Notley’s NDP should ban corporate and union donations in municipal elections

One of the main promises made by the NDP before their win in the May 2015 provincial election was a commitment to ban corporate and union donations in provincial politics.

Current campaign finance laws allow individuals, corporations and labour unions to donate a maximum of $15,000 per year to a provincial political party in a non-election period and a maximum of $30,000 during an election period. The previous governing party, the Progressive Conservatives, relied heavily on corporate donations to fill their coffers but the new governing New Democratic Party and official opposition Wildrose Party have cultivated large individual donor bases that contribute smaller donations so they do not rely on larger donations.

The NDP should not limit the ban on corporate and union donations to the provincial level, they should also ban corporate and union donations in municipal elections. The provincial legislature approves the law that governs municipal election financing, which allows corporate, union and individual donations up to $5,000 during an election year. The provincial law also allows for an odd exemption that individual municipal candidates can contribute a maximum of $10,000 to their own campaign.

Research compiled by the Edmonton Federation of Community Leagues in June 2014 found that in Edmonton’s recent municipal elections: (1) the most successful fundraiser was the victorious candidate in 100% of ward races; (2) successful candidates raised an average of three times more money than the second place candidate in their respective race, and four times more than all other candidates combined; and (3) on average, successful candidates received more than five times the number of donations be- tween $101 and $4,999 than other candidates, and close to triple the number of $5,000 donations (the maximum contribution).

‘The EFCL is concerned that some of our most dedicated and qualified potential public servants are getting priced out of office. It is also concerned about council members being placed in difficult situations, when the majority of the donations are coming from companies and unions that have a direct interest in decisions made by city council.’ – EFCL

Along with eliminating corporate and union donations, the NDP should also impose a cap on the total amount a candidate or campaign can spend during a campaign. While there are currently no rules, in 2010, Calgary mayoral candidate Naheed Nenshi pledged to cap his campaign’s spending at $0.65 per resident.

The EFCL also wrote in their report that municipal candidates elected to Edmonton’s 12 councillor positions raised more than $80,000 on average in 2013, including three who raised more than $100,000 and two who raised less than $50,000. The most successful fundraiser was the victorious candidate in 100% of the ward races and successful candidates generally raised three times more money than the second place candidate. Many of these donations came from corporations and unions, including building developers who have a special interest in currying good relationships with municipal councillors.

In a recent op-ed in the Edmonton Journal, Public Interest Alberta‘s Larry Booi called on the new NDP government to institute campaign spending limits, lower contribution limits to $1,200 per year, impose much stronger rules on disclosure of contributions and spending and extend the rules on contributions and spending to cover party leadership and constituency contests. While Mr. Booi’s column focused on provincial campaign finance changes, there is no reason why they also cannot be extended to municipal election campaigns.

While the rules governing third-party campaigns in provincial elections are problematic, the provincial government needs to lay out fair rules governing financial disclosures and amounts that third-party campaigns and lobby groups can spend influencing voters in municipal elections. There are already plenty of examples of wealthy individuals attempting to advance their political agendas by supporting unaccountable lobby groups, as was the case with Calgary’s infamous Sprawl Cabal‘s plans to throw more than $1 million behind Preston Manning‘s “Municipal Governance Initiative,” and the anonymous donors behind the shady ‘St. Albert Think Tank.’

The province needs to create a formal enforcement and investigation mechanism to respond to complaints about potential breeches of the municipal campaign donation laws. In one case, both the City of St. Albert and the provincial government refused to verify the candidate financial disclosures or enforce them after complaints were made by members of the public.

“My role as returning officer is to receive the submissions that candidates provide … and to make them publicly available and that’s really the extent of our role in this process,” a St. Albert’s returning officer told the St. Albert Gazette in 2014. If the municipalities will not enforce the provincially-imposed laws, then the provincial government should create an organization that will.

Premier Rachel Notley and Alberta’s new NDP government have pledged to ban corporate and union donations in provincial politics, and they now have what could be a once in a lifetime opportunity to clean up election finance laws in Alberta’s municipal elections as well.

Parkland report calls for political finance reform

The University of Alberta-based Parkland Institute released a new report this morning, Ending Pay to Play: The Need for Political Finance Reform in Alberta: “Given the consensus that exists between the government and official opposition to ban corporate and union donations, it should act immediately to do so. While this in itself would be a major victory for democracy, it is crucial that the government does not stop there, but rather works to fundamentally reform Alberta’s political culture in the public interest.”