Mr. Speaker, I appreciate the opportunity to provide some advice to the Chair on what we consider to be an important issue. The member for Dauphin--Swan River--Marquette made a very useful intervention in describing some of the context of what he is trying to achieve in Bill C-331.
I would urge you, Mr. Speaker, when you make your ruling on this issue to be restricted by the text of the legislation that is before the House. Some of the information that the member offered in his intervention is not reflected in the actual text of the bill. I would urge you, Mr. Speaker, to be very careful in considering this matter and to restrict yourself to the text of the legislation. With that in mind, I would like to make a few observations on the matter.
As the hon. member mentioned, on December 7, 2004, in the first hour of debate on Bill C-331, the Acting Chair invited any members interested in the matter to make a submission to the Chair explaining their views on whether or not this bill requires a royal recommendation.
As the House of Commons Procedure and Practice states, under the Canadian system of government, the Crown alone initiates all public expenditure, and Parliament may only authorize spending which has been recommended by the Governor General.
This is the essence of our system of responsible government.
This prerogative is signified by way of the royal recommendation, which accompanies all appropriation acts or bills which authorize new charges for purposes not anticipated in the estimates.
This reference by Marleau and Montpetit specifies that the charge imposed by the legislation must be “new and distinct”; in other words, not covered elsewhere by some more general authorization.
Allow me to examine in particular Bill C-331. With respect to clause 2, it is the government's view that it is in fact the creation and operation of a new permanent museum and that this would obviously impose a new expenditure and therefore require a royal recommendation.
The Parks Canada Agency Act and the Historic Sites and Monuments Act allow the minister to designate a historic place as a national historic site and provide the minister with the powers to designate them by means of plaques or, with the approval of the governor in council, establish historic museums.
Establishing a new museum, as is contemplated in this legislation, is potentially a very expensive undertaking. The Department of Canadian Heritage estimates that building a new museum would cost up to $6.5 million, plus the considerable ongoing costs to maintain the exhibit and the building and provide the appropriate staff.
The royal recommendation that accompanied the original legislation authorized expenditures for the purposes, manner and cases provided for in that bill. Any new cases, we would argue, would require a new royal recommendation.
The intent to limit expenditures for new museums is further made clear by subsection 3(c) of the Historic Sites and Monuments Act that I referred to earlier, which limits the power of the minister to establish a museum by requiring the approval of the governor in council. The royal recommendation for that bill only applied to the establishment of new museums authorized by the governor in council.
Bill C-331 would oblige the minister to establish a new museum without the approval of the governor in council. This alone is an expenditure, in our view, outside the scope of the existing legislation. The case for a royal recommendation is made even stronger by the signal that the original legislation itself contemplated the Crown's control of expenditures under this part.
Turning now to clause 3 of that legislation, the Speaker noted that the restitution provisions in the bill are contingent on the successful completion of a negotiation process.
I would like to draw the following issues to your attention, Mr. Speaker, in seeking further clarification from you on this point and to further clarify the government's position in the hope that you will reflect on that issue with renewed vigour and insight.
There are two issues at hand: first, whether the bill imposes a new expenditure that is not covered by the existing statutes, and second, the issue raised by the Speaker, if the expenditure is in fact conditional on the outcome of negotiations, whether a royal recommendation is also necessary.
On the first question, clause 3 of the bill requires the minister to negotiate a restitution payment and prescribes the activities that the payment “shall” be applied to. In our view, this is clearly a positive obligation imposed on the Crown. The wording of this clause clearly imposes a new expenditure. The word “shall” cannot be attributed to anything other than a positive obligation to expend money.
While the outcome of the negotiation may be unknown, it could be argued that the bill requires a “non-zero” outcome, as the bill itself explicitly requires that a payment be made as the outcome of the negotiations. What is hypothetical is simply the amount of the payment.
On the first question, a new charge is created by the bill, and so in our view, a royal recommendation is needed.
On the second question, even if the outcome in terms of the amount is hypothetical, Erskine May indicates that a recommendation is still required, by stating:
The same applies to a totally new legislative purpose which imposes only a potential liability on public expenditure. For example, the argument cannot be sustained that a proposal to confer on a Minister a discretionary power to expend money in certain circumstances escapes the need for a Money resolution because the circumstances may not arise or the discretion may not be exercised.
I would also draw your attention, Mr. Speaker, to the government's position that we have the same concerns with respect to another bill before the House, Bill C-333, which was debated for its first hour in this place yesterday, I believe.
That bill specifies that the redress agreement “shall consist” of the establishment of a foundation and other educational projects, which makes clear that an expenditure of funds is also required by that bill, even if the amount of the expenditure is to be determined by negotiation. We view that as another positive obligation.
I am concluding by saying that the addition of the words “to be proposed to Parliament for approval” does not in fact solve the situation, since it is clearly this bill which places an obligation as well on an expenditure for the government. Whether or not Parliament ultimately approves the specific agreement does not change the fact that it is this instrument which creates the new charge.
In conclusion, our view is that a royal recommendation is required for both the creation of a new museum and the negotiation of any restitution payments, a negotiation, as I said, which does not contemplate whatsoever a non-payment by the Crown.
When one considers these questions, Mr. Speaker, it may be instructive to ask yourself, if these bills had been proposed by the government would a royal recommendation have been attached? I hope you will agree with me, Mr. Speaker, that the answer to that question is yes, and therefore in this case a royal recommendation is also required.