I am now prepared to rule on the point of order raised on May 14, 2009, by the hon. Parliamentary Secretary to the Leader of the Government in the House of Commons concerning the need for a royal recommendation to accompany Bill C-309, An Act establishing the Economic Development Agency of Canada for the Region of Northern Ontario, a bill standing in the name of the hon. member for Nipissing—Timiskaming.
I would like to thank the parliamentary secretary for having raised this matter, as well as for his detailed submission.
In presenting his case, the parliamentary secretary noted two aspects of the bill which he argued violated the financial prerogative of the Crown.
First, since the bill seeks to establish a new government agency, the economic development agency of Canada for the region of northern Ontario, he argued that the establishment of a new department or agency entails those operational expenditures necessary for it to function on a day-to-day basis.
Second, he made reference to the fact that the bill provides for the appointment of a variety of officials and other personnel. He indicated that since remuneration or the possibility of remuneration is provided for in the bill, a royal recommendation is therefore required.
I have carefully reviewed Bill C-309 and given particular attention to both the establishment of the new agency and the appointment of various officials and employees proposed in the bill.
With regard to the establishment of a new agency, the parliamentary secretary cited a ruling of July 11, 1988. As the parliamentary secretary noted, in that ruling the Chair stated that an amendment to establish a separate government department “undoubtedly would cause a significant charge upon the federal treasury in order for the new department to function on a daily basis.” (Debates pages 17366-7) This observation is just as valid when applied to Bill C-309. Accordingly, the Chair believes that the establishment of the Economic Development Agency of Canada for the Region of Northern Ontario, as proposed by Bill C-309, would give rise to new and distinct government expenditures, thus requiring that the bill be accompanied by a royal recommendation.
Bill C-309 also provides for the appointment of members of an advisory committee as well as an agency president, and their remuneration is stipulated in clauses 4 and 9 of the bill. It is well established that such salary provisions constitute a charge on the public treasury.
Furthermore, clause 13 provides for the appointment of officers and employees in accordance with the Public Service Employment Act. Undoubtedly, such appointments would necessarily include remuneration and thus would also involve a new government expenditure.
Clearly, Bill C-309, by providing for both the establishment of a new agency and the appointment of officials, involves the expenditure of funds. Such spending, for a new and distinct purpose would need to be accompanied by a royal recommendation.
Consequently, I will decline to put the question on third reading of the bill in its current form. Today, however, the debate is on the motion for second reading and this motion shall be put to a vote at the close of the second reading debate.
Resuming debate. The hon. Parliamentary Secretary to the Minister of Citizenship and Immigration has five minutes remaining in his time slot.