Many longtime Liberal loyalists in the private sector proved less loyal when the tables turned last June, newly released Elections B.C. donations data reveals.

Experts say the leftward exodus of traditional Liberal donors to the New Democrats is proof such gifts were “corrosive” to democracy, but warned loopholes in the NDP’s big money ban still give donors sway.

“We’re constantly battling against the pervasive power of corporate interests and individuals with deep pockets,” said University of British Columbia political scientist Maxwell Cameron, director of the Centre for the Study of Democratic Institutions. “When you take the brakes off, like in the U.S., the corrosive effect of that on democracy is absolutely clear.”

Cameron lauded B.C.’s new ban on corporate and union donations, and $1,200 cap on individual gifts, which came into effect last November.

But when the curtain fell, both major parties had raked in a massive haul after a costly election.

Traditionally, the B.C. Liberals have usually out-fundraised their rivals. But last year the NDP raised the most, $16 million; the Liberals raised $13.4 million; and the Greens a record $1.9 million in a pivotal year when their three MLAs became the balance of power in the Legislature.

StarMetro analyzed newly revealed gifts to parties before and after the NDP rose to power after 16 years of Liberal rule, handed the reins by the lieutenant-governor on June 29, 2017.

According to records released Monday, business donations saw the biggest shift starting the day after Premier John Horgan took over.

Before June 29, the B.C. private sector had showered the self-described “free enterprise coalition” Liberals with $7.1 million; that dropped 86 per cent in the rest of the year.

In contrast, after June 29 the NDP’s business donations rose 26 per cent to $2 million.

“It’s the political system that existed,” said former NDP strategist and consultant Bill Tieleman in a phone interview. (He donated $3,475 to the NDP in 2017). “It’s now changed, thankfully for the better.

“But if you want to show you’re supportive of the political system, and supportive of the party itself, then you probably will make donations to whoever’s around.”

Integrity B.C. executive director Dermod Travis said the major donor shift was obvious across many industries, but particularly among real estate, automotive and liquor sectors.

“Many of these donors on the NDP (donor) list had not given to the NDP before, or gave very little,” he said in a phone interview. “Whenever a government changes, suddenly people who never donated to one party suddenly feel a deep urge to 'support democracy.”

Travis said it’s “a bit rich” to claim to be supporting democracy when donors are really looking for a “friendly ear.”

He said there are examples of donors who contributed to both major parties for years, even if unequally. Others were consistently loyal, such as real estate marketer Bob Rennie to the Liberals, or the pro-NDP United Steelworkers.

Nearly half of that union’s $1.1 million NDP donations last year was in a single donation of $500,000 on April 7, 2017.

Cameron said when large sums are in play, donors must expect a return, even if they don’t always get the policy outcomes they hoped for.

“They don’t say, ‘Hey, we support you because we just wish you the best,’” Cameron said. “It’s, ‘Here’s $500,000, when you win the election and I pick up the phone, I should be able to speak to the senior official able to issue a permit, license, or help me with a problem.”

But Tieleman said donations have nothing to do with “buying influence” as some allege, or access to decision-makers.

“Any major business can get the ear of government, anytime, period,” he countered, “whether they gave a donation or not.”

One of the big donors to both NDP and Liberals is the New Car Dealers Association of B.C.

From 2005 until mid-2017, the association gave the Liberals more than $1.3 million, and less than $83,000 to the NDP — three quarters came in the year before the 2013 election, as New Democrats rose in the polls.

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But as soon as the New Democrats took office on June 29 the money began flowing their way. Until the end of last year, the New Car Dealers Association poured $55,500 into NDP coffers, nearly a third more than they gave the Opposition.

Over the previous dozen years they’d donated 12 times more to the Liberals than the NDP.

The association didn’t just show its appreciation for the reigning government with cash. A string of press releases over 2017 also saw its praises shift, too.

It applauded Christy Clark’s B.C. Liberal policies twice in February — for promoting “clean energy vehicles” and for “$1 billion in tax cuts” — before thanking her publicly “for her transformational leadership” on July 28.

Suddenly, the association had nothing but kind public statements about the NDP, despite Clark’s own final speech ever in the Legislature, reminding MLAs on June 29 of the New Democrats’ association with “deficits and credit downgrades and a mass exodus of British Columbians.”

The association issued a statement Dec. 11 applauding Premier John Horgan’s decision to OK the Site C dam.

Likewise, real estate moguls (and Vancouver Canucks owners) Aquilini Investments and its owners showered the NDP with $151,000 last year, nearly one-fifth more than the B.C. Liberals.

They’d donated more than 12 times the amount to the Liberals than the NDP previously.

And the B.C. Trial Lawyers Association — which gave Liberals roughly twice as much as NDP from 2005-2016 — flipped their donations and gave New Democrats 42 per cent more than Liberals last year, who got nothing at all after the NDP took office.

The Canadian Association of Petroleum Producers (CAPP) likewise shut off the taps to the Liberals after June 29, but continued giving to the governing NDP.

“Obviously, with the NDP in power for the first time in 16 years, I think businesses recognized they want to be seen as accepting of the NDP as a legitimate government — by making donations while they still could,” Tieleman said.

The New Car Dealers Association’s CEO was out-of-country and unable to comment. Requests for interviews with representatives of the Aquilinis, CAPP, or Trial Lawyers were not returned by press time.

Attorney-General David Eby, who oversees political financing and introduced the big money ban, could not be immediately reached for comment, nor could a Liberal critic.

But Integrity B.C. said Eby’s new big money ban legislation, while an improvement, left open several loopholes — most notably allowing individual $1,200 donations from staff, directors and affiliates of corporations or unions.

“The biggest loopholes they still have to address, in terms of campaign financing, is disclosure,” Travis said. “The problems will continue to surround (not declaring) a donor’s address and employer … in case if they’re all coming from individuals working for the same company.”

David P Ball is a reporter at StarMetro Vancouver, covering democracy and politics. Email david.ball@metronews.ca

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