Mr. Speaker, I rise on a point of order regarding Bill C-317, An Act to amend the Income Tax Act (labour organizations), standing in the name of the member for South Surrey—White Rock—Cloverdale.
The bill proposes to amend the Income Tax Act in an effort to force labour organizations to submit for all to see, that is complete public disclosure, an incredibly onerous level of detailed financial information about their work on behalf of their members. While labour organizations already abide by financial disclosure rules, mostly imposed at the provincial level of government, they do that because it ensures they are accountable to their members and not just because they are driven by legislation.
The bill, which is mostly ideologically motivated, would seek to expose virtually every last detail of a labour organization's financial books. The risk of this is that it gives access to other business organizations in which members may be involved in labour negotiations or labour disputes, exposing their knowledge base to some risk in that regard.
Aside from the privacy concerns over making this level of financial detail available to the public, it shows the thrust of the government, as we have seen with the labour disputes, back-to-work legislation recently and more threats of it at this point, but that culminates now by a government member bringing forth as a private member's bill what should in fact be a government bill, and that is really where my point of order lies. By imposing these types of conditions Conservatives, they are precipitating action that should only be precipitated by a government bill.
The measures set out in the bill include a threat of delisting the labour organization for non-compliance. One of the points that has been missed in this regard about its consequences, because we are not just talking about national labour organizations or national unions, is it includes a local labour council, a union local, even a small one of say 20 or 30 members, a national labour organization, or even a federation of labour. It covers all of them. My concern with the admissibility of the bill is it would have the effect of raising taxes, which is the exclusive prerogative of ministers in the House of Commons and cannot be done by private members' business. At page 1114 of House of Commons Procedure and Practice, second edition, it states:
The power to initiate taxation rests solely with the government and any legislation which seeks an increase in taxation must be preceded by a ways and means motion.
As a result of this and the reasons I will set out in greater detail shortly, Mr. Speaker, I would ask you to rule that the proceedings on the bill to date, namely its introduction and first reading, which it already had, have not respected the provisions of our Standing Orders and are therefore null and void and further that you direct that the order for second reading of Bill C-317 be discharged and the bill be withdrawn from the order paper. Those are the two orders I would be seeking from you, Mr. Speaker.
To begin, I draw attention to Speaker Milliken's ruling on November 28, 2007, at pages 1463-64 of Debates. Therein he references page 896 of Erskine May's Parliamentary Practice 23rd edition, which states quite clearly, ”
—“the repeal or reduction of existing alleviations of taxation” must be preceded by a Ways and Means motion.
It is not a discretionary call. It is a must situation.
It is clear to me and I suspect that you will agree, Mr. Speaker, that the income tax exemptions that apply to labour organizations and the reduction of taxable income as a result of writing off the dues paid by their members would easily qualify as alleviations of taxation. Further, the provisions of Bill C-317 would repeal those alleviations by terminating the labour organization's Income Tax Act exempt status.
Furthermore, while the House of Commons Procedure and Practice, second edition, at page 900, lists four limited categories of charges on the people, which would require a ways and means motion before tabling in the House, if you trace this passage back to the primary source of the reference, Mr. Speaker, you will find what seems to be much more clearly worded guidelines. I would ask you to pay particular attention because there seems to be, and I will not say a contradiction, greater clarity if we go further back in our history in this regard.
Citation 980 of Beauchesne's Parliamentary Rules & Forms sixth edition, on page 265 states that a:
Ways and Means motion is a necessary preliminary to...an extension of the incidence of a tax so as to include persons not already payers.
“Persons not already payers” is a much more specific restriction than creating a new class of taxpayers, which is the guideline set out at page 900 of the House of Commons Procedure and Practice, which I cited a moment ago. It is the difference between finding that a bill creates a new type of taxpayer and finding that a bill creates taxpayers out of those who did not pay tax before.
In the case of the 41st Parliament Bill C-317, examples are readily available to illustrate how the incidence of the federal income tax on dues-paying members of a labour organization might be extended under the proposed changes to the Income Tax Act to make federal income taxpayers out of persons who previously were not. Therefore, we are creating new taxpayers.
Consider if you will, Mr. Speaker, the hypothetical case of a dues-paying member of a labour organization who pays no federal income tax because the member's taxable income falls just short of the amount covered by the personal income tax exemption. If this person's labour organization were to lose its ITA exempt status for failing to meet the conditions set out under the provisions of Bill C-317, his or her membership dues would no longer be excluded from personal taxable income. This increase in taxable income could easily push his or her taxable income to an amount over that which is exempt, effectively creating a federal income taxpayer where there was not one before, which is the very definition of Beauchesne's description of what is not permissible in this place without a preceding ways and means motion, which only can be brought by the government of the day.
I am anticipating an argument from the government side on the private member's bill, so I reviewed a precedent on this matter. I fear there may be a temptation to use Speaker Milliken's decision of March 15, 2010, on Bill C-470 from the 40th Parliament, as a relevant precedent to the question on hand today, so I will ask you, Mr. Speaker to take extra caution when reviewing the decision. While there are some similarities between the two bills, I would submit that the many differences will lead you to rule the opposite particularly when using the much more specific delineation of the rule in question as laid out in Beauchesne's.
I am not sure it will be necessary in your deliberations, Mr. Speaker, but I would draw to your attention just one of the many important differences between the two bills, the one in the 40th Parliament and this one today, which is the stark contrast between labour organizations and charitable ones. In particular, members of labour organizations would continue to have an obligation to pay their membership dues, as they do under provincial legislation, even in the event of the organization's delisting from ITA exempt status, whereas charity donors' contributions are completely discretionary. Finally, labour organizations are selected, supported and held accountable by the very dues-paying members who make the financial contributions in the first place. Charities are not.
In conclusion, Mr. Speaker, I would again ask that you rule that the proceedings to date under Bill C-317, An Act to amend the Income Tax Act (labour organizations) standing in the name of the member for South Surrey—White Rock—Cloverdale namely, the introduction and first reading, have not respected the provisions of our Standing Orders and are therefore null and void and that you direct that the order for second reading of Bill C-317 be discharged and the bill withdrawn from the order paper.
It is quite clear that the bill should be presented, if it is going to be presented at all, by the government of the day. It would bring forth a ways and means motion and then the proper bill would flow from that. This attempt to do it through the back door by way of a private member's bill is really a serious breach of the Standing Orders of the House.