The Select Committee in charge of making recommendations on the financing of political parties, chaired by Justice minister Emmanuel Leung Shing, doesn’t seem to have proposed drastic changes. In its report submitted to the Speaker of the National assembly, the committee advocates more control on party finances as “the credibility of political parties… is increasingly threatened by unregulated dubious funding.»

It therefore recommends that a reform of the system should be based on “open and transparent” finances of parties and candidates as well as public funding to ensure a level playing field to all.

Taxpayers may have to contribute in the financing of political parties if the Public Funding of Political Parties’ Bill is voted and implemented. In this regard, the committee suggests that a candidate obtaining 20% of votes should have 10% of his expenses refunded. Only parties obtaining 10% of votes would be eligible to part refund of their expenses.

Such a measure would be a good initiative if it is transparent. Voters would thus know where the money for electoral campaign comes from. But it would not change anything to the danger of corruption if political parties benefit from State funds as well as from private sectors.

In its report, foreign consultant Albie Sachs had recommended the creation of one fund for both public and private donations, which would be managed by the Electoral Supervisory Commission. However, the committee has not retained this suggestion since the private sector expressed their disagreement. They said they wish to finance parties whose philosophy and ideology they share.

The report states that a strong regulation of donations from private companies is necessary. First, any contribution should first be approved by a company’s management board and included in its balance sheet. Companies are in favour of such measures provided they can finance the party of their choice.

It will take time to change mentalities of both politicians and electors, who are used to a certain folklore. Political parties need finances for their electoral campaigns. There is thus no question of abolishing financing but rather of controlling it to avoid abuse and inequity. At the moment, parties do not benefit from equal donations, which are not necessarily based on shared ideology but rather on interests. If this party is the one that will come to power, one should finance it to benefit from certain advantages.

Although the committee hopes that these practices will one day disappear, it is conscious that it will take time and it only recommends that expenses be regulated for the time being. It thus suggests that political parties present their audited accounts to the Electoral Supervisory Commission (ESC). Treasurers and party leaders might be bound to justify their accounts and submit their financial situation regularly.

The Select Committee also proposes that the expenses for an electoral campaign should be increased to Rs 1 million. At the moment, all party candidates are allowed to spend Rs 150,000 while independent ones are allowed Rs 250,000. But candidates often go beyond this limit. This is why the commission intends to increase this amount.

Donations from foreigners will be prohibited. Any local donor should declare the sum it gives to a candidate if it goes beyond Rs 100,000 for national elections or Rs 10,000 for one constituency. Likewise, religious bodies are prohibited from making donations.

The committee, as well as the leaders of the main parties, do not seem to be in a hurry to apply recommendations. It will take some courage to implement these measures, as voters may not respond the same way.

<I>It will take time to change mentalities of both politicians and electors. The latter are used to a certain folklore that will be difficult to get rid of.</I>

<B>Electoral commission to become the new watch dog ! </B>

The Electoral Supervisory Commission (ESC) should be granted more powers. It should be the one to ensure that the new regulations are respected. It should therefore be given the logistic and legal means to investigate and recommend sanctions if regulations are not respected. It would be allowed to suspend state financing but also send outlaws to prison or dismiss Members of Parliament. The ESC should also be the one to allocate airtime for radio and TV programmes. The committee recommends that airtime be free according to a regulated framework to ensure once again a level playing field.