The Chair is now prepared to rule on the point of order raised by the hon. Parliamentary Secretary to the Government House Leader on December 10, 2009 concerning the requirement for a royal recommendation for Bill C-343, An Act to amend the Canada Labour Code and the Employment Insurance Act (family leave), standing in the name of the hon. member for Compton—Stanstead.
I would like to thank the parliamentary secretary for having raised this important matter, as well as the hon. member for Joliette for his remarks concerning the bill.
In presenting his concerns with respect to Bill C-343, the parliamentary secretary stated that, in his view, the bill infringes upon the financial initiative of the crown. Specifically, he pointed out that the bill seeks to modify the Canada Labour Code to permit employees to take leave without pay for a number of family-related reasons. He explained that the bill would also amend the Employment Insurance Act in order to allow these employees to receive employment insurance benefits while on such leave for a period of up to 52 weeks, thus resulting in new government spending.
In his intervention, the member for Joliette argued that a royal recommendation is not required since the funds in the employment insurance account consist of premiums paid by both workers and employers and do not constitute government funds.
The Chair has examined the bill carefully, and it is quite clear that Bill C-343 alters the terms and conditions of the existing program under the Employment Insurance Act. The argument put forth by the member for Joliette regarding whether or not funds contributed to the employment insurance fund constitute public revenue was addressed in a Speaker's ruling delivered on November 16, 2009, at Debates page 6751, where it stated:
In essence, all monies received by the government, regardless of source, are deposited in the consolidated revenue fund and become public funds, that is, funds of the Crown. The Constitution Act of 1867 and Standing Order 79 apply to these funds. Thus, a bill proposing a new or increased expenditure of public funds, that is, an appropriation, requires a royal recommendation.
The employment insurance program operates under this framework. The funds in question are public funds and their management is subject to the financial initiative of the Crown.
By extending benefits to employees taking an unpaid leave from work for family-related reasons, Bill C-343 is increasing the expenditures under that act. These expenditures would be paid out of the consolidated revenue fund. As the House is aware, such provisions can only be put to the House for a final decision if they are accompanied by a royal recommendation as set out in Standing Order 79(1).
Consequently, the Chair 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.