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More central control: Chretien''s campaign finance bill further erodes public influence in federal politics.

Article Excerpt
BY JOANNE BYFIELD

Former U. S. vice-president Hubert Humphrey complained that fundraising for elections was a dirty, disgusting business. Whether he meant it was demeaning to grovel for cash from business buddies and colleagues, or whether he felt pushed to pander to those who filled campaign coffers, is unclear. Nevertheless, many politicians share the sentiment that there is no fun in fundraising. In Canada, collecting cash for campaigns could get much less "dirty and disgusting" if Prime Minister Jean Chretien has his way. He surprised his Liberal colleagues in January by introducing legislation to radically change election financing by next year. Bill C-24 would ban corporate and union donations to political parties and make up at least part of that shortfall by subsidizing party and election expenses through taxes.To a high degree, the individual choice to donate would be replaced by being forcibly taxed to support political campaigns.

The proposed changes have left politicians in the uncomfortable position of agreeing that changes are needed, that the perception that money buys influence is correct and that "public" funding levels the playing field. But at the same time, many, including a significant number of Liberal MPs, are scrambling to figure out how to quit corporate fundraising cold turkey in 2004, while in the meantime pushing businesses to kick in more cash before the end of the year.

The existing laws, which were revised in 1974, require candidates and parties to disclose donations over $200, but only during the period of the election writ, usually the four to six weeks leading to the election. Donations from corporations or unions are unlimited, and no disclosure requirements exist for riding associations or for nomination or leadership races. Individuals can get a 75% tax refund on donations under $200, and an additional rebate to a maximum of $500 on donations above $200. Moreover, candidates can set up trust funds to accept donations between elections without reporting amounts or donors. Candidates who pick up 15% of the votes cast in the election get reimbursed for 50% of their election

expenses, and registered political parties can get back up to 22.5% of their electoral expenses.

Elections Canada publishes the lists of donors to each party after each election. The lists from 2000...