Wildrose topped Progressive Conservatives in 2012 fundraising

EDMONTON – Alberta’s Progressive Conservative fundraising machine failed to bring in enough cash to cover its record-breaking election spending in 2012, as the Wildrose Party outmuscled the governing party for donations.

Annual financial statements posted by Elections Alberta Wednesday showed that both parties spent more in 2012 than they brought in. But the Wildrose topped the PCs in fundraising throughout the year, bringing in $2.8 million largely through smaller, individual donations.

The PCs, with a donor list weighted toward big corporate contributions, raised $2.3 million.

Under Alberta’s election finance laws, political parties must account for fundraising during the three-month window of an election campaign separately. So those millions of dollars are in addition to donations reported after the May 2012 election, where the Wildrose raised double the amount brought in by PCs.

Added together, the Wildrose raised $5.9 million in 2012 compared to the PCs $3.9 million.

Wildrose Leader Danielle Smith said she expects it will be unsettling for PC supporters to see their party out-earned by an opposition party.

“I feel very good about the fact we were able to get so much grassroots support during the election, and before and after, and I’m hoping we’ll be able to build on that for the next election,” Smith said.

Although the Wildrose spent more than they raised in 2012, the party still ended the year with $403,000 in the bank thanks to previous years.

The Progressive Conservatives, who started the year with about $2.9 million in the bank, ended with a $785,000 deficit. Party president Jim McCormick said the net liability posted on the annual financial summary does not reflect the party’s full financial picture.

“On a balance-sheet basis, we’re pretty good,” McCormick said. “On a consolidated basis, we do have some investments that we chose not to cash and on an operating basis, that is where the $700,000 odd comes.”

McCormick those investments have been reported to Elections Alberta. “We are not in the hole,” he said.

But McCormick said the party is pursuing new fundraising strategies in the hope of bringing in more small donations from individuals.

The PCs reported about seven per cent of their donations outside the campaign period came in increments smaller than $375. The Wildrose, meanwhile, received nearly 40 per cent of their contributions in small amounts.

“I think it’s fair to say that what we have done in the past is not what we are doing and will do in the future,” McCormick said. “We have to be and are being more proactive in seeking those smaller donations regularly.”

The Tories took in the maximum $15,000 in donations from Imperial Oil, Nova Chemicals, Sherritt International and Tervita Corp. Wildrose received $15,000 from several individual donors including former Encana CEO Randy Eresman, as well as two numbered companies and businesses Diversified Transportation, Namaka Farms and WKD Investments Ltd.

Energy sector companies donated to both parties, with each receiving donations from Cenovus, Encana, Suncor and Talisman, among others.

Prominent individuals pepper both parties’ donor lists. For example, Edmonton Mayor Stephen Mandel made a $475 donation to the PCs, while businessman Charles Allard donated $14,750 to the Wildrose.

Edmonton Oilers owner Daryl Katz, who along with family, friends and professional colleagues donated hundreds of thousands of dollars to the PCs during the 2012 election, did not make any contributions outside that three-month period, although $775 from Katz Group VP of communications Steve Hogle is listed in the PCs’ Wednesday disclosure.

A note in the PCs’ audited financial statements made note of the Chief Electoral Officer’s ongoing investigation of the so-called Katz donation, launched last fall after allegations that the party received the money from several people in a single cheque.

“As management is confident the Association has complied with the Act, no provision for any losses or potential refunds relating to this investigation has been recorded in these financial statements,” the financial statement said.

MacEwan University political science professor Chaldeans Mensah said the 2012 financial statements showed the Wildrose usurping the PCs traditional position as a grassroots fundraising machine which means the Tories cannot afford, politically or financially, to maintain the status quo.

“The numbers here indicate the Tories really have a lot of work to do not only to generate more funds, but also to demonstrate that they are able to convince members to make a financial commitment to the organization,” he said.

Duane Bratt, political science professor at Mount Royal University, said the PCs add to their vulnerability by showing a negative bank balance.

“You’re always going to be in deficit after an election because you spend a lot in an election, but not to this magnitude,” Bratt said, “I think there’s another political issue here and that’s the attack that the Wildrose is going to put on them, that they can’t run a balanced party and they can’t run a balanced budget. They’re going to equate the two.

Tory deputy premier Thomas Lukaszuk said he wasn’t losing sleep about the Wildrose’s fundraising prowess — or the state of his own party’s books. “Our fundraising is just fine. We’re not worried about finances,” he said.

“But this is not about money. This is about presenting Albertans with the right platform at the end of the day.”

The Alberta NDP reported donations of about $699,000 outside of the $517,000 raised during the election period and ended the year with a net debt of about $555,000. The party’s provincial secretary Brian Stokes said the financial statement’s reflect what the NDP expected going into an election year.

“We ran a very good campaign in 2012,” Stokes said. “We raised a lot more money than we raised in 2008. We came out with a debt we had budgeted for and we have a plan in place to retire that and most of the outstanding debt before the 2016 campaign.”

Liberal Leader Raj Sherman said he was satisfied with the $356,000 his party raised in 2012, in addition to the $150,000 donated during the three-month election window.

Sherman donated $13,600 to the Liberals as an individual and $7,000 through his professional corporation. “If I’m going to ask people to invest in the Alberta Liberals, I’ve got to put my money where my mouth is and I have to lead by example,” Sherman said.

The party ended the year with debt of $48,000, an improvement over $764,000 in debt on the books in 2004.

“I’m really proud of what Liberals could accomplish with such a small amount of money,” Sherman said.

With files from James Wood