Mr. Speaker, I rise on a point of order with respect to Bill C-501, An Act to amend the Bankruptcy and Insolvency Act and other Acts (pension protection).
Without commenting on the merits of the bill, I submit that its provisions to require the Minister of Labour to appoint an adjudicator to hear and adjudicate claims would require new government spending and therefore would require a royal recommendation.
Page 834 of the second edition of House of Commons Procedure and Practice states:
—a royal recommendation is required not only in the case where money is being appropriated, but also in the case where the authorization to spend for a specific purpose is significantly altered.
Bill C-501 would amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act so that the unfunded pension plan liabilities would be accorded the status of secured debts in the event of bankruptcy.
The bill would also amend the Canada Business Corporations Act to provide for a procedure by which former employees of a bankrupt corporation who were owed amounts by the corporation could proceed with claims against its directors. That procedure is set out in clause 6, which would require the Minister of Labour to appoint an adjudicator to hear and adjudicate claims and would set out the powers and functions of the proposed adjudicator. Section 23 of the Interpretation Act makes it clear that the power to appoint also includes the power to pay.
The requirement for a royal recommendation for a new officer of the Crown is made clear in the Speaker's ruling of November 9, 1978, which states, “If this bill is to impose a new duty on the officers of the Crown, these objectives will necessitate expenditures of a nature which would require the financial initiative of the Crown”.
On September 19, 2006, in the case of Bill C-293, An Act respecting the provision of official development assistance abroad, the Speaker ruled on the need for a royal recommendation for the creation of an advisory committee that:
—the establishment of the advisory committee for international development cooperation provided for in clause 6 clearly would require the expenditure of public funds...
On February 11, 2008, in the case of Bill C-474 provisions, for the appointment of representatives for an advisory council, the Speaker ruled that this required a royal recommendation:
Clause 7 of the bill provides for the governor in council to appoint 25 representatives to the advisory council....As the provision in Bill C-474 is such that the governor in council could choose to pay a salary to these representatives, this involves an appropriation of a part of the public revenue and should be accompanied by a royal recommendation.
These precedents also apply to Bill C-501. As I have mentioned, the bill's proposal to appoint an adjudicator would increase government spending for a new purpose and therefore must be accompanied by a royal recommendation.