Financial Procedures

Introduction

The written rules and parliamentary practices governing the area of financial procedures-specifically, the business of Supply, the business of Ways and Means, and the Royal Recommendation- are among the most intricate and difficult to understand. The roots of these practices are found deep in British parliamentary history, and involve not only the process by which the various taxation and appropriation bills and substantive bills with financial implications are introduced and passed, but also touch upon the relationships between the Crown and the House of Commons and between the Senate and House of Commons .

Their complexity led Speaker Fraser, when ruling on many of these archaic and exacting points, to offer a detailed explanation of the process of Supply and of Ways and Means, and to reflect seriously on the issues brought before the Chair which touched upon the financial prerogatives of the Crown and, more particularly and profoundly during his term, upon the relationship between the two Houses.

For the sake of clarity, a brief explanation of the business of Supply and the business of Ways and Means follows. The business of Supply is the process by which the Government submits its projected spending plans 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, which focuses on opposition Supply motions, the number and disposition of which is governed by specific Standing Orders. The business of Ways and Means is the process by which the Government obtains the necessary resources to meet its expenses. It is, in essence, the mechanism by which the Government raises taxes, presents national Budgets and thus influences the nation's economy. The process has two phases: the Budget presentation, in which the Minister of Finance delivers an economic statement and tables notices of Ways and Means motions, and the legislative phase, in which a notice of a Ways and Means motion is given and then concurred in as a prerequisite to the first reading of any tax bill proposing an increased charge on the taxpayer.

The nineteen decisions selected for this chapter divide logically into Supply issues, Ways and Means issues, and practices with respect to the Royal Recommendation. With respect to Supply issues, the decisions touch upon the continuing order for the business of Supply, the useof Governor General's Special Warrants, the validity of certain Votes contained in the Estimates and the presentation of information relating to such Estimates, the designation of allotted days, and the procedural validity of opposition day motions and amendments proposed to such motions.

With respect to Ways and Means issues, the selected decisions touch upon the convention of secrecy concerning the budget as well as other taxation matters, upon the importance of proper wording of Ways and Means motions, and finally upon the necessity of having adopted such a motion prior to the introduction of the relevant bill.

Also included in this chapter are decisions pertaining to the financial prerogatives of the Crown, as expressed in the Royal Recommendation, and of the House, as outlined in the Standing Orders. In key rulings dated July 11, 1988, and April 26, 1990, Speaker Fraser studied and articulated the rights of the House in response to Messages from the Senate which, according to Members, infringed upon such prerogatives. On April 23, 1990, Speaker Fraser undertook to define our practice with respect to the Royal Recommendation, while acknowledging that "to many of our viewing audience, and indeed many of the honourable Members of the House, the subject matter of the financial initiative of the Crown sounds like an extremely Byzantine and hopelessly complicated matter."