Liberals to close byelection cash loophole that pulled in $6.8 million
Premier Kathleen Wynne is ready close a lucrative loophole that has enabled the governing Liberals to collect a staggering $6.77 million during three byelections in the last 14 months.
thestar.com
April 8, 2016
By Rob Ferguson
Premier Kathleen Wynne is ready close a lucrative fundraising loophole that has enabled the governing Liberals to rake in a staggering $6.77 million during three byelections in the last 14 months.
Elections Ontario data reveals the Liberals reaped a cool $1,766,946 during the Feb. 11 Whitby-Oshawa byelection - even though the spending limit was just $142,214.
By comparison, the Progressive Conservatives, who trounced the Grits in the contest, raised $957,627 with the New Democrats bringing in just $53,159.
“That byelection rule needs to change,” Wynne said Friday in Barrie when asked about her party’s tally in Whitby-Oshawa.
“You raise the amount you need for the byelection. That would be the gist of the conversation I’d like to have,” she said, referring to the far lower amount required to fund a local campaign.
Her comments came as she prepares to meet opposition party leaders Monday to discuss reforms sparked by the Star’s disclosure that Liberal cabinet ministers have secret fundraising targets of up to $500,000 a year.
Ontario’s lax political fundraising rules allow parties to use byelections as cash-cows to reap donations far in excess of what’s needed to bankroll local campaigns.
Donors are able to exceed the annual $9,975 contribution cap to a political party by matching that amount during byelection periods - even though it’s ostensibly to fund activities in one riding out of the 107.
“It’s not just our party. Here is the reality: that rule was put in place to allow all political parties to raise more money,” Wynne said.
“We raised more money. The NDP raised more money. The Conservatives raised more money.”
But no party raises more money than the Liberals during byelections.
In the Sept. 3 Simcoe North byelection won by Conservative Leader Patrick Brown, the Grits collected $2,360,796 compared with $1,418,177 for the Tories and $187,633 for the New Democrats. The spending limit was $124,423.
During the Feb. 5, 2015 Sudbury byelection, the Liberals, who won that contest, brought in $2,645,257 to $859,990 for the Conservatives and $137,586 for the NDP. There, the campaign limit was $83,655.
That means the Grits’ byelection tally in recent byelections is $6,772,999 versus $2,278,167 for the Conservatives and $378,378 for the New Democrats.
Wynne has promised legislation to clean up the system by outlawing corporate and union donations. The measure will be introduced next month and she’s seeking input from Brown and NDP Leader Andrea Horwath.
But the premier is willing to move even sooner on byelection reforms given that a vote that must be called in Scarborough-Rouge River by Sept. 22 following the surprise resignation of Liberal Bas Balkisoon two weeks ago.
“The question I will have for the opposition leaders when we meet on Monday is that something that we should change right now?” Wynne said at Barrie’s city hall.
“If we all agree that we should change those rules before the legislation goes forward, then I think that’s a good conversation for us to have.”
The fact that the Liberals raised more than their rivals “is not actually germane to the principle,” Wynne insisted.
Brown, meanwhile, repeated calls Friday for a public inquiry into political fundraising over concerns cabinet ministers have been targeting stakeholders and lobby groups for donations.
“The lines of government and the Liberal party seem to have been blurred beyond all recognition,” he said at Queen’s Park.
