Editorial

Two main questions emerge in the current debate on a party funding law. Will such a law work and should the state be funding the political parties?

Prime Minister Lawrence Gonzi said last Sunday that he will be recommending to the Cabinet the reopening of talks with the Opposition on the issue. His declaration followed a letter from the general secretary of his party, Joe Saliba, asking him to appoint a parliamentary committee to draw up regulations on party financing.

Last week Dr Gonzi said he had no problem with the enactment of a party funding law as long as the opposition agreed. The deputy leaders of the Labour Party said they agreed with the idea in principle.

The debate is not a new one for Malta. The matter came under the microscope of the so-called Galdes Commission 12 years ago. At the time no agreement was reached. The PN disagreed with the commission's suggestion that parties cap donations at Lm10,000 and declare every donation above Lm5,000, wanting to double both thresholds. Significantly, Dr Gonzi last Sunday said he was willing to lower the benchmark of the donation amounts proposed.

Being a fundamental element of democratic life, it is important that political parties have sufficient funds to be able to play their part. Secret donations to the parties, however, inevitably sow mistrust in the political system. Hardly anyone thinks that big business or rich individuals make donations to the parties out of their love for the democratic process. Political parties should have started publishing their accounts a long time ago. Every constituted entity including businesses and the Church are required to do so, so why not the parties? Transparency is key in democracy and having the political parties declare the donations they receive should, therefore, also be the norm.

Most democracies have rules to govern contributions by individuals and businesses to political parties, but there is a real question over how effective they are. One can easily lay down a requirement that a donation in excess of, say, Lm10,000 should be declared by the party. But what if that donation is split in two and some of it funnelled through another "donor"? What if the donation is not made directly to a party, but to an official? These and other, less obvious loopholes would have to be foreseen. Malta already has legislation on spending at elections by candidates. Does anyone, hand on heart, think it is effective?

This, of course, does not mean that efforts to monitor and account for contributions to the parties should not be made - even though it might be too late in this legislature. Political parties with strings attached devalue the democratic process. Preventing corruption in the funding of political parties is a must.

Should the state finance political parties to prevent any dependence, or indebtedness, to their major contributors? Quite apart from the burden on the public purse, there is no guarantee that one will eliminate the other. And if state funding should be introduced much debate would be needed on the formula to allocate such funds.

And do the parties need all this funding? Are they growing too big? There is a very real risk that elections will not be won and lost on the basis of ideas, but on the packaging which the wealthiest party can wrap itself in.

That too will be a disservice to democracy.