OTTAWA -- Canada's big trade unions gave the federal NDP a $3.4-million gift only months before new financing rules severely restricted contributions to political parties.

Canada's nine largest and most powerful unions responded to fundraising rules that took effect in January 2004 by pooling their cash and buying the federal socialist party a three-storey office building in downtown Ottawa.

The coalition, which included the Canadian Auto Workers, Communications, Energy and Steelworkers unions, decided to make all donations to the NDP planned for the next decade in the fall of 2003 and earmarked them to buy the building, says an official at the political party.

$3.1M FROM 9 UNIONS

According to Elections Canada's record of 2003 donations, the NDP received about $3.1 million in donations from nine unions involved in the purchase of prime office space.

The NDP's 2004 financial records released Monday by Elections Canada also show a $300,000 loan from the Canadian Labour Congress.

NDP spokesman Brad Lavigne said the party got the loan at market rate to pay off the difference between the union donations and the actual price of the $3.4-million office building.

NDP IS MORTGAGE-FREE

Lavigne said the party has set up shop on the two upper floors of the building and continues to rent out the first floor to Shoppers Drug Mart.

Lavigne said the NDP is mortgage-free and has already paid off the CLC's $300,000 loan. "The building stands as a lasting legacy to the long-term financial health of the NDP," he said.

"In 2004 we doubled the amount of donations from individuals and we are the only major political party with a surplus. Tommy Douglas would be proud."

The NDP had a $3.2 million surplus by the end of 2004 and took in $5.2 million in donations from 30,097 Canadians. By contrast, the Liberal Party received $4.7 million in donations in 2004.