COMPENDIUM OF PROCEDURE

HOUSE OF COMMONS • CANADA

PRIVATE MEMBERS' BUSINESS

FINANCIAL LIMITATIONS FOR PRIVATE MEMBERS’ BILLS

Expenditure
The Constitution Act, 1867 requires that bills proposing the expenditure of public funds must be accompanied
by a Royal Recommendation, which may only be obtained by the Government and presented by a Minister. A
private Member may introduce a public bill containing provisions requiring the expenditure of public funds
provided that a Royal Recommendation is obtained by a Minister before the bill is read a third time and passed,
pursuant to Standing Order 79(2).
The Speaker is responsible for determining whether any bill requires a Royal Recommendation and may decline
putting the necessary questions at third reading on bills that require, but have not received, a Royal
Recommendation.

Taxation
The power to initiate taxation rests solely with the Government and legislation seeking to increase taxes must be
preceded by a Ways and Means motion. Only a Minister can bring in a Ways and Means motion. Therefore,
private Members cannot introduce bills that impose taxes. However, private Members’ bills that reduce taxes,
reduce the incidence of a tax, or impose or increase an exemption from taxation are admissible.

RELATED ARTICLES

Private Members’ Bills – Notice, Introduction and First Reading

Ways and Means Motions [Financial Procedures]

Find this and other articles on House of Commons procedure by visiting the Compendium of Procedure Web site at
http://www.parl.gc.ca/compendium-e.
For further information about the procedures of the House of Commons, please contact the Table Research Branch
at (613) 996-3611 or by e-mail at trbdrb@parl.gc.ca.
Modified: March 2006