Angry in the Great White North

Here are excerpts from an email from incoming Liberal Party president Alfred Apps:

As you may know, we are doing the annual Leader's Dinner for 1,000 people at the Royal York in 10 days, on April 1. Purdy Crawford, Frank McKenna, Belinda Stronach, David Peterson and Jean Augustine are the Honourary co-chairs. I think the event is going to be sold out.

Those who pay $1,100 per seat are entitled to (a) a premiere table location, (b) admission to the VIP Reception preceding the Dinner and (c) an automatic Laurier Club membership (which includes the ability to attend the upcoming Vancouver convention for free).

Those who pay only $500 per seat are able to attend the dinner only.

Each donor/purchaser can donate up to $2,200, paying up to $1,100 by cheque or credit card to the Liberal Party of Canada and $1,100 to the "Liberal Party of Canada (Michael Ignatieff)".  The Ignatieff Campaign account is in surplus and any surplus automatically reverts to LPC under the Elections Act. 

Here is the relevant portion of the legislation:

435.45 (1) If the Chief Electoral Officer estimates that a leadership contestant has a surplus of leadership campaign funds, the Chief Electoral Officer shall issue a notice of the estimated amount of the surplus to the contestant's financial agent.

(2) The financial agent of a leadership contestant who has a surplus of leadership campaign funds but has not received a notice of estimated surplus under subsection (1) shall dispose of that estimated surplus within 60 days after the provision of the contestant's leadership campaign return. S.C. 2003, c. 19, s. 40.

435.46 (1) The financial agent of a leadership contestant shall dispose of a surplus of leadership campaign funds within 60 days after receiving the notice of estimated surplus.

(2) Surplus leadership campaign funds must be transferred to the registered party that is holding the leadership contest or a registered association of that party.

So within 60 days of either (a) submitting the leadership campaign return or (b) getting a notice of a surplus in the leadership campaign fund, the surplus is supposed to be transferred to the party.

So within 60 days of Michael Ignatieff's acclamation as Liberal Party leader, and the official closure of the bogus Liberal Party leadership campaign, all this money will be transferred to the Liberal Party.

Now does this mean that every leadership candidate's campaign fund can be used as a donation doubler?  I can't think that this is what was intended.  Gee, if only Bob Rae hadn't officially dropped out.  Then they could use his campaign fund for the same purpose.  Nothing in the rules says someone can't contribute to two leadership campaign funds.  That could triple the donations going to the Liberal Party, since neither leadership fund would actually be using the money donated.

Gee, why not get ten bogus candidates up and running?  What?  Too much?

But to make it clear, Alfred Apps is encouraging people to donate to Michael Ignatieff's leadership campaign fund.  But the leadership campaign is just a fiction.  He knows the fund is already in surplus now that all the debts from the 2006 campaign have been paid off.  He knows that the fund needs no more money since there is no active leadership campaign underway, and Michael Ignatieff will be acclaimed as leader.  But he is telling these donors to donate anyway, to contribute money to a fund for a fictional campaign that will incur no debts, for the express purpose of transferring that money to the party.

Money goes IN.

Money comes OUT.

IN. OUT.

All very familiar, eh?

If the fund is in surplus...?  If the leadership fund is in surplus, as Alfred Apps makes clear in his email, then why does Michael Ignatieff make it sound like he needs the money?

Thank you for considering a donation to Michael's Leadership Campaign.

We need your financial contribution to make Michael's campaign possible. Michael is committed to running a campaign that is financed by a broad-base of Canadians contributing small amounts. Federal tax credits make it easier to give. Donations are eligible for a tax credit of up to 75%. If all of us pitch in, we can make this happen - for Michael and for Canada.

No where does he mention that the fund is full up and that any money coming it is just going to be funneled to the Liberal Party.  Instead, Michael Ignatieff needs to contribution to make his campaign possible.  Well, that's just a load of bunk, isn't it?  I mean, Alfred Apps said as much.

Milk it for what it's worth: I suppose that when Michael Ignatieff is acclaimed leader, the leadership campaign fund will have to close and no more donation doubling will take place.  I wonder how aggressive the Liberals will play this donation doubling game until then?

Check out other stories from the Liberal Leadership Fund Donations archive.