Breaking down the costs of an extended election campaign

How an 11-week federal election campaign will cost taxpayers and political parties more money.

Thestar.com
July 30, 2015
By Rob Ferguson

The extended 11-week federal election campaign Prime Minister Stephen Harper will trigger within days is going to ding taxpayers and political parties for a lot more than they budgeted.

Here’s a breakdown of extra costs, from longer rentals of offices for Elections Canada in every riding to millions more in tax credits for political donors who always cough up more cash when the race is on. Voting day is Oct. 19.

PAYING THE RENT

Speculation around an early campaign kickoff has already prompted many candidates to rent office space. With strip mall rents in Toronto running around $3,000 a month, some would-be MPs are budgeting an additional $5,000 to pay landlords. Not to mention more for electricity, internet, phones, food and water for volunteers.

HIT TO TAXPAYERS

Elections Canada had estimated a standard 37-day campaign would cost $375 million. That is now out the door as there will be higher costs for staff, longer leases for returning offices, telephones, internet and the like. The Canadian Taxpayers Federation estimates the tally could approach $500 million.

ADVERTISING

In a long campaign, no one wants to get behind, particularly given the 2005-06 campaign in which Stephen Harper took an early lead and held on to win. Hence, advertising is key, whether it’s in the media, flyers or lawn signs, which get damaged or stolen. It all adds up.

CAMPAIGN SPENDING

Parties running candidates in all 338 ridings across the country would be entitled to spend $25 million in a typical 37-day campaign, but this goes up by $685,000 each additional day. That could boost the ceiling to a total of $53 million, sparking manic fundraising efforts.

DONATION REBATES

People who donate to candidates and political parties get partial tax credits, costing the federal treasury. The law permits individuals to donate an additional $1,500, double the usual annual amount. It’s hard to predict, but that could mean as much as $36 million more in credits based on previous election years, says the Canadian Taxpayers Federation.

CAMPAIGN REIMBURSEMENTS

Parties and candidates getting a certain percentage of the vote, proving they have some traction with the public, get rebates for authorized expenses (like campaign office rents) but not for other things (such as pizza for volunteers). In the 2011 election, this cost $60 million. A longer campaign could allow more candidates and parties to qualify.