Votes are not the only things that count in an election. Photo / Richard Robinson

Votes are not the only things that count in an election. Photo / Richard Robinson

Democracies around the world are wrestling with the problem of election funding, says Otago University election law expert Andrew Geddis. "Political parties have to have money to do their job, and in an ideal world they'd have large party bases to fund them. Unfortunately, mass membership of political parties is dwindling worldwide, which means that they have become more and more reliant on small groups of donors who give money and may seek influence on those parties."

Solutions being suggested here include severely restricting private donations from both individuals and organisations, insisting on the disclosure of the identity of all donors - including those giving only small amounts - the curtailment of third-party campaigning by organisations such as the Exclusive Brethren, and more state funding.

After serious funding scandals in 1990-2000, Canada brought in extensive reforms which will come into play during their next federal election, probably in 2011. The aim is to achieve transparency, equality - and rule out large contributions and therefore possible influence from pressure groups or wealthy financial interests.

Says Geddis: "They've set the limit low enough to encourage lots of people to contribute - and force the parties into grass-roots fundraising."

A similarly radical approach is being debated in Britain. If adopted, the new system would limit private donations to £50,000 ($134,700), rather than the limitless freedom they enjoy now, and the Government would provide funding of 50p each year for every vote obtained in the previous election to keep the parties afloat.

The question, says Geddis, is whether that method of funding would mean political parties become just another branch of the state.

Canada

* Only individuals (citizens or permanent residents) may give money. No company, trade union, pressure group donations.

* Individuals may donate up to C$1100 ($1321) a year to each registered political party plus C$1100 per year to the various entities of each political party (registered associations, nomination contestants and candidates). Plus no more than C$1100 per year to each candidate.

All donations are partially tax deductible.

* No anonymous cash donations above C$20 are allowed and all donations of more than C$200 must be reported.

* State funding: Private donations are supplemented by public funding at the rate of $C1.75 per vote gained in the previous election. This is paid quarterly (only parties that gained over 2 per cent of the national vote are eligible). Fifty per cent of political parties' and candidates' election expenses are reimbursed.