Federal Spending Power Act

An Act to amend the Financial Administration Act (federal spending power)

This bill was last introduced in the 40th Parliament, 3rd Session, which ended in March 2011.

Sponsor

Josée Beaudin  Bloc

Introduced as a private member’s bill. (These don’t often become law.)

Status

Defeated, as of Feb. 9, 2011
(This bill did not become law.)

Summary

This is from the published bill. The Library of Parliament often publishes better independent summaries.

This enactment amends the Financial Administration Act in order to end federal spending in an area of provincial jurisdiction in the absence of a delegation of power or responsibility in that area.

Elsewhere

All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.

Votes

Feb. 9, 2011 Failed That the Bill be now read a second time and referred to the Standing Committee on Finance.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:05 p.m.
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Bloc

Josée Beaudin Bloc Saint-Lambert, QC

Mr. Speaker, first, I would like to thank my colleague from Hochelaga for his earlier remarks about this bill. He spoke with all the zeal and passion we have come to expect from him. Specifically, he spoke clearly about Bill C-507.

I have the pleasure of rising to conclude the debate at second reading of Bill C-507 regarding what has become known as the so-called federal spending power.

Contrary to what the members for other parties may have said over the course of the debate, the purpose of this bill is not theoretical debate, as the Parliamentary Secretary to the Prime Minister might think, nor is it an “esoteric constitutional matter,” as it was described by the member for Brossard—La Prairie during first reading.

First, I would like to remind those esteemed members that the termination of the so-called federal spending power is something that Quebec has been demanding for a long time. In fact, since the 1960s, no matter what their political party, all the successive Quebec governments have been disputing the so-called spending power that the federal government has given itself. The federal government gave itself this power in order to assume unlawful oversight in Quebec's affairs and impose its standards and conditions on Quebec. I am always extremely surprised to hear Conservative members from Quebec accept this fact. By exercising this so-called power, the federal government negates the social choices that Quebeckers have made, are making and will make. The reason this issue is important is that in Quebec we are concerned about our health care, education and other systems. And that is neither theoretical nor esoteric.

For instance, consider the example of research in Quebec universities. Federal funding in this area comes with strings attached, which means that the federal government can choose the areas of research it wants to promote. In budget 2008, for example, research grants were awarded on the condition that the research relate to business. Other examples are the Mental Health Commission of Canada or the cervical cancer vaccination program announced by the Conservative government in budget 2007, whereby the transfer of federal funds was conditional on respect for federal priorities without taking into account the priorities of Quebec and the provinces.

During the 2005 election campaign, they tried to seduce Quebec by promising to eliminate the fiscal imbalance, even though the federal government's exercise of the so-called spending power is an integral part of the fiscal imbalance.

A few months after the election, the Prime Minister even added: “I have said many times, even since the election of this new government, that I am opposed and our party is opposed to federal spending power in provincial jurisdictions. In my opinion, such spending power in the provinces' exclusive jurisdictions goes against the very spirit of federalism. Our government is clear that we do not intend to act in that way.”

Since that time, however, the Conservative government has definitely not “delivered the goods”. Indeed, in budget 2007, it instead quietly mentioned that it wanted to limit the supposed federal spending power instead of ending it altogether. After project seduction and the election campaign were over, we began to see the true colours of this government. By saying it wanted to limit a power that does not exist, the government was in fact acknowledging it.

Then, in budget 2008, the government said it wanted to introduce a bill that would impose limits on the so-called federal spending power in areas of Quebec and provincial jurisdiction. Obviously, we are getting further and further from the Conservatives' original promise. In fact, the Conservatives are simply following in the footsteps of all previous federal governments, regardless of their party colours: interfering in fields of Quebec and provincial jurisdiction to set national standards and determine what Quebec's priorities should be, instead of allowing Quebec to do so.

As for the NDP, in the first hour of debate, the member for Outremont used a false pretext to avoid saying he was in favour of the bill. The bill would set the record straight by limiting federal spending power to the federal government's own areas of jurisdiction. If the provinces want the federal government to interfere in their affairs, they can sign agreements. The member for Outremont said that he recognized the federal government's right to interfere in areas outside its own jurisdiction, and that he would legitimize the so-called spending power by amending our bill to say that this power exists, except for Quebec.

We cannot accept that. The rule must be clear: the federal government cannot spend money in areas outside its own jurisdiction, unless it is exceptionally asked by a province.

Lastly, all of the federalist parties refuse to recognize that the so-called federal spending power has no basis and that we must put an end to it and give some tax room to Quebec and the provinces to properly fulfill their responsibilities in accordance with their own priorities.

All of these federalist parties insist on legitimizing this so-called spending power to continue to deny Quebec's legitimate aspirations and choices. In fact, all—

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Order. The time provided for debate has expired.

The question is on the motion. Is it the pleasure of the House to adopt the motion?

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
See context

Some hon. members

Agreed.

No.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

All those in favour will please say yea.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Some hon. members

Yea.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

All those opposed will please say nay.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Some hon. members

Nay.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

In my opinion, the nays have it.

And five or more members having risen:

Pursuant to Standing Order 93, the recorded division stands deferred until Wednesday, February 9, 2011, immediately before the time provided for private members' business.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

Michael Chong Conservative Wellington—Halton Hills, ON

Mr. Speaker, I rise on a point of order. I believe if you were to seek it, you would find unanimous consent to see the clock at 6:30 p.m.

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Conservative

The Acting Speaker Conservative Barry Devolin

Is it agreed?

Federal Spending Power ActPrivate Members' Business

February 3rd, 2011 / 6:15 p.m.
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Some hon. members

Agreed.