Rachel Notley waves to the crowd while riding a horse during the Calgary Stampede parade in Calgary last year.Todd Korol/Reuters
In the space of 41 days last year, the Alberta NDP ended two political eras that had seemed immortal. The first was the four-decade reign of the Progressive Conservative Party, in the general election on May 5. The second was the province's "pay-to-play" political culture, on June 15, when the oven-fresh NDP government banned political donations from corporations, trade unions and employee organizations.
For years, corporate money had flowed into the coffers of the P.C. Party like crude from a gusher. From 2008 to 2014, the party collected $19.5-million, according to Elections Alberta. Well over half of that came from corporate donors, many in resource industries subject to the regulatory hand of successive P.C. governments.
During the same period, the NDP raised just $5.5-million in donations, with only a fraction of it from businesses. The province's new left-wing government had an obvious interest in ending corporate and union donations – and to its credit, it ended them almost immediately. But, for some puzzling reason, it stopped there. As a result, Alberta's system is still very much broken.
Individuals can still donate up to $15,000 a year to a party, and the same amount again during the campaign period around Alberta's fixed-date elections. They can also give up to $10,000 to candidates, to a maximum of $2,000 per candidate, outside the campaign period. As well, donors can give $15,000 per year to third parties that advertise in elections, and an extra $15,000 during the campaign period.
These exceptionally high donation limits make a mockery of the goal of ending corporate and union donations. A small group of wealthy people with a direct stake in corporations doing business in Alberta could easily donate hundreds of thousands of dollars to a party. The average person, for whom a $100 donation would be a sacrifice, is left in the dust.
To create an even playing field, the NDP government must lower the individual donation limit to $1,000 or less. It also needs to limit third-party advertising and party spending outside of campaign periods. And it needs to limit spending in leadership campaigns – right now, there are no limits. Until it closes those loopholes, the NDP's election finance reforms will be mostly decorative.
Note to readers: This editorial is part of a series examining party finance laws in every province and in Ottawa. Next up: Saskatchewan