I am now prepared to rule on the point of order raised by the hon. parliamentary secretary to the government House leader on November 17, 2010, concerning the requirement for a royal recommendation for Bill C-449, An Act regarding free public transit for seniors, standing in the name of the hon. member for Hull—Aylmer.
I would like to thank the parliamentary secretary for having raised this issue as well as the member for Hull—Aylmer for his remarks concerning the bill.
In presenting his concerns with respect to the bill, the parliamentary secretary noted that the operative clause of the bill contained an authorization to spend for a specific purpose, which, in his view, infringed upon the financial prerogative of the Crown. His main contention was that the bill, because it empowers the Minister of Finance to make direct payments to a trust established to help provinces, territories and municipalities to offer seniors free local public transport, is equivalent to the creation of a new fund outside the consolidated revenue fund.
The Chair notes that the member for Hull—Aylmer, at the conclusion of his opening remarks during the debate at second reading, acknowledged that the bill might require a royal recommendation but that he expressed optimism that a specific modification could be made during the committee stage to address the issue.
It is clear to the Chair that Bill C-449 in clause 3 would authorize the minister to make direct payments to be paid out of the consolidated revenue fund to a trust, which in turn would be used to make payments to a province, a territory or a municipality to fund free local transit for seniors anywhere in Canada during off-peak hours. Such a transfer would clearly create a new appropriation and, for this reason, a Royal recommendation is required in respect of clause 3 of the bill.
Consequently, I will decline to put the question on third reading of the bill in its present form unless a royal recommendation is received.
Today's debate, however, is on the motion for second reading and this motion shall be put to a vote at the close of the current debate.
I thank hon. members for their attention.
On debate, the hon. member for Saskatoon—Humboldt.