Survey of Chief Executives Suggests Broad Support for Reform of Political Party Financing

February 7, 2003

A survey of the members of the Canadian Council of Chief Executives (CCCE) shows broad support among the heads of major Canadian corporations for measures to reform the financing of political parties. However, the responses also suggest some concern with certain aspects of the federal financing reform legislation introduced last week.

“In the public and private sectors alike, good governance matters, and any perception that corporate donations to political parties buy access or influence policy undermines public trust in both business and government,” said the Council’s President and Chief Executive, Thomas d’Aquino.

Responses to the survey suggest a strong consensus on the need for full disclosure. Fully 90 percent of respondents agreed with the statement: “All contributions for a political purpose (in cash or in kind, to parties, riding associations or leadership campaigns) should be reported publicly.”

By a margin of two to one, respondents also agreed that donations from corporations and unions and from individuals should be capped at a “reasonable” amount, defined in the survey as between $1,000 and $10,000 a year.

However, they disagreed, by a margin of four to one, both with an outright ban on corporate and union donations and with the notion that small businesses should be exempted from any general ban on corporate donations.

On the question of how parties should replace revenue lost because of a cap or ban, more than 90 percent agreed with the principle that political parties should continue to be supported primarily through voluntary donations. To this end, two thirds of respondents supported an expansion of the federal political contribution tax credit.

By a margin of four to one, however, they disagreed with the idea of new subsidies from general tax revenues based on indicators such as popular support in the previous election, and said parties should instead work harder to broaden their base of support.

The survey was sent to members of the Council before the tabling of the federal legislation, but the responses to the issues of principle raised by the survey suggest considerable support among business leaders for much of the government’s bill, said Mr. d’Aquino. “I sense strong support for moving ahead with reforms to the financing of political parties, but there is clearly a need to consider carefully some of the fine points when the bill is examined in detail at the committee stage.”

He noted in particular a concern over the provision that limits corporate contributions to $1,000 per year to riding associations. “This appears to allow a local corporation to donate the full amount within its riding, but to restrict an enterprise operating coast to coast to a contribution of a bit more than $3 per riding, an amount that may unnecessarily restrict participation in the democratic process,” said Mr. d’Aquino.

The CCCE, composed of the chief executive officers of 150 leading Canadian corporations, was known as the Business Council on National Issues until late 2001. Its members head companies that administer in excess of $2.1 trillion in assets, have annual revenues of more than $500 billion and account for a significant majority of Canada’s private sector investment, exports, training and research and development.