1993 Legislative Session: 2nd Session, 35th Parliament
FIRST READING


The following electronic version is for informational purposes only.
The printed version remains the official version.


MR. JOHN WEISGERBER

BILL M 215 -- 1993

FISCAL RESTRAINT ACT

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of British Columbia, enacts as follows:

Limitation on growth in spending

1 The Constitution Act, R.S.B.C. 1979, Chapter 62, is hereby amended by adding the following section:

50.1 (1) Notwithstanding section 50 of this Act, or the provisions of any Standing Order made thereunder, it shall not be in order at any time for the Minister of Finance nor any other member of the Executive Council, or of the Legislative Assembly to present or introduce a Motion or Bill for the appropriation of funds, or other supply Motion or Bill, where:

(a) The rate of growth in overall provincial government spending would thereby exceed the percentage rate of growth in the province's Gross Domestic Product in the immediately preceding fiscal year less one percent, when there had been such growth, or,

(b) The rate of growth in overall provincial government spending would thereby exceed zero, when there had not been such growth.

(2) For the purposes of this Act, "overall provincial government spending" includes, but is not limited to, spending by, or transfered to or among:

(a) the government,

(b) except as provided in subsection (3), a corporation or unincorporated board, commission, council, bureau, authority or similar body that has,

(i) on its board of management or board of directors, a majority of members who are appointed by an Act, a minister or the Lieutenant Governor in Council, or

(ii) employees appointed under the Public Service Act,

(c) a board of school trustees as defined in the School Act,

(d) a university as defined in the University Act,

(e) an institution as defined in the College and Institute Act,

(f) a community care facility as defined in the Community Care Facility Act which receives funds from another public sector body,

(g) a hospital as defined in the Hospital Act or the Hospital Insurance Act which receives funds from another public sector body, and includes transfers by any of the above to a municipality, regional district, or an improvement district as defined in the Municipal Act.

(3) For the purposes of this Act, "overall provincial government spending" does not include spending by a self- financing public sector corporation or other public sector body; defined as such a corporation or body which has received no net transfer of funds and valuable property from the bodies referred to in subsection (2) over the preceding fiscal year.

Special provision regarding repeal

2 The substance of this Act shall not be repealed, amended, suspended from operation, limited in effect, or otherwise derrogated from or rendered null and void, save by unanimous consent of the Legislative Assembly.

 
Explanatory Note

This Bill sets a constitutional limit on the rate of growth in overall government spending at 1% below the previous year's rate of growth in the provincial economy - as measured by Gross Domestic Product, when the econmomy is growing, and at zero when the provincial economy is not growing. Overall government spending is broadly defined, exempting only self-financing public sector corporations and bodies. The Bill also requires the unanimous agreement of the Legislature for repeal of its provisions.


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