May 9, 2008

Let the parties work it out for themselves

I’ve tried to get excited about this “in-and-out” business, really I have. But I am hampered by two things. One, nothing about the Conservatives’ shuffling of funds back and forth between the national and local campaigns in the last election appears to have been against the law. And two, the law in question is an ass....

To recap: It is not illegal to transfer funds from the national party to a riding association. It is not illegal to transfer funds from a riding association to the party. It is not illegal for the ridings to pool their funds to purchase advertising and other campaign services, and it is not illegal if they buy these from the party. Not illegal, and not unusual: all are routine practices in other parties’ campaigns. What seems to have Elections Canada’s knickers in a twist is that the Tories did all of these things at the same time, in the course of which responsibility for the spending of these funds is somehow said to have passed from the ridings to the party. So what the Conservatives claimed as local expenses were “really” national.

How the agency arrived at this metaphysics is as unclear as why any of it matters. The Tories gained no particular advantage from the exchange, since it is the combined effort, local and national, that makes up a campaign: whatever extra spending they were permitted to engage in at the national level came out of unused local budgets. But even calling them “national” or “local” makes little sense, since local campaigns by and large are extensions of the national campaign -- the same themes and motifs appear, only with the addition of a candidate’s name here and there. 

What we are left with are arbitrary distinctions, selectively enforced, according to invisible criteria. That’s not a criticism of Elections Canada. It’s the law that’s the problem. It makes no more sense to set separate spending limits for national and local campaigns than it would as between TV commercials and lawn signs. These are matters best left to the parties to work out for themselves.

But then, it doesn't make a whole lot of sense to set overall spending limits, either. The premise is that there should be a level playing field between the parties. But should fairness between parties be the guiding principle? The constitution speaks of the equality of every individual, not the equality of parties. And what are parties but associations of individuals? Surely it is fairness between individuals that should concern us: the equal ability of each individual citizen to make his voice heard at election time. That, after all, is why we give each of them one vote.

To constrain every party within the same spending limit, whether it has 10 members or 10 million, is in fact to put the individuals of which these parties are composed on a distinctly un-level footing: in our admittedly extreme example, each member of the larger party is permitted precisely one-millionth the “voice” of those in the smaller. Does that imply we should have no limits of any kind? Not a bit. But the place to impose such limits is not on the parties, but on individuals; not on spending, but on contributions.

Of course, we have contribution limits now. The Chretien reforms banned union and (most) corporate donations at the federal level, and set limits on individual contributions for the first time. These were tightened further under the Conservatives’ Accountability Act. But important loopholes remain. And indeed, even contribution limits, in traditional form, don’t get it quite right.

Set a limit on how much an individual can contribute to a particular candidate or party, after all, and you simply invite the establishment of parallel groups to receive donations, like the “political action committees” familiar from American politics. A similar problem bedevils spending limits: what do you do with so-called “third-party” advocacy groups, who may or may not be affiliated with the political parties? Either you end up with a total free-for-all, or you impose draconian controls on what private groups can spend to advance their cause, at great harm to freedom of speech.

The answer? Go back to the principle we established earlier: fairness between individuals -- the  ability of each to contribute to the national conversation at election time, in this case financially. If every individual had the same income, this would cease to be a concern. The nearest approximation is to set an annual ceiling on the amount individuals can contribute, not just to a particular party or a candidate, but to all of them -- the sum total of all of his political donations in that year. But how he chose to divide these up within this limit, whether between parties, candidates, or third-party groups, would be up to him. 

The beauty of this is that it’s self-limiting: the more you contribute to one party, the less you have left to give to another. Spending limits would likewise be unnecessary. Since only individuals could contribute, and since no individual would have any greater capacity to contribute than any other, the only limit the parties need face would be their ability to raise funds in this manner. And not just the parties: third-party groups would be under the same constraint, so far as they spent money to support or oppose a particular candidate or party. 

At a stroke, parity would have been achieved -- between individuals, and between the different avenues through which each might seek to express his views in the political arena. Yet at minimal cost to free speech, and without requiring Elections Canada to decide how many local candidates can dance on the end of a pin.

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7 Comments

Blogger Jamie:

Andrew,

You strike a few good points here and have certainly contributed tot he dialogue, however, i feel as if you miss what matters to ordinary Canadians. While your profession puts you front and center with the policies and practices, good and bad, of government. Average Canadians are concerned with the fair and equitable enforcement of those laws. The fact that a particular law is redundant or irrelevant doesn't matter. Those who i elected in one way, shape, or form created those laws and until such time as they again in one way, shape or form alter, revise, or scrape those laws, i expect them to be followed.

The issue is not whether or not "in and out" is legal. The issue to me is the motive for the in and out transfers. Conservatives hit their ceiling and actively, and deceptively used gaps in the election laws to their advantage. Now i know most parties would exploit any loophole available to give them a "legal" edge. Unfortunately when it means using Canadian tax dollars to reimburse candidates for expenses they never really encurred is...well fraud. No if's ands or buts about it.

What concerns Canadians is that our politics in Canada has become a sport of politicians and less of a discussion of policy makers and visionaries. The conservatives at the heart of things have taken advantage of a flawed system to finanical benefit themselves. That is at the heart of all fraud. Almost all fraud scenarios, at the heart, are enabled because of a loophole that someone finds to exloit. I see no reason to think this is otherwise.

So Andrew keep up the debate it's a healthy one no matter the opinion. Just remember that the issue that matters most is not whether the law is relevant it's whether the motive was to exploit it.

9/5/08 3:02 PM  
Anonymous Anonymous:

This would be a great improvement to the current system. Having EC come up with some magical number everyone is allowed to spend, create rules on how such funds can be spent, and then vet everyone's expenses after the election seems pretty ridiculous and a total waste of time and effort.

12/5/08 10:22 PM  
Anonymous Anonymous:

"The issue is not whether or not "in and out" is legal."

Well, actually that is the issue.

"Unfortunately when it means using Canadian tax dollars to reimburse candidates for expenses they never really encurred is...well fraud. No if's ands or buts about it."

This is why they are going to court. The Tories claim the money was spent by local campaigns and EC says it was national. The fact that the Tories claim it was local means they are entitled to the taxpayers rebate. If the court sides with EC, the Tories give the money back. It's not some grand conspiracy to screw the Canadian taxpayer.

Also, it would actually strengthen your claim that this was fraud if the Tories hadn't claimed the local expenses since they would be all but admitting these were really national expenses (which would put them over their spending cap).

Perhaps the easiest way to deal with this situation is simply to abolish the taxpayer rebates to candidates (or maybe those running as candidates for national parties to level the field independents and small party candidates).

13/5/08 11:53 AM  
Blogger Jamie:

Actually there is no debate about whehter in principle "in and out" is legal. What is up for debate is the intention, the actions and the motives of the conservative party officials. Now typically this is harder to judge, except in this case the Conservative's own candidates are providing all the fire power needed.

No it is not as simple as a matter of interpretation over the law. And yes it is robbign the Canadian taxpayer. The national conservative party, organized an efficient, effective way of transferring their moeny into local campaigns to help the national ad buy. Everyone, from the candidates to the ad company said this was sketchy at best. It is simple ignorant to stand now and say that it is a matter of interpretation. Local candidates attempted to be reimbursed for money they never spent themselves, nor was the intention to benefit them.

This is a very creative way of looping the system - i would compare it to ENRON. Now don't get me wrong i voted Conservative int he last election, but this is disturbing when parralled with everything else i've seen from the Harper Conservatives. If anyone on the Hill should have known the EC rules it should have been Harper from his NC days battling with the EC.

This is wrong...the end.

Jamie

13/5/08 12:55 PM  
Anonymous Anonymous:

"Actually there is no debate about whehter in principle "in and out" is legal. What is up for debate is the intention"

OK, I thought you had reduced this to being guilty in the court of public opinion. My mistake.

As for intention, it's going to be a hard sell because the people you need to say it was sketchy is not the candidates or the ad company but the people who actually transferred the money from the local campaigns back to the national campaign.

Even if some of these people claim to think it didn't pass the smell test, as long as they knew what they were doing at the time they transferred the money, the national party can claim that the local campaigns knew they were purchasing into an ad campaign and, as a result, the local campaign made the expenditure.

It's sneaky. It's devious. It stretches the law to new levels. But at the end of the day, I suspect it is going to be determined to be legal.

Still, it's enough to make one's head spin, which is why I favour simply abolishing the spending limit altogether and controling how parties can fundraise.

13/5/08 4:18 PM  
Blogger Jamie:

I agree we are up a new creek with this one. I hwoever disagree with the end result in which you predict. That's fine. My logic leads me to believe that many of the candidates had no clue what they were buying and that is evident by their very own comments. Also others, like in BC, "bought into the local ad campaign" and quickly realized that it was nothign of the sort. It was completely national in scope. While they were in an immense battle witht he NDP, they're "local" ad money went to attack the liberals.

This was and never had anything to do wtih the local campaigns and i believe there is more than enough evidence (i'll be it very confusin evidence) to show that the local candidates had nothign to do with they're very own so called "local campaigns".

13/5/08 4:27 PM  
Blogger Wes:

AC, two flaws in your reasoning:

a) While it may be routine for the national party to provide services to local ridings, in this instance the national party was providing services to the national party using local money/campaign cap space.

b) Two clear benefits to the CPC: more efficient use of campaign spending space; large sums of election canada rebates that would not otherwise have been available

31/5/08 1:59 PM