NDP demands explanation of Tories' transactions

by GLORIA GALLOWAY — May 6, 2008

OTTAWA -- The federal Conservatives are being asked to explain another series of seemingly odd transactions included in the campaign expense reports filed by many of their candidates - this time related to polling.

Many Conservative candidates have told Elections Canada they paid substantial amounts of money - usually $15,000 or $20,000 - for election surveys or other research that appears to have been directly offset by the national party.

In 13 of the cases, the amount was matched exactly by a transfer from the Conservative Party of Canada or the Conservative Fund of Canada.

Finance Minister Jim Flaherty, for instance, says he paid $15,000 to the Conservative Fund for polling on April 1, 2006. The Conservative Fund returned the same amount to him on May 25 of that year.

Another example is that of International Co-operation Minister Bev Oda, who says she paid $20,000 to the fund on Dec. 28, 2005. The fund then paid her $20,000 on Jan. 10, 2006.

In 37 additional cases, the money spent on polling appears to have been reimbursed by a transfer from the riding association.

Transfers between the national campaign and candidates are not illegal, and Elections Canada has given no indication that it is concerned about the scheme or is investigating. But the NDP is curious.

"We're not sure exactly what it was," said NDP Leader Jack Layton, who asked about the polling transfers during Question Period in the House of Commons.

"There seems to have been some sort of a pattern which is why we're asking questions. It looks more like an out-and-in rather than an in-and-out. It seems to have happened at an odd time so we think there certainly are some questions that have to be answered about it."

By "odd time," Mr. Layton said he meant that many of the transfers were recorded as having taken place after the election of Jan. 23, 2006. But he conceded to reporters that bills for this type of expense can come in after an election is over.

Conservative Party spokesman Ryan Sparrow said in an e-mail that the money declared as survey expenses was used "for direct voter contact in each local riding."

When asked why it was listed as money for surveys or research, he said: "Because that's what EC [Elections Canada] told them to list it as."

On the surface, the transfers bear some resemblance to those of the so-called in-and-out scandal that has dominated Parliament since Elections Canada raided Conservative headquarters two weeks ago with the help of the RCMP.

In that scheme, the party sent money to candidates who were not going to spend the maximum allowed on their personal campaign either because they had no real hope of winning or because they were sure winners. The money was then immediately transferred back to the party and used to buy advertising.

Elections Canada alleges that the transfers allowed the national campaign to exceed spending limits by more than $1-million. They also allowed the candidates to claim a rebate of 60 per cent of the money.

But there are differences between the polling transfers and the in-and-out advertising scheme.

In addition to the fact that there appears to be no Elections Canada investigation, pollsters and even opposition party members said the amounts transferred correspond with what a candidate in a tight race might spend locally on public-opinion surveys.

And the ridings involved are places where the Conservative candidate would logically conduct polling - they were not easy wins or hopeless losses.

Source:The Globe and Mail