ElectionFinance.net

Yesterday in Nova Scotia, the ruling Tories introduced legislation that puts restrictions on political donations and introduces public funding for political parties. The legislation puts a cap on donations at $5000 per donor per party per year, encourages political donations under $1000 with a 75% tax credit (raising the maximum tax credit from $500), and pays the political parties annually at a rate of $1.50 per vote received in the previous election. Current legislation allows for candidates to the assembly who received more than 15% of the vote to receive reimbursement of electoral expenses, but does not provide public funding to parties.

The legislation fulfills a campaign pledge of the Tories from the election this past June and is expected to pass with the approval of the opposition. Analysts consulted by the Canadian Press (story from CTV news) think the limits are high enough not to disadvantage the Tories, who receive more larger contributions than the Liberals or the New Democrats, as would contribution limits set at the federal level ($1000).  

New Democrat critic Kevin Deveaux said his party would like to see the maximum contribution reduced to the federal level of $1,000, or even zero.

“Frankly that would absolutely level the playing field,” said Deveaux, adding the proposed bill still favours the Tories who tend to get more large donations than other the parties.

David Johnson, a political scientist at Cape Breton University, said that on the surface the Tories do appear to benefit from the proposed limit.

“But I would tend to think that once the parties adjust to the new rules that it’s probably a wash for all three of them,” he said.

The Tories might have been willing to accept some costs (lower limits) with the benefits they may reap from reform, but since there are currently no limits, there is not much reason for them to do so. Even so, a (Canadian) $5000 limit is modest by international standards, including those here south of the border.