Section 54 of the Constitution Act, 1867

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British North America Act, 1867 British North America Act 1867.pdf
British North America Act, 1867

Section 54 of the Constitution Act, 1867 (French : article 54 de la Loi constitutionnelle de 1867) is a provision of the Constitution of Canada relating to taxation and appropriation legislation in the Parliament of Canada. It provides that the House of Commons shall not consider a bill relating to taxes or appropriation unless it is accompanied by a recommendation from the governor general (in effect, the federal Cabinet) that the House of Commons consider the bill. The recommendation for money bills is one of the ways in which responsible government is implemented, ensuring that the federal finances are controlled jointly by both the executive and legislative branches. Although the recommendation is made by the governor general, it is often referred to as the "royal recommendation".

Contents

The Constitution Act, 1867 is the constitutional statute that established Canada. Originally named the British North America Act, 1867 , the act continues to be the foundational statute for the Constitution of Canada, although it has been amended many times since 1867. It is now recognised as part of the supreme law of Canada.

Constitution Act, 1867

The Constitution Act, 1867 is part of the Constitution of Canada and thus part of the supreme law of Canada. [1] [2] It was the product of extensive negotiations by the governments of the British North American provinces at three separate conferences in the 1860s. [3] [4] Following those conferences, there were consultations with the British government in 1867. [3] [5] The act sets out the basic constitutional structure of Canada, creating the federal government and defining the powers of the federal government and the provinces. It was enacted in 1867 by the British Parliament under the name of the British North America Act, 1867. [6] [7]

The act did not include any power for it to be amended in Canada, so amendments had to be made by the British Parliament at the request of the Canadian Parliament.[ citation needed ] That remained the case until Patriation of the Constitution in 1982, when the act was brought under full Canadian control and was renamed the Constitution Act, 1867. [2] [6] Since 1982, the act can only be amended in Canada under the amending formula set out in the Constitution Act, 1982 . [8] [9] [10]

Text of section 54

Section 54 reads:

Recommendation of Money Votes
54 It shall not be lawful for the House of Commons to adopt or pass any Vote, Resolution, Address, or Bill, for the Appropriation of any Part of the Public Revenue, or of any Tax or Impost, to any Purpose that has not been first recommended to that House by Message of the Governor General in the Session in which such Vote, Resolution, Address, or Bill is proposed. [11]

Section 54 is found in Part IV of the Constitution Act, 1867, dealing with the federal legislative power. It has not been amended since the act was enacted in 1867. [11]

Legislative history

Section 54 has its origins in a standing order of the British House of Commons, passed in 1713, which provided that the House of Commons would not consider tax bills or spending bills without a Crown recommendation that the bill be considered:

That this House will receive no petition for any sum of money relating to the public service but what is recommended by the Crown. [12] [13]

The requirement for the royal recommendation continues to be set out in the Standing Orders of the British House of Commons. [14]

In 1840, the British Parliament passed the Union Act, 1840, which merged the provinces of Lower Canada and Upper Canada into the Province of Canada. The Union Act contained the following statement:

Provided also, that it shall not be lawful for the said Legislative Assembly to originate or pass any Vote, Resolution, or Bill for the Appropriation of any Part of the Surplus of the said Consolidated Revenue Fund, or of any other Tax or Impost, to any Purpose which shall not have been first recommended by a Message of the Governor to the said Legislative Assembly during the Session in which such Vote, Resolution, or Bill shall be passed. [15]

When Confederation was being debated, the Quebec Resolutions of 1864 [16] [17] and the London Resolutions of 1866 [18] [19] both included a requirement for a recommendation from the governor general for tax and spending bills. The provision was set out in the rough draft of the British North America bill prepared by a sub-committee of the London Conference, composed of the four provincial attorneys general. [20] [21] [22] [a] The provision was included in all of the drafts of the bill leading up to the passage of the Constitution Act, 1867. [23] [24]

The standing orders of the House of Commons and the Senate include provisions which recognise and implement the requirement set out in section 54. Standing order 79 of the House of Commons repeats the wording of section 54. [25] Rule 10-7 of the Senate is more condensed: "The Senate shall not proceed with a bill appropriating public money unless the appropriation has been recommended by the Governor General." [26]

Purpose and interpretation

Historical British origins

Section 54 has its origins in British constitutional principles relating to public finances. After the English Civil War and the passage of the Bill of Rights, it was firmly established that legislation enacted by Parliament was needed for all taxes and all appropriations of public funds. The English House of Commons took the lead on this point, and gradually acquired primary control over public finances. Bills to impose taxes or appropriate public funds from the treasury, commonly called "money bills", had to originate in the House of Commons, and the monarch could not personally impose taxes or appropriate funds. [27] [28] [29]

However, if every member of the House of Commons had an equal opportunity to introduce money bills, there would not be firm budgetary controls. In order to address this issue, the House of Commons passed a rule in 1713 stating that the House would not consider any money bill unless it came with a monarch's recommendation that the bill was essential for the public finances. [12] [13] The effect of the rule was to give joint control over money bills to the executive and legislative branches. This procedural rule is continued today as part of the Standing Orders of the British House of Commons. [14] The leading authority on British parliamentary practice, Erskine May, describes the principle that public funds are not to be spent except on the initiative of the Crown as "a principle of the highest constitutional importance". [30]

British North America

Lord Durham, who proposed that the royal recommendation for money bills be implemented in British North America John George Lambton, 1st Earl of Durham by Thomas Phillips.jpg
Lord Durham, who proposed that the royal recommendation for money bills be implemented in British North America

Control over the public finances became a major point of contention in the British North American colonies in the 19th century, particularly in Lower Canada and Upper Canada. Disputes between the elected legislative assemblies and the governors, appointed by the British government, became a routine aspect of public life. [27] [31] [32] [33]

Following the Rebellions of 1837–1838 in Lower Canada and Upper Canada, Lord Durham in his Report on British North America recommended that the principle of a Crown recommendation be adopted in the proposed union of Lower Canada and Upper Canada, the same as in the British Parliament: money bills were to be approved by the elected Assemblies, but only on recommendation from the governor. [34] As a subsequent editor of the Report summarised, "no money votes were to be proposed except with the consent of the Crown, i.e., by the responsible ministers". [35]

This policy was established in the Union Act, 1840 , which merged the two Canadas into the single Province of Canada. The Union Act provided that money bills had to originate in the elected Legislative Assembly of the new province, but only on a recommendation from the governor. [15] This combined control over finances by the elected legislative body and the executive contributed strongly to the development of responsible government. [27]

Confederation

Fathers of Confederation at the Quebec Conference, 1864 Fathers of Confederation LAC c001855.jpg
Fathers of Confederation at the Quebec Conference, 1864

At the time of Canadian Confederation in 1867, this principle of joint control over the public finances was well-established in both the United Kingdom and the British North American provinces. Following the example of the Union Act, section 54 creates a constitutional requirement for a recommendation for money bills, not simply as a parliamentary rule as in the United Kingdom. The recommendation to the House of Commons is made by the governor general, not the monarch. [11] [36] Although the recommendation is made by the governor general, it is often referred to as the "royal recommendation". [12] [27] [28]

Current operation

The House of Commons, where money bills must be introduced and passed Colline du Parlement, Edifice du Centre 04.jpg
The House of Commons, where money bills must be introduced and passed
The Senate, where money bills must be passed 20161003 51 Parliament Senate Chamber (25863079118).jpg
The Senate, where money bills must be passed

Under the principle of responsible government, the recommendation is authorised by the federal Cabinet. [37] A Cabinet member passes the governor general's recommendation to the Commons, now usually by means of a written notice accompanying a bill at any stage before third reading, the final vote on a bill in the Commons. [25] The recommendation must be given for any new financial legislation, and again for any proposal to change an existing tax or appropriation bill in any significant fashion. [27] [29]

The effect of section 54 on private member's bills has changed over the years. Formerly, if it appeared to the Speaker of the Commons that a private member's bill would require the spending of public money or an increase in taxes, the Speaker would rule the bill out of order when it was first introduced. However, changes to the procedural rules regarding private member bills in 2003 have increased the possibility that a private member's bill will come to a vote. That change, in turn, has resulted in a change in approach to the royal recommendation. Now, the Speaker will recognise that the sponsor of the private member's bill has the right to have it debated, but will urge the sponsor to seek the royal recommendation. If the royal recommendation has not been given by the time the bill is ready for final debate on third reading, the Speaker will rule it out of order. [27] [28]

There is uncertainty regarding how far section 54 may limit the authority of the Senate and private members with regard to money bills because no court action has clarified its precise scope. [28]

The precedents from the Commons are ambiguous, and it is unclear whether the Senate can change a money bill that the Commons has passed to increase spending or taxation. In some cases, if the Senate has amended a money bill passed by the Commons, the Speaker of the House of Commons has ruled the amended bill out of order and refused to allow it to be considered. On other occasions, the Speaker has simply pointed out the issue in debate to allow the members of the House of Commons to decide. In some cases, the Commons has rejected Senate amendments, as a breach of the powers of the House of Commons, but in other cases, the Commons has proceeded to consider the amendments. [27]

It is clear that the Senate can amend a money bill to decrease spending or taxation. [27]

Relationship to Section 53

Section 54 is related to section 53 of the Act, which requires that all tax or appropriation bills must be introduced in the House of Commons. The combined effect of these two sections is joint control over public finance, reconciling the principle of control by the elected Commons with the need for budgetary discipline by the executive. The combined control over the public finances contributed to the development of responsible government. [27] [38]

Application to the provinces

Section 54 only refers to the requirement for a recommendation by the governor general with respect to federal bills. However, the requirement applies indirectly to the provinces, by means of section 90 of the act, which adapts the recommendation requirement to provincial bills. The provincial lieutenant governor is substituted for the governor general, acting on the advice of the provincial cabinet.

Section 53 of the act provides that all money bills must be introduced in the House of Commons.

Section 90 of the act provides that section 54 also applies to the provincial legislatures.

Notes

  1. ↑ The four attorneys general were John A. Macdonald, Canada West; George-Étienne Cartier, Canada East; William Alexander Henry, Nova Scotia; and Charles Fisher, New Brunswick.

References

  1. ↑ Peter Hogg and Wade Wright, Constitutional Law of Canada, 5th ed. (Thomson Reuters (looseleaf; current to 2024), para. 1:4.
  2. 1 2 Constitution Act, 1982, s. 52, s. 53, and Schedule, item 1.
  3. 1 2 Donald G. Creighton, The Road to Confederation (Macmillan Publishing, 1964; revised ed., Oxford University Press, 2012.) online
  4. ↑ Christopher Moore, 1867 — How the Fathers Made a Deal (McClelland & Stewart, 1997).
  5. ↑ Ben Gilding, "The Silent Framers of British North American Union: The Colonial Office and Canadian Confederation, 1851–67", (2018) 99:3 Canadian Historical Review.
  6. 1 2 Hogg and Wright, Constitutional Law of Canada, para. 1:2.
  7. ↑ British North America Act, 1867, 30 & 31 Victoria, c. 3 (UK).
  8. ↑ Hogg and Wright, Constitutional Law of Canada, para. 4:1.
  9. ↑ Constitution Act, 1982, Part V.
  10. ↑ Canada Act 1982 (UK) 1982, c. 11, s. 2.
  11. 1 2 3 Constitution Act, 1867, s. 54.
  12. 1 2 3 John Mark Keyes, "When Bills and Amendments Require the Royal Recommendation: A Discussion Paper and Guidelines", (1997) 20:4 Canadian Parliamentary Review.
  13. 1 2 Sir Charles Gordon et al. (eds.), Erskine May’s Treatise on the Law, Privileges, Proceedings and Usage of Parliament, 20th ed. (Butterworths, 1983), at p. 762.
  14. 1 2 United Kingdom, House of Commons, Standing Orders of the House of Commons - Public Business 2019, r. 48.
  15. 1 2 Union Act, 1840, 3-4 Vict., c 35 (UK), s. 57; reprinted in RSC 1985, App II, No. 4.
  16. ↑ Quebec Conference (October 1864). "Quebec Resolutions, resolution 49". PrimaryDocuments.ca. Retrieved September 14, 2025.
  17. ↑ Quebec Resolutions, resolution 49, in G.P. Browne and Janet Ajzenstat (eds.), Documents on the Confederation of British North America (McGill-Queen's University Press, 2009; reprint of the 1969 edition), document 34, p. 162.
  18. ↑ London Conference (December 1866). "London Resolutions, resolution 48". PrimaryDocuments.ca. Retrieved September 14, 2025.
  19. ↑ London Resolutions, resolution 48, in Browne and Ajzenstat, Documents, document 74, p. 225.
  20. ↑ "Rough Draft of Conference, clause 49, in Joseph Pope, Confederation: Being a Series of Hitherto Unpublished Documents Bearing on the British North America Act (Carswell, 1895), p. 135.
  21. ↑ "Rough Draft of the British North America Bill" (undated), clause 49, in Browne and Ajzenstat, Documents, document 78, p. 242.
  22. ↑ Creighton, Road to Confederation, p. 418.
  23. ↑ "Final Draft of Bill for Union of B.N.A. Colonies, clause 55, in Pope, Confederation, p. 224.
  24. ↑ "Final Draft of the British North America Act" (February 9, 1867), clause 55, in Browne and Ajzenstat, Documents, document 86, p. 314.
  25. 1 2 Canada, House of Commons Standing Orders of the House of Commons (consolidated version as of June 5, 2025), order 79.
  26. ↑ Canada, Senate, Rules of the Senate (last updated September 2024), rule 10-7.
  27. 1 2 3 4 5 6 7 8 9 Marc Bosc and André Gagnon (eds.) House of Commons Procedure and Practice, 3rd ed. (Canadian House of Commons, 2017), Chapter 18: Financial Procedures.
  28. 1 2 3 4 Joan Small, "Money Bills and the Use of the Royal Recommendation in Canada: Practice versus Principle?" (1999) 27:1 Ottawa Law Review / Revue de droit d'Ottawa.
  29. 1 2 W.H. McConnell, Commentary on the British North America Act (MacMillan Co. of Canada, 1977), pp. 131–132.
  30. ↑ Sir David Natzler KCB et al. (eds.) Erskine May’s Treatise on The Law, Privileges, Proceedings and Usage of Parliament (25th ed.) (Parliament of the United Kingdom, 2019), para. 33.13.
  31. ↑ Fernand Ouellette, Lower Canada 1791–1840: Social Change and Nationalism (McClelland and Stewart, 1980), pp. 197–200, 213, 253–255.
  32. ↑ Gerald M. Craig, Upper Canada: The Formative Years, 1784–1841 (McClelland and Stewart, 1963), pp. 191, 211–212.
  33. ↑ Donald G. Creighton, "The Struggle for Financial Control in Lower Canada, 1818-1831", Canadian Historical Review, vol. 12, no. 2 (June 1931): 120–144.
  34. ↑ Charles Lucas (ed.), Lord Durham's Report on the Affairs of British North America, (Clarendon Press, 1912 (reprint)), vol. II, pp. 92–93, 286–287, 328.
  35. ↑ Lucas (ed.), "Introduction", Lord Durham's Report on the Affairs of British North America (reprint)), vol. I, p. 149.
  36. ↑ McConnell, Commentary on the British North America Act, p. 106.
  37. ↑ Hogg and Wright, Constitutional Law of Canada, para. 9:6.
  38. ↑ McConnell, Commentary on the British North America Act, p. 105.

Further reading

Gary O'Brien, "Requirements of the Royal Recommendation" (1993) 15:1 Canadian Parliamentary Review

Rob Walsh, "Some Thoughts on Section 54 and the Financial Initiative of the Crown" (1994) 17:2 Canadian Parliamentary Review

"The Use of Royal Recommendation: Speaker Gildas L. Molgat, The Senate, February 4, 1997", (1997) 20:2 Canadian Parliamentary Review

John Mark Keyes, "The Royal Recommendation: An Update" (1999) 22:2 Canadian Parliamentary Review

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