Before beginning today's private members' business, I have a short statement to make concerning the provisions of Bill C-281, an act to amend the Bankruptcy and Insolvency Act, the Canada Business Corporations Act, the Employment Insurance Act and the Employment Insurance Regulations.
As with all private members' bills, the Chair has examined this bill to determine whether its provisions would require a royal recommendation and thus prevent the Chair from putting the question to a vote at third reading. It has been the practice to raise such concerns about private members' bills before the House takes a decision at second reading.
Among other things, Bill C-281 proposes to give workers first priority to amounts owed them after the bankruptcy of their employer; to ensure that payments from a bankruptcy do not form part of employment insurance benefits; and to provide a procedure whereby employees of bankrupt companies can proceed with claims against the directors.
In this particular case, Bill C-281 contains one provision which appears to require a royal recommendation, that is, a provision which proposes spending that solely the Crown can recommend under our system of parliamentary government.
Clause 6 proposes to modify section 19 of the Employment Insurance Act dealing with deductions to benefits. The clause adds the following provision:
Payments made to a claimant out of proceeds realized from the property of a bankrupt or by the government of Canada or of a province in the event of a bankruptcy shall not be deducted under this section.
In other words, where currently amounts owed to workers form part of the calculations used to determine benefits, this bill would propose that they not be used for future calculations of those benefits. This would result in greater benefits being paid to claimants. Therefore, this provision authorizes additional spending, and such spending would require a royal recommendation.
In its present form, I will decline to put the question on third reading of this bill unless a royal recommendation is received.
Today, however, the debate continues on the motion for second reading as scheduled and the motion shall be put to a vote at the close of this second reading debate.