Liberals change the fundraiser rules

The federal Liberal party changed the rules on a fundraiser being held in Ottawa tonight. Originally, the Liberals were going to auction off things like a round of golf with former PM Paul Martin or lunch with Michael Ignatieff. The Liberal flyer advertising the event  with the “sky being the limit” and encouraging corporations and unions to bid as the purchase of an auctioned item was not going to be considered by the Liberals as a political donation. 

The Conservatives and others howled that the Liberals were trying to get around election finance laws that prevent donations from corporations or unions and limit individual donations to $1,100 a year. Bloc Quebecois leader Gilles Duceppe got a good zinger in by deftly linking in the Liberal sponsorshop scandal: “Je pense qu'ils sont passés de Groupe Action à Group Auction!”

Well, a purchase of those auction items will count as political donations, the Liberals have decided. Here’s Liberal spokesperson Elizabeth Whiting on the reasoning behind the change:

We didn’t believe that this fundraising activity contravene the Canada Elections Act.  We chose this morning to modify the auction rules to avoid any perception of wrongdoing or impropriety.  Only bids from individuals were to be accepted, and only to their maximum contributions.

In addition, it was our intention that, pending clarification from Elections Canada, proceeds from the auction would be put aside and would be returned or donated to a local charity should the auction be found to contravene the Canada Elections Act.

We have since gotten confirmation from Elections Canada that they consider donations of this kind in an auction to be contributions for the purposes of the Canada Elections Act. 

The Liberal Party of Canada respects the role of Elections Canada in applying and enforcing the Canada Elections Act and will, of course, follow all regulations.

This is in contrast to the Conservative Party of Canada who, when challenged by Elections Canada on their election spending practices, publicly smeared the Chief Electoral Officer and took the regulatory body to court.

Meanwhile, Whiting’s counterpart at the Conservative Party, Ryan Sparrow, quickly sent around this “Reality Check” trying to make the point that the Liberals should have know all along how auction items ought to be treated:

Strangely, while Liberals are holding their fundraising auction tonight in Ottawa, their own Deputy Leader previously said that auctions were indeed covered by donation limits!:

The facts:

• Michael Ignatieff Campaign Previously: “Please note that individuals can donate a maximum of $5400 to all leadership campaigns combined.  In additional, an individual can donate an additional $5400 to the Liberal Party of Canada or a riding association.  To qualify, bids must not exceed $5400 or any other amount that would disqualify an individual’s donation to the Michael Ignatieff Campaign.” (http://auction.michaelignatieff.ca/, August 28, 2006)
• Liberal Party Today: “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.” (Liberal Party Flyer for Eight Riding Cocktail to be held in Ottawa, February 13, 2008)
• Among the items up for auction tonight is lunch with none other than Michael Ignatieff
• Why would Michael Ignatieff participate in an event that he obviously knows was violating election financing rules?

And, the NDP’s Pat Martin, knowing a juicy target when he sees one, chimed in as well:

Well if they're willing to play by the rules, we have very little criticism.  That doesn't explain the fact that we no sooner plug one loophole than the Liberals are trying to find another.  I mean, they were clearly contemplating ways to circumvent the election financing laws and if we hadn't caught them, presumably that's what they'd be doing.  So you know, why do they only comply with the law when they get caught?  And how many of these, how many other fundraisers like this are going around, around the country that we don't know about.