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Harper Government Strengthens Accountability for Political Loans
(Ottawa) The Hon. Steven Fletcher, Minister of State (Democratic Reform) along with Member of Parliament Steven Blaney moved forward today with the Government of Canada’s commitment to strengthen the transparency and accountability of political financing. “By strengthening the accountability of political loans our government is building on the principles of transparency and accountability enacted by our Government’s landmark Federal Accountability Act,” said Minister of State Fletcher. “This legislation is an important part of our Government’s agenda to strengthen accountability and democracy in Canada.” The proposed changes are fourfold: - The bill would establish a uniform and transparent reporting regime for all loans to political parties, associations and candidates, 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 and candidates, 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 2010).
- Only financial institutions (at fair market rates of interest) and other 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.
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 Newfoundland and Labrador. “Every day Canadians are expected to pay back loans and the same should apply to politicians,” said MP Blaney.“ Passage of this Bill will further strengthen our political financing regime, which is already one of the strongest in the world.”
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