Bill C-237

An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act

This enactment amends the Federal-Provincial Fiscal Arrangements Act to provide that a province with a program whose objectives are comparable to those of a federal program in an area under the legislative authority of the province may withdraw from the federal program.
It also amends that Act and the Canada Health Act in order to exempt Quebec from the national criteria and conditions set out for the Canada Health Transfer.

Federal-Provincial Fiscal Arrangements Act

[The Speaker, Liberal, Anthony Rota]

Pursuant to order made on Thursday, June 23, the House will now proceed to the taking of the deferred recorded division on the motion at second reading stage of Bill C-237 under Private Members' Business.

The House resumed from September 28 consideration of the motion that Bill C-237, An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act, be read the second time and referred to a committee.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

Madam Speaker, we are winding up debate at second reading of Bill C-237.

This bill gives the provinces the right to withdraw when the federal government creates a program that should be the exclusive jurisdiction of the provinces. I found the term “exclusive” in the Constitution. When we speak of exclusive jurisdictions, we are referring to matters that fall under the authority of either the provinces or the federal government.

The term “exclusive” exempts Quebec from the standards and conditions that the federal government imposes before providing funding for health care. There has been a consensus in Quebec for 50 years on this position, which is the basis for the major constitutional crises that have occurred over the years.

This week's debate is taking place against the backdrop of the election campaign in Quebec. On Monday, Quebeckers will go to the polls and will have to make a decision about many things. I am thinking of the health care system, which the pandemic demonstrated was fragile and underfunded. One party says there should be more privatization, another wants to make seniors' homes the priority and yet another is counting on existing public services, home care and long-term care centres.

This has been top of mind during the campaign, and on Monday, Quebeckers will vote and decide. Usually, when the public makes a decision, that is the end of it. No matter what choice the Quebec nation makes, Canadians will have to agree because Ottawa is imposing all kinds of conditions. It is imposing its own standards on us and wants us to adopt its priorities.

I am talking about health, but this is true in all sorts of areas, such as housing, education, family policy and taxation. In fact, it is true in almost all areas. That is what it means to be a minority, even though this House recognized that we were a nation by a nearly unanimous vote a few years ago. The Bloc Québécois wants the right to opt out of federal programs in areas that should be the responsibility of Quebec instead of Ottawa because we want to be masters in our own house.

When I introduced Bill C‑237, I hoped to advance the autonomy of Quebec. We are currently being led by a minority government. The Bloc Québécois wants Quebec to be a country, but in the meantime, it wants us to be masters in our own house to the extent possible. That is only natural. The Conservative Party campaigned on respecting provincial jurisdictions. The NDP has its Sherbrooke declaration, which supports Quebec's right to opt out. Between the three parties, we can move Bill C‑237 forward.

However, I was bitterly disappointed when we were debating this bill. The member for Rosemont—La Petite-Patrie says that he supports the right to withdraw, but only if Quebeckers adhere to the NDP agenda. The Conservative member for Hastings—Lennox and Addington says that she respects provincial jurisdictions, but only if the Liberals agree and grant a royal recommendation. If not, she is against the bill.

I want to point out that the Constitution gives exclusive powers to Quebec and the provinces. This means that the federal government must not interfere. This is set out in the Constitution that English Canada adopted, the Constitution that Quebec never signed. Now a Bloc Québécois member, a separatist MP, is standing up in the House and demanding that the federal government respect the Constitution. The Canadian parties are the ones not respecting it. It is all backwards.

However, it is not too late. Election platforms are not just documents to be used during an election campaign and then thrown away. I am appealing to the NDP and the Conservative Party to keep the promises they made to Quebeckers during the election campaign. Let Bill C‑237 move on to the next stage. That will give us time to convince the government to grant a royal recommendation.

If Bill C‑237 is passed, Ottawa will be free to do as it pleases in areas under its jurisdiction, just as Quebec and the other provinces will be free to act in areas under their jurisdiction.

Everyone would respect everyone else's jurisdictions. The key word is “respect”.

[Mark Gerretsen, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons (Senate)]

Madam Speaker, I am pleased to participate in today's debate on private member's bill, Bill C-237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act.

As proposed, this bill would do two things. First, it would allow any province to withdraw from federal programs in provincial jurisdiction if comparable programs exist. Second, it would exempt Quebec from the criteria and conditions that must be met in order to receive a full cash contribution through the Canada health transfer.

Before I get into the concerns that the government has with these amendments, let me very quickly provide a little history surrounding the Canada Health Act. The act was passed unanimously in the House of Commons in 1984. It represents a broad consensus among Canadians and their federal, provincial and territorial governments that access to insured health services should be based on medical need and not one's ability to pay. Since then the act has been considered the gold standard of federal spending power being used to set national objectives in the area of provincial jurisdiction. The act, in conjunction with the Federal-Provincial Fiscal Arrangements Act, does so by establishing broad criteria and conditions that provinces and territories must fulfill to receive full cash contributions under the Canada health transfer. Provincial health insurance legislation and regulations, including those of Quebec, mirror and in some cases go beyond the requirements of the Canada Health Act.

That leads me to my first concern regarding the proposed legislation. By accepting this legislation and exempting Quebec from the Canada Health Act's conditions, we would weaken the foundation of Canada's universal health care system. The act establishes the objectives and values underlying universal, single-payer health care. For provinces to receive full health care transfer payments, provincial health insurance programs must be in compliance with five broad principles: universality, portability, comprehensiveness, accessibility and public administration. Provinces have not requested that these conditions be repealed.

Moreover, I would like to remind the hon. member from the Bloc Québécois that since the creation of the Canada Health Act, Quebec has broadly complied with the act's principles. Indeed, the discretionary penalty provisions of the act, which give the government discretion to withhold the Canada health transfer contributions to provinces in contravention with these five principles, have actually never been used. There have been some instances of non-compliance in Quebec and other provinces with respect to extra billing and user charges, where mandatory deductions under the Canada Health Act have been applied.

It is also important to note that the principle of asymmetric federalism renders the proposed amendments to the Federal-Provincial Fiscal Arrangements Act unnecessary for Quebec. As part of the 2004 health accord, the federal government and the Government of Quebec signed a bilateral agreement on asymmetrical federalism. Under this agreement, Quebec supported the overall objectives and general principles set out by first ministers, while respecting Quebec's desire to exercise its own responsibility in planning, organizing and managing health services. This agreement has continued to shape the federal approach to bilateral agreements with Quebec, notably the 2017 agreement on home and community care and mental health and addictions services and funding.

Importantly, the asymmetric agreements with Quebec in the area of health care have been applied within the parameters of the Canada Health Act principles. For example, the communiqué from the 2004 health accord on asymmetric federalism that respects Quebec's jurisdiction states as one of its preambles, “noting that its commitment with regard to the underlying principles of its public health system—universality, portability, comprehensiveness, accessibility and public administration—coincides with that of all governments in Canada....” Stated differently, the government entered into asymmetrical health agreements with Quebec because the province already adhered to the Canada Health Act principles.

Historically, provinces other than Quebec have recognized the benefits of federal spending power. In 1999, all provinces except Quebec agreed to the social union framework agreement, which recognizes a set of social policy principles and ways to allow the exercise of the federal spending power in areas of exclusive provincial jurisdiction, provided that a majority of provinces agree.

That agreement recognizes, “The use of the federal spending power...has been essential to the development of Canada's social union.” Its continued use is important to ensure access to “essential social programs and services of reasonably comparable quality” for all Canadians, wherever they live or move in Canada, to promote their full and active participation in Canada's social and economic life.

It should also be acknowledged that the federal spending powers during the pandemic have delivered results for Quebeckers while continuing to recognize Quebec's unique place within the federation.

The government remains committed to working with the provinces and territories and key stakeholders to advance shared priorities for the health care system and to improve health outcomes for Canadians. One of those commitments, for example, is to ensure that Canadians who require long-term care get the services they deserve. To address this, our government has committed to providing up to $3 billion to support the provinces and territories in ensuring that standards for care are applied. The Canadian Standards Association and the Health Standards Organization are currently working to finalize national standards for long-term care by late 2022.

To summarize, we believe that Bill C-237 would undermine the government's ability to deliver health care results for Canadians if provinces are allowed to be exempt from the conditions laid out in the Canada Health Act. We also believe there is no need to amend the Federal-Provincial Fiscal Arrangements Act to allow provinces to withdraw from federal programs in provincial jurisdiction. The federal government has a strong record of establishing agreements that cater to Quebec's specific needs, such as the 2004 agreement on asymmetrical federalism that continues to respect Quebec's jurisdiction and falls within the parameters of the Canada Health Act.

For these reasons, and the others that have been mentioned, I would strongly encourage all members of the House to vote against this bill.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

It is indeed a matter for debate, Madam Speaker. Foolishness refers not to the individual but to their arguments. That said, I suppose that, when someone has nothing to say, they can talk about tax havens and point out that they are nowhere to be found in this bill, which focuses on domestic objectives. If the member would like me to go over and explain the bill to him, I would be pleased to do so. However, he should not be saying that the Bloc Québécois wants to privatize the health care system with Bill C‑237. We have heard all sorts of things tonight, but I hope that will stay in the annals of the House of Commons because that is far from being the case. I will get back to my speech because I had prepared one, but when you hear something like that it is hard not to correct the record.

Bill C‑237 addresses a situation that has created friction and tension between the federal and the provincial governments ever since the Constitution Act of 1867 was passed. It is nothing new.

I am talking about respect for the division of powers between the two levels of government. Basically, according to the pact that was made at the time, in 1867, between the two levels of government, each respective area of jurisdiction should be equal and sovereign. This arrangement served to ensure that the priorities of the majority Canadian nation were not imposed on the minority Quebec nation. We are a long way from that today, in 2022.

For issues that directly affect people and the way they organize their society, jurisdiction was directly delegated to the provinces. These include things like health care, social programs, education and culture. For issues that are somewhat removed from the people or the internal organization of their society, the respective areas of jurisdiction were centralized directly under the federal government. This means things like monetary policy, international trade, border defence, and so on.

These terms are protected by the ironclad Constitution and the inviolable division of powers. Quebeckers accepted that agreement, but as I have said before and will say again, members of the federation are supposed to work together, not impose conditions, which is what we are seeing now. The government is using that to make political gains that undermine jurisdiction. It is taking over our child care system and trying to impose conditions on us. We cannot be sure it will transfer that to us. Next is health care. I bet that before too long there will be big federally funded parks all over the place. The government is going to take away all our power over social programs. That is this federal government's current agenda.

That is why we need to take a very close look at the relationship between both levels of government now, 155 years after the original agreement, the Canadian Constitution, came into effect. Inevitably, we will find that, for the past three generations, the federal government has been violating an agreement that goes back to the birth of the federation. I will explain this in a simple two-step process.

First, the federal government uses its taxing power to raise taxes higher than is required to fulfill its own constitutional responsibilities. In doing so, it also prevents Quebec and the provinces from using this tax room. This is called fiscal imbalance.

Second, the federal government uses its surplus profits, which it controls, to spend and create programs in areas under Quebec and provincial jurisdiction. In addition to controlling this money, which is normally intended for different areas and jurisdictions, it goes so far as to impose conditions on the transfer of funds. In concrete terms, this means that the federal government, the Canadian government, uses this practice to decide how Quebec society and the other provinces are set up. It also forces the government of Quebec and the provinces to implement the priorities of Canadians rather than the priorities of Quebeckers in areas under their own jurisdiction.

As I said, it is supposed to be a collaboration, not simply imposing conditions. In this case, Canada's vision and will are being imposed to the detriment of Quebec's will and vision. Quebec never agreed to become Ottawa's subcontractor. Nowadays, it is clear that Ottawa is interfering in areas of jurisdiction. It pays off politically, by the way.

There is unbridled interference going on in areas such as housing, education, family policy, day care services, the environment and taxation. Interference has become the federal government's hallmark.

The federal government has a strong tendency to use its power to spend money and surreptitiously exploit shared jurisdictions. The Bloc Québécois has had enough, which is why it decided to introduce Bill C‑237.

If passed, this bill will give Quebec and the provinces a way to counter this interference, which violates the constitutional agreement on which the country was founded. The original agreement is no longer being respected. Can we get this straightened out? We have no choice. We are being taken for fools. We have no autonomy anymore. We send our money to the federal government, but then it says it will not transfer the money unless we comply with its conditions.

In practical terms, Bill C‑237 makes two amendments. I urge my colleagues to listen carefully, because they have been saying all kinds of things about this bill. First, the bill will amend the Federal-Provincial Fiscal Arrangements Act between the government and the provinces. This will affect all of the provinces, not just Quebec. It will give all provinces the option of withdrawing from a federal program.

Furthermore, in the spirit of compromise, the government will provide matching funds to the province or Quebec, but only if the objectives of the program in question are comparable to those of the federal program. The program in the province or in Quebec does not have to be identical or even similar. It must be comparable. The funds are to be given unconditionally, without criteria and without any other form of interference.

I see that my time is up. I therefore invite the members to give Quebec and each province the freedom to make their own choices, by themselves and for themselves.

[Maxime Blanchette-Joncas, Bloc, Rimouski-Neigette—Témiscouata—Les Basques, QC]

Madam Speaker, I will give an introduction to set the record straight because I have heard a lot of things this evening, things that are bordering on a lie. I am not sure whether it is a failure to understand or whether it is deliberate, but I am going to set the record straight.

First, I do not know if the member for Chicoutimi—Le Fjord is an unbridled sovereignist or if he is just pandering. He says he wants to defend Quebec's autonomy but that the federal government should put conditions on the health care system. The purpose of Bill C‑237 is not complicated. It is about ensuring that Quebec manages its own health system, without conditions imposed by the federal government.

Second, the member for New Westminster—Burnaby came up with all sorts of unbelievable things. Talk about the bogeyman. I am not sure if he is emulating the Conservative Party or if he really had nothing to say about the bill, but he thinks that the Bloc Québécois wants to privatize Quebec's health care system. That is not it at all. Where did he get that idea? I will explain the bill to him.

This bill is in no way an attempt to withdraw from the universal system. The bill is very simple and states that we want to withdraw from the national objectives of the Canadian health care system because we believe that Quebec is capable of administering and managing its own health care system. We do not need the federal government to tell us what to do, under the pretext that it administers a lot of health care systems in Canada.

The only health care systems that the federal government manages are those of the correctional institutions and National Defence. Aside from that, it is in no position to lecture Quebec. Hospitals in Quebec fly the Quebec flag. Quebec manages its own health care system. The federal government does not manage physicians and knows nothing about that. It is in no position to tell us what to do, what is good or what is not good.

Then, the member for New Westminster—Burnaby tells us that the Bloc Québécois wants to withdraw so that we can privatize the system. Come on. The federal government did not create the Régie de l'assurance maladie du Québec. The federal government did not implement the Quebec Act Respecting Prescription Drug Insurance. The Government of Quebec did all of that.

I will not stand by while the member for New Westminster—Burnaby spouts that foolishness this evening. He just made claims about something he simply does not understand.

[Peter Julian, NDP, New Westminster—Burnaby, BC]

Madam Speaker, I rise in the House today to speak to Bill C-237. The NDP supports some aspects of this bill. However, it is surprising to see the extremely negative impact it would have on the universality of our health care system. I will come back to that in a moment. Considering the bill as a whole and all the detrimental effects it would have on the health care systems in Quebec and Canada, we will be voting against it.

I want to talk about the positive aspects of the bill first. The idea of making budget cuts to health care and health transfers was put forward by the Conservatives. It was irresponsible to make those cuts to the health care system, in our view. The only thing the Conservatives seem to want to do is to keep making cuts to public services. The impact these cuts have had on our health care system is being felt in Quebec, British Columbia and everywhere. That has really hurt our health care system.

There was a change of government in 2015. However, the Liberals continued to make cuts. The two traditional parties, the Conservative Party and the Liberal Party, do not understand that when we do not invest money in the system, the system suffers.

The NDP absolutely wants that funding restored, and an NDP government would do that immediately. We would ensure that the health care system receives the funding that Canadians across the country deserve.

As we have already said, the tax haven system that the Conservatives created with the help of the Liberals, and that the Liberals have allowed to carry on with the help of the Conservatives, costs us $25 billion a year. The government cannot claim that we do not have the resources required to fund the health care system. All we need is for the Liberals and the Conservatives to reduce their assistance to the banking system. All this does is help the big Canadian banks increase their profits.

Naturally, we agree on that aspect of the funding proposed in the bill.

We also agree with the second aspect, which has to do with the provinces' right to opt out of new federal programs it does not like and obtain financial compensation. That is part of the Sherbrooke Declaration, which the NDP has always stood for. We have been crystal clear about our stance on Quebec's right to opt out of new federal programs for years.

That second aspect of the bill was no doubt inspired by the NDP's work in the House of Commons, so of course we are in favour of it.

Let us now talk about the third aspect, which would have such a negative impact on the health care system that we cannot understand why it would be in a bill. Polls indicate that two-thirds of the people who vote for the Bloc Québécois want a national pharmacare system. They want that universality, but the Bloc's bill would change the five principles that are the foundation of our public health system.

Let us look at the five principles the Bloc wants Quebec to be exempt from even though the vast majority of Quebeckers support these principles. First, the principle of universality. The Bloc Québécois wants to cut that out so it does not apply going forward.

The principle of universality is one of the foundations of our health care system. Everyone agrees that each and every Canadian is entitled to medicare. It seems they want to abolish that principle. I do not know whether it is a misunderstanding or whether the Bloc Québécois wants to privatize our public system.

The second principle that the Bloc Québécois wants to abolish is the comprehensiveness of the system, which means that all medically necessary services are covered by the public system. This is another one of the foundations of our medicare in Quebec and everywhere else, including British Columbia. They want to get rid of this value.

As my colleagues may know, I have lived in Saguenay‑Lac‑Saint‑Jean, in the Eastern Townships, in Montreal and in the Outaouais. In all the years I spent in these various regions of Quebec, I never met anyone who would support the idea of eliminating the comprehensiveness of our public system.

The third principle that the Bloc Québécois wants to abolish is accessibility. It is a basic principle of our Canadian health care system and Quebec's health care system. By wanting to eliminate the accessibility of the system, the Bloc Québécois is once again going against the will of Quebeckers.

The fourth principle that the Bloc Québécois wants to abolish is portability. This is a very important foundation of our health care system. As we have already seen, it means that people can go to British Columbia and have access to that province's public health care system.

Yes, some improvements certainly are needed. It is well known that some provinces, including Quebec, have problems with the reimbursement of fees paid in other provinces. There was a case like this recently in British Columbia. The principle of the portability of health care must not be abolished; it must be improved. This means that Quebec and British Columbia must be forced to pay these fees promptly. This is an extremely important part of our system.

The fifth principle that the Bloc Québécois seems to want to abolish is the public administration of our system. Hospitals and health care plans must be administered by a public non-profit organization. This is also a fundamental value. I do not understand why the Bloc Québécois wants to abolish this principle of public administration of the system.

Of course, there is still room for improvement. We fully support an increase in health transfers. Furthermore, the NDP has always advocated for the provinces' right to opt out with full compensation.

However, we cannot support the idea of eliminating these five principles that are the cornerstones of the Quebec and Canadian public health systems. Those of us on this side of the House do not see that in a positive light. The NDP is a progressive party and, unlike other parties, we do not support the privatization of our public health care system. As we all know, the American health care system is private, and it costs far more than the public system. Tens of millions of Americans are being left behind by their health care system.

We must maintain our public health care system and always protect the five principles on which our health care system is based. The NDP will steadfastly and rigorously uphold these principles.

[Richard Martel, Conservative, Chicoutimi—Le Fjord, QC]

Madam Speaker, I am very pleased to rise in the House this evening to speak to the bill introduced by my colleague from Bécancour—Nicolet—Saurel.

As we know, we are here in the Parliament of Canada, a parliament where members' work usually revolves around national challenges and co-operation between the federal and provincial governments. Every day or nearly every day, our work reflects the fact that we are fortunate to be part of a family of 10 provinces and three territories that comprise this country.

My colleague from Bécancour—Nicolet—Saurel has a slightly different vision. He does not see Canadians as members of his family, but rather as neighbours and friends. His bill reflects this reality, and I find it disappointing that this bill is not inclusive and forgets the other regions of Canada. After all, if what he is proposing is good for Quebec, then surely it would also be good for the rest of the regions in Canada.

I personally am convinced that we can hope for the best for our fellow citizens when we all work together and combine the strengths of all the regions of Canada to address the challenges faced by North America as a whole.

Having said that, I understand some of what my colleague is proposing in his bill. This initiative would leave the federal government with no choice but to think carefully, and for purely political reasons, before interfering in any provincial jurisdictions.

I am referring to the arrogance of the Prime Minister who, first of all, still refuses to meet with the provinces to discuss health care funding and, second, is proposing a dental plan without consulting the provinces and without considering that such a program already exists in most provinces.

We on this side of the House cannot understand why the Prime Minister is ignoring Canadians who have sent him a very clear message that they have had enough. We cannot believe that the Prime Minister can be so out of touch with Canadians. We think that delusions of grandeur could be preventing him from seeing the reality all around him.

Considering the challenges facing health care funding, the federal government must do everything in its power to prevent duplication of services and funding. The federal government's revenues are both huge and limited at the same time. Moreover, Canadians already pay enough taxes, even if the Prime Minister does not think so. Millions of Canadians are suffering, but considering what he says and does, he seems convinced that their complaints are exaggerated.

The time for the Prime Minister's insipid speeches is over. It is time to find solutions for health services in Canada. If a province, whether it is Quebec, Alberta or any other province, proposes an idea to provide a health service in a more economical, more innovative way that preserves very good quality of service, the federal government has to show some flexibility and work with the province for the good of the population.

I would like to address another point, the importance of maintaining health care services of the highest quality. We often hear that Canada's health care system is one of the best in the world, but we all know that we can and must improve it. Bill C‑237 mentions programs with comparable objectives, but says nothing about the quality of the service. Quebeckers demand better quality of service and, as citizens of our beautiful province, deserve better service.

I do not understand why, in preparing his bill, the Bloc Québécois member did not include details setting out the importance of maintaining quality. I believe him when he says he wants to defend the priorities of Quebec. This is one of the most important priorities and he has left it out. I do not understand that.

With respect to my colleague's bill, in an April 5, 2022, ruling regarding a point of order raised on March 1, the Speaker of the House expressed the view that Bill C‑237 must be accompanied by a royal recommendation and declined to put the question at third reading without this recommendation.

A royal recommendation is required for any private member's bill that involves spending, which, according to Speaker, is the case for Bill C‑237. If I understand correctly, the member for Bécancour—Nicolet—Saurel seems to believe that his bill does not entail any new expense. If the member really wants members of Parliament to support his bill, he should put some effort into proving the Speaker of the House wrong.

In closing, I would say to my Bloc colleague that, while the Liberals are trying to persuade MPs to vote against this bill, our ultimate goal is to ensure that all the provinces are well served by the federal government. Duplication and unnecessary spending must cease. Our new Conservative leader will put people, their pensions, their paycheques, their homes and their country first.

The House resumed from May 5 consideration of the motion that Bill C-237, An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act, be read the second time and referred to a committee.

[Shafqat Ali, Liberal, Brampton Centre, ON]

Madam Speaker, I am pleased to participate in today's debate on this private member's bill, Bill C-237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act. As proposed, this bill would do two things. It would allow any province to withdraw from a federal program in provincial jurisdiction if comparable programs exist, and it would exempt Quebec from the criteria and conditions that must be met in order to receive a full cash contribution through the Canada health transfer.

Before I get into the concerns that the government has with these amendments, let me very quickly provide a little history of the Canada Health Act. The act was passed unanimously in the House of Commons in 1984 and represents a broad consensus among Canadians and their federal, provincial and territorial governments that access to insured health services should be based on medical need and not one's ability to pay.

Since then, the act has been considered the gold standard of federal spending power being used to set national objectives in an area of provincial jurisdiction. The act, in conjunction with the Federal-Provincial Fiscal Arrangements Act, does so by establishing broad criteria and conditions that provinces and territories must fulfill to receive full cash contributions under the Canada health transfer. Provincial health insurance legislation and regulations, including those of Quebec, meet and in some cases go beyond the requirements of the Canada Health Act.

That leads me to the first concern our government has with this proposed legislation. By accepting this legislation and exempting Quebec from the Canada Health Act's conditions, we would weaken the foundation of Canada's universal health care system. The act establishes the objectives and values underlying universal health care. For provinces to receive full Canada health transfer payments, provincial health insurance programs must be in compliance with five broad principles: universality, portability, comprehensiveness, accessibility and public administration. Provinces have not requested that these conditions be repealed.

Moreover, I would like to remind the hon. member from the Bloc Québécois that since the creation of the Canada Health Act, Quebec has broadly complied with the act's principles. Indeed, the discretionary penalty provisions of the act, which give the government discretion to withhold the Canada health transfer contributions from provinces in contravention of the five principles, have never been used.

There have been some instances of non-compliance in Quebec and other provinces, with respect to extra billing and user charges, where mandatory deductions under the Canada Health Act have been applied.

It is also important to note that the principle of asymmetric federalism renders the proposed amendment to the Federal-Provincial Fiscal Arrangements Act unnecessary for Quebec. As part of the 2004 Health Accord, the federal government and the government of Quebec signed a bilateral agreement on asymmetric federalism.

Under this agreement, Quebec supported the overall objectives and general principles set out by first ministers while respecting Quebec's desire to exercise its own responsibilities in planning, organizing and managing health services.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Madam Speaker, we on this side of the House have enough faith in our nation that we do not need know-it-all Ottawa and its federal shield to guarantee that medicare remains public. We have faith that we can do it ourselves.

From what I understand, and the member for Winnipeg North did the best job explaining this from the government's perspective, the other parties see the relationship between the federal government and the provincial governments, in this case the Government of Quebec, as a boss-employee relationship. The boss demands accountability from the employee and sets conditions. A mere employee could decide to privatize the entire system but still needs the boss, in this case, paternalistic Ottawa. That is what I am seeing. We said that the NDP's position is centralist, and we have just seen proof once again.

When the member for Winnipeg North was talking, he was speaking on behalf of the government and he said that he was defending his nation, “our nation”. That is all well and good, but what about our own nation, the Quebec nation? Some time ago, the House recognized Quebec as a nation. What does that mean? How is the government walking the talk? How is it following through on its recognition?

In this Canada, is my nation only free to follow the rules and instructions set out by know-it-all Ottawa? That means a one-size-fits-all approach from coast to coast to coast, with the same criteria and the same methods. However, our nation is different and has its own special characteristics. Nevertheless, we were told no, that we have to fit into the mould. That is what we saw and what we are seeing more and more.

The government member pointed out that the separatists are the ones who want this. I would like to remind him that, yes, we are separatists, but then so is the rest of Quebec, because there is a consensus on this issue. Indeed, in the federation and federalism, there are powers and jurisdictions, and they must be respected. The various Liberal governments who have sat in Quebec City have asked for the same thing: Jean Charest, his minister Benoît Pelletier, Liberal finance minister Yves Séguin, as well as Coalition Avenir Québec, and of course, the Parti Québécois. Quebec's health care sector is no different. There is a unanimous consensus, and everyone knows it.

As my excellent colleague from Bécancour—Nicolet—Saurel said when he introduced Bill C‑237, health care funding was originally split 50-50. In the 1990s, the government started cutting, and ever since then, health care systems everywhere have been ailing. This is a serious problem.

Ottawa is not contributing its fair share, and now that things are not going well, Ottawa is telling the provinces and Quebec that they should be doing things a certain way. Fundamentally, the problem is that Ottawa is not respecting provincial jurisdictions and is contributing less than it can to the system.

I thank my colleague for introducing Bill C‑237 in the House so that we can debate it. Can Quebec exist in Confederation, have a chance to do things its way, and have its freedom? The question is, is this a federation made up of several nations and will the Quebec nation be able to do things its way without Ottawa constantly bossing it around? That is really all this is about, and I thank my colleague for getting us to this point.

I think we need even more freedom than what is being asked for here, but this would be significant progress. I can see my colleague, the dean of the House, nodding in agreement.

What did the government say when we proposed that Quebec have a little more autonomy? It talked about standards for long-term care facilities, pharmacare managed by Ottawa, dental care managed by Ottawa. The government said it was Ottawa's responsibility to make sure it all worked. It said—

[Shelby Kramp-Neuman, Conservative, Hastings—Lennox and Addington, ON]

Madam Speaker, I am extremely pleased to be here today to rise and speak to the private member's bill of my hon. colleague for Bécancour—Nicolet—Saurel.

I want to take this opportunity to thank our dean of the House for his service to our nation. It is a great honour to be able to address the hon. member. I was six years old when he was elected to this place and, I will note, as a Progressive Conservative.

I would like to say to him that his constituents, Quebec and Canada thank him for his years of dedicated, effective and thoughtful service.

That being said, he has 337 members gunning for his job, myself included.

If I ever do have the pleasure of serving as long as my hon. colleague, that would put me at a very young 80 years of age in this place. It is perhaps divine providence that I am the official opposition shadow minister for seniors.

To get to the point at hand, transfer payments are an essential component of Canadian federalism.

As such, I can certainly appreciate any member's efforts to increase payments for their constituency. It is a massive part of what we are all sent here to do.

My hon. colleague has had the honour and privilege of serving in this chamber for over 37 years straight, so he knows the rules of this place and he has surely had the opportunity to introduce and speak to many bills.

My concern today is not with the approach taken by our hon. dean of the House, who I think is only doing his very best to care for his constituents. My concern is with his method.

One rule in particular, as I am sure we are extremely aware, because the Speaker ruled on this recently, is that private members' bills cannot propose the expenditure of public funds or tax-raising initiatives unless they have a royal recommendation.

Standing Order 79(1) states:

This House shall not adopt or pass any vote, resolution, address or bill for the appropriation of any part of the public revenue, or of any tax or impost, to any purpose that has not been first recommended to the House by a message from the Governor General in the session in which such vote, resolution, address or bill is proposed.

I may be ignorant to the goings-on behind the scenes, but to my knowledge, this particular piece of legislation has not received the required royal recommendation.

My good friend from Winnipeg North, the Parliamentary Secretary to the Leader of the Government in the House of Commons, rose on a point of order to share his concerns about the content of this bill. In his opinion, this bill was actually a spending bill.

The Chair said the following in response to the point of order.

I reviewed the bill, and I have reached the following conclusions concerning the impact on the royal recommendations.

Section 1 of the bill provides that Quebec need not apply the conditions set out in paragraph 24(a) of the Federal-Provincial Fiscal Arrangements Act in order to obtain the amounts referred to in subsection 24.1(1) of that act. Section 3 of Bill C-237 provides that Quebec receives the full monetary contribution provided for in the Canada Health Act without being subject to the various grant conditions set out in that act. In other words, the result of the mechanism proposed by Bill C-237 would be to exempt Quebec from having to fulfill the conditions to which it is currently subjected in order to receive the Canada health transfer, which originate in the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act.

[Translation]

The member for Bécancour—Nicolet—Saurel argued that these changes have no financial effect in terms of either the amounts or their destination. However, these changes would amend the terms and conditions initially attached to the Canada health transfer, which were approved by Parliament.

On this, page 838 of the House of Commons Procedure and Practice, third edition, states:

A royal recommendation not only fixes the allowable charge, but also its objects, purposes, conditions and qualifications. For this reason, a royal recommendation is required not only in the case where money is being appropriated, but also in the case where the authorization to spend for a specific purpose is significantly altered. Without a royal recommendation, a bill that either increases the amount of an appropriation or extends its objects, purposes, conditions and qualifications is inadmissible on the grounds that it infringes on the Crown’s financial initiative.

As the member for Bécancour—Nicolet—Saurel indicated in his intervention, the bill seeks to exempt Quebec from the application of the Canada Health Act. Thus, after analysis and in keeping with the precedents, including the rulings by Speaker Milliken on May 8, 2008, and by my predecessor on December 6, 2016, the Chair is of the opinion that the implementation of Bill C-237 would contravene the conditions initially provided for in the royal recommendation. Accordingly, the Chair is of the view that Bill C-237 must be accompanied by a royal recommendation.

As it stands now, this bill does not have a royal recommendation. Unlike my hon. colleague from Bécancour—Nicolet—Saurel, I am new to the House. I may not be as aware of how things work in this place, but I think is it safe to assume that, if a royal recommendation has not yet been given at this stage then it will not be given later.

We all know how this will play out. As it stands now, this bill cannot and will not be put to a vote at third reading.

I want to use the closing portion of my speech to reiterate that my objection to this bill is rooted in the manner through which it was brought before the House. I want to reiterate that I know my hon. colleague from the Bloc is a tireless advocate for the people of Quebec, as is evidenced by his electoral record. I will go so far as to say that his constituents are lucky to have him. His knowledge, experience and record of service are quite literally uncomparable with those of any member of this place.

That being said, the rules of Parliament are the rules of Parliament. Our Standing Orders are our Standing Orders. They explicitly lay out the rules and regulations under which we operate, and based on the Speaker's decision, the future of this bill is crystal clear. It is a spending private member's bill that does not have a royal recommendation. As such, I will not be voting for it.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

moved that Bill C-237, An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act be read the second time and referred to a committee.

Madam Speaker, I am very proud to rise today to speak to my bill, Bill C-237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act.

The bill addresses the root cause of the tensions and disputes between the federal government and the provinces, Quebec in particular, and that is spending power. The federal government has given itself the power to tell Quebec what to do in its own areas of jurisdiction, under the pretext that it is transferring money to the province.

Canada is supposed to be a federation. In a federation, the two levels of government are equally sovereign, but not in the same areas.

Section 91 of the Constitution confers powers on the federal Parliament and section 92 confers powers on Quebec and the Canadian provinces. Federal spending that encroaches on provincial jurisdiction calls into question the division of powers and Quebec's autonomy. That is what spending power is. It is the power to tell the other what to do in areas that fall under its exclusive jurisdiction. Respecting Quebec and its autonomy is not a partisan game in Quebec, and this is not new.

It was during the creation of the welfare state, as it was known, when the government started developing various social programs, that tensions arose.

During the Quiet Revolution in the 1960s, Quebeckers clearly picked a side. They looked to the Government of Quebec to develop the social safety net, and they expected Quebec to be completely free to do that without having to take orders from Ottawa. Quebec Premier Jean Lesage's campaign slogan was “Maîtres chez nous”, masters of our own house, and that is what he was talking about. That is also what the great constitutional talks—Victoria in 1970, Meech Lake in 1987 and Charlottetown in 1992—were all about. In fact, that is what prompted me to get into politics.

When English Canada got itself a new Constitution without Quebec, I decided to make the leap. When I ran in 1984, I ran because I wanted us to be masters of our own house. It is for that same reason that I am now introducing Bill C‑237 38 years later.

The bill amends the Federal-Provincial Fiscal Arrangements Act in two ways.

On the one hand, it provides all interested provinces with the opportunity to opt out of a federal program that falls under the legislative authority of the provinces. In that case, the government can pay the province a transfer equivalent to the contribution that it would have received had it not withdrawn.

On the other hand, Bill C-237 adds that the government will only pay the contribution if the province has a program whose objectives are comparable to those of a federal program. This mechanism is quite similar to the one that exists in the Canada Student Financial Assistance Act, for example.

If a province has its own program and withdraws from the federal program, it receives the same transfer that it would have received had it not withdrawn. The transfer is unconditional and goes into the province's consolidated revenue fund, but only if it has a comparable program. It can be comparable, but it does not have to be the same. There is no requirement to respect standards or criteria or to allow interference in our affaires. We have a fair amount of control in this kind of relationship. That is not currently the case under this government or under previous governments.

Bill C-237 proposes a second amendment to the Federal-Provincial Fiscal Arrangements Act that applies only to Quebec. This amendment would exempt Quebec from the application of criteria and conditions set out by Ottawa in the Canada Health Act.

The federal government has announced that it plans to set conditions applicable to long-term care facilities, or CHSLDs. It is talking about a series of so-called national strategies, which we understand to mean “dictated by the federal government”, in such areas as mental health, seniors' health, reproductive health, pharmacare and dental care.

The federal government does not develop any services and, in fact, it would not be able to do so. The federal government does not deliver any services either, as it knows nothing about them. It will just transfer the responsibility to the provinces so they will do the work in its place. It is going to hire them like subcontractors, and it is going to use its spending power to tell them what to do.

Fifty years ago, Pierre Elliott Trudeau said that “there's no place for the state in the bedrooms of the nation”. Today, his son is saying that the state has its place in every room in the house, which is unacceptable to us. Our house is Quebec, and we do not want Canada deciding on the decor and furniture.

As I was saying, it is not a partisan issue in Quebec. I would like to quote Benoît Pelletier, Quebec's minister of intergovernmental affairs in Jean Charest's government, the same Jean Charest who is a Liberal in Quebec and a Conservative in Ottawa. It would be difficult to be any more transparent.

Benoît Pelletier said, “I have a great deal of difficulty in reconciling the values underlying the Canadian federation with the idea of a federal spending power that is in no way subject to the division of powers.”

The Séguin commission on the fiscal imbalance said the same thing: “The 'federal spending power' displays a singular logic in that the federal government intervenes every time in a field falling under provincial jurisdiction without having to adopt a constitutional amendment.”

The current government of François Legault, which was elected on an autonomist platform, is still calling for jurisdictions to be respected. Between autonomist François Legault and Jean Lesage's “masters in our own house”, it is very clear that Quebec does not want the federal government to tell us what to do in areas over which we have exclusive jurisdiction.

This is not a constitutional matter. It is, quite simply, a jurisdictional matter. The federal government does not manage the health care system and knows nothing about it.

In March, the Bloc leader held a press conference to demand that the federal budget include an increase in health transfers, with no conditions attached. He was accompanied by the entire Quebec health care community: unions, physicians' federations, various health care professionals, everyone. These people, the backbone of the health care system, are all asking for the same thing, and that is a boost in transfers, with no conditions.

These people make the health care system function, together with the Quebec government. The last thing they need is the federal government coming in and telling them what to do. This consensus goes far beyond the political parties in Quebec; it includes the entire health care community. I would like to reiterate that all the provincial premiers are unanimously asking for the same thing. That consensus is reflected in Bill C-237.

A few weeks ago, the Speaker ruled that my bill requires a royal recommendation. In other words, the House can vote on it at third reading only if the government agrees. We still have second reading, committee and report stage, which gives us several months to convince this government, which, I remind members, is a minority government.

Of course, the Bloc Québécois wants Quebec to be a country, but in the meantime, we want to be masters in our own house to the extent possible.

The Conservative Party campaigned on a platform of respect for provincial jurisdiction. The NDP had its Sherbrooke declaration, which supported Quebec's right to opt out. Together, the three of us can move Bill C‑237 forward. Today, I am calling on these three parties to do just that.

My people built a unique society on our part of the continent. Our distinct nature is evident in our language and our culture, but it is much more than that. Quebec has the highest rate of female labour market participation, the most advanced family policy on the continent, the best wealth distribution and the lowest poverty rates. Almost 80% of the population belongs to the middle class, compared to under 75% in the rest of Canada. How did we make that happen? We did it because we were free to do it. That is all there is to it.

The federal government wants to use its spending power to replace our freedom with conditional freedom. It cannot recognize the existence of a nation while simultaneously wanting to control it. Everyone here rejects that brand of paternalism toward indigenous nations, whose right to self-government we recognize. I expect the same level of respect for my nation, the Quebec nation.

That is why I urge all members to support my Bill C‑237 so we can have a little more mastery over our own house.

Royal Recommendation for Bill C‑237—Speaker's Ruling

[The Deputy Speaker, Conservative, Chris d'Entremont]

I am now ready to rule on the points of order raised on March 1, 22 and 28 by the member for Bécancour—Nicolet—Saurel, the parliamentary secretary to the government House leader and the member for La Prairie regarding Bill C‑237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act, standing on the Order Paper in the name of the member for Bécancour—Nicolet—Saurel.

During his intervention, the sponsor of Bill C‑237 argued that it entails no new expense and does not change the transfer amounts or its purpose nor does it change the beneficiaries or how the funding is allocated to them. He continued by saying that all C‑237 does is reduce federal control over the management of provincial programs in the provinces' own jurisdictions.

The member added that his bill seeks to exempt Quebec, and only Quebec, from the application of the Canada Health Act. The member for La Prairie added to these arguments that a bill that amends a condition or qualification of an existing act should be accompanied by a royal recommendation only if that amendment entails an increase in these costs or changes the purpose, which he argued is not the case with C‑237.

For his part, the parliamentary secretary to the government House leader argued that the bill seeks to eliminate conditions and qualifications associated with the legislative spending power enacted by the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act. He thus contended that a new royal recommendation is needed for the purposes of the Canada Health Transfer to the provinces as proposed by Bill C-237. I reviewed the bill and I have reached the following conclusions concerning this impact on the royal recommendation.

Section 1 of the bill provides that Quebec need not apply the conditions set out in paragraph 24(a) of the Federal-Provincial Fiscal Arrangements Act in order to obtain the amounts referred to in subsection 24.1(1) of that act. Section 3 of Bill C-237 provides that Quebec receives the full monetary contribution provided for in the Canada Health Act without being subject to the various grant conditions set out in that act. In other words, the result of the mechanism proposed by Bill C-237 would be to exempt Quebec from having to fulfill the conditions to which it is currently subject in order to receive the Canada Health Transfer, which originate in the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act.

The member for Bécancour—Nicolet—Saurel argued that these changes have no financial effect in terms of either the amounts or their destination. However, these changes would amend the terms and conditions initially attached to the Canada health transfer, which were approved by Parliament.

On this, page 838 of the House of Commons Procedure and Practice, third edition, states:

A royal recommendation not only fixes the allowable charge, but also its objects, purposes, conditions and qualifications. For this reason, a royal recommendation is required not only in the case where money is being appropriated, but also in the case where the authorization to spend for a specific purpose is significantly altered. Without a royal recommendation, a bill that either increases the amount of an appropriation or extends its objects, purposes, conditions and qualifications is inadmissible on the grounds that it infringes on the Crown’s financial initiative.

As the member for Bécancour—Nicolet—Saurel indicated in his intervention, the bill seeks to exempt Quebec from the application of the Canada Health Act. Thus, after analysis and in keeping with the precedents, including the rulings by Speaker Milliken on May 8, 2008, and by my predecessor on December 6, 2016, the Chair is of the opinion that the implementation of Bill C-237 would contravene the conditions initially provided for in the royal recommendation. Accordingly, the Chair is of the view that Bill C-237 must be accompanied by a royal recommendation.

Consequently, the Chair will decline to put the question at the third reading stage of the bill in its present form unless a royal recommendation is received.

When this item is next before the House, the debate will only be on the motion for second reading of the bill, and the question will be put to the House at the end of this debate.

I thank all members for their attention.

Royal Recommendation for Bill C‑237

[Alain Therrien, Bloc, La Prairie, QC]

Mr. Speaker, on Monday, February 28, the Chair encouraged members who would like to make arguments regarding the requirement for a royal recommendation with respect to Bill C‑237 to do so as soon as possible. I would like to make some arguments. I will be brief.

Bill C‑237 amends the Federal-Provincial Fiscal Arrangements Act to provide that a province may withdraw from a federal program in an area under the legislative authority of the province if, and only if, the province itself has a program whose objectives are comparable to those of the federal program. The province that withdraws is to be paid the same amount of money it would have received had it participated in the federal program.

By the same token, it amends the Canada Health Act, but only for Quebec. I will not reiterate the arguments that the bill's sponsor, the member for Bécancour—Nicolet—Saurel, so eloquently laid before us on March 1, but I fully agree with everything he said. Like him, I feel that Bill C‑237 does not require a royal recommendation because it does not change the amounts transferred to the provinces, how funds are divided among the provinces, the end use of the funds or the executive's power to determine whether a province has a comparable program that justifies withdrawing from the program.

I would like to add a few points for the Chair to consider.

Section 54 of the Constitution Act, 1867, grants the power of initiative in tax matters to the Crown as follows:

It shall not be lawful for the House of Commons to adopt or pass any Vote, Resolution, Address, or Bill for the Appropriation of any Part of the Public Revenue, or of any Tax or Impost, to any Purpose that has not been first recommended to that House by Message of the Governor General

It clearly states “any purpose”. The same term is used in Standing Order 79.

Over the years, the Chair has had occasion to clarify the scope of that term. According to page 838 of House of Commons Procedure and Practice, third edition, the Chair has ruled that in order for a private member's bill to proceed without a royal recommendation, its objects, purposes, conditions and qualifications must not be significantly altered.

My colleague from Bécancour—Nicolet—Saurel introduced a series of bills comparable in scope to Bill C‑237 that did not have royal recommendation.

On March 22, the Parliamentary Secretary to the Leader of the Government in the House of Commons presented two cases where the Chair had ruled that the bills required royal recommendation. These two bills have something in common. In both cases, the change in the conditions and qualifications opened the door to potentially increasing the amount of spending. In the case of Bill C‑490 introduced in 2007, it is clear. In addition to increasing the guaranteed income supplement, the bill set out that a person could retroactively receive the benefits for all the previous years they were entitled to receive them but did not apply for them.

The change in conditions and qualifications significantly increased the amount of spending. The Chair was absolutely right in that case to require royal recommendation.

The government also brought up the example of Bill C‑243, introduced in 2016, which was similar. It provided for a pregnant woman to obtain employment insurance maternity benefits before giving birth if her work posed a risk to her health or her pregnancy. It is true that the weekly benefit would not change. It is also true that the maximum number of weeks of benefits would not change either, but a third of new mothers do not draw the maximum number of weeks because they return to work before using them all.

We can assume that a significant number of women would draw maternity benefits for longer if they started to receive them a month, two months, or even three months sooner. Thus, the changes to the employment insurance eligibility conditions that were set out in Bill C‑243 had the potential effect of increasing the amount of spending.

Therefore, it was logical that a royal recommendation be required for that bill.

That is not the case with Bill C‑237. There is no possibility whatsoever that the bill will result in new spending or that its purpose will change. The government is suggesting a very broad interpretation of the royal recommendation. It is suggesting that when a bill with financial implications changes a condition or a qualification, it must be accompanied by a royal recommendation.

If that were the case, a bill to change the colour of a form would also require a royal recommendation because it would change the condition for access to a program, even though it would not change the amount or the purpose, which are the terms used in the Constitution or the Standing Orders. That is definitely not the spirit of the Standing Orders, as in future it would not be possible to make any amendements whatsoever to any budget bill.

In closing, in the Chair's interpretation of what constitutes a significant change when a bill amends the conditions and qualifications associated with spending, I suggest that we look to the terms used in both the Constitution and the Standing Orders. Does it change the amount of the expenditure? Does it change the purpose of the expenditure? If it does not change one or the other, it should not require a royal recommendation. In that sense, I believe that we should be able to vote on Bill C‑237 at all stages, even if the Crown were to refuse to grant a royal recommendation.

Royal Recommendation for Bill C-237

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Madam Speaker, I have two points of order that I would like to address.

I am rising on this particular point of order in response to the Speaker's statement on February 28, 2022, respecting the need for a royal recommendation for Bill C-237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act, sponsored by the member for Bécancour—Nicolet—Saurel.

Without commenting on the merits of Bill C-237, I note that the bill would exempt Quebec from the national criteria and conditions set out for the Canada health transfer. Section 24 of the Federal-Provincial Fiscal Arrangements Act sets out certain conditions and criteria for payments to provinces for health transfers:

a Canada Health Transfer in the amounts referred to in subsection 24.1(1) is to be provided to the provinces for the purposes of

(a) maintaining the national criteria and conditions in the Canada Health Act, including those respecting public administration, comprehensiveness, universality, portability and accessibility, and the provisions relating to extra-billing and user charges.

Bill C-237 also seeks to amend the Canada Health Act to make a corresponding change to exempt Quebec from abiding by the criteria and conditions for a cash contribution from the government to the provinces for the purposes of providing health care services. The purpose of the Canada Health Act is to set out in section 4 of the act:

The purpose of this Act is to establish criteria and conditions in respect of insured health services and extended health care services provided under provincial law that must be met before a full cash contribution may be made.

Section 5 of the Canada Health Act provides for cash contributions for each province in relation to the Canada health transfer.

Section 7 of the Canada Health Act sets out the criteria that a province must satisfy in order to receive a cash contribution. These criteria are more fully articulated in sections 8 to 12 in the act. Section 7 states:

In order that a province may qualify for a full cash contribution referred to in section 5 for a fiscal year, the health care insurance plan of the province must, throughout the fiscal year, satisfy the criteria described in sections 8 to 12 respecting the following matters:

(a) public administration;

(b) comprehensiveness;

(c) universality;

(d) portability; and

(e) accessibility.

As House of Commons Procedure and Practice, third edition, states at page 772:

Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation.

The provision of full cash contributions from the federal government to the provinces for health care services is tied to the ability of provinces to satisfy the conditions set out in section 7 of the Canada Health Act and section 24 of the Federal-Provincial Fiscal Arrangements Act. The royal recommendation includes the maximum charge on the consolidated revenue fund and is tied to the purposes, terms, conditions and qualifications for the authorization of expenditures.

Since Bill C-237 seeks to remove the terms, conditions and qualifications of the statutory spending authority, I submit that a new royal recommendation would need to be obtained for the purposes set out for health transfers to provinces envisaged in Bill C-237.

Speakers have consistently ruled that bills seeking to impose a new charge on the consolidated revenue fund, change the qualifications or alter the terms and conditions need to be accompanied by a royal recommendation.

On December 6, 2016, Speaker Regan noted:

On May 8, 2008, Speaker Milliken delivered a ruling on Bill C-490, an act to amend the Old Age Security Act (application for supplement, retroactive payments and other amendments). While the bill clearly provided for increases in supplements, it also made changes in the manner in which people applied for benefits and the extent to which qualified persons could claim benefits retroactively. In Speaker Milliken’s view, this:

...would alter the conditions and qualifications that were originally placed on public spending on old age security payments when those benefits were approved by Parliament.

On December 6, 2016, the Speaker ruled on the need for a royal recommendation for Bill C-243, an act respecting the development of a national maternity assistance program strategy and amending the Employment Insurance Act, maternity benefits. The Speaker stated:

In this case, Bill C-243 does not impose any new charge on the public treasury but creates a new set of conditions, relating to the safety of their workplace for their pregnancy, under which pregnant women could have access to benefits related to their pregnancy from as early as 15 weeks before the birth of their child. Though the sponsor of the bill argues otherwise, the Chair is not convinced that the current act allows spending under the circumstances, in the manner, and for the purposes he proposes. This being a circumstance not yet envisioned in the Employment Insurance Act, it infringes on the terms and conditions of the initial royal recommendation that accompanied that act and therefore requires now a new royal recommendation. This remains the case, even if the total amount of benefits stays the same.

Consequently, the Chair will decline to put the question on third reading of the bill in its present form unless a royal recommendation is received.

A royal recommendation may only be obtained by a minister of the Crown on the advice of the Governor General. In the absence of a royal recommendation, Bill C-237 may proceed through the legislative process in the House up until the end of the debate at third reading. In cases in which the Speaker has ruled that a royal recommendation is required and it has not been provided before the third-reading vote, the Speaker refuses to put the question at third reading and orders the bill discharged from the Order Paper.

I submit that this is the case before you, Mr. Speaker, with respect to Bill C-237.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

Madam Speaker, I appreciate your intervention.

Only the specific conditions of the Canada Health Act are affected. The Speaker has ruled on many occasions that playing within these standards does not generate or reallocate an expenditure and therefore does not require a royal recommendation.

In the 27 years since the start of the 35th Parliament, when bills began to be tracked in the LEGISinfo parliamentary module, no fewer than 31 private members' bills have proposed amendments to the Canada Health Act.

All of them added new conditions. Some required the province to develop new services in order to receive the Canada health transfer. Others imposed requirements on how health services had to be delivered in order to receive the transfer. Others prohibited access to the Canada health transfer for provinces that provide certain free services, in this case abortion. I will let the members guess which party recommended that.

The Chair did not require a royal recommendation for any of these bills, not one. Of course, not all of them were on the order of precedence, so the Chair did not have to rule on many of them. However, in some cases, the Chair did have to do so.

Take Bill C‑282, introduced during the 36th Parliament by the Liberal member for Ottawa—Vanier, the late Mauril Bélanger, a great defender of the rights of Franco-Ontarians. He introduced the bill in response to the crisis surrounding the Montfort Hospital, a francophone hospital in Ottawa that the Ontario government had tried to close.

The bill introduced a new condition in the Canada Health Act to set new language requirements for French-language services in the provinces and English-language services in Quebec. If the province did not meet these conditions, the minister could cut the transfer. The bill was placed on the order of precedence without the Chair indicating that it required a royal recommendation. It was subsequently debated.

If members consult the March 19, 2003, Hansard, they will see that the Parliamentary Secretary to the Minister of Health spoke on behalf of the Crown in the debate. He never made any mention of a royal recommendation. On the contrary, he asked members to refer the bill to the Standing Committee on Official Languages before second reading because “The federal government cannot and must not act unilaterally in a shared provincial jurisdiction. Any decision to broaden the scope of the Canada Health Act requires extensive consultations with the provinces”. In short, he asked the House not to pass the bill, even while recognizing that it had the right to do so.

I will give another example, that of Bill C-213, an act to enact the Canada pharmacare act, which was introduced by the member for New Westminster—Burnaby and voted on by the House at second reading on February 24, 2021. This bill basically creates a new transfer.

According to clause 4 of this bill, “The purpose of this Act is to establish criteria and conditions that must be met before a cash contribution may be made in respect of public drug insurance plans.” After setting out the specific conditions, the bill indicates that the minister “may” make a transfer to the provinces to fund a provincial drug program.

It is important to note that the bill does not set out a specific amount. I understand that it was specifically written that way so as to not generate any new spending and therefore not require royal recommendation. It worked. Even though the bill created a new transfer, even though it set out specific goals and conditions, it did not require royal recommendation because it did not generate any new spending.

If we apply the same logic to Bill C-237, we can come to only one conclusion. This bill does not require a royal recommendation.

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

Madam Speaker, I rise on a point of order.

Yesterday evening, Monday, February 28, the Speaker said:

I would encourage members who would like to make arguments regarding the requirement for a royal recommendation with respect to [Bill] C-237...to do so at an early opportunity.

I am rising on a point of order this evening in relation to that.

I admit that I was surprised by this statement. Royal recommendation is the mechanism by which a private member's bill cannot have any financial implications unless it is recommended by the Crown.

Financial implications refers to both new expenditures and reallocation of funds for other purposes. Bill C-237, which I am introducing, does not do either.

In my view, it is clear that Bill C-237 does not require a royal recommendation and has the potential to be voted on by the House at all stages and implemented, for the following five reasons.

First, it does not require any new spending.

Second, it does not change the transfer amounts, nor does it change the names of the beneficiaries or how the funding is allocated to them.

Third, it does not change the purpose of the transfer. The Canada health transfer will still be dedicated to paying for health care. The same goes for other transfers that are allocated to a province if it has “a program whose objectives are comparable to those of a federal program”.

Fourth, it does not force the executive's hand, which retains the latitude and margin of appreciation required to transfer the funds. That prerogative remains in place. The executive will decide whether the province has a comparable program and will determine whether the province is complying with the conditions in the Canada Health Act.

Finally, precedents are on my side. There have been many bills that have changed the normative framework without any financial implications. I actually found 31 bills that amend the Canada Health Act, and not one required a royal recommendation.

For all these reasons, I believe that Bill C‑237 does not require a royal recommendation.

Let us examine it in detail. Bill C‑237 amends the Federal-Provincial Fiscal Arrangements Act in two ways.

It provides all interested provinces with the opportunity to opt out of a federal program that falls under the legislative authority of the provinces. In that case, the government can pay the province a transfer equivalent to the contribution that it would have received had it not withdrawn. This means that it is an equal amount or a zero sum.

The bill adds that the government will only pay the contribution if the province “has a program whose objectives are comparable to those of a federal program”. In short, the purpose of the transfer does not change either.

This mechanism is quite similar to the one that exists in the Canada Student Financial Assistance Act, for example. If a province has its own program and withdraws from the federal program, it receives the same transfer that it would have received had it not withdrawn.

The transfer is unconditional and goes into the province's consolidated revenue fund, but only if it has a comparable program. It is up to the minister to determine whether it has a comparable program.

Without any conditions on how the province runs the program, the transfer still serves the same purpose, which is to ensure that students can access financial assistance.

This same principle is in Bill C-237, which I introduced. It does not change the amounts or recipients, the distribution of the amounts among them, or the purpose of the transfer. It simply reduces federal control over the management of provincial programs in the provinces' own jurisdictions. Again, this is about provincial management of provincial programs. That is the only thing that is impacted here, and it has little to do with the prerogative of the federal Crown.

Bill C‑237 proposes a second amendment to the Federal-Provincial Fiscal Arrangements Act, this one just for Quebec. The federal government has announced that it plans to set conditions applicable to long-term care facilities and retirement homes. I assume that they will be included in the Canada Health Act, since long-term care facilities fall under the definition of “extended health care services” in the act.

Since Quebec was the only one to object, Bill C-231 would exempt Quebec, and only Quebec, from the Canada Health Act, much like the proposal by my colleague from Montcalm to exempt Quebec from the Canadian Multiculturalism Act in his Bill C-226 in the 43rd Parliament, which did not require a royal recommendation.

The Canada Health Act does not have financial implications per se. It sets out a normative framework, five principles for the government to consider in the Canada health transfer, which is provided for in the Federal-Provincial Fiscal Arrangements Act. It is the latter act that has financial implications.

My bill, Bill C‑237, does not change the purpose of the Canada health transfer. It does not change the purpose of the transfer defined in section 24(b) of the fiscal arrangements act as “contributing to providing the best possible health care system for Canadians and to making information about the health care system available to Canadians”. Bill C‑237 does not change this section of the act, which sets out the purpose of the transfer.

Under the Canada Health Act, the government is responsible for determining whether the provinces are in compliance. In Bill C‑237, the government determines whether the province has “a program whose objectives are comparable”. Personally, I would have preferred not to include that clause in Bill C‑237, but I realized that this would have changed the purpose of the transfers and could therefore have required a royal recommendation.

Bill C‑237 has no financial implications in terms of the amounts, their destination, their purpose or the general conditions. Only specific conditions in the Canada Health Act are affected.

Madam Speaker, I hear a lot of noise in the House and I am having a hard time delivering my speech.

Revocation of the Declaration of a Public Order Emergency

[The Speaker, Liberal, Anthony Rota]

The House will soon begin Private Members' Business for the first time in this Parliament. I would therefore like to make a brief statement to remind all members about the procedures governing Private Members' Business and the responsibilities of the Chair in the management of this process.

As members know, certain constitutional and procedural realities constrain the Speaker and members insofar as legislation is concerned. One such procedural point concerns whether or not a private member’s bill requires a royal recommendation. The Speaker has underscored this issue numerous times in past Parliaments.

As noted on page 835 of House of Commons Procedure and Practice, third edition:

Under the Canadian system of government, the Crown alone initiates all public expenditure and Parliament may authorize only spending which has been recommended by the Governor General. This prerogative, referred to as the “financial initiative of the Crown”, is the basis essential to the system of responsible government and is signified by way of the “royal recommendation”.

The requirement for a royal recommendation is grounded in section 54 of the Constitution Act, 1867. Its language echoes Standing Order 79(1), which reads:

This House shall not adopt or pass any vote, resolution, address or bill for the appropriation of any part of the public revenue, or of any tax or impost, to any purpose that has not been first recommended to the House by a message from the Governor General in the session in which such vote, resolution, address or bill is proposed.

As a result, any bill proposing to spend public funds for a new and distinct purpose, or effecting an appropriation of public funds, must be accompanied by a message from the Governor General approving the expenditure. This message, known formally as the royal recommendation, can only be transmitted to the House by a minister of the Crown.

A private member's bill that requires a royal recommendation may be introduced and considered right up until third reading on the assumption that a royal recommendation will be provided by a minister. However, if none is produced by the conclusion of the third reading stage, the Speaker may not put the question for passage at third reading.

Following the establishment or the replenishment of the order of precedence, the Chair has developed a practice of reviewing items so that the House can be alerted to bills that, at first glance, appear to infringe on the financial prerogative of the Crown. The aim of this practice is to allow members the opportunity to intervene in a timely fashion to present their views about the need for those bills to be accompanied or not by a royal recommendation.

The order of precedence having been established on February 9, 2022, I wish to inform the House of two bills which preoccupy the Chair. These are: Bill C-215, an act to amend the Employment Insurance Act (illness, injury or quarantine), standing in the name of the member for Lévis—Lotbinière; and Bill C-237, an act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act, standing in the name of the member for Bécancour—Nicolet—Saurel.

I would encourage members who would like to make arguments regarding the requirement for a royal recommendation with respect to these bills, or with regard to any other bill now on the order of precedence, to do so at an early opportunity.

I thank all the members for their attention.

Federal-Provincial Fiscal Arrangements Act

[Louis Plamondon, Bloc, Bécancour—Nicolet—Saurel, QC]

moved for leave to introduce Bill C-237, An Act to amend the Federal-Provincial Fiscal Arrangements Act and the Canada Health Act.

Mr. Speaker, the bill I am introducing protects the provinces, especially Quebec, from the biggest threat to their autonomy. This threat is the so‑called federal spending power.

First, under this bill, Quebec is exempt from any standards that the federal government imposes under the Canada Health Act, including the upcoming standards on long-term care homes.

Second, this bill amends the Federal-Provincial Fiscal Arrangements Act. Quebec and any provinces that so desire will be able to withdraw, with full compensation, from federal programs in their exclusive areas of jurisdiction to regain their autonomy in the areas where they are meant to be autonomous.

(Motions deemed adopted, bill read the first time and printed)