Unanticipated consequences

Another aspect of the Libs' leadership race beyond the large and unpaid loans has made its way into the news, as Bob Rae is apparently leading a legal challenge to an Elections Canada interpretation that the candidates' deposit to the party can't be returned to them:

As former Liberal leadership contenders scrounge for money to pay off up to $3 million in cumulative campaign debts, Bob Rae has gone to court to recoup the $50,000 deposit each candidate was required to plunk down.

The money is desperately needed by some candidates. At least two of them are finding it so difficult to raise money that they're urging the party to take over all campaign debts for all 11 contenders. Those with knowledge of the discussions say that's highly unlikely to happen.

The party found itself flush with cash after last December's profitable leadership convention and promises were made to refund the deposits as a way of helping candidates reduce their onerous debts.

But Elections Canada vetoed the move as an illegal cash transfer.

The watchdog agency considered the deposits to be entry fees, not refundable deposits. And while the law allows candidates to pay for services from the party, Elections Canada ruled that it does not allow the party to transfer cash to candidates.

Just so there's no doubt, the action doesn't appear to involve any conflict between Rae and either the Libs as a whole or anybody within the party.

But it does call into question whether the Libs had fully thought through the ramifications of their leadership process at the time, or whether this is another case of the Libs' party structure being asleep at the switch. And the Libs' trouble raising money can only become all the more damaging if a lack of advance planning results in the party's most prominent figures having to raise larger-than-anticipated amounts for themselves.