Reducing the generous taxpayer support for federal political parties is a good idea. Eliminating just one aspect of it – the most democratic one – goes too far.
Prime Minister Stephen Harper plans to end per-vote subsidies to parties, introduced by the Chrétien government in 2003 to reduce the undue influence of big donors. The subsidies, based on the votes a party received in the previous election, were to compensate for revenue lost when corporate and union donations were banned and individual contributions limited.
Some object to the idea of any taxpayer funding for political parties. If they can’t attract donations, they deserve to fail, the argument goes.
There are pragmatic problems with that approach. Money is critical to a successful political campaign and party organization. Advertising, travel, staff – there are legitimate expenses and only parties with some financial capacity have a chance of advancing ideas and policies, let alone winning seats.
A reliance on donations means, even with spending limits, that parties advancing the interests of people with money to donate have a significant advantage over parties advancing the interests of the disadvantaged.
That entrenched political advantage for some interest groups is dangerous. If people feel they cannot be fairly represented through the democratic process, they will drift away, question the government’s legitimacy or, eventually, seek more direct solutions.
A dependence on donations also provides a persistent fundraising advantage to the party in power, or a rival with a reasonable prospect of forming government. They have the ability to deliver or promise benefits to supporters. That encourages an entrenched two-party system and makes it difficult for parties advancing new policies to emerge, limiting the range of democratic discourse.
There are problems with the per-vote funding, particularly the level. Any party which receives at least two per cent of the popular vote in the previous election receives about $2 per vote.
Five parties currently qualify, and the total cost to taxpayers is about $27 million. Last year, the Conservatives received about $10.4 million in per-vote subsidies and raised $17.4 million in contributions. The Liberals received $7.2 million and raised another $6.4 million. The NDP received $7.2 million from taxpayers and raised $4.3 million. The Bloc Québécois received $2.7 million and raised $642,000, while the Greens received $1.8 million in subsidies and raised $1.2 million.
Political parties should not be multimillion-dollar enterprises, with paid staff elbowing volunteers out of the way (and driven to fight for victory at all costs to preserve their jobs). Less money could actually bring greater true public engagement.
The Conservatives propose to reduce the per-vote subsidy from $2 to $1.50 next year, and by a further 50 cents a year until it is eliminated. That goes too far. The funding should be cut to $1 per vote and then frozen at that level to assess the effect on political life.
At the same time, the government should take a much broader look at taxpayer funding for political parties.
Harper’s proposed reform only eliminates one aspect, the component directed by the democratic vote.
The government also provides a tax credit equal to 75 per cent of the first $400 donated to a political party (more than twice the credit given for a charitable donation). That subsidy, worth about $20 million a year, would not change.
And taxpayers also cover 50 per cent of the cost of parties’ national election campaigns, and 60 per cent of candidates’ expenses, providing, in both cases, they meet minimum support thresholds. The subsidy to the national campaigns alone was $29 million in the 2008 election.
In an election year, the total taxpayer contribution to the five main parties could top $100 million – a ridiculous amount of money to run five election campaigns.
True political finance reform is needed – not just tinkering with one small component.
Article source: http://www.timescolonist.com/Political+finance+overhaul+needed/5504732/story.html