New Brunswick

Dominic Cardy backs Justin Trudeau's call to end corporate, union donations

A suggestion by Prime Minister Justin Trudeau that provinces should stop allowing corporations and unions to donate to political parties is generating more enthusiasm from New Brunswick's NDP than it is from provincial Liberals.

Prime minister says provinces should follow federal lead and limit political donations to people

NDP Leader Dominic Cardy supports a suggestion by Prime Minister Justin Trudeau that corporations and unions shouldn't be allowed to make political donations in provinces. (CBC)

A suggestion by Prime Minister Justin Trudeau that provinces should stop allowing corporations and unions to donate to political parties is generating more enthusiasm from New Brunswick's NDP than it is from provincial Liberals.

"I think that`s an absolutely excellent idea from the prime minister," said New Brunswick NDP Leader Dominic Cardy.  "Other provinces have done this, it's time New Brunswick followed suit."

On Wednesday, Trudeau told reporters it was time for provinces to "shift their behaviour in a positive way" and allow only individuals to donate to political parties.

Federal parties have operated under those rules since 2006.

"I think banning union and corporate donations as we have done at the federal level is an important step that different provinces should consider," said Trudeau.

That would be a big step in New Brunswick.

Liberals, PCs get most corporate funds

In the 2014 election year corporations donated more than $1.5 million to the province's five political parties, 98 per cent of that to Liberals and Progressive Conservatives.

Unions donated another $80,000. Combined, the two injected more money into New Brunswick's political process than individuals, although by a slim margin of about $27,000.

NB Political Financing 2014 (All Parties)
Individuals $1,638,323.42
Corporations $1,584,633.37
Unions $80,419.23

Trudeau and Cardy both say that should end.

"The best way to ensure that we've got a democracy that's for the people and by the people is to make sure that the only people who can who can give money to political parties are citizens," said Cardy.

The idea has been gaining momentum. 

Last year, the Alberta legislature banned parties from taking corporate or union money and earlier this week Ontario Liberal Premier Kathleen Wynne, in the middle of a political donation controversy, announced her province will soon prohibit the practice as well.

But in New Brunswick, where corporate money has been a cornerstone of political fundraising for generations, the Gallant government is so far showing only mild interest in Trudeau's idea.

Governing party benefits

Corporate contributions are not only large and dependable in New Brunswick but they tend to benefit the party in power by a wide margin.

According to information audited by the office of New Brunswick's supervisor of political process financing, in the four years of the David Alward Progressive Conservative government, corporations donated a total of $3.5 million and directed 66.7 per cent of that to the Tories. 

Similarly, in the four years of the Shawn Graham Liberal government before Alward, corporations donated $3.9 million and sent 64.3 per cent of that to the Liberal party.

Finance Minister Roger Melanson says the government will look at ending corporate and political donations as part of a review later this session. (CBC)
The Gallant government is just beginning to enjoy that fundraising advantage and turning off the corporate money tap will be a difficult decision, although Finance Minister Roger Melanson says it is not out of the question.

"There were a number of platform commitments and other items relating to electoral reform and political financing which will be considered over the course of this mandate," said Melanson in a statement released Thursday afternoon.

"We will take a look at this idea as part of this exercise which will begin later this legislative session."

But as recently as February the New Brunswick Liberal Party held a successful fundraiser in Fredericton that likely attracted substantial corporate money.

It sold $400 tickets to a "business networking reception" with Maritime Liberal Premiers and federal Liberal cabinet ministers, along with tickets to a separate $250 per plate dinner.

Interested parties were also offered a discounted package deal for $500, a high-end event historically attractive to New Brunswick corporate donors.

ABOUT THE AUTHOR

Robert Jones

Reporter

Robert Jones has been a reporter and producer with CBC New Brunswick since 1990. His investigative reports on petroleum pricing in New Brunswick won several regional and national awards and led to the adoption of price regulation in 2006.