This document was prepared by the staff of the Parliamentary Research Branch to provide Canadian Parliamentarians with plain language background and analysis of proposed government legislation. Legislative summaries are not government documents. They have no official legal status and do not constitute legal advice or opinion. Please note, the Legislative Summary describes the bill as of the date shown at the beginning of the document. For the latest published version of the bill, please consult the parliamentary internet site at www.parl.gc.ca.

LS-368E

BILL C-5:  AN ACT TO ESTABLISH THE
CANADIAN TOURISM COMMISSION

Prepared by:
Geoffrey Kieley
Law and Government Division
8 May 2000

TABLE OF CONTENTS

BACKGROUND

DESCRIPTION AND ANALYSIS

COMMENTARY

BILL C-5: AN ACT TO ESTABLISH THE
CANADIAN TOURISM COMMISSION

BACKGROUND

Bill C-5, An Act to establish the Canadian Tourism Commission, was tabled by the Minister of Industry and given First Reading in the House of Commons on 15 October 1999. It had been presented in an identical form as C-75 during the 1st session of the 36th Parliament (18 March 1999), but died when that session was prorogued on 18 September 1999.

The bill would make the Canadian Tourism Commission (hereinafter the Commission), which has been in existence since 1995 as a Special Operating Agency (SOA),(1) into a Crown corporation under Schedule III (Part 1) of the Financial Administration Act(2) and governed by Part X of that Act (see clause 49 of the bill).

The proposed change of legal status is intended to give the Commission "more flexibility and freedom to achieve its goal of partnering with the tourism industry and the federal government to sustain a vibrant and profitable national tourism industry."(3) With the status of a Crown corporation, the Commission would enjoy greater administrative, financial and personnel independence.

Consultations with private-sector partners, provincial Deputy Ministers, employees and employee representatives apparently found strong support for this legislative measure. All partners agree that the Commission "needs more independence so it can realize the full potential of its core partnerships and unique governance structure."(4)

Current Commission employees have been assured that they would have job security in the new Crown corporation (see in particular clauses 31-33 of the bill, dealing with continuance of the functions of members of the Board, and clauses 41-46, dealing with human resources and staff relations).

The Minister of Industry would continue to be responsible for tourism policy.(5)

DESCRIPTION AND ANALYSIS

The Commission would be a corporation (clause 3) acting as an agent of Her Majesty in right of Canada (clause 4) and would have the capacity of a natural person (clause 6(1)). In particular, the Commission would be able to enter into agreements with provincial and territorial governments to carry out its objects (clause 26). Its objects would include sustaining a vibrant and profitable Canadian tourism industry (clause 5). Its head office would be in Canada at a place designated by the Governor in Council (clause 24).

The affairs and business of the Commission would be managed by a Board of Directors (clause 7) consisting of no more than 26 directors (clause 8), comprising:

• a Chairperson, appointed by the Governor in Council (clause 9);

• a President, appointed by the Governor in Council (clause 10);

• up to 16 private-sector directors(6), consisting of up to seven tourism operators representing all regions of Canada and up to nine private sector representatives, all to be appointed by the Minister with the approval of the Governor in Council on the advice of a committee established by the Board (clause 11);

• up to seven public sector directors appointed by the Minister in the numbers set out in clause 11(3)(a)(i)-(vi) with the approval of the Governor in Council (clause 12);

• the Deputy Minister of Industry (clause 13).

The Board would be empowered to make by-laws (clause 23), including a code of ethics for the Commission’s directors and employees (clause 23(a)). The directors (apart from the President) would be paid fees as fixed by the Governor in Council (clause 16) and would, for purposes of compensation, be deemed government employees(7) and members of the federal Public Service.(8)

The President of the Commission would be its chief executive officer (clause 19), with responsibility for managing the Commission’s internal affairs, including the hiring and terminating of staff(9) (see the other provisions dealing with personnel in clauses 27-28). The President could delegate his or her authority to any other person (clause 21). The President’s salary would be fixed by the Governor in Council (clause 15).

Clauses 29-46 govern the terms and conditions of the transition from the existing Commission (referred to in the bill as the "former Commission" - clause 29) and the new Commission.

The new Act would come into force on a day fixed by order of the Governor in Council.

COMMENTARY

While stakeholders have generally expressed broad support for Bill C-5, opposition members in the House of Commons raised certain concerns during second reading debate:

• Accountability to Parliament: Some members expressed concerns that by being removed from Industry Canada, the agency would cease to be accountable to Parliament. However, section 88 of the Financial Administration Act states that "each Crown corporation is ultimately accountable, through the appropriate Minister, to Parliament for the conduct of its affairs." Under section 89(1) of that Act, "the Governor in Council may, on the recommendation of the appropriate Minister, give a directive to any parent Crown corporation, if the Governor in Council is of the opinion that it is in the public interest to do so." That directive must be laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the directive is given. In addition to having the power to issue directives, the Minister would exercise a degree of control over the agency by virtue of his or her power of appointment. Parliament would, as well, exercise a degree of control through its power to review the annual appropriation of the agency.

• Representation on the Board of Directors: up to 16 private sector directors and up to seven public sector directors would be appointed by the Minister with the approval of the Governor in Council; of these, 14 would be appointed according to their region. Two issues were raised: a) whether the allocation of board positions on the basis of region would adequately represent regional interests; and b) whether the provinces would be adequately represented.

• Provincial/Federal Jurisdiction: Members of the Bloc Québécois raised concerns that the Commission would infringe on provincial jurisdiction in matters relating to tourism. The bill, in clause 6(2), would prohibit the Commission from initiating or financing programs involving the acquisition or construction of real property, immovables or facilities related to tourism.

(1) For information on the nature of an SOA, please consult the following document: Treasury Board Secretariat, Becoming a Special Operating Agency, March 1986, 36p. It is available electronically at http://www.tbs-sct.gc.ca/SI-SI/ASD/english/resources/download/becomsoa_e.pdf.

(2) R.S.C. 1985, c. F-11.

(3) Press Release, Industry Canada, Minister Manley Re-Introduces Legislation Designed to Strengthen Role of the Canadian Tourism Commission, Information Bulletin, Ottawa, 15 October 1999. The bulletin is available electronically at

http://www.ic.gc.ca/cmb/welcomeic.nsf/558d636590992942852564880052155b/
85256779007b79ee8525680b005c484f?OpenDocument

(4) Ibid.,

(5) Ibid.,

(6) The expressions "private sector director," "tourism operator" and "private sector representative" are defined in clause 11(5) of the bill.

(7) Government Employees Compensation Act, R.S.C. 1985, c. G-5.

(8) Presumption for application of the regulations made under the Aeronautics Act, R.S.C. 1985, c. A-2.

(9) According to the CTC Backgrounder, the Commission would "assume the role of employer and have the authority to hire, manage and negotiate terms and conditions of employment for all staff." Canadian employees would be governed and protected by the Canada Labour Code, R.S.C. 1985, c. L-2. Press Release, Industry Canada, Minister Manley Re-Introduces Legislation Designed to Strengthen Role of the Canadian Tourism Commission, Information Bulletin, Ottawa, 15 October 1999, p. 3 of 6. The bulletin is available electronically at

http://www.ic.gc.ca/cmb/welcomeic.nsf/558d636590992942852564880052155b/
85256779007b79ee8525680b005c484f?OpenDocument