The Conservative government is amending the Canada Elections Act to tighten up rules for loans to political candidates.

The proposed changes would also limit individual donations to $1,100 and allow only financial institutions and "political entities" to loan money to candidates in nomination and leadership contests.

Conservative House leader Peter Van Loan said the proposal will create a "uniform and transparent reporting regime" and "eliminate once and for all the influence of rich, wealthy individuals from the political process."

During a press conference in Ottawa Tuesday, Van Loan and Ottawa Tory MP Pierre Poilievre used the announcement to fire shots at the Liberals over their leadership race last year in which contestants relied heavily on loans to pay for their campaigns.

Poilievre noted that the winner, Stéphane Dion, received loans from wealthy supporters amounting to almost $500,000, as did runner-up Michael Ignatieff.

"Who owns the Liberal party?" he asked.

Van Loan said the leadership contenders took advantage of a "back door" in the Elections Act, which allowed them to take loans to circumvent donation limits. The loans can be written off if they aren't paid back in 18 months.

Speaking outside question period Tuesday, Dion said he and all other Liberal leadership candidates have nothing to hide.

"Everything we have done, the candidates, is transparent," he said.

PM's backers remain anonymous

Critics note that Prime Minister Stephen Harper has never fully disclosed the donors to his 2002 campaign for the leadership of the Canadian Alliance, predecessor to the Conservative party.

Harper disclosed only 54 donors who’d contributed more than $1,075 each to his campaign. He never revealed the names of 10 large donors who wanted to remain anonymous or the more than 9,000 donors who gave less than $1,000.

Dion said the prime minister could quickly put to rest speculation about right-wing contributors, some not Canadian, backing his leadership campaign.

"The first thing he should do is make public, to disclose the financial support he received," he said.

Van Loan noted that the law did not require full disclosure at the time and dismissed suggestions that Harper, in keeping with the new spirit of transparency and openness, should belatedly open his campaign books.

The new move comes as the Tories are being accused of a lack of accountability for allegedly hiding cabinet minister expenses.

Documents obtained by the NDP showed Tory Labour Minister Jean-Pierre Blackburn spent almost $150,000 on rental aircraft flying around Quebec last year without declaring any of it as a travel expense.

With files from the Canadian Press