Financial Procedures

Introduction

The written rules and parliamentary practices governing financial procedures are some of the most complex aspects of parliamentary procedure. The business of ways and means as well as the business of supply are the processes by which the various taxation and appropriation bills as well as substantive bills with financial implications are introduced and passed in Parliament. The roots of these practices extend far back into British parliamentary history.

The business of ways and means is the process by which the government obtains the funds necessary to meet its expenses. The ways and means process has two phases: the budget presentation, in which the Minister of Finance delivers a statement setting out the government’s economic policy and tables notices of ways and means motions, and the legislative phase, in which a ways and means motion is called and then concurred in as a prerequisite to the introduction and first reading of a tax bill providing legislative authority for a change in taxation.

The business of supply is the process by which the government submits its projected annual expenditures for parliamentary approval. This process also has two phases: the legislative phase, which involves the consideration of the main and supplementary estimates and the necessary appropriation bills, and a general debate phase, which involves opposition supply motions debated on allotted days. The number and disposition of the opposition supply motions on allotted days is governed by specific standing orders.

In Canada, the Crown alone, acting on the advice of the cabinet, initiates all public expenditure, and Parliament may authorize only the spending that has been recommended by the Governor General. This prerogative, signified by way of a royal recommendation, is referred to as the “financial initiative of the Crown” and is essential to the system of responsible government.

The Speaker has the duty and responsibility to ensure that proper procedure is followed throughout the financial cycle and that all public bills, whether they originate from the government or from a private member, in the House or in the Senate, respect the financial prerogative of the Crown.

Speaker Regan’s decisions often included an analysis and explanation of the procedural arguments under consideration. The five decisions selected for this chapter include decisions relating to ways and means and supply issues. With respect to ways and means, Speaker Regan ruled on questions including those affirming ministers’ right to table documents at any time, irrespective of the budget presentation or lock-up process. The Speaker also ruled on matters that bridged ways and means and supply issues, including the notion that a contested budget implementation vote had sufficient legislative basis to appear in the Main Estimates.