Following the presentation yesterday of the fourth report of the Standing Committee on Finance on Bill C-19, an act to implement certain provisions of the budget tabled in Parliament on April 7, 2022 and other measures, the Chair wishes to draw the attention of members to a procedural issue related to two amendments adopted by the committee during clause-by-clause study of the bill.
As the House knows, the Speaker does not normally intervene in committee matters. However, in cases where a committee has exceeded its authority, particularly in relation to bills, the Speaker has a responsibility to ensure that certain fundamental rules and practices are properly observed. As Speaker Fraser explained on April 28, 1992, at page 9801 of the Debates:
When a bill is referred to a standing or legislative committee of the House, that committee is only empowered to adopt, amend or negative the clauses found in that piece of legislation and to report the bill to the House with or without amendments. The committee is restricted in its examination in a number of ways. It cannot infringe on the financial initiative of the Crown, ... no matter how tempting that may be.
The first questionable amendment modified clause 6 of the bill in order to amend the Income Tax Act and allow individuals with type 1 diabetes to automatically qualify for a tax credit. Some uncertainty was raised about whether this amendment required a royal recommendation, and the chair of the committee ruled it inadmissible. This decision was challenged and subsequently overturned. The committee then debated and adopted this amendment.
The second amendment seeks to amend clause 135 of Bill C-19 to modify the select luxury items tax act. With respect to subject aircraft, the coming into force is changed from September 1, 2022, to a day or days to be fixed by order of the Governor in Council. Here again, the chair of the committee ruled the amendment inadmissible because it lacked a needed ways and means motion. This decision was also challenged and overturned, and again the committee then debated the amendment and adopted it.
Both amendments bring up different, but equally important, questions about the admissibility of amendments and their compliance with certain financial procedures. Page 772 of House of Commons Procedure and Practice, third edition, reminds us that:
Since an amendment may not infringe upon the financial initiative of the Crown, it is inadmissible if it imposes a charge on the public treasury, or if it extends the objects or purposes or relaxes the conditions and qualifications specified in the royal recommendation. An amendment is also inadmissible if it exceeds the scope of the ways and means motion on which a bill is based, or if it imposes a new charge on the people that is not preceded by the adoption of a ways and means motion or not covered by the terms of a ways and means motion already adopted.
Given the potential consequences rising from these amendments and the way they were considered in committee, the Chair felt it necessary to review the relevant evidence together with the rules relating to financial procedure.
With respect to the first amendment related to clause 6, the Chair is unclear as to how it constitutes a new and distinct charge on the public treasury. In fact, based on the information the Chair has before it, it appears that this amendment allows a tax credit that in its application is non-refundable. Accordingly, while the chair of the committee determined that the amendment required a royal recommendation, I am of the view that it does not need one.
With regard to the amendment to clause 135, the Chair agrees with the committee chair that this amendment, by changing the date of the coming into force of the clause, could oblige certain entities to bear an additional charge. Consequently, given this possibility, this amendment needs to be preceded by a ways and means motion.
While the Chair appreciates the difficulties that can arise when examining a bill in committee, it is important to remember that a committee must carry out its mandate without exceeding its powers. In the Chair’s view, by adopting an amendment that infringes on the financial initiative of the Crown, a committee ventures beyond its powers.
Consequently, the Chair must order that the amendment to clause 135, adopted by the Standing Committee on Finance, be declared null and void, and that the amendment no longer form part of the bill as reported to the House.
I want to thank all members for their attention.