Fearing electoral reform

It could cost Canadian taxpayers a lot more if the current way we elect our politicians is altered.

That's according to a new essay released this week by the Fraser Institute.

The essay concludes replacing the current electoral system with proportional representation would likely lead to more minority governments, which in turn would lead to more government spending and larger deficits.

“Changing the way we elect our political representatives will change more than just the way we elect our politicians," said Jason Clemens, Fraser Institute executive vice-president and co-author of Electoral Rules and Fiscal Policy Outcomes. 

"Depending on the reform, it could lead to marked increases in government spending and deficits.”

A five-party committee is currently studying electoral reform.

Both the NDP and Green parties favour a system of proportional representation, while the ruling Liberal party are open to such a reform, which more closely matches vote counts with parliamentary seats.

The paper states that from 2000 to 2015 more than 80 per cent of elections in industrialized countries with a form of proportional representation, resulted in coalition governments.

“Trading favours” and capitulation is imposed on the larger party or parties by the smaller parties to form a coalition that results in higher levels of government spending and larger deficits.

For example, from 2000 to 2014, the average central government spending in countries with proportional representation electoral systems was 29.2 per cent of the economy compared to 23.5 per cent in countries like Canada that have a plurality/majoritarian election system.

The paper further states countries with proportional representation more often finance their higher government spending with deficits.

“At a time when spending and deficits are already on the rise across Canada, the fiscal consequences of electoral reform should not be taken lightly,” said Taylor Jackson, a senior policy analyst at the Fraser Institute and co-author of the essay.

This is the second of several essays on electoral reform in Canada to be released over the next several months.