12.06.2008

What Price Democracy?

In minimizing Harper's responsibility for precipitating this constitutional kerfuffle (is that better Paul?) Conservative supporters have argued that Opposition parties are being churlish for resisting government efforts in the current downturn to economize by cutting $30 million in spending through the elimination of the $1.95 per vote payment that each party who receives over two per cent of the popular vote in an election gets annually to pay for operating costs.

Some have even referred to the program as "political welfare".

The payments were instituted under the Federal Accountability Act that received Royal Assent in December 2006. They were part of a finance reform package that excluded unions, corporations and other groups from making contributions to political parties and candidates, and placed a cap of $1100 on the amount individual Canadians could contribute. The Act was designed to curb the type of influence peddling that is so prevalent in the U.S., where wealthy individuals, corporations and other third-party interests, through hefty contributions, reduce politicians, the supposed representatives of the people, to the status of puppets.

Yes, following the results of the last election, it would have been the Conservatives who took the biggest hit. Having garnered 5.2 million votes, they would have lost $10 million in payments. With 3.6 million votes, the Liberals would have lost $7.7 million. The NDP, with 2.5 million votes, $4.9 million. Bloq Quebecois--1.4 million votes, $2.6 million. Green Party--937,613 votes, $1.8 million.

But they're better at attracting donations from upper-income Canadians, the Conservatives would have been hit much less severely. At present, the federal funds represent only 37 per cent of Conservative revenues.

For the other parties the figures are Liberals--63 per cent; NDP-- 57 per cent; Bloc-- 86 per cent; and Greens-- 65 per cent.

Do you think Harper and Flaherty were unaware of this when they included the cut in the fiscal update? And for those who worship at the altar of the free market, keep in mind that the private contributions that the parties, particularly the Conservatives, receive, are also heavily subsidized by the public purse through the income tax credits that contributors get-- 75 per cent on the first $400, 50 per cent on the next $350 and 33.3 on the amount over $750. That translates into a subsidy of $590 on a $1100 contribution.

If we lived in a dictatorship, we wouldn't have to worry about political parties, and where they get their funds from. Judging from the events of the past two weeks, that might well appeal to some people.

Me? I'll take democracy.

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