On September 4, 2011, a letter to Elections Canada, dated September 1, was released to the media. The letter, written by Arthur Hamilton, a lawyer for the Conservative Party of Canada, seeks an investigation into whether the federal NDP violated the Canada Elections Act during their last convention. The convention was held in Vancouver last June.
Hamilton was quoted as writing, "It appears that the NDP has received what the Commissioner of Elections Canada has deemed to be contributions in contravention of the Elections Act." He went on to write that questions surrounding the allegations and the interpretation of the provisions of the Act are of "significant interest to all political parties."
Allegations Against the NDP by the Conservatives
The signage that appeared during last summer's convention, that celebrated the 50th anniversary of the party, contained the names of several unions including CUPE, the UFCW and the Machinist Union. The presence of these names around the convention hall leads to the possibility that the unions were "sponsoring" the convention. If this is true, the sponsorship could be a violation of the Canada Elections Act.
But, the mere presence of the union names does not necessarily lead to the conclusion that the unions made illegal campaign donations to the New Democrats.
What the Canada Elections Act Says
Under the Canada Elections Act, only individuals can legally contribute to registered political parties. Corporations, unions and other associations are prohibited from doing so. These contributions are not restricted to the payment of cash but include donations of goods or labour to a registered political party.
There are also specific provisions dealing with corporations, unions and associations sponsoring such activities as conventions or other events held by registered political parties. They are banned as well under the Act.
However there are exceptions to these rules. If there were not, political parties could never deal with corporations, unions or associations in the day to day running of the party. For example, a political party holding a convention could not rent a hall if the renter of the premises was in fact a corporation.
Corporations, unions and other associations can provide goods and services to a registered political party provided they are paid for those goods and services at commercial or fair market value. Entities that are banned from making political contributions are also allowed to sponsor political events such as a dinner or a convention, provided the sponsorship is done for what the Act says is "commercial value."
What the NDP and the Unions Say
Heather Wilson, the NDP's fundraising director, was quoted in the Toronto Sun as saying, "It is a bit rich coming from from the In-and-Out [Conservative] Party. All the rules have been followed by the NDP... Advertisements and sponsorships at fair-market-value is allowed by the law. Elections Canada is fully aware of this practice."
On September 4, one of the unions that sponsored the NDP convention, the United Food And Commercial Workers Union (UFCW) issued a press release condemning the Conservatives from seeking an investigation.
Wayne Hanley, the national president of Canada's largest private sector union said, "The Conservative Party is well aware that advertisements at fair market value are allowed." He went on to add that the UFCW followed the law.
Hanley also accused the Tories of going after organized labour a few days before Labour Day.
Elections Canada will investigate as to whether the sponsorships of the NDP convention were made at fair market value or whether there were payments that violated the Canada Elections Act.
Arthur Weinreb - Weinreb is an author, associate editor and columnist with Canada Free Press and the Canadian Affairs Feature Writer for Suite 101.
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