Mr. Speaker, I rise on a point of order with respect to the main estimates which were tabled in the House on Tuesday, February 27, 2001, and which have recently been returned from committee studies and are to be concurred in tomorrow.
My point of order concerns an irregularity with the estimates. I have an interest in ensuring that parliament retains its power over the public purse. This power has been eroded over time.
I refer you to the remarks of Madam Speaker Sauvé on June 12, 1981, at page 10546 of Hansard , when she said “it matters not whether the amount spent is a large sum or simply one dollar”. The issue is whether parliamentary process is properly being followed.
Speaker Lamoureux properly stated on March 26, 1974, at page 896 of Hansard that “Parliament cannot legislate by estimates”.
Speaker Jerome has also stated, at page 607 of Hansard on March 22, 1977:
—the government receives from Parliament the authority to act through the passage of legislation and receives the money to finance such authorized action through the passage by parliament of an appropriations act. A supply item in my opinion ought not, therefore, to be used to obtain authority, which is a proper subject of legislation.
Marleau and Montpetit made note of this on page 735 at note 223.
I believe there is a prima facie case where an estimate this year should be ruled out of order. I am bringing this matter to your attention at this time because your predecessors, Speakers Jerome and Sauvé, have indicated that such points of order be brought up on the next to last allotted day of a supply period. This is noted in Marleau and Montpetit, at page 735, note 221.
I bring to your attention, Mr. Speaker, specifically to National Defence, Vote 1, and the creation of Parc Downsview Park Inc. and to the report of the auditor general of October 2000, chapter 17, pages 18 to 21.
In its 1994 budget, the government announced the closure of Canadian Forces Base Toronto at Downsview. In its place, Downsview was to be held in perpetuity as a unique urban recreational green space for the enjoyment of future generations.
In order for the project to go ahead, the government has first, issued an order in council authorizing Canada Lands Company Limited to incorporate a new crown corporation, Parc Downsview Park Inc. as a subsidiary of Canada Lands Company Limited, pursuant to paragraph 91(1)(a) of the Financial Administration Act.
Second, it has transferred control and responsibility, as well as the benefits from management of the Downsview lands, from national defence to Canada Lands Company Limited and subsequently to Parc Downsview Park Inc. under a management agreement with national defence, while national defence continues to hold title to the lands.
Third, it provided initial funding to Parc Downsview Park Inc. from an existing national defence vote.
Fourth, it issued an order in council authorizing the transfer of the first parcel of land, about 32 acres, to Parc Downsview Park Inc. pursuant to paragraph 16(1)(a) of the Federal Real Property Act.
Mr. Speaker, I draw your attention to page 17-19, paragraph 17.58, of the October 2000 report of the auditor general, which was tabled in the House on October 17, 2000, wherein the auditor general specifically states:
Parliamentary authority was not sought for any of the above-noted activities.
The litany of the government's failure to recognize parliament continues. The auditor general said in the same report that “no parliamentary approval to spend funds on the Park” was sought.
In August 1999, the treasury board approved the first transfer of land for commercial development and acknowledged that Downsview Park would not be in a position to pay anything for the land for “decades”. Normally the government acquires lands to meet its needs and to deliver a program, such as national defence. When the land is no longer needed for program purposes it is declared surplus and is sold. The proceeds from the sale are returned to the consolidated revenue fund. Parliament then votes on its program priorities and appropriates money from the consolidated revenue fund through the estimates process. This process is intended to ensure that spending of public money is authorized by parliament.
In the case of Downsview Park the government has in substance transferred assets to another entity and, by developing these assets, would have proceeds available to fund new program activities without parliamentary approval. Parliament has not been asked to appropriate funds for development of the park and for park activities.
During 1999-2000, national defence spent approximately $4.8 million for Downsview Park operations and development, which of course, we will remember, is under a subsidiary of Canada Lands. It expects to spend $4.5 million annually on Downsview Park for the next three years. To date, these expenditures have been charged to national defence's Vote 1, which parliament has authorized to be used for the department's operating expenditures, not for Canada Lands.
In the view of the auditor general, the expenditures related to the development of the Downsview Park site, approximately $2 million of the $4.8 million, are not a valid charge against national defence Vote 1. The Department of National Defence should clearly not be funding Downsview Park from its operating expenditures. If the government wants to develop and operate Parc Downsview Park, it should introduce legislation accordingly, then seek the appropriate funding through the estimates rather than through national defence.
I want to make it clear that I am not opposed to spending for our hard working men and women in the Canadian forces in the Department of National Defence. In fact, I support increasing their funding. However, we have a case where parliamentary approval has not been sought for expenditures.
Mr. Speaker, I wish I could ask you to only rule the money in Vote 1 for Downsview Park out of order, but I cannot. I can only ask that you rule the vote out of order in its entirety even if one dollar has been spent without proper parliamentary approval.
Mr. Speaker, I am asking you to send a message to the government that such methods of deception are not acceptable. Parliament is supreme and its authority has to be respected.
This is the first time since the auditor general brought the matter to parliament's attention that we will be voting on the main estimates. Therefore, Mr. Speaker, using the criteria established by previous Speakers on several occasions, which I quoted from earlier, and with the information provided by the auditor general, I am asking you to strike the national defence Vote 1 from the estimates and the subsequent supply bill, since it is clear that millions of dollars are not a valid charge against the public purse, the national defence, and are not in order.