The leaders of two of B.C.’s biggest parties are responding to concerns about a potential loophole in the province’s political fundraising rules.
The BC NDP made major changes to political donation rules in 2017, outlawing donations from corporations and unions.
But while the regulations bar direct donations, they still allow parties to sell sponsorship to things like events or conferences.
“The act does not restrict a party from selling goods or services to another entity for a value at market value,” explained Jodi Cook, executive director of electoral finance with Elections BC.
“If property or services are purchased from a a political party for more than the market value, the difference between what they paid and market value is a political contribution — and if it was purchased by a corporation or a union it would be a prohibited contribution under the Act.”
The loophole concern arises from the fact that parties aren’t required to notify Elections BC about who is sponsoring an event.
That’s raised concerns that parties could sell the same sponsorship opportunity to various unions or corporations.
Premier David Eby said Thursday that his party had previously taken sponsorship money, but no longer does.
“There are some limited areas where there can be sponsorship. My expectation is we are adhering to everything. We have some of the strictest standards,” he said.
BC United Leader Kevin Falcon said his party has obtained sponsorships, but ensures they follow Elections BC’s “very tight restrictions” ensuring sponsors get the benefit of their money in the form of advertising.
However both leaders said they would be open to eliminating the provision.
“I would have no objection to that, but I think it’s important to point out that the person that actually brought in that legislation is the current premier when he was attorney general,” Falcon said.
“We are always willing to look at the rules and make changes to meet the obligations of keeping big money out of politics and being transparent,” Eby said.
Since the new election financing rules were introduced six years ago, they have had a significant impact on what was once labelled the “Wild West” of political fundraising.
In 2017, the BC NDP and then-BC Liberals raised a combined $16 million. Last year, the two parties raised just $6.5 million combined.
While the potential loophole remains in place, Cook said anyone concerned the process is being abused or the Elections Act has been breached should report it to Elections BC.
Comments