Financial Procedures

Introduction

The written rules and parliamentary practices governing financial procedures specifically, the business of supply, the business of ways and means, and the royal recommendation are among the most intricate and difficult aspects of parliamentary procedure. The roots of these practices extend far back into British parliamentary history. They involve the process by which the various taxation and appropriation bills, as well as substantive bills with financial implications are introduced and passed.

A brief explanation of the business of supply and the business of ways and means may help to clarify the issues addressed in this chapter.

The business of supply is the process by which the Government submits its projected expenditures for parliamentary approval. The process has two phases: the legislative phase, which involves the estimates and the necessary appropriation bills, and a general debate phase, involving opposition supply motions on allotted days, the number and disposition of which are governed by specific Standing Orders.

The business of ways and means is the process by which the Government obtains the funds necessary to meet its expenses. It is, in essence, the mechanism by which the Government raises taxes, presents its budgets and thus influences the nation’s economy. The ways and means process has two phases: the budget presentation, in which the Minister of Finance delivers a statement setting out the Government’s economic policy and tables notices of ways and means motions; and the legislative phase, in which a ways and means motion is called and then concurred in as a prerequisite to the introduction and first reading of any tax bill providing legislative authority for an increased charge on the taxpayer.

In Canada, the Crown alone, acting on the advice of the Cabinet, initiates all public expenditure and Parliament may authorize only that spending which has been recommended by the Governor General. This prerogative, referred to as the “financial initiative of the Crown” is essential to the system of responsible Government and is signified by way of the royal recommendation.

The Speaker has the duty and responsibility to ensure that proper procedure is followed throughout the financial cycle and that all public bills, whether they emanate from the Government or a private Member, in the House or the Senate, respect the financial prerogative of the Crown. Mr. Speaker Milliken’s decisions frequently contained a detailed analysis and explanation of the procedural points at issue. The 21 decisions selected for this chapter touch upon supply issues, ways and means issues, and legislative practices involving the royal recommendation. With respect to supply issues, the decisions address a variety of topics, including: the designation of allotted days; the procedural validity of opposition day motions and amendments proposed to such motions; and the presentation of Votes in the estimates without legislative authority. It is also important to note that a key statement made by the Speaker on May 7, 2002, is included since it dealt with the first time the estimates were considered in the Committee of the Whole under new procedures.

With respect to ways and means issues, Mr. Speaker Milliken dealt with the admissibility of ways and means motions, as well as the question of the procedural significance of the practice of budget secrecy. Also, included in this chapter are decisions pertaining to the financial prerogative of the Crown and those relating to the use of lapsed Governor General’s Special Warrants to cover payments for certain programs.