Mr. Speaker, I rise on a point of order with regard to Bill C-78. My point of order challenges the procedural validity of this bill. Bill C-78 should not go forward because the introduction of Bill C-78 was not preceded by a ways and means motion.
As you are aware, Mr. Speaker, a ways and means motion is required when there is a charge upon the people. In Erskine May's 21st edition on page 726 it summarizes what is covered under the term “charges upon the people”. Point five states that a ways and means motion is required when there are “provisions for the payment into the consolidated fund or the national loans fund of receipts, which do not arise from taxation”.
The Speaker made a similar statement on December 2, 1998 when ruling on Bill S-13. You said, Mr. Speaker, that a ways and means motion is required “if a charge raises funds that are channelled to the consolidated revenue fund”.
Bill C-78 empowers the President of the Treasury Board in three clauses to deposit into the consolidated revenue fund pension surpluses arising from contributions or investments. Clause 96, subsection 44.4(2)(b) on page 80 would allow the president to do this in regard to the public service pension fund. Clause 152, subsection 55.4(2)(b) on page 134 deals with the Canadian forces pension fund. Clause 199, subsection 29.4(2)(b) on pages 185 and 186 deals with the Royal Canadian Mounted Police pension fund. I quote clause 96, subsection 44.4(2)(b):
There may be paid out of the public service pension fund, and into the consolidated revenue fund, the amount, at the time and in the manner, that the Treasury Board determines on the recommendation of the Minister.
We must also remember that the pension funds in question contain funds from three specific sources: contributions by the government of Canada; contributions by the civil servants as a percentage of their pay, and we just heard the parliamentary secretary tell us that it was approximately 70% paid by the Government of Canada and 30% paid by the employees; and a return on the foregoing moneys which have been invested in government bonds.
It is therefore plain that the money deducted from the paycheques of public servants will be transferred to the consolidated revenue fund by Bill C-78 at the time and in the manner that the Treasury Board determines at the recommendation of the minister. The measures in Bill C-78 clearly represent a charge upon the people as defined in Erskine May's 21st edition.
The public service of Canada is currently comprised of around 300,000 employees. Bill C-78 will affect 650,000 current and former employees of the public service. However, the public service of Canada is open to all Canadians to apply without discrimination. Bill C-78 deals with those who have worked in the past, those who work there at present and those who will work there in the future which potentially includes any Canadian citizen. It is therefore a charge upon the people.
The public service pension plan and other plans affected by Bill C-78 are not negotiated plans between employer and employees in the contractual sense. Instead, they are pension plans that are legislated by parliament. Legally there is no employer-employee contractual relationship.
This was confirmed during hearings on Bill C-78 at the natural resources and government operations committee on May 3, 1999 by Mr. Ross Hornby, senior general counsel of the Department of Justice. He said at 5.20 p.m.:
There is no element of contract involved in it (the public service pension plan) or any contractual rights that flow from it.
It is clear from these comments that this is legislated taxation imposed on employees who do not even have the right to express an opinion on this matter.
Mr. Speaker, in your ruling of December 2, 1998 you said:
Modern legislation frequently makes provisions for the imposition of other types of fees or payment which, although not taxes in a strict sense, have enough of the characteristics of taxation to require to be treated as charges upon the people and therefore to be authorized by a ways and means resolution moved by a minister of the crown.
I would argue that because these plans are legislated through acts of parliament and could affect any Canadian citizen as a potential employee of the government they maintain enough characteristics of taxation to be treated as a charge upon the people.
Bill C-78 should not proceed any further because it has not met the requirements of our financial procedures. Since Bill C-78 was not preceded by a ways and means motion, Bill C-78 is not properly before this House and should be removed from the order paper.
I would therefore humbly request that you, Mr. Speaker, defer the vote on third reading of Bill C-78 until you have had time to research the arguments and report back to the House.