Mr. Speaker, I have been advised by the Table that perhaps I could make a very brief point of order with respect to private member's Bill C-364, which is coming up shortly. That way we will not take time from the private members' business period.
I am rising on a point of order as to whether or not Bill C-364 requires a royal recommendation. I will be suggesting two reasons why Bill C-364 should require a royal recommendation.
First, it clearly contemplates a new and distinct charge. Clause 3 states that the Minister of Finance “shall pay” all legal expenses incurred by importers. Such payments would be made out of the consolidated revenue fund, which is the definition of appropriation under section 2 of the Financial Administration Act. Furthermore, this appropriation would be for an entirely new purpose, which is not already legislatively authorized. The Speaker ruled on May 9 that:
—a royal recommendation is required not only in the case where more money is being appropriated, but also in the case where the authorization to spend for a specific purpose is being significantly altered.
Second, clause 4 of the bill provides that “the Minister shall provide a loan guarantee” to exporters or associations in respect of a deposit, surety or bond that they must post to a foreign state. This guarantee creates another liability on the public revenue that is clearly a new and distinct charge for a new legislative purpose. It is the equivalent of a loan and if there is a default on the part of the exporter for whose benefit the guarantee was provided, it would definitely amount to the spending of public money.
Mr. Speaker, your predecessor, Deputy Speaker Francis, at page 9052 of the April 7, 1981 Hansard stated:
It is obvious that one of our most basic and fundamental procedures is that only a minister of the Crown may originate legislation which proposes a charge upon the revenue and this can be done only when accompanied by a recommendation from the governor general.
Mr. Speaker, it is for these reasons that I urge you and hope that you will rule that Bill C-364 does in fact require a royal recommendation.