A DOOR OPENS TO LIBERAL MUGS AND TORY TEES

Elections Canada OKs merch at party conventions — but non-profit only

Good news, purveyors of partisan political signage, bumperstickers, buttons and thundersticks: A new ruling from Elections Canada has given the green light to federal parties who want to provide a platform for swag producers to show off their wares at political conventions.

The opinion, which the Conservatives requested in advance of the party’s biennial get-together in Vancouver last May, concluded that charging for floor space at a trade show held in conjunction with the main event doesn’t breach the blanket ban on corporate and union donations — provided, that is, that those fees are calculated on a purely cost-recovery basis, and not as a way for the party to make some extra cash.

“Payments accepted to cover costs of the trade show or exhibit facilities, their setup, and any tangible benefit that exhibitors receive, are not contributions,” according to the written opinion, which was posted to the website earlier this week.

Among the factors that Elections Canada took into account in coming to its conclusion — which, the advisory notes, is based on its understanding of “this specific case,” and shouldn’t be read as a carte blanche for charging floor fees at future conventions:

The cost of hosting the trade show itself “is an incremental amount that the party incurred and would not have incurred for the regular convention.”

The party “is charging no more than the actual expenses incurred as a direct incidence of the trade show.”

Exhibitors “are not being charged … for the value of attending the convention, other than the tangible benefit received (such as food).”

According to the application filed by the party, the Conservatives were proposing to charge exhibitors $575 to register for a spot, and an additional $170 for separate convention passes, for a maximum of two per booth.

The agency also stresses that this interpretation doesn’t change the existing policy on costs and fees related to sponsorship and advertising.

“A transaction in which a political entity receives money in exchange for advertising or promotional opportunities directed at its members or supporters (e.g. at a political convention) is not recognized as a commercial transaction,” it notes.

“Any money received as part of such an arrangement is to be treated as a contribution that is subject to the contribution limit and eligibility rules.”

In 2012, the federal New Democrats wound up paying back hundreds of thousands of dollars in sponsorship revenue received from unions and other organizations after the Conservatives complained to Elections Canada.

Before issuing its opinion, Elections Canada issued an open invitation to other federally registered parties to share their thoughts on the question.

While neither the Conservatives nor the New Democrats took the agency up on the offer, the Liberals did — and were broadly supportive of the rights of political entities to enter into such business arrangements with private companies.

“The (Canada Elections Act) controls contributions to registered political entities, and the regime of controls around contributions is well documented,” the Liberals noted in their submission, which has also been posted to the website.

“The Act makes no reference to revenues derived from commercial transactions. Our view is that had Parliament intended to restrict or control such transactions the Act would have done so.”

The Liberal submission also points out that it’s the responsibility of the party — and specifically, its auditors — to ensure that such agreements are based on fair market value. In this particular case, it notes, the amounts involved are “well below” that threshold, and, as such, “would not offend the Act.”

Although the trade-show fee file is now closed, at least for the moment, Elections Canada is in the midst of reviewing how the financing laws deal with fundraising efforts that offer a benefit to the donor, such as a ticket to an event or a T-shirt or coffee mug.

Parties had until July 7 to submit their comments, and the final opinion will be published later this year.