Stephane Dion's advertising spending trick
Ottawa is embroiled in controversy. The Conservatives are being targeted for having moved money from the national campaign office into local riding associations to use to buy local advertising. But the advertising was in fact purchased from the national campaign. It consisted of the national ad with the local candidate's name added to the end (connecting the local candidate to the national party brand).
Elections Canada is calling foul, saying the ads weren't truly local. The Conservatives argue that the ads were local, and in any case, that sort of judgment call is not for Elections Canada to make.
The Liberals are in a frenzy, demanding inquiries and such. People go to jail for this sort of thing! Fraud! Fraud!
Hey. No one is doubting that advertising was actually purchased by the Conservatives.
The Liberals ought to be careful. A quick look at one shows something that looks, well, strange. I was looking at Stephane Dion's returns.
Here is the crux of the matter of the advertising controversy that has Ottawa driven to distraction:
The [Conservative Party of Canada] had transferred large amounts of money to the candidates' campaigns, more than $40,000 in several cases, and financial agents for the candidates promptly transferred the money back to the party as payment for radio and television advertising. Elections Canada says the candidates could not provide evidence they incurred the expense, meaning the cost might have to be credited to the party.
Now consider this actual example of what we're talking about. I've taken screen captures from the Elections Canada records to illustrate the movement of money. I'm using Stephane Dion as an example, looking at his returns he filed after running in the riding of Saint-Laurent-Cartierville. in the 2004 election.
In this case, Stephane Dion reports that a registered party, the Liberal Party, transfered $12,200 to him as a non-monetary transfer. The money originated in his federal riding association for riding of Saint-Laurent-Cartierville:
In this part you provide the details of all funds and goods and services transferred from a registered party, a registered association, or a nomination contestant and all goods and services provided by a registered party or a registered association.
Though Stephane Dion lists the $12,200 as coming from a registered party, clearly it is coming from a registered riding association for the Liberal Party.
The Liberal Party riding association hands the $12,200 to the candidate's office on April 21, 2004:
Given that Saint-Laurent-Cartierville is a pretty safe Liberal riding, it's hard to imagine that Stephane Dion needed all that much local advertising. In a moment you'll notice that this advertising was listed as "Other". Not radio. Not TV. Brochures, newspaper ads, and such.
In any case, on the same day the riding association moves the money to Stephane Dion's campaign office, Stephane Dion registers an expense of $12,200 for this "other" advertising. Compare the two returns. The same organization that gave Stephane Dion the $12,200 is listed as the supplier for $12,200 in services:
Supplier: Enter the name of the firm, organization or person providing the goods and services.
So the riding association gave Stephane Dion $12,200 to spend on advertising bought from the riding association.
But now note that an amount of $12,200 is entered in the Discount column:
Discount: Enter the difference between the amount charged to the campaign and the commercial value of the goods or services. If the goods or services were provided free of charge, enter the full commercial value in this column.
So the riding association gives Stephane Dion $12,200 in the first part of the return, and Stephane Dion uses that money to buy advertising material, listing the same riding association as the supplier. But that advertising was given to Stephane Dion for free (as per the Discount column). So who has the $12,200?
Now things get weird. The day after the federal riding association delivered $12,200 to Stephane Dion to buy advertising that didn't cost him anything, the riding association then makes a transfer of $12,200 to the Quebec wing of the Liberal Party of Canada. Why? To buy advertising, of course:
Understand that the federal riding associations report to the Quebec wing of the federal Liberal Party. So the $12,200 has been kicked up one level.
It sure looks like Stephane Dion used $12,200 to buy advertising from the Quebec wing of the party.
But the advertising didn't cost him anything! Heck, was there any advertising even purchased?
So what happened to the $12,200?
Well, on May 7, the national campaign transfered exactly $12,200 to the Stephane Dion's riding association, but as a monetary transfer:
And that closes the loop. The riding association creates a purchase out of their non-monetary budget for "other" advertising that doesn't actually cost the riding association a dime to make. That money that was allocated against the free advertising then goes to the Quebec wing of the federal party, where a week later it returns to the riding association as cash.
Did I say that closed the loop? Not quite. The Liberal Party as a whole has to file a return, and Part 3b lists all the transfers to riding associations. I checked the 2004 and 2005 returns, and no transfers of $12,200 (or amounts large enough to include that amount) are listed as being made to the St-Laurent-Cartierville riding assocation. On June 10, 2004, there is a $300 transfer to the riding association. And in Part 2e that lists transfers received from riding associations, there is nothing from St-Laurent-Cartierville at all.
Scandalous!
Check out other entries from the In-and-Out category
Results will open in a new window.
Skew my story on Skewz.com
Rate political news for their bias, read related stories, and leave your own skewed commentary
Search for more opinions from Canadian bloggers on these related keywords
Conservative Party Liberal Party Canada election advertising Stephane Dion
Sphere presents related news articles and blog posts
Sphere It!
Comments
How Sweet it is!
I guess the Conservatives must be doing everything else right if this advertising issue is the thing that the Liberals have to chew on.
Nice work Steve.
Posted by: Phil in Ottawa at September 13, 2007 07:08 AM
Nice one. Now will this be a scandale or just sharing the booty with the most "needy"?
The Libs have such a tough time getting donations they're jealously nit picking and grasping at straws.
Posted by: Libby at September 13, 2007 07:30 AM
Are these people magicians and is this the way they also pass around our tax dollars?--stupid question--just remember adscam! BTW--where is the GST on this $12,200? I noticed the words 'goods and services' but the amount never changes. Are they avoiding paying the tax that we have to pay?
Posted by: George at September 13, 2007 07:34 AM
You know, Janke (and PMO oppo res hacks, if you're reading), all of this is fine and dandy. but Elections Canada has refused to reimburse the Tories. They do not have any problems with any other party.
In the example above, frankly, I do not see the problem. Money went from Dion's riding association to the Quebec Liberal Party which probably pooled the money and bought advertising for all candidates. After the campaign, the Quebec LP got back the funds from Elections Canada and reimbursed the associations. It seems like the rest is just bookkeeping.
The in-and-out scheme for the Tories was different. It was the national party laundering the money through select ridings to circumvent the spending limits. Over a $1M worth of dough, apparently.
Why is the PMO so determined to keep this issue alive is bewildering? Don't they have anything else to do besides picking fights with the heads of various government agencies?
Posted by: at September 13, 2007 07:36 AM
good work!!
Posted by: steve at September 13, 2007 08:00 AM
"Why is the PMO so determined to keep this issue alive is bewildering?"
Hey anon not really, when you have nothing to hide and some sleazy beaurocrat is trying to behead you the best defence is to just let this guy prattle along and make himself look stupid. The PMO is just letting this guy hang himself. As you can see the Conservatives advertising spending is not that different from the Grits, its just the Conservatives have more money and that pi$$e$ everyone off including Elections (liberal) Canada.
Keep digging but make sure you fall into your own hole.
Posted by: GrantK1 at September 13, 2007 08:12 AM
Give it a rest will you? The Cons got caught with their pants down - act like grown ups and accept what is.
This is the 3rd campaign funding/donator issue for Harper - enough is enough.
Posted by: Sylvia at September 13, 2007 08:35 AM
This must have little Cherniak filling up his elf pants today.
The Liberal Party and his BFF Stephane Dion caught up in something as inauspicious as this.
Posted by: alan at September 13, 2007 08:52 AM
Don't know for sure, but, the amount quoted sounds like the amounts paid by candidates for signs packages. The package includes the usual street signs, larger signs including both the party leader, logo and local candidate.
Posted by: rc at September 13, 2007 09:29 AM
Have you thought about getting a job with the Republican Party down south? There are some openings for you now that Carl Rove has passed on.
Posted by: Rob Konduros at September 13, 2007 10:12 AM
Umm, as a campaign can't raise or spend money before the writ, is this not just a recording of a transfer for money raised pre-writ and to repay the riding for money they spent on behalf of the campaign pre-writ. It is done to comply with the law not avoid it like the Tories.
Posted by: anon at September 13, 2007 10:16 AM
You tories are pathetic - instead of admitting you've broken the law, and move on, you blame elections Canada, you blame stephane Dion, you probably blame trudeau for this if we asked Mulroney, next it'll be a taliban ploy.
all this keeping the story alive about how the Conservative Party of Canada is breaking Election laws and spending limits to launder 1 million dollars during a campaign, and exceed it's spending limit by the same.
Stop blaming others for your own stupidity and just start following the law, or you won't be in government for long.
Posted by: at September 13, 2007 10:18 AM
Reminds me of the three Liberals that decided to save money at the last Liberal convention. They decided to share a room, and when they registered the desk clerk charges them $30.00, so they laid down $10.00 each on the desk and registered. When the manager came in the clerk told him what he'd done and the manager said that under sharing conditions the room was only $25.00, so the clerk calls over a bellboy and gives him $5.00 to return to the Liberals. Bellboy being quick changes the $5.00 bill to 5 loonies as he goes up the elevator and explains to the Liberals that they were overcharged. The Liberals not wanting to get into a financial mess take back a loony each and give the bellboy a two loony tip. The result is Liberal book-keeping. The room cost each Liberal $9.00, (3x9= 27), the bellboy gets $2.00 (27+2=29), everybody is happy but there is 1 loony missing and nobody knows where it went.
Posted by: Antenor at September 13, 2007 10:19 AM
Wow - the "this is nothing" crowd is out early today. Good work again Steve, should be interesting to see how many "anon" comments there are trying to show that because it was the Liberals, they did nothing wrong.
Steve Janke - 1
Liberal apologists - 0
Posted by: DWT at September 13, 2007 10:32 AM
i noticed kinsella dropped you from his blogroll as of this morning
Posted by: Wes at September 13, 2007 11:13 AM
The room cost each Liberal $9.00, (3x9= 27), the bellboy gets $2.00 (27+2=29), everybody is happy but there is 1 loony missing and nobody knows where it went.
Posted by: Antenor at September 13, 2007 10:19 AM
The problem with that "mind bender" is that it's actually wrong and ignores the rules of mathematics. The mathematical "lie" is this: (27 + 2 = 29). The room cost $25 and the tip was 2$. So it's (25 + 2 = 27). Each $9 paid includes $2/3 in tip. The tip is not in addition to the $9 spent. There is no missing dollar.
10 + 10 + 10 = 30
10 + 10 + 10 = 25 + 5
10 + 10 + 10 = 25 + 1 + 1 + 1 + 1 + 1
10 - 1 + 10 - 1 + 10 - 1 = 25 + 1 - 1 + 1 - 1 + 1 - 1 + 1 + 1
9 + 9 + 9 = 25 + 1 + 1
9 + 9 + 9 = 25 + 2
27 = 27
Yes. I am an enginerd.
Posted by: Reid at September 13, 2007 11:14 AM
Reminds me of the three Liberals that decided to save money at the last Liberal convention. They decided to share a room, and when they registered the desk clerk charges them $30.00, so they laid down $10.00 each on the desk and registered. When the manager came in the clerk told him what he'd done and the manager said that under sharing conditions the room was only $25.00, so the clerk calls over a bellboy and gives him $5.00 to return to the Liberals. Bellboy being quick changes the $5.00 bill to 5 loonies as he goes up the elevator and explains to the Liberals that they were overcharged. The Liberals not wanting to get into a financial mess take back a loony each and give the bellboy a two loony tip. The result is Liberal book-keeping. The room cost each Liberal $9.00, (3x9= 27), the bellboy gets $2.00 (27+2=29), everybody is happy but there is 1 loony missing and nobody knows where it went.
Posted by: Antenor at September 13, 2007 10:19 AM
This is clearly a fictional story. Everyone knows that no Liberal would stoop so low as to stay in a $30/night hotel room. Especially if they can "expense" it to someone else.
Posted by: Reid at September 13, 2007 11:17 AM
i noticed after this story came out, kinsella dropped you from his blogroll
Posted by: wes at September 13, 2007 11:18 AM
The last time I checked, WK and I were on excellent terms. I think he's just reworking his blogroll. Or maybe with the Ontario election, he's decided he doesn't need to give the other side traffic. That's fine. It's just politics.
Posted by: Steve Janke at September 13, 2007 11:20 AM
Ironically, the anonymous Liberals are probably right. This probably is nothing. There is a campaign to elect a new federal government. Federal parties are using the cash strategically in local ridings since it is local riding elections that combine to determine the winner of the federal election. Money is moved back and forth and accounted for and reported and the line between "local" and "national" seems completely artificial to me. Just like the Conservative advertising is a big nothing too. The local candidates' name appears on an ad explaining what the federal government of which he would be a member if elected would strive to do. I just don't understand why we've made things so complicated here.
At least the Conservatives listed the money transfered as money actually spent on something. The Liberal returns show the money moving around but discounted at 100%, which then makes you wonder what the money was actually used for, since apparently the work was done for free.
Posted by: Steve Janke at September 13, 2007 11:28 AM
Point is, it's all in how you arrange the numbers. The Liberals have been past masters at it, and now the Conservatives have caught on. The Liberals are trying to spotlight a $1M book-keeping entry and at the same time cover up a $40M (Adscam) and a $2B Gun Registry boondoggle. Show me the money or at least show me where it was spent, that's the trick.
Posted by: Antenor at September 13, 2007 11:40 AM
Steve, Antenor:
If there were improprieties, they would have been noted by Elections Canada. Clearly, there weren't any and you just want to keep the story of Conservative malfeasance alive.
Posted by: rc at September 13, 2007 12:02 PM
hey, I noticed asskick dropped you. But then he's also dropped that obese natterer Reymaker. What I'd like to know is if Dion's 2004 electoral shell-game happened during those Adscam glory years, the ones he claims he knew nothing about. The mind boggles.
Posted by: Paddy O'Cake at September 13, 2007 12:09 PM
"Umm, as a campaign can't raise or spend money before the writ, is this not just a recording of a transfer for money raised pre-writ and to repay the riding for money they spent on behalf of the campaign pre-writ. It is done to comply with the law not avoid it like the Tories."
If it's pre-writ, it's not an election expense, idiot. They wouldn't claim it, if it was. It would be a constituency association expense and yes they can raise and spend money pre-writ. Elections Canada doesn't give any rebates for that money, though. That's why all the parties try to do this; max contributions to ridings to get bigger refunds, but run TV advertising from the national office to get a more efficient advertising campaign and better advertising rates.
You're drinking the Liberal Kool Aid to think that only Liberals were following the law. Elections Canada is trying to apply the rules differently to the Liberals and the Conservatives. The fact is, this is a legal loophole that makes all the parties look bad. It should be closed, but not retroactively to 2006 only.
Posted by: PlaidShirt at September 13, 2007 12:39 PM
Having been involved in a few campaigns and in the 2004 campaign as a guy who saw a lot of these numbers (yes, on the Liberal side) that amount looks just about right for what one would spend on the most expensive of the riding package options that candidates are offered.
Posted by: Ivan at September 13, 2007 12:56 PM
Adscam ?
~~shudder ~~
but I don't get what Kinsella has to do with Adscam, if anything.
Can someone enlighten me ?
Posted by: Pearl White at September 13, 2007 01:07 PM
"Stop blaming others for your own stupidity and just start following the law, or you won't be in government for long."
Oh, I don't know, the Liberals managed to hang in there for many, many years...and they were actually breaking the law and genuinely blaming everybody else for their stupidity.
Why the sudden concern for propriety from our anonymous Liberal drones?
Posted by: Darrell Goodman at September 13, 2007 01:07 PM
Adscam ?
~~shudder ~~
but I don't get what Kinsella has to do with Adscam, if anything.
Can someone enlighten me ?
Posted by: at September 13, 2007 01:09 PM
I was a very active Liberal... less so today but still a Liberal none the less.
99.9% of us did things the right (and proper) way.
Just like 99.9% of conservatives do things the right (and proper) way.
Politics will never be rid of people who try to skirt the rules (just like in real life!)... we'll all just have to live with that.
Now stop reading blogs at work and go boost Canada's productivity.
Posted by: Ivan at September 13, 2007 01:47 PM
What a joke you tories are. Attack ads and then cover ups on election spending. stop being so afraid of the Liberals and govern for a change. Oh, that's right you don't know how to govern.
Posted by: Terry in Toronto at September 13, 2007 01:53 PM
Both parties cannot be trusted, the current federal so called conservatives, when the real conservative party is the Canadian Action Party. I know many things the current feds have done and they are definitely not trustworthy, as you soon will find out in the near future.
Posted by: Jacko at September 13, 2007 02:16 PM
I think Anon at 10:16 has it right. This was likely for the riding sign/brochure package purchsed centrally (but personalized to promote each local candidate).
These transfers were done to declare it all against the cap so the riding can't spend more than the legal limit.
Posted by: another anon at September 13, 2007 03:19 PM
Puffin Iggy had better get his Puffin out cleaning up the crap as it falls in Biff Dion's riding and wherever else, there'll be more to come.
The desperate clowns are grasping at every straw no matter how petty.
Posted by: Libby at September 13, 2007 04:14 PM
Well we have been all told the liberals were crooks by the whiter then white conservatives. Yet, despite your careful tracking you never did say if this was illegal. On the other hand the whiter then white guys have been caught and told that about a million was distributed which was not legal. So I can assume you are only trying to throw a little smoke to cover up for your buddy Steve, nice try. Given all the stones the conservatives and their fans like to throw they should not live in glass houses.
Posted by: raw at September 13, 2007 05:34 PM
RAW,
If you mean that by submitting all paperwork to Elections Canada in accordance with the regulations, the CPC was caught, I guess they are guilty. Since no charges have been laid, I'll wait to see what law was broken. No wonder the Tories haven't had the electoral success of the Liberals. They haven't discovered that brown paper bags can be used for purposes other than packing a lunch in. Still waiting oh so many years for the names of the Quebec candidates that received actual laundered money.
Posted by: nstory at September 13, 2007 06:51 PM
Steve,
You might be interested in looking into a story which popped up in 2002 or so.
Back then Don Boudria accused the BQ of artificially boosting their election expenses in order to increase their election refund.
The Ottawa Citizen did a little digging and in a story entitiled "Those in Glass Houses" discovered that a dozen or so Liberals, including Boudria, were themselves guilty of doing the same thing that they were accusing the BQ of doing!
What they were doing was paying a "salary" to their volunteers, who would then "donate" the money back to the campaign.
By doing this not only would the Liberals get back 65% of the cost of the "salary/donation" but the volunteers would also get a tax credit which meant that indirectly, taxpayers were paying Liberal volunteers to work on the campaign. All without any money actually being spent!
If you're interested in looking further into this I believe I have copies of the article lying around. Leave a comment on my blog if you want more info.
This all happened not too long before Boudria stepped down as Treasury Board minister.
Posted by: Cool Blue at September 13, 2007 07:01 PM
Steve,
You might be interested in looking into a story which popped up in 2002 or so.
Back then Don Boudria accused the BQ of artificially boosting their election expenses in order to increase their election refund.
The Ottawa Citizen did a little digging and in a story entitiled "Those in Glass Houses" discovered that a dozen or so Liberals, including Boudria, were themselves guilty of doing the same thing that they were accusing the BQ of doing!
What they were doing was paying a "salary" to their volunteers, who would then "donate" the money back to the campaign.
By doing this not only would the Liberals get back 65% of the cost of the "salary/donation" but the volunteers would also get a tax credit which meant that indirectly, taxpayers were paying Liberal volunteers to work on the campaign. All without any money actually being spent!
If you're interested in looking further into this I believe I have copies of the article lying around. Leave a comment on my blog if you want more info.
This all happened not too long before Boudria stepped down as Treasury Board minister.
Posted by: Cool Blue at September 13, 2007 07:03 PM
Do as I say and not as I do. It just shows how desperate the libs have become when they dont go as far as these headlines before making this an issue. If Steve can get that info as quick as he did, how many more MP's of the liberal cloth have done the same.
The sad thing is no ones listening and even more depressing both parties seem to be doing it. Well THEY did it first. No THEY did it first and the endless finger pointing begins.
Im pointing my finger at each and everyone of the MP's in the house for letting it get this bad. Its been bad for a very long time mind you, longer than most of the bloggers out here can remember and (sarcasm intended) without pointing fingers it really began back with the Rat Pack (cough LIBS cough)
With all the crap yapping about the house of commons and Ottawa...with conservative/indie/liberal trough ridden mp's use HOC funds to promote a LISTEN TO ME tour, or when Dion yipps at the heels of CPC mp's for doing something HE did... no wonder people say "FUGGIT Im not voting"
/end rant
Posted by: Do as I say at September 14, 2007 10:35 AM
Abstract paintings
Angel painting
animal paintings
ballet paintings
beach painting
Boat painting
building painting
Children painting
Christ painting
church painting
City painting
Cottage painting
Dancer painting
field painting
Floral paintings
Garden painting
Hunting paintings
impressionist painting
Knight painting
Lady painting
Landscape painting
Lighthouse paintings
Music painting
Nude painting
Oriental paintings
Piano painting
Seascapes paintings
Still Life paintings
street painting
sunset painting
Tropical paintings
Venice paintings
Village painting
wine painting
Posted by: aswkin at July 17, 2008 03:26 AM
 
|
|
