In light of all the media coverage on political party funding and candidate election expenses, my column will try to explain what you are paying in an effort to provide open and accountable democracy.

Canadian political parties raise funds from their party members to operate.  Also, the Elections Act allows federal political parties to receive a taxpayer subsidy of $1.75 per year for every vote they receive in a general election.  This amount has been indexed to inflation and is currently $1.95.  To qualify, a party must receive at least two percent of all votes cast in a general election.  Consequently, the last election resulted in funding of $28M for political parties.

Before this formula was implemented most of the major political parties were funded by big businesses and/or big unions causing undue influence to our democracy.  In 2003 restrictions were placed that only allowed individuals to donate to federal political parties to a maximum of $1100 per year. This policy forced parties to go out and sign-up members forcing parties, I believe, to get back to their grassroots for financial support, making them more accountable to the electorate.

The downside to the amount per vote given to parties is that the most popular party receives the most money and therefore has an advantage over the other parties in the next election. Another problem is that regional parties receive this money even if they only run candidates in one region of the country.  Many of my constituents during the past election told me they were not happy with this formula and felt that either it should be eliminated or at least have some restriction put on eligibility for funding. 

During a federal election individual candidates also raise funds for their riding campaign. The same restrictions and limits to campaign donations apply to individual candidates during an election. Campaign expenses are set by Elections Canada for each electoral riding.  In the Okanagan-Shuswap the limit was set at around $96,000.  My 2008 campaign did not even come close to the limit. 

After the election local riding associations receive from Elections Canada, 60% of the candidate’s election expenses.  (All candidates file an audit statement which records all donations and expenses after the election and, this is forwarded to Elections Canada.)  Only then does Elections Canada reimburse the riding association 60% of costs incurred. This money is then kept for the next election.

In the recent Economic Statement, our Government postponed eliminating the taxpayers funding of political parties in order to obtain support for our economic statement.  A bill to eliminate taxpayers funding of political parties will likely be tabled in the spring. 

Colin Mayes, MP
Okanagan-Shuswap