Tories raise five times as much money as cash-strapped Liberals

Financial returns filed with Elections Canada show the Liberals, once the most efficient money-raising machine in the country, are now struggling to keep pace with the NDP, traditionally the poorest of the three main national parties.

Moreover, the returns suggest that Stephane Dion is having trouble putting a dent in the almost $850,000 debt he racked up to win the Liberals' 2006 leadership contest. And some of his former leadership rivals appear to have given up even trying to pay off their debts.

The first-quarter returns for 2008 show the Tories raised $4.95 million from 44,345 contributors.

At the same time, the Liberal party raised only $846,129 from 10,169 contributors. That's less than the New Democratic Party, which brought in $1.1 million from 13,329 donors.

The Bloc Quebecois, which needs far less money since it operates strictly in Quebec, raised $37,006 from 463 donors.

The fledgling Green party brought in $210,962 from 4,731 donors.

Liberal president Doug Ferguson acknowledged the results suggest his party, traditionally the most reliant on corporate largesse, has still not adapted to the prohibition on corporate donations imposed in 2004.

"Do we have a ways to go? No doubt," he said in an interview.

Still, Ferguson said the results actually represent a 70 per cent increase in donations over the dismal first quarter of 2007 and a 133 per cent increase in the number of contributors. By contrast, he noted that Tory and NDP contributions are down slightly from the same period last year.

By the end of 2007, the Tories had raked in just over $17 million, compared with 4.5 million for the Liberals. The NDP, which briefly out-paced the Liberals during the first quarter last year, ended the year with $3.9 million.

Despite its money woes, Ferguson said, the Liberal party is operating in a surplus position at the moment and will be able to fully finance an election campaign whenever it comes.

In the pre-election period, the Tories' overflowing war chest has given them a distinct advantage. They've been able to buy expensive TV and radio ads mocking Dion's leadership abilities while the Liberals haven't been able to afford to retaliate.

Once the election writ is dropped, that cash advantage theoretically disappears. By law, no party can spend more than about $18 million.

However, Elections Canada alleges that the Tories found a way to circumvent that limit in the 2006 election, funnelling money to local candidates to pay for national advertising. The scheme, which the Tories insist was perfectly legal, prompted last month's RCMP raid on Conservative party headquarters.

Tory spokesman Ryan Sparrow noted that the Tories were able to pull in five times more in donations during a period in which the Liberals have spent most of their time bashing the government for alleged ethical lapses, including the election spending affair. That feat represents "a complete condemnation" of the Liberals' fixation on "manufactured scandals," Sparrow said.

The Liberal party's first quarterly return also gives a glimpse of the progress - or lack thereof - being made by Dion and his erstwhile rivals to pay off their leadership debts.

Only two contenders - Bob Rae and Carolyn Bennett - have thus far cleared their debts. The rest have until June 3 to pay back their loans and settle unpaid bills, although they can ask for an extension from Elections Canada. Judging from the latest financial returns, most, including Dion, will need an extension.

Dion, who reported a debt of almost $850,000 last summer, brought in just over $12,000 in the first quarter of 2008 to help pay it off. Insiders say his debt as of June 3 may actually wind up being higher than $850,000, due to some unexpected bills and interest that's been piling up on his loans.

By contrast, Dion's deputy leader, Michael Ignatieff, pulled in almost $75,000. That doesn't include a splashy fundraising dinner last week that insiders expect netted at least $100,000.

Ignatieff wound up the leadership race with a debt of about $777,000. His campaign team estimated he had about $300,000 left to pay off before last week's dinner.

The returns show that Martha Hall Finlay raised $2,400 toward her original debt of $261,000 while Gerard Kennedy, who wound up more than $500,000 in debt, raised $2,175.

Kennedy said he actually raised more like $40,000 in the first quarter of the year, whittling his debt down to about $300,000. He couldn't explain the discrepancy but suggested that the party may not have processed all his donations before the March 30 deadline for reporting contributions to Elections Canada.

Kennedy said he's hopeful he'll be close to debt-free by June, adding that his team intends to "step (fundraising) up intensively over the next 30 days."

According to the returns, Scott Brison raised only $191.40 while Ken Dryden reported a meagre $25.

Brison said the return doesn't include a recent event that raised $20,000. He said he's whittled his $150,000 debt down to about $80,000 and has a number of events scheduled over the next month to eliminate it.

Dryden said he's pared his $403,000 debt down to about $300,000. He said it's been difficult raising money for a past leadership contest when the party is fishing in the same pool for money to fight a future election.

Maurizio Bevilacqua, who ended the campaign with a $296,000 debt, pulled in $50 during the first three months of the year. Joe Volpe, who wound up $246,000 in debt, and Hedy Fry, who went $160,000 into the red, reported no donations.