Frances Bula header image 2

Is a ban on corporate and union donations going to create new problems?

May 11th, 2010 · 6 Comments

My colleague (and, I note, fellow why-don’t-we-read-lists-of-corporate-donations-in-our-free-time type person) Sean Holman put up this thoughtful post today, thinking aloud about the ways that corporations and unions will be able to get around any new limits on political donations.

I do tend to agree with one of his posters, that it’s very unlikely that a company or union could require any members or employees to donate. They could strongly encourage them and likely a certain band of the faithful would do so. Enough to match the $770,000 that CUPE alone contributed to Lower Mainland municipal campaigns in the last election? I don’t think so.

My quick two cents of analysis on this is that it’s likely to benefit the developers more. They’re more numerous than the half dozen unions that get involved in civic politics unions and they’ve got all kinds of people working for them — architects, marketers, lawyers, designers and so on — who might be sensitive to understanding which political party their boss and rainmaker thinks is more advantageous for them.

Some might say good to the severe curtailment of union donations. But I’m hearing a lot of anti-developer talk out there these days. For those who are worried about developers having sway at city hall, what will be the counter-balance then to ensure that, once again, it’s not all developer dollars talking?

I’m not one, by the way, who has much patience with those who think that city councillors’ votes are likely to be swayed by $1,000 from this developer or that one. I’ve never been able to understand the kind of mind that thinks a councillor would sell his or her vote for that kind of money — which they don’t even get, by the way. It all goes into some party fund to pay off the last election’s polling bills or the next election’s billboards.

What I do think is more likely to intrude into the mind of any party or councillor who wishes to be more than a short-lived shooting star in the political firmament is not the donation of a single developer. It’s the cumulative effect of a whole sub-group that donates.

When city council ponders whether to bring in some decision that annoys a single developer, do you think they’re that worried? No. There’s another $10,000 where that one came from.

What they’re more likely to hesitate over is a rule or policy that annoys the whole herd of developers who’ve donated to them. That $1 million won’t come around again so quickly. The same is true on the union side.

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  • Bill Smolick

    Stop offering the tax credit to corporations for donations. See what happens. They’ll dry up.

    Right now they get back 80% of what they donate on their tax returns, effectively meaning that we the tax payer are funding their donations in large part. Get rid of the credit and suddenly donations cost what they cost. If CUPE wants to donate $770,000 great. Right now the actual cost of that is less than $200,000.

    You could leave it in place for individuals but keep current donation caps (or put more aggressive ones in.) I’ve no problem with citizens who want to donate, but I do have a problem with treating corporations as citizens. They are not.

    Political parties are not charitable organizations.

  • Brenton

    Bill, as far as I know municipal donations don’t qualify for the tax refund.

  • Neil Monckton

    Hi Frances,

    Think City would say the answer is yes and no.

    Yes, if a ban on union and corporate donations is the only reform Minister Bill Bennett’s task force recommends to the legislature on May 30.

    No, if a thoughtful mix of public funding, spending caps and contribution limits that seek to diminish big money influence on local elections are put before MLAs for consideration.

    For more on local campaign finance reforms, see our latest posting on some of the main options that the task force should consider:

    http://www.thinkcity.ca/node/263

    Or, if you want to add your voice to the thousands of citizens who want reforms to how we pay for elections, take our latest survey here:

    http://www.surveymonkey.com/s/campaign_finance_survey

    Cheers,
    Neil

  • Paul C

    Why not just change the rules. So that only an individual person can contribute to a party. Also maybe make it so that each individual is only allowed to contribute up to a certain maximum. Lets say $1000 to one party. If they would like they can contribute more, but it would have to go to a different party. This is per year of course .

  • blaffergassted

    The idea of banning all political donations is over-reaching, and would only make it more difficult for new voices/parties to get into government. (Besides, it might increase the tax rate!)

    I tend to agree with the commenters!

    1 – Ban all corporate, union, charity/non-profit/association donations to political parties.
    Give politics back to the people, says my radical self!

    2 – Limit individual donations to something reasonable – say $500 per non-election year, and $1,000 total per election year. (My personal record was $50, and that candidate didn’t even win his party’s nomination);

    3 – Make all political donations public – not just those made during the official ‘election window’ (this is for civic campaigns); and

    4 – Give smaller tax deductions for political donations – say 10 per cent below – than for charitable donations.

    Of course, any change will cause new and unforeseen problems … political parties always try to skirt the rules to gain an unfair advantage.

  • G. deAuxerre

    So if the people in the development community donate to people and parties that support new housing, new buildings, and rehabilitated, converted or re-adapted spaces, you tend to get that kind of stuff. Your house, your shop, your office, your entertainment place was built by the development community, but all at their risk. When a project falters financially, it eventually gets finished, and the muncipality gains another building, which gains them taxes, and people gain spaces

    But if a civic union donates huge sums – as happened recently – which are sourced from union dues, which are sourced from high taxes paid by homeowners and business operators , what do we all get in return?

    If you’ve found evil in both of those groups, well just pick the lessor.