Mr. Speaker, I rise on a point of order on a technical question concerning this bill, that is the need for royal recommendation.
In my opinion, Bill C-363 requires royal recommendation. This bill would require Canada Mortgage and Housing Corporation to distribute to the provinces any surplus from its reserve fund. A royal recommendation is needed in this case for two reasons.
First, the transfer of money to the provinces constitutes new spending. We could argue that the funds reserved by CMHC are not part of the government's funds and are an exception. Yet, earnings retained by CMHC are integrated annually into the Government of Canada's consolidated revenue fund.
Under Standing Order 79(1), royal recommendation is required for any bill for the appropriation of public revenue, and section 53 of the Constitution Act, 1867, is similar. The current interpretation of this section would include all the funds under the control of the crown and its officers.
According to sub-section 5(1) of the Canada Mortgage and Housing Corporation Act, CMHC is an agent of Her Majesty. By calling for a portion of the agency's assets to be transferred to the provinces, the bill affects public funds, that is to say moneys which would otherwise be allocated to the reserve fund or the Receiver General.
Secondly, in a ruling on May 9, 2005, the Acting Speaker indicated the need for a royal recommendation in order to change an allocation, saying:
As most members know, bills which involve new or additional spending for a distinct purpose must be recommended by the Crown. The royal recommendation is also required where a bill alters the appropriation of public revenue "under the circumstances, in the manner and for the purposes set out" in the bill. What this means is 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.
Now, a payment to the provinces does, obviously, constitute a purpose that was not set out in the original legislation, which stipulates that any surplus is retained by Canada.
For these two reasons I conclude—and I trust you will as well, Mr. Speaker—that this bill requires a royal recommendation. I hope that the Chair will look into all these elements carefully.