OTTAWA, Nov 27 (Reuters) - Canada's Conservative government said on Thursday it would end public subsidies of federal political parties, a move that could deal a major blow to the opposition -- if it does not bring the government down first.
It would eliminate the payment of C$1.95 Ottawa makes each year for every vote a party receives in the last general election. That would have amounted to C$10 million (($8.1 million) for the Conservatives next year and C$7 million for the main opposition Liberal Party. However, opposition parties have received proportionately more of their funding from the subsidy than the Conservatives.
The measure must be approved by Parliament as part of the government's fall fiscal and economic update. Two other ways of supporting parties will continue -- tax credits for contributions and reimbursement of eligible election expenses.
($1=$1.23 Canadian)
(Reporting Randall Palmer; editing by Rob Wilson) Keywords: CANADA BUDGET/SUBSIDIES (louise.egan@thomsonreuters.com; +1 613 235-6745; Reuters Messaging: louise.egan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It would eliminate the payment of C$1.95 Ottawa makes each year for every vote a party receives in the last general election. That would have amounted to C$10 million (($8.1 million) for the Conservatives next year and C$7 million for the main opposition Liberal Party. However, opposition parties have received proportionately more of their funding from the subsidy than the Conservatives.
The measure must be approved by Parliament as part of the government's fall fiscal and economic update. Two other ways of supporting parties will continue -- tax credits for contributions and reimbursement of eligible election expenses.
($1=$1.23 Canadian)
(Reporting Randall Palmer; editing by Rob Wilson) Keywords: CANADA BUDGET/SUBSIDIES (louise.egan@thomsonreuters.com; +1 613 235-6745; Reuters Messaging: louise.egan.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.