Winnipeg's mayor is lashing out at a proposed provincial law on election financing in Manitoba, calling it "disappointing and disgusting."

In a bid to stimulate confidence in municipal politics, Intergovernmental Affairs Minister Steve Ashton unveiled legislation Tuesday that seeks to ban union and corporate contributions to municipal election campaigns.

'For the province to jump into this, when your roads and bridges are falling apart and we're looking for revenue…[I told them] this will cause a real ruckus at City Hall; don't go there.'—Sam Katz, Winnipeg mayor

Katz said the province has insulted Winnipeg by introducing new rules he claims could increase the power of incumbency and inject party politics into a nominally non-partisan city council.

"We don't have slates or party politics at City Hall, but I think this would be certainly pushing us in that direction," he said.

Under Bill 35 — the Municipal Conflict of Interest and Campaign Financing Act — new campaign finance rules would apply to all individuals running for election in Manitoba municipalities beginning in the 2010 municipal elections.

The relationship between City Hall and the province has been strained recently over funding issues for roads, bridges, ambulances and the showdown over photo radar.

Ashton's announcement only adds to that tense relationship, said Katz, who told Ashton two weeks ago that in March 2009, council had debated a similar motion tabled by Coun. Dan Vandal. Council voted it down 11-5.

"I told [the province], very strongly, that we've already dealt with this, you know we will take this as a slap in the face," Katz said. "For the province to jump into this, when your roads and bridges are falling apart and we're looking for revenue … [I told them] this will cause a real ruckus at City Hall; don't go there."

Corporate and union donations accounted for 35 per cent of Winnipeg's 2006 civic election contributions. Katz alleges Vandal is a friend of Manitoba Finance Minister Greg Selinger, and that this is a case of a friend helping a friend.

"I know that Greg Selinger and Dan are very close, but you know what, to minister Selinger there are very many other issues we should be dealing with. So please, let's get our priorities straight," he said. "This is the part of politics that I find distasteful and disgusting."

Vandal said he had nothing to do with the proposed provincial law but he does think it's a step in the right direction.

"Obviously, [Katz] thinks I'm somehow involved in this and I don't even know how Greg Selinger got involved. This involved by Minister Steve Ashton, so I don't know where Sam's getting his information or what sort of ghosts he sees in the closet on this."

Selinger added: "[Katz] can make any personal attacks he wants. The provincial government has put forth a bill that's supported by the entire caucus to increase the transparency of democracy in the province of Manitoba and in Winnipeg, and we'll let the citizens judge whether that's a good thing."