'Big kick in the teeth': NDP won't receive campaign reimbursements in hundreds of ridings

OTTAWA — The federal NDP will not be able to rely on hefty campaign reimbursements from Elections Canada to fill its party coffers after its worst-ever election result. Only 46 NDP candidates out of 342 received 10 per cent or more of the votes that would make them eligible for a partial reimbursement of paid election expenses such as travel, salaries, accessibility expenses and other costs associated with the campaign. This suggests that the party will receive possibly millions less in electoral expense refunds than in the previous two elections, where over 230 candidates met the threshold for reimbursements. It will likely add to the party’s financial woes after a devastating election result. The NDP did not have a full slate of 343 candidates on election day, as their candidate in the Nova Scotia riding of South Shore—St. Margarets dropped out of the race in early April. The NDP managed to get seven MPs elected: Don Davies (now interim leader), Jenny Kwan, Gord Johns, Heather McPherson, Leah Gazan, Lori Idlout and Alexandre Boulerice. Incumbent NDP MPs who lost also managed to get a higher vote-share, with most near or above 30 per cent —  with exceptions being former leader Jagmeet Singh and Lisa Marie Barron, who finished with a little more than 18 per cent, and Bonita Zarrillo, who ended up with 15 per cent. Star candidates who campaigned with Singh — such as former MPP Bhutila Karpoche in Toronto, former MLA Lisa Roberts in Halifax or former MP Ruth Ellen Brosseau in Quebec — also got more than 10 per cent and are eligible to get their expenses reimbursed. But the majority of NDP candidates across the country ended with single-digit results. In some ridings in the Greater Toronto Area, the party was almost wiped out. The party’s representatives in the ridings of Brampton East, South and West each ended up with 1.7 per cent of the vote, whereas the party got 1.6 per cent in Eglinton—Lawrence, 1.2 per cent in Thornhill and the party’s smallest result, 1.1 per cent, in King—Vaughan. At the national level, the party ended with 6.3 per cent of the vote. Elections Canada typically remits millions of dollars to the main parties and candidates who qualify once they have submitted their paperwork in the months following the election. The NDP can expect to receive a fraction of the candidate rebates. Since before the 2019 election the party has chosen to keep the money instead of distributing it to candidates and electoral district associations, and that policy is expected to remain. “It’s going to hurt the party. There’s absolutely zero doubt about it,” said Cam Holmstrom, NDP strategist and founder and principal of public relations firm Niipaawi Strategies. “It’s going to be a big, big kick in the teeth when it comes to the party financially. “And it worries me, because this, to me, is the worst-case scenario on that end of things.” The agency reimburses up to 60 per cent of election expenses for candidates, and up to 50 per cent for parties. Accessibility expenses are reimbursed almost in full, at 90 per cent. In the 2021 federal election, New Democrats had 237 candidates who were either elected or received 10 per cent or more of the votes. The party received a reimbursement of $12,095,431.94 whereas candidates received a total of $3,713,227.92. In 2019, the party had 235 candidates who satisfied the criteria, and they were reimbursed a total of $3,855,478.27. The party, for its part, received $5,155,345.89 in election rebates. Holmstrom said the party rebate depends on the amount the national campaign spent. “If they spent more, it should be a larger rebate. But for the ridings, it’ll definitely be lower… because now they’ve got a bunch of ridings where they’d be getting nothing,” he said. A spokesperson for Elections Canada could not offer an estimate of the amount the NDP could hope to get back in this most recent election based on its results. “The actual amounts of the expenses are based on the expenses incurred by parties and candidates eligible for reimbursement, which we won’t know until the election financial returns are submitted,” said Matthew McKenna in an email. He said candidates have until Aug. 28 to submit their financial returns, whereas the parties’ returns are due Dec. 29. The New Democrats’ financial troubles are nothing new. Ahead of the 2019 election, the NDP mortgaged its national headquarters in Ottawa, Jack Layton Building, for $12 million to pay for Singh’s byelection and the upcoming federal campaign amid a drop in donations. The party remained in the red until last year, when CBC reported it had paid off its debt from the 2021 general election. In March, former NDP campaign director Jennifer Howard said the party’s fundraising numbers were up, that candidates were “smashing expectations” in terms of raising money, and the NDP could spend the maximum allowed under Elections Canada’s limits. “This election, we will be on an even playing field with the Liberals and Conservatives,” said Howard. Instead, the party has been reduced to seven seats and will be returning to the House of Commons later this month without official party status. One NDP official described the party’s current financial situation as “not great” but said the party always finds a way to bounce back in time for the following election. “We always figure it out.” National Post, with files from Christopher Nardi calevesque@postmedia.com Get more deep-dive National Post political coverage and analysis in your inbox with the Political Hack newsletter, where Ottawa bureau chief Stuart Thomson and political analyst Tasha Kheiriddin get at what’s really going on behind the scenes on Parliament Hill every Wednesday and Friday, exclusively for subscribers. Sign up here. Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.