Mr. Speaker, I rise on a point of order with respect to Bill S-4, an act to amend the Canada Shipping Act, which was sent from the Senate on Monday, February 2.
Bill S-4 violates Standing Order 80 which states that “all aids and supplies granted to the sovereign by the Parliament of Canada are the sole gift of the House of Commons and all bills for granting such aids and supplies ought to begin with the House as it is the undoubted right of the House to direct, to limit and to appoint in all such bills the ends, purposes, considerations, conditions, limitations and qualifications of such grants which are not alterable by the Senate”.
I would like to point out that while we in the official opposition support the principle of this bill, we are against the practice of introducing bills in the Senate for ethical reasons and, in this case, reasons that breach the financial privileges of this House as stated in our rules and as provided for in section 53 of the Constitution Act, 1867.
Specific to my argument is Bill S-4's attempt to enact proposed amendments to part IX of the Canada Shipping Act which seeks to substantially increase the limits of liability for owners of ships, docks, canals and harbours. The federal government is a major owner of ships, docks, canals and harbours. It will be liable under the terms of this bill.
Bill S-4 substantially increases ship owners' limits of liability anywhere from 300% to over 2,600%, depending on ship tonnage.
The liabilities for the owners of docks, for example the government, canals and ports and any persons for whose negligence from such an owner is responsible would be increased to the greater of $2 million or $1,000 times the tonnage of the largest ship that has used the dock, canal or port within the previous five years. If the loss or damage in question was the result of their personal negligence where the damage had been intended or where it had been known that the damage was probable, the owners of docks, canals or ports would lose the benefit of even that increased limitation. Therefore, not only does this bill increase the limit of liability upon the crown but it removes the benefit in a certain number of conditions.
On June 12, 1973 the Speaker ruled that Bill S-5, the Farm Improvement Loans Act, was out of order because the bill, while not in itself proposing a direct expenditure, did propose substantial additional liabilities on public moneys. The Speaker ruled that the bill infringed on the privileges of the House.
On September 23, 1991 the Senate Speaker ruled out of order a Senate bill that sought to extend war veterans' benefits to merchant seamen. The Speaker pointed out that the bill would give rise to claims by merchant seamen and their spouses against the government and would cause the government to incur liabilities.
The proposed amendments to the Canada Shipping Act would substantially increase the limits of liability upon the government, as was the case with the merchant seamen bill and the Farm Improvement Loans Act.
In the report of the special committee of the Senate appointed to determine the rights of the Senate in matters of financial legislation, it was concluded that the Senate cannot directly or indirectly originate one penny of expenditures of public funds or impose a cent of taxation on the people. This conclusion would support the Speaker's rulings with respect to the Farm Improvement Loans Act, the merchant seamen bill and my arguments regarding Bill S-4.
This government by introducing this bill in the Senate has ignored the fact that through the centuries the principle has always been maintained that taxation requires representation and consent. This government has not figured out that the only body in Canada that meets this test is the House of Commons. The elected representatives of the people sit here, not in the other place.
Mr. Speaker, I therefore ask that you remove Bill S-4 from the order paper since it violates the financial privileges of this House.