Pubdate: Fri, 20 Dec 2002
Source: Globe and Mail (Canada)
Copyright: 2002, The Globe and Mail Company
Contact:  http://www.globeandmail.ca/
Details: http://www.mapinc.org/media/168
Author: John Ibbitson
Bookmark: http://www.mapinc.org/mjcn.htm (Cannabis - Canada)
Note: Cannabis reform listed as one of PM Chretien's other major issues

PM TO BAN DONATIONS BY UNIONS, COMPANIES

Political Parties Would Be Funded Through Government Subsidies

OTTAWA -- Prime Minister Jean Chretien will bring forward legislation to 
the House of Commons this winter that bans all corporate and union 
donations to federal political parties -- a move that could cost taxpayers 
more than $30-million a year -- despite fierce opposition from within his 
own caucus and party, a government official says.

And the Prime Minister is prepared to lead his rebellious party into an 
election if Liberal backbenchers join opposition parties to defeat the 
legislation.

If the government is defeated on a major bill then there would have to be 
an election, and the party has only one leader, the official, speaking on 
background, told The Globe and Mail.

Mr. Chretien is determined to proceed with electoral changes, which would 
drastically reshape the way parties raise money before an election, as part 
of a legislative program that would capitalize on his freedom to act in 
what he feels is the public interest without being personally concerned 
with the political consequences.

The government will also proceed with legislation to decriminalize the 
possession of marijuana, will tie health-care financing to specific 
spending priorities, and may well proceed with legislation that would 
permit same-sex marriages.

But the most contentious piece of legislation may be the electoral overhaul 
bill. Not only will it prohibit corporations or unions from making direct 
donations to political parties, but it will also make it illegal for 
individuals to make personal donations and be reimbursed by a corporation 
or union. And individual donations will be limited to a fixed amount.

To substitute for lost revenues, parties will be directly financed by 
taxpayers through government subsidies. Under one proposal, each party will 
receive a predetermined sum for each vote it earned in the previous 
election. Individual candidates for Parliament will similarly be prohibited 
from receiving corporate or union money.

The government is not prepared to reveal what the ceiling would be on 
individual limits, nor how much the total cost to the taxpayer will be. A 
parliamentary committee will debate the limits and formulas. The goal, 
however, will be to ensure that all parties receive public and individual 
funds equal to the corporate and individual financing they receive now.

In 2001, according to Elections Canada, all political parties combined 
received $31.6-million in individual and corporate donations.

The new hard line seems to contradict Mr. Chretien's assertion, made during 
year-end interviews earlier this week, that he sees his principal task as 
ensuring that his successor is well positioned to win the next federal 
election.

He is acting as a liberated leader who is not afraid to take on 
controversial issues and is prepared to act aggressively on what he thinks 
is the best public policy without concern for having to compete for future 
electoral advantage, the source said.

The government is also determined to introduce legislation shortly after 
the Commons returns in late January that will decriminalize the possession 
of small amounts of marijuana, and that will allow small quantities to be 
grown for personal use.

The government is also actively considering legislation that would permit 
same-sex marriages, a subject previously thought to have been moved to the 
back burner. Mr. Chretien has indicated he wants a full debate on the issue 
next year, the source reported, before making a decision whether to act.

Finally, in what promises to be an event-filled political winter and 
spring, the federal government will seek to ensure that any additional 
federal funds for health care be tied to particular services, in agreement 
with the provinces.

All of these initiatives are certain to be deeply controversial. But the 
one with the largest potential political fallout is electoral legislation, 
which Mr. Chretien promised in late November would be sent to Parliament in 
early December.

Word that corporate and union donations would be banned ignited a storm of 
opposition from within the government's own ranks. However, the government 
source said the Prime Minister has decided to proceed.
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MAP posted-by: Jackl