I was involved in the Liberal party when those changes were being made. Chretien’s bill limited, but did not ban corporate and union donations. He capped all donations at something like $5000.

The federal accountability act lowered the limit to $1000 and banned union and corporate donations.

I was a riding president when this happened. Here is the Elections Canada link.

http://www.elections.ca/content.asp?section=fin&document=index&dir=lim&lang=e

Stephen Harper adjusted the individual donation limits when he first got in (I forget how but it was generally for the better), and then threatened in 2008 to get rid of public party funding (which would bankrupt all but his own party).