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Canadian Campaign Finance Reform in Comparative Perspective 2000-2011: an Exhausted Paradigm Or Just a Cautionary Tale?

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Canadian Campaign Finance Reform in Comparative Perspective 2000-2011: an Exhausted Paradigm Or Just a Cautionary Tale? Canadian Campaign Finance Reform in Comparative Perspective 2000-2011: An Exhausted Paradigm or Just a Cautionary Tale? by Pauline E. Beange A thesis submitted in conformity with the requirements for the degree of Doctor of Philosophy Department of Political Science University of Toronto © Copyright by Pauline E. Beange 2012 Canadian Campaign Finance Reform in Comparative Perspective 2000-2011: An Exhausted Paradigm or Just a Cautionary Tale? Pauline E. Beange Doctor of Philosophy Department of Political Science University of Toronto 2012 Abstract This thesis compares the public policies of campaign finance in Canada with those in the U.S. and the U.K. in the period 2000-2011. The majority of the Canadian literature on party finance demonstrates a belief in the efficacy and necessity of the enterprise. This dissertation suspends this disposition and offers a critical approach to the regulation of money in Canadian elections. This thesis situates the discussion of party finance regulation in the context of contending models of democracy. Campaign finance rule changes are conceptualized within a new institutionalist framework. Changes in campaign finance rules are seen as changes in incentives and are seen to work in configurations, that is, interacting with existing formal and informal constraints. New institutionalism provides the avenue of inquiry into the position of political parties on the boundary of the public and private spheres and how campaign finance regulation may shift that boundary. ii This thesis adopts a mixed-method approach, incorporating the results of 65 semi- structured interviews with academics and political practitioners with primary document research. This thesis demonstrates that campaign finance rule changes interact with other electoral rules, types of parties and the nation‘s historic institutions. The need to meld Quebec‘s statist and civil-code traditions with Westminster democratic traditions, the introduction of the Charter of Rights and Freedoms and the role of subsequent court decisions, and the role of Elections Canada in its political finance oversight capacity, constitute major catalysts for Canadian party finance rule changes and for understanding the impact of rule changes. Contrary to the majority of literature on campaign finance reform, this thesis demonstrates that there may be diminishing marginal returns to additional campaign finance regulations, at least in a mature democracy such as Canada. Campaign finance rules reveal preferences for different models of democracy. As such, they must be carefully monitored. iii Acknowledgments I am grateful to the faculty members, colleagues, those interviewed, friends and family members who have assisted me every step of the way to completion of this dissertation. First, the members of my committee: Professor Graham White, Professor Lawrence LeDuc and Professor David Cameron, Chair of the Department of Political Science. Your thoughtful insights, guidance and strategies for keeping me on track—and finishing!—could not be improved upon. I am grateful to each of you for your formal and informal guidance, spurring me on throughout a long process. Thank you also for taking on the responsibility of a committee member, since each of each of you has many competing demands on your time and expertise. Second, the collegial, professional and stimulating atmosphere of the entire Political Science department at the University of Toronto made it a privilege to study there. The culture of the department, including both faculty and staff, is one of academic excellence combined with thorough professionalism. I have appreciated the graduate directors who have served during my doctoral studies and Carolynn Branton who nursed me through the administrative requirements! As well, my thanks go to Neil Nevitte, Grace Skogstad and Susan Solomon for their listening ears as I looked for the research question and the research design to pursue. Thank you also to many fellow students who shared ideas—Jenn Wallner, Debra Thompson and my fellow-Canadianists Rick Russo, Michael Painter-Main and Vuk Radmilovic. Thank you to Marci Prescott-Brown, Barbara Hill and Joy Fitzgibbon for sharing their varied doctoral journeys. I would like also to thank my extended family and many friends who remained interested, albeit often puzzled, not only about the topic but the length of the process! Thank you for your prayers, your questions and your encouragement. To my husband Norman, I cannot adequately express my gratitude and love. You are a tower of strength, compassion and encouragement. I love you! To each of my children, James, Natalie and husband Joshua, Julia and husband Gentry, thank you for the privilege of being iv your mom. You have blessed me in innumerable ways over the course of this journey. I love you! Stay the course! And, finally, following the example of J.S. Bach, I sign this S.D.G.—Soli Deo Gloria. v Table of Contents List of Tables ............................................................................................................................ ix List of Figures ............................................................................................................................ x Chapter 1 Campaign Finance: If It‘s Meant to Change Things, Can It be Neutral Too? ....... 1 The Roots of Campaign Finance: Democratic, Political Party and Citizenship Theory ................................................................................................. 4 A Way Forward .................................................................................................... 28 Hypotheses ........................................................................................................... 33 Conclusions .......................................................................................................... 34 Plan of the Dissertation ........................................................................................ 36 Chapter 2 Research Design ................................................................................................... 37 Introduction .......................................................................................................... 37 Why a Comparative Study? ................................................................................. 38 Why Canada, the U.S. and the U.K.? ................................................................... 40 Why Public Policy? .............................................................................................. 45 Why Qualitative? ................................................................................................. 46 Interview Protocol ................................................................................................ 51 How Will Results Be Evaluated? ......................................................................... 54 Conclusions .......................................................................................................... 55 Chapter 2 Table .................................................................................................... 56 Chapter 3 Patterns in Complexity: Party Finance Regulation Prior to 2000 ........................ 59 Introduction .......................................................................................................... 59 Confederation Campaign Finance: Understanding and Practices ........................ 60 The U.S. and the U.K. .......................................................................................... 68 1960: Harbinger of Change .................................................................................. 73 1970-2000: Second Era of Canadian Campaign Finance .................................... 77 Quebec .................................................................................................................. 81 The Royal Commission on Electoral Reform and Party Financing (Lortie Commission) ........................................................................................................ 85 Shadow Cases: The U.S. and U.K........................................................................ 96 Conclusions: What are the ‗Patterns in Complexity‘? ......................................... 99 Chapter 3 Table .................................................................................................. 107 Chapter 4 Pursuit of a New Equilibrium: Party Finance Since 2000 ................................. 111 Introduction ........................................................................................................ 111 vi Events of the 2000-2011 Period ......................................................................... 112 2003: Bill C-24 Act to Amend the Canada Elections Act and the Income Tax Act (Political Financing) ............................................................................. 119 The Election of 2004 .......................................................................................... 123 2006: Bill C-2 Act to Amend the Canada Elections Act and the Income Tax Act (Federal Accountability Act) ....................................................................... 124 Provisions of the Federal Accountability Act (FAA) ......................................... 125 Political Events of 2008-2010 ............................................................................ 129 Shadow Cases: The U.S. and the U.K. ............................................................... 132 Is There Evidence of Policy
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