Federal-Provincial Fiscal Arrangements Act (R.S.C., 1985, c. F-8)

Marginal note:Referral to Governor in Council

• 25.2 (1) Subject to subsection (3), if the Minister, after consultation in accordance with subsection (2) with the minister responsible for social assistance in a province, is of the opinion that the province does not or has ceased to comply with section 25.1 and the province has not given an undertaking satisfactory to the Minister to remedy the non-compliance within a period that the Minister considers reasonable, the Minister must refer the matter to the Governor in Council.

• Marginal note:Consultation process

  (2) Before referring a matter to the Governor in Council under subsection (1) in respect of a province, the Minister must

  • (a) send by registered mail to the minister responsible for social assistance in the province a notice of concern with respect to any problem foreseen;

  • (b) seek any additional information available from the province with respect to the problem through bilateral discussions, and make a report to the province within ninety days after sending the notice of concern; and

  • (c) if requested by the province, meet within a reasonable time to discuss the report.

• Marginal note:Exception

  (3) The Minister may act under subsection (1) without consultation if he or she is of the opinion that a sufficient time has expired after reasonable efforts to achieve consultation were made and that consultation will not be achieved.

Marginal note:Order reducing or withholding contribution

• 25.3 (1) If the Governor in Council, on the referral of a matter under section 25.2, is of the opinion that the province does not or has ceased to comply with section 25.1, the Governor in Council may, by order,

  • (a) direct that any cash contribution under section 24.5 or 24.51 to that province for a fiscal year be reduced, in respect of each non-compliance, by an amount that the Governor in Council considers to be appropriate, having regard to the gravity of the non-compliance; or

  • (b) if the Governor in Council considers it appropriate, direct that the whole of any cash contribution under section 24.5 or 24.51 to that province for a fiscal year be withheld.

• Marginal note:Amending orders

  (2) The Governor in Council may, by order, repeal or amend any order made under subsection (1) if the Governor in Council is of the opinion that the repeal or amendment is warranted in the circumstances.

• Marginal note:Copy of order

  (3) A copy of each order made under this section together with a statement of any findings on which the order was based must be sent without delay by registered mail to the government of the province concerned, and the Minister must have the order and statement laid before each House of Parliament on any of the first fifteen days on which that House is sitting after the order is made.

• Marginal note:Commencement of order

  (4) An order made under subsection (1) does not come into force earlier than thirty days after a copy of the order has been sent to the government of the province concerned under subsection (3).