David Gregoire near his home in Montreal on Nov. 23, 2010.John Morstad for the Globe and Mail
The Quebec government is slashing the maximum allowable contribution to political parties in a bid to eliminate fraud and restore public confidence in party financing rules.
Annual contributions from voters to a political party will be reduced to $1,000 from $3,000, and cheques will go to the province's Chief Electoral Officer, who will hand the money to the political parties.
The names of all donors will be made public. Current law requires only contributors of more than $200 to be identified publicly.
Moreover, the Chief Electoral Officer will get the power to cross-reference donations with Revenue Quebec income tax returns.
The Charest government said reform of the province's election law will address the concerns of the public over scandals and allegations of corruption. However, opposition parties want a public inquiry into the construction industry and irregular party financing methods.
"What we are doing is restoring people's confidence in the rules governing the financing of political parties. And if there is a burgeoning or prevalent cynicism, we have to take care of it with whatever means possible so that people can regain confidence ... in the financing rules," said Jean-Marc Fournier, the Minister responsible for the Reform of Democratic Institutions.
When Quebec adopted strict rules governing the financing of political parties in 1977, it was the first jurisdiction in North America to prohibit donations from corporations and other organizations in a bid to reduce the influence of companies, unions and other groups on the political process.
"It was probably the best system on paper, but the worst one in practice," said Laval University political scientist Louis Massicotte, who holds the Canadian research chair on democracy and parliamentary institutions.
A public inquiry in 2006 and several media reports since then have shown that some companies would have their employees donate to a political party and then reimburse them, a clear violation of the law.
"The Quebec system created the illusion that contributions were made by individuals when, in reality, they were corporate donations in disguise," Mr. Massicotte said.
The proposed legislation sets stiff fines for "corrupt electoral practices." The maximum fine for a first offence would be $10,000, and up to $20,000 for subsequent offences within five years. Convicted companies would be prohibited from bidding on government contracts for three to five years.
The proposal to reduce the maximum individual donation to $1,000 is identical to the federal limit, and was recommended by the province's Chief Electoral Officer, Marcel Blanchet.
"Limiting contributions to $1,000 it makes it harder for anyone to try to buy influence with politicians," Mr. Blanchet said. "But it may also mean less money from private donations and could require an increase in public funds allocated to each party."
Political parties in Quebec are allotted 82 cents for each valid vote received in a general election. Federal parties receive $2 per valid vote, and that amount is indexed to inflation, which is not the case in Quebec. Mr. Fournier indicated the province might have to increase the allowances to political parties if donations drop.
Based on 2009 figures, the Quebec Liberal party would have received nearly $1.5-million less in private contributions under the proposed changes. The Parti Québécois would have collected almost $275,000 less, and the Action démocratique du Québec almost $60,000 less.
The PQ had suggested limiting the maximum individual contribution to $500 a year, but said it would accept the government's proposal.
"What is important is that we send a message to the population that things must change," said PQ house leader Stéphane Bédard.
With the support of the opposition parties, the proposed changes should be adopted before the Fall session ends in two weeks, Mr. Fournier said.