As members of Newfoundland and Labrador’s main political parties travel the province to campaign for votes, their signs, pamphlets, buses and gas bills are paid for in part by unions and private companies.
The province is one of two in Canada with no rules limiting donations to political parties by corporations, unions or individuals.
Kelly Blidook, a political scientist in St. John’s, says that should have changed long ago.
“This is a bad thing, and it’s been a bad thing for a long time,” said the associate professor at Memorial University. “We allow corporations that we know have a direct interest in what government does to show up with money and expect there will be some benefit.”
“In most other circumstances, these would be recognized as conflicts of interest,” Blidook added.
Newfoundland and Labrador’s Liberal Party accepted more than $680,000 in contributions from private companies and industry groups in 2024, records from the province’s elections office show. Some of those companies regularly seek funding, regulatory approvals or contracts from the provincial government.
The Liberals have been in power for a decade and are seeking another majority government in the Oct. 14 election. When the Progressive Conservatives were in power, they also accepted money from companies seeking contracts, funding or approvals, according to election records.
The latest contribution reports on the Elections N.L. website are from 2024. In that year, the largest single donation to the Liberals was $35,000 from Coastal Shipping Ltd., which is owned by the Woodward Group of Companies in Happy Valley-Goose Bay, Labrador.
Several companies vying to build wind-powered hydrogen operations in Newfoundland lined the party’s pockets: Everwind contributed $26,250 with three donations, North Atlantic Refining Ltd. Logistics shelled out $35,900, and World Energy GH2 gave $6,750.
North Atlantic Refining Ltd. Logistics received $746,952 from the provincial Liberal government that year through the Green Transition Fund. Pennecon Hydraulic Systems Ltd. got $149,200 from the same fund. Parent company Pennecon gave the Liberals $40,300 over seven contributions in 2024.
Marco Group, an Atlantic Canadian contracting company, gave the Liberals $38,900 over eight donations. The government has hired the company to help construct several buildings, including a mental health and addictions centre that opened in St. John’s this year.
The Progressive Conservatives collected more than $75,000 in corporate and union donations in 2024, including $16,150 from Fortis Inc., which owns Newfoundland Power. The same company gave the Liberals $18,650.
Each of the companies were asked why they donated to the Liberals and Progressive Conservatives. None responded.
The NDP collected $41,000 from union groups. The largest donations — $10,000 each — came from the UFCW Canada Eastern Provinces Council and the United Steelworkers P.A.C. Fund.
Craig Walsh, eastern director with UFCW Canada, said in an email the union donated to the NDP because the party’s platform “closely aligns with our goals for our membership.
“They support strong public services, stronger labour laws and ensuring the province addresses the cost-of-living issues our members face daily.”
The United Steelworkers P.A.C. Fund did not respond to a request for comment.
NDP Leader Jim Dinn pledged last week to end all corporate and union donations and cap individual donations at $1,750 if he becomes premier. His proposed rules mirror those in place at the federal level. In Quebec, only individuals can donate to provincial political parties, with contributions of up to $200 permitted in election years. Alberta allows unions and corporations to donate a maximum of $5,000 a year to political parties.
Saskatchewan is the only other province with no limits on political contributions.
Tony Wakeham, leader of Newfoundland and Labrador’s Progressive Conservative Party, said he would support a review of the electoral process in the province, including an examination of party contribution limits.
Liberal Leader John Hogan says he doesn’t think the issue is important to voters. What is important, he said, is to ensure elections are fair and transparent, noting the contributions are posted publicly.
“Democracy costs money. People have to get their message out there,” he told reporters in St. John’s on Thursday.
He said he wondered if the other parties would consider a per-vote subsidy or similar program, adding, “I certainly think those discussions can happen.”
Eliminating the political donation free-for-all would make it more difficult to raise money, and it may require a phasing-out process for parties to adjust, Blidook said.
If the province banned corporate and union contributions, people working for these organization would likely donate instead, he said. But if those donations were capped, they wouldn’t be able to dish out more money than anyone else.
He agreed that a taxpayer-funded subsidy might work, adding that there was briefly such a system at the federal level.
And while he said some people may not want to give political parties public money, “the total impact per taxpayer is relatively minor. Sometimes having a good democracy costs us a little bit.”
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