Friday, October 29, 2010

On resource imbalances

There's some sad news coming out of New Brunswick, as Roger Duguay has resigned as leader of that province's NDP even after an election that saw the party post its second-best share of the vote ever. And the NDP will surely appreciate Duguay's contribution as leader - even if it has to be disappointed to see him leave after accomplishing nearly everything imaginable short of winning a seat.

But without knowing exactly why Duguay chose to step down, it's also worth noting how New Brunswick's political financing system may have influenced his decision - and considering how the same effect might play out elsewhere in Canadian politics.

New Brunswick actually does have some public financing for political parties, with the following amounts paid out based on the previous election's results:
The Grits won 47.3 per cent of votes in the 2006 election and receive $312,180 from the province each year, based on the allocation formula.

The Tories won 47.6 per cent of votes in the last election and receive $314,160 a year, slightly more than the Liberals.

The NDP won 5.1 per cent of votes and receives $33,660 a year.

The Green Party did not win enough votes to receive a proportion of the annual allowance payments, which total $660,000 for the province, plus audit fees.
Presumably the NDP's funding would have roughly doubled like its share of the popular vote. But that still seems to have left some question as to whether it can afford to pay its leader a salary, particularly when one considers how the annual funding compares to the amount of money flowing into parties' hands through other means:
The Liberal dinner held Saturday in Moncton raked in about $400,000 after expenses, about double the $200,000 that was raised by the Conservatives on Friday night in Fredericton.

The cash will be added to the parties' war chests and spent during the 30 days of election campaigning on expenses such as advertising, office space, travel, wages, meetings and rallies, up to the $925,000 limit set by Elections New Brunswick.
...
As of last June, the New Brunswick Liberal Association had $1.845 million in the bank and no debt.

The Progressive Conservative Party of New Brunswick had $288,915 in cash but also a debt of $409,000, mostly related to the purchase of a building in Fredericton, which houses the party's headquarters.

Meanwhile, the New Democratic Party had $19,531 and the Green Party had $253.
So all indications are that for the Cons and Libs, a single dinner can bring in as much money as a year's worth of annual allowance. And indeed the Graham Libs - despite being unpopular enough to lose the election - were nonetheless able to have enough retained cash on hand to run two elections if they needed to. And that's in addition to the salaries, pensions, research funding, and other resources available to the two parties represented in the Legislature.

On the other hand, the NDP's funding over four years amounted to...an eighth of the amount needed to run a full election campaign, assuming no expenses in the meantime. And even after approaching its highest share of the vote ever, the NDP still looks to have limited resources for next time out barring some significant change in the meantime.

And it's worth asking whether such a change might well be needed.

So far, led by the Cons' attack on per-vote financing, most discussion of public funding for the political process nationally has attacked exactly the amounts that serve to reflect actual voter preferences, while leaving untouched the larger payouts allocated based on the vagaries of single-seat results.

But New Brunswick seems to offer an ideal example of how the gap between funding based on winning seats and funding based on winning votes can serve to severely limit the choices available to voters. And if we can't expect to change the voting system in the near future, the next best thing may be to highlight the comparison between direct party funding and the funding that goes to political offices through other means, and demand a system that better supports the operations of parties with enough public support to justify it.

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