KLEIN: Stop forcing Manitobans to fund political campaigns

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Recent revelations about questionable financial practices within the Progressive Conservative Party of Manitoba (PC) have brought an urgent issue to light: the need for major reforms in election financing.

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These allegations, which point to potential misuse of taxpayer dollars, are symptomatic of deeper systemic problems that undermine public trust in our political system. While this controversy has centred on the PCs, the need for reform extends to all parties and candidates in Manitoba. It is time to re-examine how election campaigns are financed and put an end to practices that unfairly burden taxpayers and distort the democratic process.

Under the current rules, political parties and candidates in Manitoba are eligible for a refund from the government on a portion of their campaign expenses. This rebate is taxpayer-funded, with parties receiving up to 25% of eligible expenses back from the government.

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However, with an increase introduced by the New Democratic Party (NDP), this amount is set to rise to 50% for the next election. The stated goal of this change is to make it easier for people to run for office by reducing the financial barriers that often prevent individuals from entering politics. Finance Minister Adrien Sala defended the decision, arguing that it would encourage broader participation in the political process.

But let’s call this what it is: a taxpayer-funded subsidy for politicians. The idea that public money should be used to refund the campaign expenses of political parties is deeply flawed. Taxpayer dollars are meant to fund public services — not the ambitions of political candidates.

Former Premier Brian Pallister recognized this and sought to eliminate the rebate entirely, although he was only partially successful, reducing the rate from 50% to 25%. He was right. This rebate is an unfair and unnecessary subsidy that serves only to prop up political campaigns at the expense of the public.

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The recent allegations against the PCs make the dangers of this system clear. If the party’s financial practices are any indication, taxpayer money is being used without proper oversight or accountability. This isn’t just an issue for the PCs — every party that benefits from this rebate is subject to the same temptations and risks of mismanagement.

Taxpayers should not be on the hook for the costs of negative advertising or questionable campaign spending. Candidates and parties should be accountable to their members and donors, not to the public purse.

Election financing reforms need to address the growing influence of third-party advertisers. During the October 2023 provincial election, several unions engaged in their own campaigning, with the nurses’ union putting up lawn signs and billboards, and CUPE distributing flyers door-to-door.

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One particularly egregious flyer suggested that only PC Members of the Legislative Assembly received salary increases, when in fact all MLAs, including those from the NDP, saw their pay rise. This type of misinformation, funded by well-financed third parties, only serves to confuse and divide the electorate.

Third-party advertising has become a significant issue in recent elections, not just in Manitoba but across Canada. These groups, which are often tied to unions, corporations, or other special interest organizations, spend large sums of money to promote or oppose specific parties or candidates.

According to Elections Manitoba, third parties are allowed to spend up to $100,000 during the pre-election period and $25,000 during the election period. While this spending is technically capped, these limits are still substantial enough to give third parties undue influence over the political process. For example, in the last provincial election, unions such as the Canadian Federation of Nurses Unions, CUPE Local 500, and the Manitoba Teachers’ Society spent nearly $500,000 on election-related activities.

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This level of third-party spending is corrosive to the democratic process. It allows organizations with deep pockets to dominate the conversation, often drowning out the voices of regular citizens. Even more troubling is the fact that much of this third-party advertising is negative in nature, focusing on attacking political opponents rather than engaging in substantive debate. When third parties inject this kind of negativity into campaigns, it erodes public trust in the political process and contributes to voter cynicism.

Election financing reform must include a rethinking of third-party advertising rules. Currently, third parties are required to register with the Chief Electoral Officer once they incur more than $2,500 in election communication expenses. But after that threshold is met, they are free to spend up to the limit with little scrutiny. This needs to change. Third parties should not be permitted to advertise political issues during a campaign as it only contributes to misinformation and mudslinging.

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At the municipal level, we see similar problems with election financing. Developers and companies that regularly do business with city council often make large donations to candidates, knowing that their financial support could lead to favourable treatment in the future. This creates a situation where elected officials may feel beholden to their donors rather than to the public they are supposed to serve.

Even worse, The City of Winnipeg pays a portion of any donation back to donors — the public is essentially subsidizing the influence of private interests. This is an unacceptable use of public money and undermines the integrity of our democratic institutions.

The solution is clear: we need to eliminate the taxpayer-funded rebate for political parties and candidates, and we need to place stricter limits on third-party advertising. Manitoba’s political system should be based on accountability and transparency, not on who can raise the most money or who can spend the most on negative advertising.

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By eliminating the rebate, we would remove the incentive for parties to engage in wasteful spending, knowing that they won’t be reimbursed by the public. And by curbing third-party advertising, we can ensure that elections are fought on a level playing field, where ideas and policies matter more than money.

It’s time for Manitoba to lead the way on election financing reform. The recent allegations against the PCs have shown us what can happen when there is a lack of oversight and accountability in how campaigns are funded.

Let’s seize this opportunity to create a system that is fair, transparent, and truly reflective of the will of the people. Let’s restore public trust in our political process and ensure that our democracy remains strong for future generations.

— Kevin Klein is a former Tory cabinet minister, a former city councillor and President & CEO of Klein Group Ltd.

Have thoughts on what’s going on in Winnipeg, Manitoba, Canada or across the world? Send us a letter to the editor at wpgsun.letters@kleinmedia.ca

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