ARCHIVED — Vol. 147, No. 7 — March 27, 2013
SI/2013-25 March 27, 2013
JOBS, GROWTH AND LONG-TERM PROSPERITY ACT
Order Fixing the Day after the Day on which this Order is Made as the Day on which Division 4 of Part 4 of the Act Comes into Force
P.C. 2013-264 March 7, 2013
His Excellency the Governor General in Council, on the recommendation of the Minister of Finance, pursuant to section 217 of the Jobs, Growth and Long-term Prosperity Act, chapter 19 of the Statutes of Canada, 2012, fixes the day after the day on which this Order is made as the day on which Division 4 of Part 4 of that Act comes into force.
(This note is not part of the Order.)
To bring into force Division 4 of Part 4 of the Jobs, Growth and Long-term Prosperity Act.
- To enable the Minister of Finance to make recommendations to the Governor in Council for setting the maximum amount of the aggregate of all borrowings for each of the three territories.
- To enable the making of regulations respecting those borrowings.
Under the Northwest Territories Act, the Nunavut Act and the Yukon Act (the acts), a territorial government may borrow up to a maximum amount of the aggregate of all its borrowings. This is commonly referred to as the territorial government’s borrowing limit.
Prior to the passage of the Jobs, Growth and Long-term Prosperity Act, the acts stipulated that the territorial governments were permitted to borrow on the authorization of the Governor in Council, but did not define “borrowing”. This required territorial governments and the federal government to interpret the meaning of “borrowing” in administering the acts. With the growth in both the variety and sophistication of financing instruments, and given the scale of future projects in the territories, territorial governments require clarity regarding the rules that govern the borrowing limit. With this clarity, they will be able to develop fiscal plans that respect the acts.
This Order brings into force Division 4 of Part 4 of the Jobs, Growth and Long-term Prosperity Act, which amends each of the acts to provide that the Governor in Council may make regulations that determine what constitutes borrowing for the purpose of the borrowing limit, as well as clarifies the Minister of Finance’s role in making recommendations to the Governor in Council regarding the total amounts that may be borrowed by territorial governments.
The Yukon Borrowing Limits Regulations, the Northwest Territories Borrowing Limits Regulations and the Nunavut Borrowing Limits Regulations (the regulations), being made concurrently to this Order, fully implement this legislative provision.
This Order and the above-mentioned regulations modernize the governance of the three territorial borrowing limits, and will ensure accurate reporting of borrowing obligations against the borrowing limits, as well as consistency with reporting in the annual territorial consolidated financial statements. Territories will continue to publicly disclose their positions relative to their borrowing limits in their annual budget papers and in their annual consolidated financial statements, as audited by the Auditor General of Canada.
Consultations were held with territorial government officials on the specific content of the three regulations between July 2012 and January 2013. In the course of these consultations, territorial governments expressed no issues with the amendments to the acts brought into force by this Order.
Federal-Provincial Relations Division
Federal-Provincial Relations and Social Policy Branch
Department of Finance Canada