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Carole James in Victoria, BC April 29, 2009.Deddeda Stemler For The Globe and Mail

A controversy over a political donation that has ensnared a government-appointed prosecutor has re-ignited a debate in B.C. over revamping election-financing laws.

New Democratic Party Leader Carole James says British Columbia should ban corporate and union contributions to politicians and political parties.

But Attorney-General Mike de Jong is less enthusiastic about endorsing any changes to the financing laws, saying in the past that he has not been in favour of using tax dollars to replace contributions from voters. The notion of people being able to donate to a party of their choice has been at the heart of the electoral system, he told reporters in Victoria.

The controversy erupted after special prosecutor Terrence Robertson abruptly resigned from an investigation after raising concerns about a perception of a conflict of interest. Special prosecutors are supposed to be independent.

Mr. Robertson had been appointed to decide whether criminal charges should be laid over allegations of election irregularities in the riding of former solicitor-general Kash Heed in the campaign for the May, 2009, provincial election. Mr. Robertson decided that criminal charges against Mr. Heed were not warranted, but charges should proceed against three campaign workers. His law firm, Harper Grey, had donated $1,000 to Mr. Heed's election campaign.

"How on earth could someone give a personal donation to a campaign they then investigate," Ms. James said in a phone interview Thursday. "I think the public certainly is more than scratching their head. I think they are angry."

Ms. James said she intends to introduce a private member's bill when the legislature resumes later this month that would ban union and corporate donations in provincial politics but allow individuals to contribute.

She was as much concerned about $1,000 as about "big money," she said. "[A donation of $1,000]adds to the perception of the public that some people have special access," she said. "I think if you move to individual donations, and took out the union and corporate donations, you level the playing field for everyone."

The proposal for election financing reform is part of a "good government" package that Ms. James has repeatedly promoted since she was elected in 2005. She has also advocated tougher conflict-of-interest rules and greater transparency.

Stricter conflict-of-interest rules are required "so you do not have friends of government putting forward reports as independent individuals when they are obviously not independent, if they have given donations," Ms. James said.

Political scientist Norman Ruff said restrictions on political contributions by unions and corporations "helps protect the democratic process and reduces the influence of money."

Rob Holmes, president of the B.C. Civil Liberties Association, said timely, open disclosure would be more effective than a ban on donations. "That way the public can see who is donating what to whom and when, and make their own judgments," he said.

A ban on corporate and union donations might not eliminate the problem, Mr. Holmes added. In jurisdictions where bans have been brought in, donors figure out ways around the restrictions by giving many small individual donations rather than one large corporation donation, he said. But the amount of money remains the same.

B.C. currently has no restrictions on political contributions. In federal elections, political donations are limited to $1,100 to a registered party, candidates, constituency associations and leadership contestants. Corporations, trade unions and associations are prohibited from making political contributions.

With a report from Justine Hunter

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