I am now prepared to rule on the point of order raised on April 2, 2009, by the Parliamentary Secretary to the Leader of the Government in the House of Commons concerning the requirement for a royal recommendation for Bill C-304, An Act to ensure secure, adequate, accessible and affordable housing for Canadians, a bill standing in the name of the member for Vancouver East.
I would like to thank the parliamentary secretary for having brought the issue to the attention of the chair, as well as the member for Vancouver East for her comments.
In his intervention, the parliamentary secretary stated that the bill went beyond the establishment of a national housing strategy by requiring, in clause 3(2), that it provide financial assistance to those who were otherwise unable to afford rental housing. Such a change, he argued, made it clear that a key element of this new national housing strategy would lead to an increase in federal spending on housing and thus should be accompanied by a royal recommendation.
The hon. member for Vancouver East argued that the focus of the bill was not on spending but rather on having the federal government develop, in co-operation with the provinces, territories, first nations and municipalities, a housing strategy for Canadians. She contended that there was a difference between a bill that called for the development of a strategy and one that calls for money to be spent.
In determining whether or not Bill C-304 should be accompanied by a royal recommendation, the Chair must judge if the bill seeks an authorization to spend public funds for a new and distinct purpose.
Clause 3(1) of the bill requires the establishment of a national housing strategy. It states:
3(1) The Minister shall, in consultation with the provincial ministers of the Crown responsible for municipal affairs and housing and with representatives of municipalities and Aboriginal communities, establish a national housing strategy designed to ensure that the cost of housing in Canada does not compromise an individual’s ability to meet other basic needs, including food, clothing and access to education.
However, it is the effect of the second paragraph of this clause which is in dispute. That paragraph reads as follows:
(2) The national housing strategy shall provide financial assistance, including financing and credit without discrimination, for those who are otherwise unable to afford rental housing.
As the Speaker stated in his decision on March 21, 2005, at page 4373 of Debates,
—a bill effecting an appropriation of public funds […] or an equivalent authorization to spend public funds does so immediately upon enactment.
Once Parliament approves a bill that requires a royal recommendation, there should be nothing further required to make the appropriation.
In the case before us, Bill C-304 does not contain provisions which specifically authorize spending for a new and distinct purpose. Rather, the bill seeks Parliament's approve for the minister, in consultation with various stakeholders, to develop a national housing strategy. While the bill requires that strategy to provide for financial assistance to those unable to afford rental housing, the bill itself provides no such assistance. Furthermore, clause 4(2) of the bill provides the minister with great latitude concerning the measures that have been taken to implement such a strategy. The Chair cannot speculate on what these measures might be.
In other words, Bill C-304 requires the government to develop a plan. It does not address the actual implementation of that plan. If Parliament decides to approve this bill and a national housing strategy is developed, it will then be up to the government to determine the financial resources required to implement the strategy and to set about getting Parliament to approve such resources. This might involve an appropriation bill or another bill proposing specific spending, either of which would require a royal recommendation.
However, those decisions lie in the future. Meanwhile it is Bill C-304 that is before the House and is being proposed to members for second reading. The Chair is of the view that the bill does not require a royal recommendation and may proceed.