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MINUTES OF PROCEEDINGS
 
Meeting No. 49
 
Monday, November 5, 2012
 

The Standing Committee on Aboriginal Affairs and Northern Development met at 3:30 p.m. this day, in Room 362, East Block, the Chair, Chris Warkentin, presiding.

 

Members of the Committee present: Hon. Carolyn Bennett, Ray Boughen, Rob Clarke, Jean Crowder, Carol Hughes, Blake Richards, Greg Rickford, Chris Warkentin and David Wilks.

 

Acting Members present: Kelly Block for Kyle Seeback, Fin Donnelly for Jonathan Genest-Jourdain and Matthew Dubé for Dennis Bevington.

 

In attendance: House of Commons: Chloé O'Shaughnessy, Legislative Clerk. Library of Parliament: Tonina Simeone, Analyst; Norah Kielland, Analyst.

 

Witnesses: Department of Indian Affairs and Northern Development: Brenda Kustra, Director General, Governance Branch, Regional Operations Sector; Andrew Francis, Director General, Corporate Accounting and Materiel Management, Chief Financial Officer Sector. Department of Justice: Karl Jacques, Senior Counsel.

 
Pursuant to its Order of Reference of Thursday, June 21, 2012 and the motion agreed by the Committee on Wednesday, October 3, 2012, the Committee resumed consideration of Bill C-27, An Act to enhance the financial accountability and transparency of First Nations.
 

Brenda Kustra made a statement and, with Andrew Francis and Karl Jacques, answered questions.

 

The Committee commenced its clause-by-clause study of the Bill.

 

Pursuant to Standing Order 75(1), consideration of Clause 1 was postponed.

The Chair called Clause 2.

 

On Clause 2,

Greg Rickford moved, — That Bill C-27, in Clause 2, be amended by

(a) replacing lines 8 to 11 on page 1 with the following:

““consolidated financial statements” means the financial statements of a First Nation — prepared in accordance with generally accepted accounting principles — in which the assets, liabilities, equity, income, expenses and cash flows of the First Nation and of those entities that are required by those principles to be included are presented as those of a single economic entity, as if the First Nation were a government reporting on its financial information. ”

(b) adding after line 16 on page 1 the following:

““expenses” includes the costs of transportation, accommodation, meals, hospitality and incidental expenses.”

(c) replacing lines 3 to 9 on page 2 with the following:

“remuneration” means any salaries, wages, commissions, bonuses, fees, honoraria and dividends and any other monetary benefits — other than the reimbursement of expenses — and non-monetary benefits.”

(d) deleting lines 10 to 19 on page 2.

 

After debate, the question was put on the amendment of Greg Rickford and it was agreed to.

 
Jean Crowder moved, — That Bill C-27, in Clause 2, be amended by deleting lines 14 to 16 on page 1.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Jean Crowder moved, — That Bill C-27, in Clause 2, be amended by adding after line 21 on page 1 the following:

““First Nations Ombudsman” means the Office of the First Nations Ombudsman established by regulations made under section 14.”

 

RULING BY THE CHAIR

Bill C-27 enhances the financial accountability and transparency of First Nations.

The amendment seeks to create the Office of the First Nations Ombudsman.

House of Commons Procedure and Practice, Second Edition, states at pages 767-768:

“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.”

In the opinion of the Chair, in seeking to create a new Office of the First Nations Ombudsman, this would certainly infringe on the financial initiative of the Crown; therefore I rule the amendment inadmissible.

 

The Chair ruled that the following two (2) amendments were consequential to the previous amendment and therefore they were also inadmissible:

That Bill C-27, in Clause 10, be amended

(a) by replacing line 30 on page 4 with the following:

“that First Nation may apply to the First Nations Ombudsman”

(b) by replacing line 33 on page 4 with the following:

“specified by the Ombudsman.”

That Bill C-27 be amended by adding after line 26 on page 5 the following new clause:

“14. Within 30 days after this Act comes into force, the Governor in Council must make regulations establishing the Office of the First Nations Ombudsman for the purposes of this Act.”

 
Jean Crowder moved, — That Bill C-27, in Clause 2, be amended by deleting lines 10 to 19 on page 2.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 

Clause 2, as amended, carried.

 

On Clause 3,

Jean Crowder moved, — That Bill C-27, in Clause 3, be amended by replacing, in the English version, line 23 on page 2 with the following:

“disclosure of their audited consolidated”

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Jean Crowder moved, — That Bill C-27, in Clause 3, be amended by replacing lines 25 and 26 on page 2 with the following:

“remuneration paid by a First Nation to its”

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Greg Rickford moved, — That Bill C-27, in Clause 3, be amended by replacing lines 25 to 29 on page 2 with the following:

“remuneration paid and expenses reimbursed to a First Nation’s chief and each of its councillors — acting in their capacity as such and in any other capacity, including their personal capacity — by the First Nation and by any entity that, in accordance with generally accepted accounting principles, is required to be consolidated with the First Nation.”

 

After debate, the question was put on the amendment of Greg Rickford and it was agreed to.

 

Clause 3, as amended, carried.

 

On Clause 4,

Jean Crowder moved, — That Bill C-27, in Clause 4, be amended by adding after line 32 on page 2 the following:

“(2) This Act does not apply to a First Nation that

(a) has been issued with a financial management system certificate by the First Nations Financial Management Board; and

(b) has made a law respecting the financial administration of the First Nation that has been approved by the Board.”

 

RULING BY THE CHAIR

Bill C-27 enhances the financial accountability and transparency of First Nations.

This amendment proposes to create an exemption in the application of the Act.

As House of Commons Procedure and Practice, Second Edition, states on page 766:

“An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

In the opinion of the Chair, the creation of an exemption in the application of the Act where one does not currently exist is contrary to the principle of Bill C-27 that the Act should apply to all First Nations and is therefore inadmissible.

 

Clause 4 carried.

 

On Clause 5,

Greg Rickford moved, — That Bill C-27, in Clause 5, be amended by replacing the headings after line 32 on page 2 the following:

“FINANCIAL STATEMENTS AND SCHEDULE OF REMUNERATION AND EXPENSES”

“Preparation and Independent Audit”

 

After debate, the question was put on the amendment of Greg Rickford and it was agreed to.

 

Clause 5, as amended, carried.

 

On Clause 6,

Greg Rickford moved, — That Bill C-27, in Clause 6, be amended by

(a) replacing lines 15 to 23 on page 3 with the following:

“6. (1) A First Nation must annually prepare a document entitled “Schedule of Remuneration and Expenses” that sets out, separately, the remuneration paid and the expenses reimbursed to its chief and each of its councillors — acting in their capacity as such and in any other capacity, including their personal capacity — by the First Nation and by any entity that, in accordance with generally accepted accounting principles, is required to be consolidated with the First Nation.”

“(2) The schedule does not”

(b) replacing, in the English version, line 29 on page 3 with the following:

“accompany the schedule.”

 

After debate, the question was put on the amendment of Greg Rickford and it was agreed to.

 

Clause 6, as amended, carried.

 

On Clause 7,

Greg Rickford moved, — That Bill C-27, in Clause 7, be amended by

(a) replacing line 35 on page 3 with the following:

“(b) the Schedule of Remuneration and Expenses;”

(b) replacing line 40 on page 3 with the following:

“the Schedule of Remuneration and Expenses.”

 

After debate, the question was put on the amendment of Greg Rickford and it was agreed to.

 
Jean Crowder moved, — That Bill C-27, in Clause 7, be amended by replacing lines 2 to 5 on page 4 with the following:

“within a reasonable time.”

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 

Clause 7, as amended, carried.

 

On Clause 8,

Jean Crowder moved, — That Bill C-27, in Clause 8, be amended by replacing lines 9 to 13 on page 4 with the following:

8. (1) A First Nation must make the documents referred to in paragraphs 7(1)(a) to (d) available to its members

(a) if practicable, by publishing them on its Internet site, or by causing them to be published on another Internet site; or

(b) by another form of public disclosure determined to be suitable by the First Nation.”

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Jean Crowder moved, — That Bill C-27, in Clause 8, be amended by replacing lines 12 and 13 on page 4 with the following:

“to be published on an Internet site, within a reasonable time.”

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Carolyn Bennett moved, — That Bill C-27, in Clause 8, be amended by replacing line 12 on page 4 with the following:

“to be published on an Internet site, in a manner that will only allow access to the documents by members of the First Nation, within 120”

 

RULING BY THE CHAIR

Bill C-27 enhances the financial accountability and transparency of First Nations.

This amendment proposes to restrict the public access of certain disclosures to members of the First Nations only.

As House of Commons Procedure and Practice, Second Edition, states on page 766:

“An amendment to a bill that was referred to committee after second reading is out of order if it is beyond the scope and principle of the bill.”

In the opinion of the Chair, the creation of a restriction in the Act is contrary to the public principle of Bill C-27 and is therefore inadmissible.

 
Jean Crowder moved, — That Bill C-27, in Clause 8, be amended by deleting lines 14 to 16 on page 4.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Carolyn Bennett moved, — That Bill C-27, in Clause 8, be amended by adding after line 20 on page 4 the following:

“(4) A First Nation may send the documents referred to in paragraphs 7(1)(a) to (d) by regular mail instead of publishing them, or causing them to be published, on an Internet site in accordance with subsection (1).”

 

After debate, the question was put on the amendment of Carolyn Bennett and it was negatived.

 

Clause 8 carried.

 

On Clause 9,

Carolyn Bennett moved, — That Bill C-27, in Clause 9, be amended

(a) by replacing line 21 on page 4 with the following:

9. The Minister may, with the written permission of the First Nation, publish the documents”

(b) by replacing line 24 on page 4 with the following:

“Development’s Internet site after”

 

After debate, the question was put on the amendment of Carolyn Bennett and it was negatived.

 
Carolyn Bennett moved, — That Bill C-27, in Clause 9, be amended by replacing lines 23 and 24 on page 4 with the following:

“Internet site of Aboriginal Affairs and Northern Development Canada without delay after”

 

After debate, the question was put on the amendment of Carolyn Bennett and it was negatived.

 

Clause 9 carried.

 

Clause 10 carried.

 

Clause 11 carried.

 

Clause 12 carried.

 

On Clause 13,

Jean Crowder moved, — That Bill C-27, in Clause 13, be amended by deleting lines 12 to 20 on page 5.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Jean Crowder moved, — That Bill C-27, in Clause 13, be amended by deleting lines 21 and 22 on page 5.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 
Jean Crowder moved, — That Bill C-27, in Clause 13, be amended by deleting lines 23 to 26 on page 5.

 

After debate, the question was put on the amendment of Jean Crowder and it was negatived.

 

Clause 13 carried.

 

The Short Title carried.

 

The Title carried.

 

The Bill, as amended, carried.

 

ORDERED, — That the Chair report the Bill, as amended, to the House.

 

ORDERED, — That Bill C-27, as amended, be reprinted for the use of the House at report stage.

 

At 5:30 p.m., the Committee adjourned to the call of the Chair.

 



James M. Latimer
Clerk of the Committee

 
 
2012/11/08 3:49 p.m.