Businesses see no harm in financially supporting municipal campaigns
Monday, October 20th, 2003
Winnipeg Free Press
By Mary Agnes Welch
BIG developers, construction companies and real estate firms dominate a list of city council campaign donors, prompting calls for new rules governing municipal elections.
Donors to the mayor and councillors during last October's civic election include Shelter Corp., Sunrex Property Services, Ladco Co. Ltd., Chartier Property Management Inc., PCL Constructors Canada Inc. and the Asper family.
In several cases, a corporation donated the maximum allowed by the city's election bylaw while the companies' owners did the same.
The single-source donation limit for mayoral candidates is $1,500; for councillors, it's $750.
City business leaders argue they are exercising their right to participate in local democracy, a right enshrined in the city's election bylaw. But some councillors and political scientists say it's time municipal election rules include a ban on corporate donations -- or at least a better way to limit gifts from a single source.
For provincial politicians, new legislation bans union and corporate donations and caps individual gifts, in part to stop candidates from "double dipping" -- accepting cash from a corporation and from the corporation's individual owners and senior staff.
For federal politicians, new laws cap corporate donations at $1,000."We should align municipalities with the best in Canadian legislation and practices," said Raymond Hebert, a political studies professor at the College Universitaire de St. Boniface. "There is no reason why municipal politicians shouldn't come under the same limits."
Coun. Mark Lubosch goes one step further. He said he would like to remove any hint of conflict by funding campaigns entirely by public money, perhaps by giving $10,000 to candidates who meet strict eligibility requirements.
But, Loren Remillard, spokesman for the Winnipeg Chamber of Commerce, said banning corporate donations limits access to democracy.
The chamber has no formal policy regarding campaign finance reform, but it does encourage its members and the public to donate to candidates and vote.
"What needs to be remembered is regardless of where the money comes from, it's individuals who put the X beside a candidate's name, and that's where the real power resides," he said. "It's probably more a matter of optics. Does (banning corporate donations) really address the issue of influence?"
According to campaign expense forms on file in the city clerk's office, no candidate exceeded his spending limit in last year's civic election. And, most candidates raised most of their cash from donations of less than $250.
Donors who give more than $250 must be listed by name in audited financial statements filed after the election, but most councillors, including Harry Lazarenko, Peter De Smedt and Mark Lubosch, had fewer than four or five big-dollar donors.
Still, the statements filed by candidates such as Coun. Garth Steek and, most notably, Mayor Glen Murray, included star-studded lists of deep-pocketed donors.
As part of a pledge he made years ago, Murray makes public the list of all 163 donors, including those who gave less than $250.
Many, including several members of the Asper family and some well-known developers, gave $249. And, some companies donated several times under different monikers.
* Sunrex Property Services Ltd. and the Sunrex Corp. each donated $1,500 to Murray. Sunrex owner John Bryk also donated $1,000. When contacted, Bryk said only that he is a wholehearted supporter of the mayor. Sunrex has condo and apartment complexes on Wellington Crescent.
* There are 11 donations of $249 from members of the Borger family, companies that appear to be Borger family investment firms or from Ladco Co. Ltd, the family's development company that helped build Royalwood, Southdale Estates and Windsor Park. The total is $2,739.
Ladco president Allan Borger Jr. said his aunts, uncles, cousins and siblings are simply exercising their democratic rights, and prefer to do so with a modicum of privacy.
"I obviously can't speak for all members of my family, but I know they are deeply concerned about the city, and they support a number of charitable organizations and arts groups and they support the democratic process," he said. "Should people who do business in this city be precluded from participating in the democratic process?"
He also said it's ridiculous to suggest that a few hundred dollars can buy influence on council.
City hall has always been dogged by the perception that it marches to the beat of developers, according to political scientists. But, said Hebert, real examples of conflict of interest are rare.
"There's always been a rap against city hall that they are too pro-development," said Hebert.
"It would be hard to find outright cronyism, but it's more a matter of councillors being more sensitive to their requests."
Murray said it's silly and cynical to think a donation, even a relatively big one, buys a politician's loyalty.
"If a politician had a price, and I don't, it would be higher than $1,500," said Murray. "I couldn't even tell you who my major donors are. I haven't even thought about it."
Murray is cold to the idea of banning corporate donations, but said he favours eliminating the $250 rule. Every donation to council and mayoral candidates should be public.
"The best defence is complete transparency," said Murray.
Garth Steek, during his brief mayoral campaign, took $10,000 in donations over $250, many from plumbing, painting and ventilation companies.
Among Steek's contributors is Paul Albrechtsen, one of Winnipeg's wealthiest men and the owner of one of Canada's biggest trucking firms. Albrechtsen's hauling company, Paul's Hauling Ltd. also donated $1,500.
City Clerk Richard Kachur, council's ethical expert, said he has never encountered a conflict of interest stemming from a corporate campaign donation in his time at city hall.
Bill Treytiak, the city's arms-length campaign expenses and contributions officer, said it's impossible to draft foolproof campaign finance legislation.
Prohibiting corporate donations does not preclude a company's owner and senior staff from giving, and it's unfair to ban people from the some household from donating, he said.
maryagnes.welch@freepress.mb.ca
Who spent how much
THE following numbers detail who spent how much on the last election. Spending limits for councillors are based on 75 cents per voter, which amounts to between $19,000 and $29,000, depending on the ward. For mayoral candidates, the limit is 30 cents per voter or about $147,000.
MAYOR
Glen Murray
Spent $187,339, yet did not exceed his limit because roughly $40,000 was spent hosting six fundraisers and guideline say money spent to raise campaign funds does not count towards the limit.
A total of 23 per cent came from companies and individuals donating more than $250.
Al Golden (runner-up)
Spent $72,959, almost half his spending limit
Had no fundraisers and listed no contributions. All campaign money came from his pocket
COUNCILLORS
John Angus -- St. Norbert
Spent $21,462
Bill Clement -- Charleswood-Tuxedo
Spent $22,096
Peter De Smedt -- St. Charles
Spent $13,624
Jae Eadie -- St. Charles
Spent $8,402, more than a quarter of which was leftover from the last election.
Jenny Gerbasi -- Fort Rouge
Spent $18,548
Harry Lazarenko -- Mynarski
Spent $17,181
Mark Lubosch -- North Kildonan
Spent $9,306
Mike O'Shaughnessy -- Old Kildonan
Spent $25,634
Mike Pagtakhan -- Point Douglas
Spent $20,962
Harvey Smith -- Daniel McIntyre
Spent $16,635
Garth Steek -- River Heights - Fort Garry (ran unopposed)
Spent $9,818
Gord Steeves -- St. Vital (ran unopposed)
Spent $9,725
Lillian Thomas -- Elmwood
Spent $11,538
Dan Vandal -- St. Boniface (ran unopposed)
Spent $5,139
Russ Wyatt -- Transcona
Spent $16,776
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