Bill C-290 (Historical)

An Act to amend the Income Tax Act (tax credit for loss of retirement income)

This enactment amends the Income Tax Act to provide a refundable tax credit to an individual whose employer, and certain employees of that employer, failed to make the contributions required to be made to a registered pension plan.

Royal Recommendation--Bill C-290

[Tom Lukiwski, Conservative, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I rise on a point of order.

On June 9, 2009 you made a statement with respect to the management of private members' business and noted the spending provision in three private members' bills appeared to infringe on the financial prerogative of the crown. At that time you invited members to make arguments on whether these bills required a royal recommendation.

One of the bills is Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income), which will be debated later today. Notwithstanding the possible merits of Bill C-290, the bill would create a new refundable tax credit for the loss of retirement income, and I believe it would require a royal recommendation.

Refundable credits are direct benefits paid to individuals regardless of whether tax is owed or not and are paid out of the consolidated revenue fund, also known as the CRF. As a result, any legislative proposal to create a refundable tax credit requires a royal recommendation.

Two recent rulings in the House of Commons and the Senate concluded that creating or increasing a refundable tax credit would require a royal recommendation.

On June 4, 2007 the Speaker of the House ruled that a proposed amendment to Bill C-52, An Act to implement certain provisions of the budget tabled in Parliament on March 19, 2007, to create a refundable tax credit could not be selected at report stage because the amendment required a royal recommendation.

On May 11, 2006 the Speaker of the Senate ruled that private member's Bill S-212, an Act to Amend the Income Tax Act (Tax Relief) was out of order because it would have increased a refundable tax credit. The Speaker of the Senate stated:

--bills proposing to alter refundable tax credits need a royal recommendation. This is because the payouts that will be made to taxpayers who are entitled to claim them must be authorized. This authorization is the royal recommendation. These payments can only be made from the CRF; they are expenditures of public money.

Since Bill C-290 would create a new refundable tax credit, it must be accompanied by a royal recommendation.

Private Members' Business

[The Speaker, Peter Milliken]

The Chair would like to take a moment to provide some information to the House regarding the management of private members' business.

As members know, after the order of precedence is replenished, the Chair reviews the new items so as to alert the House to bills which at first glance appear to impinge on the financial prerogative of the Crown. This allows members the opportunity to intervene in a timely fashion to present their views about the need for those bills to be accompanied by a royal recommendation.

Accordingly, following the May 27 replenishment of the order of precedence with 15 new items, I wish to inform the House that Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income) standing in the name of the member for Richmond—Arthabaska; Bill C-308, An Act to amend the Employment Insurance Act (improvement of the employment insurance system) standing in the name of the member for Chambly—Borduas and Bill C-395, An Act to amend the Employment Insurance Act (labour dispute) standing in the name of the member for Berthier—Maskinongé give the Chair some concern as to the spending provisions they contemplate.

Hon. members who wish to present their views regarding the need for a royal recommendation to accompany these bills, or any of the other bills now on the order of precedence, are encouraged to do so at an early opportunity.

I thank the House for its attention.

Income Tax Act

[André Bellavance, Bloc, Richmond—Arthabaska, QC]

moved for leave to introduce Bill C-290, An Act to amend the Income Tax Act (tax credit for loss of retirement income).

Mr. Speaker, I am pleased to be back here once again introducing a bill to create a refundable tax credit of 22% for loss of retirement income.

Retired employees of the Jeffrey mine in Asbestos in my riding and of Atlas Steels in Sorel-Tracy, in the riding of the member seconding this bill, my colleague from Bas-Richelieu—Nicolet—Bécancour, saw their retirement income drastically reduced after their former employer went bankrupt. We are trying to help these people with this bill, which I will remind everyone, passed second reading in the last Parliament. I would like to thank my Liberal and NDP colleagues, who have agreed to support this bill in order to refer it to committee. We had made significant progress. Unfortunately, an election was called, which forces us to start over with this bill. We are going to keep at it. The Conservative Party, the government, is the only one that has refused to support our bill. We will try, in good faith and with open minds, to convince them to support these people who were shortchanged when these businesses shut down. They deserve justice and dignity. That is why we are fighting for them.

Obviously, I would like to thank the hon. members for Bas-Richelieu—Nicolet—Bécancour and Chambly—Borduas who have worked hard with me and with the retired employees in order to develop this bill which is so important for them.

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