Questions Related to Content of Bills / Estimates

Legislative items; cancellation of debts; granting of guarantees

Debates pp. 8600-1

Background

On March 24, Mr. Andre (Calgary Centre) raised a point of order with respect to the Supplementary Estimates (C) for the fiscal year ending March 31, 1981, tabled on March 4 by Mr. Johnston (President of the Treasury Board). In his view, the Estimates, which contained dollar items pertaining to the cancellation of debts and granting of guarantees, used the Appropriation Act in order to obtain legislative power rather than make a simple request for funds. Consequently, the Member asked the Speaker to delete from the appropriation bill issuing from the Supplementary Estimates (C) those items which he said were legislative in nature. After hearing Members' comments, the Speaker took the matter under advisement and ruled the next day.

Issue

Do some of the dollar items seek to obtain authorization which should be sought through legislation?

Decision

Yes. The legislative dollar items cannot, therefore, be included in the Supplementary Estimates. [The Chair ordered that the said items be deleted from the appropriation bill.]

Reasons given by the Speaker

There is no doubt that the eight one-dollar items which cancel debts are pure legislative items and seek in each case to amend section 18(1) of the Financial Administration Act. Whether or not they are of one dollar, it should not be permitted that "a supply item be used to obtain authority which is the proper subject of legislation". As for the supply items granting guarantees, their validity raises serious doubts, but the deviation from the traditional use of Estimates is less evident in their case.

Sources cited

Journals, March 10, 1971, pp. 395-7; December 10, 1973, pp. 737-8; March 26, 1974, pp. 70-1; June 22, 1976, p. 1368; March 22, 1977, pp. 604-8; December 7, 1977, pp. 184-6.

Financial Administration Act, R.S.C. 1970, c. F-10, s. 18(1).

References

Debates, March 24, 1981, pp. 8557-63.