Holes in the new local elections financing act give an advantage to incumbents. That’s not necessarily in the public interest.
SOON AFTER the BC NDP formed the government in 2017, they delivered on some promises around election financing for both provincial and municipal elections. On the announcement regarding local elections, everyone seemed happy. News reports from that fall quote multiple politicians and organizations like the Union of BC Municipalities, not to mention Minister of Municipal Affairs Selina Robinson, saying it’s about time to get money out of politics, to end the Wild West reputation we’d earned, and level the playing field.
Chief among the new rules were, first, a ban on donations from corporations and unions, donations that in the past often fuelled many campaigns; and, second, a cap of $1,200 per year for individual donations.
I assumed such regulations would rein in the campaigns of higher-spending candidates and level out the playing field somewhat.
I was wrong. And it appears the government knows that more needs to be done. Even before last October’s civic elections, when it became clear there were some big holes that money could still flow through, Minister Robinson was already promising to review the rules.
All candidates had to submit their disclosure reports on their campaign donations and expenditures by January 18. They were posted at Elections BC soon thereafter. Somewhat surprisingly, there has been no analysis in local media, at least that I could find.
I suppose the new regulations have helped, but seasoned political operatives have, by the looks of it, found ways to play by the new rules while still drumming up lots of money to promote their candidates.
Let’s look at Mayor Helps’ disclosure statement as an example of what can be done within the rules.
The new formula upon which campaign expense limits are based resulted in Helps being limited to $54,121.50. (The formula is $1 for each resident in the municipality up to 15,000 and then $.55 for each additional person.) Helps spent $52,611 during the campaign period, so was within the limit.
Lisa Helps (right) outspent Stephen Hammond (left) 4 to 1 in winning the Victoria mayoralty contest in October 2018
However, the “campaign period” only covers the month before voting day. During the “election period,” which runs from January 1 to “the 29th day prior to voting day” (nine months), she spent an additional $51,359. Or $103,970 in total—quite a bit more than the $88,564 she spent in the 2014 election. There is no limit on how much a candidate can spend during the “election period.”
Elections BC Communications Coordinator Melanie Hull told Focus, “The expense limits apply to campaign period expenses only.” Candidates had to record their donations starting January 1 of the election year, but spending limits didn’t take effect until the official campaign period began on September 22.
This timing loophole favours incumbents who know they will run in the next election. Hypothetically, the new rules would allow unlimited lobbying for donations during the period an incumbent was still in office and making decisions. That incumbency could attract potential donors. Money raised early on could be spent, for example, on staff dedicated to fundraising and/or on a long-term social media campaign. Based on the description of Helps’ heavy spending during the “election period” in her disclosure form, she could have had a fundraiser and robust social media campaign well ahead of the campaign period. These days, that’s a big advantage.
As it turned out, Helps’ spent a surprising amount of money for each vote she received. Her nearest competitor, for instance, was Stephen Hammond. He got 8,717 votes, compared to Helps’ 12,642 votes. So Helps spent $8.22 per vote, while Hammond spent $2.20 (he spent a total of $19,143, including $3,716 for his own campaign and $15,427 from newcouncil.ca, an electoral organization). On a per-vote basis, Helps spent about four times what Hammond did.
Other mayoral candidates in Victoria also spent far less than Helps. In a weird sort of way, it’s reassuring that even with all the funds at her disposal, all her experience and name recognition, she still earned only 44 percent of the votes for mayor. While the money strengthens a campaign, and definitely makes for an uneven playing field, spending a lot more money may have diminishing returns.
It’s also interesting to look at other municipalities of roughly the same size to see what their per-mayoralty-vote expenditures are.
Maple Ridge, whose politics I know nothing about, has a population close to that of the City of Victoria. As a result, the campaign period spending limit for mayoralty candidates was similar: $54,992. The successful candidate, also an incumbent, spent a total of $43,604, far less than Helps. Michael Mordon received 11,287 votes, which works out to $3.86 per vote. Again, much lower than Helps.
Closer to home, Fred Haynes in Saanich spent $70,436 and harvested 15,312 votes, at a cost of $4.60 per vote.
In Kelowna, incumbent Colin Basran won the mayoral race at a cost of $4.22 per vote.
Even in the City of Vancouver, where campaigns had been raising and spending millions in previous elections, the new Mayor Kennedy Stewart spent only $6.23 per vote for the 50,000 votes he received. (His total expenses were $310,337 over the two periods.)
It’s actually pretty hard to find any mayoral candidate in BC who spent more per vote than Mayor Helps. But persistence with the two relevant websites pays off: a close race in North Van saw Linda Buchanan win with 3,800 votes, at $17.47 per vote due to her $66,408 expenditure. And in neighbouring Oak Bay, incumbent Nils Jensen spent $9.95 per vote, only to lose to Kevin Murdoch, who handily won while spending only $3.76 per vote received. Jensen’s costly votes seem more a reflection of his dramatic trouncing than of relative campaign expenses. (Murdoch got 5,042 votes to Jensen’s 2,138.) Incumbents may be favoured, there are no guarantees.
ANOTHER LOOPHOLE THAT I HOPE Minister Robinson looks at is around corporate and union donations. While corporations cannot donate, their owners, employees, and associates certainly can. And unions have other ways of helping candidates they prefer.
An astute reader emailed me right after the posting of the disclosure statements to show me how nine people who worked in some capacity with Abstract Developments had given donations totalling $23,400 to various Oak Bay, Saanich, and Victoria candidates. All perfectly legal. Helps’ campaign got a total of seven $1,200 donations from Abstract employees and associates, so $8,400.
She also received donations, usually of $1,200, from others in the real estate and development field, including Jon Stovell (Reliance), Fraser McColl (Mosaic Properties), Leonard Cole (Urban Core Ventures), Steven Cox (Rize Alliance Properties), Ken Mariash (Bayview), and Mohan Jawl (Atrium, etc). A conservative estimate—without googling every single name on Helps’ lengthy donors list—of donations from developers and their teams amounted to $23,000, thereby fuelling over 22 percent of her campaign’s total expenses (i.e. from January through October 20).
In some ways, the ban on corporate donations just hides them. Sarah Henderson gave $1,200 to each of five candidates’ campaigns; in all, $6,000. She is Abstract’s sales manager. As an individual donor, her civic generosity is totally legit. But I bet the candidates she donated to in Victoria, Saanich and Oak Bay know she works for Abstract.
I am not sure how the Minister could address this particular issue. Maybe some readers have suggestions?
AND THEN THERE’S “third party advertising.” In Victoria, so-called third parties could spend $2,706 on advertising directly endorsing candidates for mayor and council during the campaign period (such bodies can also spend up to $150,000 advertising about issues in the campaign period). There is no cap on contributions to these groups. There is also a transparency issue as they don’t need to identify themselves or where the money comes from in advance of the campaign period.
A good example of how this can play out in unintended ways is probably the businessman in Vancouver who ponied up $85,000 to plaster billboards with ads for a mayoral candidate prior to the official one-month-long campaign period.
Another area the Minister will likely review relates to “elector organizations,” for which there are no expense limits other than the $1,200 per individual donor per year. So we see situations like the Burnaby Citizens Association spending over $500,000 on its slate of nine candidates, seven of whom got elected.
In Victoria, the relatively new group Together Victoria, which endorsed three new candidates, all of whom got elected, shows how effective such organizations can be. It raised over $45,000, though it spent only about $25,000 divided amongst the three candidates, all of whom also raised additional small amounts on their own. On the other hand, newcouncil.ca raised a total of $62,000, most of which it split between five candidates, none of whom got elected. These groups are in their infancy in Victoria, but over time could become like political parties in our civic arena.
If money is allowed to sway the citizenry through high-priced promotional campaigns, many of us grow more cynical and less trusting of our government and its processes. We need people to feel the system is fair, and that if they decide to run for council, money will not be the deciding factor. The new limits get us only partway there.
Leslie Campbell’s eyes took a beating exploring many candidate disclosure statements and voting results; perhaps the Minister can figure out a streamlined way to report the numbers. P.S. Many readers will miss Briony Penn in this edition; she will be back in Focus come May.
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