Latest on 2006 Liberal Leadership Debts
Thanks to Glen McGregor from this morning's Ottawa Citizen, we learn that a judge in the Ontario Superior Court has, as expected, granted an extension in fundraising time to the remaining 2006 Liberal leadership candidates having outstanding loans on the books.
The candidates will have a further two years to raise the funds necessary to pay off their debts, and must file reports with Elections Canada every six months, as of March. This puts the new deadline at the end of 2011, presumably December 31.
The latest figures for their outstanding loan amounts were reported in the story as follows:
Put another way, the campaign spending limit in Mr. Bevilacqua's Ontario riding of Vaughan was $103,581 in the last election. His outstanding debt is 1.86 times that amount.
Further to the rules, which were amended for retroactive application to the 2006 Liberal leadership race, these funds must be raised from individuals who have not already donated their one-time maximum contribution of $1,100 to that particular leadership race.
To those unfamiliar with the background of this issue, the reason leadership candidates are given a deadline to repay loans they take out to run their campaigns, is that an unrepaid loan would otherwise constitute a campaign contribution, and there are limits on the size of campaign contributions to leadership campaigns under the Elections Act. Indeed this issue was flagged during the introduction of those Elections Act changes, but never resolved legislatively. Subsequent legislation intended to address the issue of loans, their size, and who they could be taken from, has died on the order paper.
The candidates will have a further two years to raise the funds necessary to pay off their debts, and must file reports with Elections Canada every six months, as of March. This puts the new deadline at the end of 2011, presumably December 31.
The latest figures for their outstanding loan amounts were reported in the story as follows:
- $395,890 [amount from June 3, 2008; his latest amount outstanding is not listed, as the story says he has been given until next year to pay it off] - Ken DRYDEN - June 30, 2010 deadline, but apparently already deferred to next year by the Chief Electoral Officer
- $193,133 - Maurizio BEVILACQUA
- $152,800 - Joe VOLPE
- $131,361 - Gerard KENNEDY
- $130,260 - Martha HALL FINDLEY
- $78,500 - Hedy FRY
- $40,000 - Stéphane DION
- $0 - Carolyn BENNETT
- $0 - Scott BRISON
- $0 - Michael IGNATIEFF
- $0 - Bob RAE
Put another way, the campaign spending limit in Mr. Bevilacqua's Ontario riding of Vaughan was $103,581 in the last election. His outstanding debt is 1.86 times that amount.
Further to the rules, which were amended for retroactive application to the 2006 Liberal leadership race, these funds must be raised from individuals who have not already donated their one-time maximum contribution of $1,100 to that particular leadership race.
To those unfamiliar with the background of this issue, the reason leadership candidates are given a deadline to repay loans they take out to run their campaigns, is that an unrepaid loan would otherwise constitute a campaign contribution, and there are limits on the size of campaign contributions to leadership campaigns under the Elections Act. Indeed this issue was flagged during the introduction of those Elections Act changes, but never resolved legislatively. Subsequent legislation intended to address the issue of loans, their size, and who they could be taken from, has died on the order paper.
Labels: Party Finance
posted by The Pundits' Guide at
5:21 AM
5 Comments:
Guess being a liberals means never having to pay off your campaign debts .
as i seriously wonder if leadership candidates for the other parties would of been given such long extensions over and over again .
Hi Anon,
We won't know until another major party has to run a leadership campaign under the same rules.
As I've said before, it's important to remember that the rules were changed in the middle of the process. In my experience with political organizers in all parties, if there's two things that drive them crazy, it's not having a level playing field, and having the rules changed in the middle of a process.
We don't really engage in partisan shots at this website. I do appreciate all comments, but people come here for the spin-free experience. One day another party is going to be down on its luck, and we won't kick them when they're down here either.
Thanks for reading.
I think it is anybody's guess what will happen when the next major party leadership race comes up.
Our 'model' is built on the campaigns spending a lot more than they can now expect to raise.
Budgeting for future leadership campaigns is going to be a wild exercise. Presumably folks will be doing numerous iterations of radically re-casting WHAT they do, because there isn't going to be remotely close to enough money for what they had in mind.
I'm sure the Conservatives will get endless pleasure out of saying the screws are not put to the Liberal contenders because of Elections Canada favouritism.
But ultimate enforcement of the rules in this case just is not feasible. This is one of the reasons Elections Canada has pleaded for MPs to eliminate or at least greatly restrict private loans.
I suppose, Ken, but how are candidates going to legally raise the seed money to launch their campaigns without being able to take out any loans at all. That's the part I don't get. Or are we saying that the banks get to decide who runs?
Good point PG.
I believe the tabled legislation simply banned all private loans.
Mind you, its already common that riding campaigns take out commercial loans for cash flow needs, that are signed for by a number of individuals. The individuals are on the hook, but the campaign is the borrower.
Leadership campaigns require larger loans, but the same thing could be done. And I would think this would still be possible under the tabled legislation.
But if it is, what would be the substantive difference over the individuals directly loaning the same funds themselves?
.
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