A proposal to set spending limits for parties in electoral campaigns yesterday highlighted fundamental divisions, with the Opposition in favour of capping and the government dead against it.
The rift emerged before the Party Financing Bill cleared the last parliamentary hurdle, when it was approved at committee stage, with no capping. No decision has yet to be taken on when the law will come into force but there are indications it will be in January.
During the sitting, Opposition MP Claudio Grech proposed that political parties should not be allowed to spend more than €2 million during general election campaigns and €1.3 million in European and local elections, which will be held on the same day as from 2019.
Mr Grech argued that the limits would protect against the creation of a political imbalance in Parliament. The absence of any capping would give an unfair advantage to parties with unlimited financial resources.
He also pointed out that if the maximum spending limit for general election candidates (€20,000 for each district) was to be factored in, a party’s overall expenditure in a campaign could reach €5m.
Smaller parties should make their policies more appealing
Opposition MP Chris Said added that it made no sense setting a spending limit on candidates but then giving “carte blanche” to political parties.
Justice Minister Owen Bonnici argued passionately against such a provision, saying the parties should not be “penalised” for being able to raise funds within the parameters of this law, which set the maximum annual donations from a single source at €25,000.
Addressing concerns raised by Alternattiva Demokratika deputy chairman Carmel Cacopardo, who was invited to take part in the debate, Dr Bonnici said the solution for smaller parties was to make their policies more appealing. This would automatically boost their support among the electorate and increase their revenue from donations. He was “fundamentally” against the capping proposal, hinting he would not be open to even considering such an idea.
As a result, the proposal was not put to the vote.
During the debate the two sides also disagreed on the spending limit for general election candidates. While the Opposition argued that the proposed €20,000 limit would put candidates with a moderate income at a disadvantage, the government said this was a realistic threshold reflecting the cost of living.
The clause was approved, with the Opposition voting against.
The parties also clashed on the definition of what constituted a donation, with the Opposition saying this had to include any revenue from properties acquired by the parties through government requisitions.
Following a heated debate, the amendment moved by the Opposition was defeated.