Mr. Speaker, I am rising to supplement my comments on a point of order in response to the point raised by the hon. member for Westmount—Ville-Marie on Monday, April 28, respecting Bill C-31, the economic action plan 2014 act, no. 1. You will recall this was an issue of the elements of the legislation dealing with what is called the FATCA treaty with the United States that has to do with taxpayers with an American association and its implementation. His concerns were the government's treaty tabling policy.
The hon. House leader of the official opposition had indicated he would reply that afternoon so I did defer making this supplementary submission until I was in a position to respond to his as well if necessary. However, given that no NDP position has been set out, I did want to put these comments on the record now in the event that the Chair is soon ready to rule.
First, on the argument I put to you earlier, Mr. Speaker, on the jurisdiction of the Chair, I wish to offer a few citations. This is on the notion that the treaty tabling policy is not a matter of the Standing Orders of the House or the procedures and practices of the House, but rather it is a government policy relating to the government and a department's activities themselves. As such, I suggested that it was beyond the reach of the Speaker or the House. There are several citations that support that principle.
Mr. Speaker Bosley, on May 15, 1985, ruling on a question of privilege said at page 4769 of the Debates:
...I think it has been recognized many times in the House that a complaint about the actions or inactions of government Departments cannot constitute a question of parliamentary privilege.
Our current Speaker ruled, on February 7, 2013, at page 13869 of the Debates:
It is beyond the purview of the Chair to intervene in departmental matters or to get involved in government processes...
Both of these quotations were favourably cited in the ruling of March 3, 2014, in this Parliament, at page 3427 of the Debates.
On September 28, 2011, that ruling on a question of privilege raised by a colleague of the hon. member for Westmount—Ville-Marie, at page 1577 of the Debates, the following can be found:
I know the member for Malpeque does not expect the Chair to monitor all internal processes undertaken by the government as part of its preparatory work in advance of proposing legislative measures to the House.
On March 18, 1981, at page 8374 of the Debates, Madam Speaker Sauvé said, in relation to a question of privilege on the awarding of grants by the Liberal government of the day:
In the words of the hon. member, the awarding of certain grants has been politicized. This has to refer to rules and conduct matters, which are entirely in the hands of the government and for which it stands accountable.
That of course means not Parliament or the House, but rather the government itself.
Of course, there is a long history of hon. members raising procedural objections about a government's actions and seeking to encourage the Chair to expand its jurisdiction. One of the more eyebrow-raising cases was on October 26, 1981, when Madam Speaker Sauvé ruled, at page 12162 of the Debates, that:
The fact that someone is not answering the telephone...certainly does not constitute a question of privilege.
This situation is analogous to the rulings which I just cited in that you, Mr. Speaker, are being called upon to consider a government policy related to how the executive chooses to exercise the crown's privileges. The question goes wide of the procedural role of the Chair.
Page 24 of House of Commons Procedure and Practice, second edition, which was published in November 2009, almost two full years after the policy on tabling treaties in parliament was announced, states:
The discretionary prerogatives are invoked rarely and only in the most exceptional circumstances. The overwhelming majority of the Governor General's powers are invariably exercised on the advice of the Prime Minister and Cabinet.
Footnote 124, associated with that passage, opens with “This includes the ratification of treaties...”.
A role for the House is not asserted in that text.
That may be explained by turning to the Library of Parliament background paper, which I believe was quoted by the hon. member for Westmount—Ville-Marie, which also states, at page 3, that:
Passing treaties through the House of Commons remains a courtesy on the part of the executive, which retains full authority to decide whether to ratify the treaty after the parliamentary review.
In fact, of what the hon. gentleman quoted to the House, there was one sentence in the middle of the passage which he somehow omitted. It is important, so I will add it here:
Very little authority is explicitly laid out in the law or the Constitution — much relies on royal prerogative, tradition and policy.
I would suggest that the Standing Orders could easily be added to the first half of that sentence.
This parenthetical note is attached to paragraph 6.6(a) of the Policy on Tabling Treaties in Parliament:
The Executive under the constitutional treaty-making power exercised by the Federal Crown under the Royal Prerogative remains responsible for undertaking any international obligations of Canada.
My second area of argument relates to my comments about the ability of, and the experience of, the House of Commons to consider this proposed international agreement. I have some details to add.
Clause 99 provides for the enactment of the Canada-United States enhanced tax information exchange agreement implementation act. Clauses 100 and 101 make consequential amendments to the Income Tax Act.
Schedule 3 of Bill C-31 contains the text of the Agreement between the Government and Canada and the Government of the United States of America to Improve International Tax Compliance through Enhanced Exchange of Information Under the Convention between Canada and the United States of America with respect to Taxes on Income and on Capital.
On April 8, the House adopted, by a vote of 149 to 125, Bill C-31 at second reading and, thereby, concurred in the principle of the bill.
What is more is that the House, also that night defeated the reasoned amendment proposed by the hon. member for Skeena—Bulkley Valley at the second reading stage of Bill C-31. Paragraph (d) of the amendment related to the subject matter at hand.
Moreover, this was a matter previously before the House during this year's budget process. Let me quote from pages 358 and 359 of the budget plan, that is, the publication entitled “The Road to Balance: Creating Jobs and Opportunity”, which was tabled on February 11:
In 2010, the U.S. enacted provisions known as the Foreign Account Tax Compliance Act (FATCA).... FATCA has raised a number of concerns in Canada—among both U.S. citizens living in Canada and Canadian financial institutions. Without an intergovernmental agreement between Canada and the U.S., Canadian financial institutions and U.S. persons holding financial accounts in Canada would be required to comply with FATCA regardless, starting July 1, 2014 as per the FATCA legislation enacted by the U.S. unilaterally.
In response to these concerns, the Government of Canada successfully negotiated an intergovernmental agreement with the U.S. which contains significant exemptions and other relief. Under the approach in the Canada-U.S. agreement, which was signed on February 5, 2014, Canadian financial institutions will report to the Canada Revenue Agency (CRA) information in respect of U.S. persons that will be transmitted by the CRA to the IRS under the Canada-U.S. tax treaty and be subject to its confidentiality safeguards....
This new reporting regime will come into effect starting in July 2014, with Canada and the U.S. beginning to receive enhanced tax information from each other in 2015.
On February 26, the House adopted Ways and Means Motion No. 6 which read, “That this House approve in general the budgetary policy of the government”.
In concluding on this line of argument, this matter has not only been before Parliament, the House has actually voted on the issue reflected in this treaty three times, and that of course serves to fulfill, as I said, the principle that the House should have an opportunity to pass judgment on a treaty this House has now already passed judgment through a vote on that treaty three times.
With respect to my third area of argument, let me make some points respecting the actual terms of the Policy on Tabling Treaties in Parliament.
Paragraph 1 of article 10 of the agreement with the United States provides that:
This Agreement shall enter into force on the date of Canada’s written notification to the United States that Canada has completed its necessary internal procedures for entry into force of this Agreement.
Meanwhile, paragraph 6.3(b) of the Policy states that, “If an exception [to the Policy] is granted”, and you will recall, Mr. Speaker, that I indicated there was such an exception here, “the Minister or Foreign Affairs will inform the House of Commons that Canada has agreed to be bound by the instrument at the earliest opportunity following the ratification”.
I emphasize those words, “following the ratification”.
Indeed, no order in council authorizing the agreement's ratification has issued, therefore Canada has not yet given that notification to the American administration. Accordingly, we are not yet at the point in time which could be said to be following the ratification, to borrow the phrase from the Policy on Tabling Treaties.
This ratification and notification have not yet occurred because necessary implementing measures remain to be adopted by Parliament.
As that Library of Parliament background paper explains, Canada operates under the so-called dualist model of treaty implementation. “Accordingly, Canada cannot ratify an international treaty until measures are in place to ensure that the terms of the treaty are enforceable in Canada law”.
Indeed, parliamentary support of this measure is essential in this case. Section 3 of the Canada-United States enhanced tax information exchange agreement implementation act set out within clause 99 of Bill C-31 would provide that, “The Agreement is approved and has the force of law in Canada...”.
To conclude my submissions today, my argument hinges on three points: first, the grievance of the hon. member for Westmount—Ville-Marie goes beyond the jurisdiction of the Chair; second, not only does the House have an opportunity to consider the proposed international agreement, but it has already voted not once, not twice but three times on its principle, thus achieving the objective behind the treaty tabling policy; and third, and finally, there has not been in any event a breach of the policy of tabling treaties in Parliament that has received an exemption and it has been treated appropriately under the policy.