $1,100 or more)

Same changes should be made to municipal political finance system across B.C.

FOR IMMEDIATE RELEASE:
Monday, March 13, 2017

OTTAWA – Today, the B.C. Liberals introduce a bill that will only, if enacted, increase the frequency of disclosure of political donations and establish a commission to study how to stop the unethical influence of big money donations in B.C. politics. In response, Democracy Watch and the Money in Politics Coalition (made up of 50 groups with a total of more than 3 million members), joined by more than 6,000 B.C. voters who have signed a petition on Change.org, called on B.C.’s political parties to make the following changes before the legislature breaks for the upcoming provincial election:

1. ban corporate and union donations, and set an individual donation limit of $100 per year (as in Quebec);
2. set a limit of what candidates can give to their own campaign of $100 per year;
3. prohibit loans to parties except from a public fund;
4. only establish per-vote annual public funding to of at most $1 per vote, and annual donation-matching public funding, if the parties can prove they need it, and;
5. strengthen enforcement and penalties for violations.

“The B.C. Liberals’ donation disclosure bill is too little, too late and, even if it is enacted before the election, no one should believe Premier Clark’s likely false claim that future changes are possible,” said Duff Conacher, Co-founder of Democracy Watch and Chairperson of the Money in Politics Coalition. “If the B.C. Liberals were serious about changing the province’s unethical, undemocratic political donation system, they wouldn’t have spent the past year dishonestly claiming that the current system is fine and rejecting changes proposed by the opposition parties and many others.”

Years of experience and scandals in Quebec before 2013, at the federal level since 2007, and in Toronto since 2009, show clearly that setting a donation limit that allows individuals to donate thousands of dollars each year will allow the unethical influence of big money donations, and cash-for-access fundraising schemes, to continue in B.C.

“As Quebec, federal and Alberta donation scandals show clearly, the only way to stop the unethical, undemocratic influence of money in B.C. politics is to stop big money donations by allowing only individuals to donate only $100 a year, and if the B.C. Liberals really wanted to they could make this change before election day,” said Conacher.

Enforcement also needs to be strengthened as Elections B.C. has been revealed recently to be failing to catch violations that the media has exposed with simple audits, including appointing a special prosecutor to ensure all violators are prosecution in the recent lobbyist-donation scandal.

Democracy Watch and the PIPE UP Network are currently challenging in court the B.C. Liberal Cabinet’s approval of the Kinder Morgan Trans Mountain pipeline because of the appearance of conflict of interest caused by more than $550,000 in donations to the B.C. Liberals from pipeline related companies in the past few years.

Democracy Watch is also challenging in court the B.C. Conflict of Interest Commissioner’s ruling that no conflicts of interest were caused by B.C. Premier Christy Clark’s high-priced, exclusive fundraising events.

The many donation scandals across the country show that low donation limits are the only way to stop the influence of big money. Few have been charged in Quebec’s corruption scandal even though an Elections Quebec audit found $12.8 million in likely illegally funneled donations donations from 2006-2011. To stop the corruption, in 2013 Quebec lowered its individual donation limit to $100 annually to each party, with an additional $100 allowed to be donated to an independent candidate), and required donations to be verified by Elections Quebec before being transferred to parties and candidates. B.C. should make the same democratic changes.

At the federal level, SNC-Lavalin illegally funneled almost $118,000 to the Liberal and Conservative parties, riding associations and candidates through its executives and employees from 2004 to 2011. And former-Conservative MP Dean Del Mastro’s cousin was charged in 2014 with illegally funneling donations through his business’ employees. There are likely many more examples of illegally funneling of donations at the federal level, as it seems Elections Canada has not yet done the full audit it promised to do in 2013.

As in Quebec, when Elections Canada has not yet done the full audit it promised to do in 2013 it found dozens of illegal donations. As well, in a 2013 scandal in Alberta, a coalition of construction companies made it clear that Elections Alberta did an audit in 2012
their big money donations were conditional on the Alberta government changing the labour law.

As well, the Liberals have been recently caught in a cash-for-access scandal as Prime Minister Trudeau and several Cabinet ministers have attended about 90 high-priced, exclusive events since January 1, 2016. And, as the Globe and Mail reported on October 25th, one of the events was a fundraising event to be attended by the Finance Minister that a drug company executive helped organize while his company lobbied Finance Canada.

Democracy Watch filed a complaint about the event with the federal Lobbying Commissioner who is investigating, and also a complaint about another event the same drug company executive organized for Justin Trudeau in August 2015, and a complaint about another event top Liberal donors were invited to in September 2016, as well as a complaint about the Trudeau Cabinet selecting their own ethics and lobbying watchdogs. Most recently, Democracy Watch filed a complaint about a big money fundraising event held by a corporate board member for the Liberals in August 2014.

The results of Democracy Watch’s research also show that top federal Liberal Party donors (to the Party only, not its riding associations) who gave $1,100 or more in 2015 were only 4.37% of total donors (4,084 donors out of 93,426 donors total) but they gave the Party 22.87% of total donations raised ($4,866,373.76 out of the $21,276,897.57 total raised.

In addition, the federal Liberals hold special events for donors who donate $1,500 or more annually (they become members of the exclusive Laurier Club). As the Globe and Mail reported recently, based on Elections Canada figures only 790 people (0.85% of all donors to the Liberals) donated $1,500 or more in 2015, and in 2014 only 522 people (0.68% out of 77,064 total donors) donated $1,200 or more (the amount needed then to attend a Laurier Club event).

Toronto’s experience is another example of how high donation limits allow donors to get around bans of corporate and union donations. Such donations were banned in Toronto elections in 2009, and individual donations limited to $750 annually, but a 2016 analysis by the Toronto Star found that big business and other special interest group executives and their families continue to give large amounts to city councillors.

Loans from financial institutions must also be limited to ensure financial institutions, businesses and unions can’t use loans as a means of unethical influence. Loans should only come from a public fund and be limited to the average total amount donated during the previous two years.

If the parties can prove that they need public funding, annual per-vote funding should be no more than $1 per vote, and the parties should implement a similar annual public funding matching system as Quebec ($2.50 for the first $20,000 raised annually by each party, and $1 for the first $200,000 raised annually). Elections Quebec has analyzed the results of Quebec’s changes and found that the parties are still adequately funded.

“To match Quebec’s world-leading democratic system, B.C. must limit individual donations to about $100 annually and, if the parties can prove they need it, use per-vote and donation-matching public funding to give parties and candidates funding based on their actual level of voter support,” said Conacher. “Similar changes should be made to B.C.’s municipal law, taking into account that there are no parties in most municipalities, to ensure every city and town across the province has the same democratic rules.”

The key changes that must be made in B.C. to democratize its political finance system are as follows (and similar changes should be made province-wide to the municipal political finance system, taking into account that many municipalities do not have political parties):

1. ban donations by corporations, unions and other organizations (Quebec enacted such a ban in the late 1970s);
2. limit annual combined total donations of money, property and services by individuals to $100-200 to each party (Quebec’s limit is $100), and establish the same limit on candidates donating to their own campaign, with donations routed through the election watchdog agency (as in Quebec);
3. prohibit loans to political parties, riding associations and candidates, except from a public fund (with loans limited to the average annual amount of donations received during the previous two years);
4. limit spending leading up to, and during election campaigns by parties, nomination race and election candidates, third party interest groups, and also candidates in party leadership races;
5. require disclosure of all donations and gifts of money, property, services and volunteer labour given to any party, riding association, politician, nomination race, election or party leadership candidate, including the identity of the donor’s employer, and board and executive affiliations (and the identity of anyone who assists with any fundraising);
6. give annual public funding for parties based on each vote received during the last election (no more than $1 per vote, with a portion required to be shared with riding associations);
7. give annual public funding for parties matching up to the first $500,000 raised (as in Quebec where the first $200,000 raised is matched);
8. give public funding matching up to $25,000 that each nomination race and election candidate (including an independent candidate) raises (similar to Quebec’s matching funding system), and public funding matching up to $100,000 that each party leadership campaign candidate raises, and;
9. require election, donation and ethics watchdogs to conduct annual random audits to ensure all the rules are being followed by everyone;
10. Elections B.C., or the Auditor General, must be empowered to review all government advertising and to stop or change any ad that is partisan or misleading;
11. all penalties for violating donation and spending rules must be increased to minimum $100,000 fine and a multi-year jail term, and loss of any severance payment, and a partial clawback of any pension payments, and;
12. Elections B.C. must be required to disclose the rulings they make on all complaints they receive as soon as they make the ruling, and to disclose the rulings they make on all investigations they initiate themselves.

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FOR MORE INFORMATION, CONTACT:
Duff Conacher, Co-founder of Democracy Watch
Tel: (613) 241-5179
Cell: 416-546-3443
[email protected]

Democracy Watch’s Money in Politics Campaign