As we return to sittings after a two-week break, the government will get to work on measures announced in the budget tabled on March 28th. A big part of that will be the Budget Implementation Act, set to be a major focus for the House of Commons as the weather gets warmer.
This article is all about the legislative roll-out of the budget, and the potential opportunities for stakeholders to engage with the government during that process. The challenge for stakeholders with skin in the game is to cut through the noise and make their point in a way that sticks.
Legislative Amendments
The legislative measures of the budget are all listed here in Annex 3.
These are legislative changes required to implement the budget in general terms. Governments usually present budget legislative measures in omnibus budget bills called Budget Implementation Acts (BIAs). We expect to see a budget implementation act tabled in Parliament within weeks, which the government will try to pass through both houses of Parliament before the summer adjournment.
What Matters (the BIA)
The BIA is the main stage for legislative changes stemming from the budget. Stakeholders have the opportunity to engage with the government on its contents even before it’s tabled. In some cases, it can be appropriate to provide the government with input that could help determine whether a specific item is included in the first BIA, tabled in the spring, or the second BIA which is generally tabled in the fall. It may be premature for the government to move forward with a particular item before working out solutions to any unintended consequences, for example.
We’ve received a lot of questions about the significance and function of the budget ways-and-means motion. It acts as a mechanism to debate and vote on the budgetary policy of the government. It is significant because it involves a confidence vote. Rather than implementing specific measures of the budget itself, its passage only allows the government to proceed as the government and continue on with its agenda. Unless there are strategic considerations around the confidence vote itself, the ways-and-means motion doesn’t provide a good opportunity for stakeholder engagement.
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BIA Procedure
Once the BIA is tabled, the first step is for stakeholders to examine its contents. Take note of the big ticket priorities and use that information to frame and inform an engagement strategy.
The BIA follows the same legislative process as any other bill with some minor conventional deviations. After the bill is tabled and read a first time, it will go to second reading, during which the House will debate the bill in principle and vote on whether to send the bill to the finance committee.
Finance Committee: This is where opportunities really open up for stakeholders. The finance committee will study the bill in depth and hear from stakeholders who could be impacted by the bill. Witness lists are determined by the committee and individual committee members and parties have influence over who is asked to attend. Getting an invitation to BIA studies at the Finance Committee is a bit like getting tickets to go see your favourite band’s latest tour. You’ve got to plan ahead and be there at the right moment. It’s important to work with committee members in advance to get a spot to appear before the committee.
Did you know? The Finance Committee can agree to split the BIA into divisions, which focus on particular policy areas like agriculture or technology. These divisions get sent to other committees for in-depth study. The committee can also initiate a pre-study of the subject matter of the bill before it is officially referred. Both of those procedural options are more common in the Senate than in the House.
After hearing from witnesses and potentially other committees, the Finance Committee will have an opportunity to amend the bill during clause-by-clause consideration. All parties can propose amendments at this stage.
Report Stage and Third Reading: Amendments are also permitted at report stage. This occurs after the bill is reported back to the House by the finance committee. Substantive amendments aren’t as common here as they are in committee. Once report stage is completed, the bill will pass to third reading for a debate and a final vote in advance of Senate proceedings.
The Senate follows the same process and provides another avenue for amendments or procedural tactics to slow down implementation. The Senate is a different beast because senators aren’t whipped as strongly on votes. The government also doesn’t have a strong Senate caucus, so it’s potentially more fruitful in some cases to pursue amendments in the Upper House. It’s also a little less politically predictable.
Senate Amendments: After the Senate report stage and third reading, the House will consider any amendments made to the bill by the Senate. Convention dictates that the Senate will acquiesce to the House if there is continued disagreement.
Summa is ready to answer any questions on budget implementation and help with engagement strategies. Budget implementation also goes beyond legislation, so we’re available to help our clients understand the treasury board’s role, regulatory processes and program design as well.
