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3rd Session, 41st Legislature

This HTML version is provided for ease of use and is based on the bilingual version that was distributed in the Legislature after First Reading.

Bill 27

THE FISCAL RESPONSIBILITY AND TAXPAYER PROTECTION AMENDMENT ACT


  Bilingual version (PDF) Explanatory Note

(Assented to                                         )

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

C.C.S.M. c. F84 amended

1           The Fiscal Responsibility and Taxpayer Protection Act is amended by this Act.

2           The definition "minister" in section 1 is amended by striking out "section 8" and substituting "sections 8 and 8.1".

3           Subsection 4(2) is replaced with the following:

Meaning of baseline amount

4(2)        For the purposes of this section and section 8, "baseline amount" means

(a) in relation to the 2017-2018 fiscal year, the deficit projected in the budget for that year; and

(b) in relation to any subsequent fiscal year, the baseline amount for the immediately preceding year minus the lesser of the following amounts:

(i) $100,000,000,

(ii) the amount, if any, by which the deficit for that preceding year was less than the baseline amount for that preceding year.

4           Subsection 6(4) is amended by adding the following after clause (c):

(d) a one-time expenditure or reduction in revenue of more than $25,000,000 arising from

(i) a change in public sector accounting standards, or

(ii) an organization or fund, or part of an organization or fund, becoming or ceasing to be included in the summary financial statements.

5           Subsection 7(1) is amended by adding the following after clause (a):

(a.1) shows each person's salary reduction for that year under subsection 8(5) or (6), if any;

6           Subsection 8(5) is amended by adding "the consequence of the contravention is that" before "the ministerial salary".

7           The following is added after section 8:

Payment on achieving balance

8.1(1)      Subject to subsections (2) and (3), when the report under section 7 for the first fiscal year ending after 2017 and before 2026 that the government does not incur a deficit is tabled in the Assembly, the government must pay to each minister or former minister an amount equal to the total of all amounts, if any, by which their salary has been reduced under subsection 8(5) or (6). For this purpose, "former minister" includes the person's heirs and legal representatives.

Exception

8.1(2)      The government may refuse to pay an amount under subsection (1) to a former minister if the Lieutenant Governor in Council, having regard to the person's conduct while they were a minister, considers such a payment to be contrary to the public interest.

No application to salary reductions before change in government

8.1(3)      Subsection (1) does not apply to a salary reduction that was made in respect of a fiscal year that ended before the last general election that resulted in a change of government.

Coming into force: royal assent

8(1)        Except as provided in subsection (2), this Act comes into force on the day it receives royal assent.

Coming into force: June 2, 2017

8(2)        Sections 3 and 5 are deemed to have come into force on June 2, 2017.

Explanatory Note

The Fiscal Responsibility and Taxpayer Protection Act requires the government not to incur a deficit greater than the baseline amount and penalizes ministers by reducing their salaries if the deficit is not reduced by at least $100 million each year.

This Bill amends the Act

  • to correct an anomaly in the definition "baseline amount" as a result of which salaries for the current fiscal year would be reduced even if the deficit were to come in at least $100 million under budget;
  • to remove a disincentive against reducing the deficit by more than $100 million a year;
  • to require all salary reductions under section 8 of the Act to be reported in the public accounts;
  • to clarify that the ministerial salary reduction is the only consequence of a deficit that contravenes the Act; and
  • to provide for the repayment of any salary reductions if the deficit is eliminated in the 2024-2025 fiscal year or earlier.

The Bill allows the government to adjust the deficit or surplus for the purposes of the Act by excluding a one-time deficit or reduction in revenue greater than $25 million that results from changes in public sector accounting standards or in what is included in summary financial statements.