Tomorrow night in Ottawa, eight Ottawa-area Liberal riding associations will hold a fundraiser. The fundraiser includes an auction, in which attendees can bid on the following:
- A round of golf for four with former PM Paul Martin
- Attend a Senators vs Canadiens hockey game in the company of Ken Dryden
- Tennis with Bob Rae and his brother John
- Lunch with Michael Ignatieff
- Lunch with Justin Trudeau
At the bottom of the flyer advertising this event, there is this paragraph:
“The sky is the limit during this auction! A successful bid is not a political contribution and is not eligible for a receipt for income tax purposes. Your successful bid will not affect your annual political contribution limit of $1100. As such, individuals, partnerships, corporations, and associations are free to bid as high as they want.”
The Conservatives say the promise in that paragraph is a violation of Canada’s Election Finance laws and today, Ottawa-area Conservative MP Pierre Poilievre sent this letter to Commissioner of Elections:
Dear Sir,
I have become aware of a Liberal Party of Canada Cocktail Event scheduled for February 13th boasts that “the sky is the limit for this auction. A successful bid is not a political contribution…as such individuals, partnerships, corporations and associations are free to bid as high as they want.”
This event raises serious questions surrounding the legality of the fundraising practices of the Liberal Party of Canada. I respectfully ask that you investigate whether or not this event complies with the sprit of the Federal Accountability Act and other federal political party fundraising legislation.
If you allow the Liberal Party to use these methods, you will have unilaterally repealed all of the campaign finance legislation passed over the last five years, and you will be reintroducing big money and corporate cash into our political process.
With the possibly of a federal election happening in the near future I hope that this matter can be dealt with great expediency.
The Liberals say they are breaking no laws and that, under the financing laws, they are allowed to sell items so long as they receive fair market value for those items. So, you can’t sell a $100 restaurant meal in a fundraiser for $1,000. You would then be making a $900 donation — the difference between what you paid and the fair market value (FMV). Liberal Party spokesperson Elizabeth Whiting continues:
The interpretation of donations correct and legal. All is being done by the book.
Goods and services provided by parties at Fair Market Value (FMV) are NOT donations. However, some goods purchased at an auction that have some unique value (ie an autograph), the FMV is what someone is willing to pay for it.
In most auctions, FMV is assigned to an item. Anything paid in excess of the FMV is considered a donation (paying 200 for a 100 dollar painting is a donation of 100).