Skip to content

Developers dug deep in Coquitlam election

Financial disclosure forms from the 2014 civic elections were made public last month, outlining exactly how much each of the candidates raised and spent during the fall campaign.

Financial disclosure forms from the 2014 civic elections were made public last month, outlining exactly how much each of the candidates raised and spent during the fall campaign. But a closer look at the documents reveals just how concentrated the funding sources are in municipal politics, with the bulk of the contributions coming from two groups: real estate developers and unions.

For example, of the more than $312,000 raised by the nine candidates elected to Coquitlam city council in November, close to $169,000 (54%) came from the development industry.

In Port Moody, unions made up the largest piece of the political contributions pie, contributing 33.2% of the total $125,000 the seven winners raised in their election effort, a percentage that increases to 41.5% when Mayor Mike Clay's totals are removed from the equation (generally, mayoral candidates must spend more than councillors when running for election, which can skew the overall results).

Widespread development has taken place in the Tri-Cities, and developers such as Wesbild and Onni Group's parent company, RPMG Holdings, made significant political contributions to candidates.

But Coquitlam Coun. Craig Hodge said he does not believe council votes are influenced by campaign contributors - although he acknowledges that view is not always shared by residents.

"Never in my four years did I feel that a vote was compromised," he told The Tri-City News. "I really don't think that stuff happens. But there is that public perception."

Hodge raised $40,172 for his successful re-election effort: 58.1% from developers, 22.7% from other businesses, 10.8% from individuals and 5.6% from unions.

In preparation for the 2014 race, Hodge said he tried to find balance between his contributors and avoided taking too much from one single person or entity.

On the other side of the equation, donors contacted by The Tri-City News insist they are not trying to buy influence with their campaign contributions.

Jennifer Derbyshire, the director of marketing with Wesbild, said her company donates money to a variety of charities and community groups, and election campaign contributions are another way of supporting the municipality and the political process.

"It does take quite a bit of money [to run]," Derbyshire said. "We want to support the process and get good people on council. If we are not willing to support the process, nobody is going to be able to run."

Candidates usually solicit the company for donations, she said, and each request assessed on a case-by-case basis.

Carolyn Rice, the secretary-treasurer of the New Westminster District Labour Council, which also endorses candidates and contributes to their campaigns, said her organization tries to highlight issues they believe are ignored by other candidates.

She does not believe that the donations have sway over officials' decisions on collective bargaining agreements and said the labour council looks for candidates who represent the broad interests of the community.

"People we have supported in the past have championed some pretty important causes," she said. "They go to issues like cosmetic pesticides, protecting our trees and air quality."

And she asked, "What organization would raise these kinds of issues if it was not for the collective effort of an organization like ours?"

CONFLICT?

Still, some candidates would rather avoid even a whiff of conflict of interest.

Disclosure forms show that Port Coquitlam Coun. Mike Forrest paid the entire $7,011 tab for his campaign expenses and he said he only accepts contributions in rare instances, such as a friend wanting to support him with an individual donation.

"I don't want to be seen as compromised," he said, noting he finds contributions from unions representing city workers particularly problematic.

"I have considerable difficulty with the idea that we are supported by various people and then we get to vote on their contracts," he said.

In PoCo, union contributions make up 15.9% of the $115,458 raised by the seven council winners, a percentage that rises to 25.8% when Mayor Greg Moore's $49,867 in donations is removed from the total. Meanwhile, developers contributed 27.8% while 9.9% of the funds came from the candidates themselves.

Forrest acknowledges that in larger municipalities, self-funded campaigns may not always be a viable option.

For example, last fall in Coquitlam, the winning candidate who raised the least amount of money was Coun. Teri Towner, who spent $19,582 (61.3% from developers, 31.1% from individuals, 4.2% from other businesses and nothing from unions).

Self funding $20,000 to launch a credible campaign can be difficult for the average resident, and finding balance between contributors is not always possible.

Port Moody Coun. Barbara Junker for example, raised $20,969, 87.5% of which came from unions (another 4.8% came from developers and 7.7% came from individual contributors). Junker was contacted by The Tri-City News for comment but did not return calls by deadline.

SPENDING CAP

On the flip side, longtime Coquitlam Coun. Mae Reid raised $30,000 for her re-election campaign, of which 80% came from the development industry (the other 20% came from businesses not associated with development). And she acknowledged that the amount of money being thrown around at election time is concerning.

"I think there should be a cap on what you can spend. I really believe that," she said. "It is getting to the point where it is ridiculous."

She notes that the cost of running a campaign is constantly rising. These days, newspaper ads are still her biggest expense but new costs related to website advertising and social media have made the process more expensive. If each candidate had a cap, they could decide how best to allocate their funds, she said.

Reid also believes there should be a limit on when candidates can raise funds while Coun. Hodge said giving tax receipts for contributions, as is done at the provincial and federal levels, might encourage more individuals to donate (see sidebar).

Coquitlam Mayor Richard Stewart summed up one of his suggestions for improving civic election regulations in one word: clarity.

Several times, his campaign had to deal with conflicting interpretations of finance rules, making it difficult for even a seasoned campaigner like himself to understand what was and wasn't allowed.

But, on the whole, Stewart said he believes the rules around civic election contributions only need minor tweaks.

"I think the regulations are a step in the right direction," he said. "Now, we need to spend the next couple of years refining them so they work better and they are seen to work better."

CAPS ON SPENDING & CONTRIBUTIONS: SMITH

The provincial government needs to enact caps on how much can be raised and spent by a politician in a civic election campaign, according to an SFU political scientist.

Patrick Smith, who specializes in municipal issues, said there was "an orgy of overspending" in the 2014 campaign and the regulations need to be tightened.

"I think we need caps on both spending and contributions," he told The Tri-City News. "There should also be limits to when you can contribute, and always with disclosure."

He notes that currently, there are no rules stopping candidates from collecting donations between elections, something that was seen in the Tri-Cities in 2014.

Coquitlam Mayor Richard Stewart received $9,850 in contributions between Nov. 19 and Nov. 24 - after the Nov. 15 vote. Stewart said the donations came in late because he had to cancel a fundraiser during the campaign as his daughter was sick.

Meanwhile, Coquitlam Coun. Teri Towner received $1,500 from RPMG Holdings and $1,000 from Infinity Properties Nov. 24.

Unions also contributed to candidates after the Nov. 15 election.

Port Moody Coun. Barbara Junker was given $3,350 by the New Westminster District Labour Council on January 26, 2015 while the Hospital Employees Union gave councillors Zoe Royer and Rick Glumac $400 each in 2015.

Having money change hands after an election is concerning, Smith said, because it assures the donors that "we are in power and you are talking to the right people."

But Smith believes that change is starting to come to how the province regulates municipal election finance. He notes city clerks are no longer responsible for the oversight of financial disclosure, after the process was taken over by Elections BC ahead of the 2014 vote, and that has created greater consistency in the application of the rules.

"They have to get at this and it looks like they are," he said. "I am hopeful that 2014 will be the last municipal election where

[email protected]

@GMcKennaTC