HARPER GOVERNMENT IS COMMITTED TO CLOSING POLITICAL FINANCING LOOPHOLE

The Hon. Tim Uppal, Minister of State (Democratic Reform), along with Jacques Gourde, Member of Parliament for Lotbinière–Chutes-de-la-Chaudière, today reaffirmed the Harper Government’s longstanding commitment to strengthening Canada’s political financing regime by reintroducing the Political Loans Accountability Act.

StarBuzz Weekly, Toronto-November 2, 2011

(Ottawa) - The Hon. Tim Uppal, Minister of State (Democratic Reform), along with Jacques Gourde, Member of Parliament for Lotbinière–Chutes-de-la-Chaudière, today reaffirmed the Harper Government’s longstanding commitment to strengthening Canada’s democratic institutions by re-introducing the Political Loans Accountability Act.

“The current rules on political loans do not meet the high standards of accountability, integrity, and transparency that Canadians expect in their political process,” said Minister of State Uppal. “The Political Loans Accountability Actbuilds on our flagship Federal Accountability Act by closing a loophole allowing corporations and unions to make political loans.”   

The proposed changes to the loans regime are fourfold:

• The bill would establish a uniform and transparent reporting regime for all loans to political parties, associations, candidates and contestants, including mandatory disclosure of terms such as interest rates and the identity of all lenders and loan guarantors.

• Unions and corporations would now be banned from making loans to political parties, associations, candidates and contestants, consistent with their inability to make contributions as set out in the Federal Accountability Act.

• Total loans, loan guarantees, and contributions by individuals could not exceed the annual contribution limit for individuals established in the Federal Accountability Act ($1,100 in 2011).

• Only financial institutions (at market rates of interest) and political entities could make loans beyond that amount.  Rules for the treatment of unpaid loans would be tightened to ensure candidates cannot walk away from unpaid loans: riding associations or parties will be held responsible for unpaid loans taken out by their candidates.

Moreover, the Political Loans Accountability Act would alter the contribution limits for leadership contestants from a per-event basis to a per-calendar year basis.

The bill is consistent with a recommendation from the Chief Electoral Officer of Canada.  It reflects a legal approach to political loans already in place in several provinces such as Ontario, Quebec, Manitoba, Alberta and Newfoundlandand Labrador. 

“We are bringing greater integrity, accountability, transparency to the political process with the Political Loans Accountability Act,” said MP Gourde.  “Everyday Canadians are expected to pay back loans under strict rules, and the same should apply to politicians.”