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Proceedings of the Standing Senate Committee on
Legal and Constitutional Affairs

Issue 17 - Report of the Committee


MONDAY, June 10, 1996

NINTH REPORT

Your Committee, to which was referred Bill C-28, An Act respecting certain agreements concerning the redevelopment and operation of Terminals 1 and 2 at Lester B. Pearson International Airport, has, in obedience to the Order of Reference of Thursday, May 30, 1996, examined the said Bill and now reports the same with the following amendments and observations:

1. Page 2, clause 3: strike out lines 1 to 3 and substitute the following:

"3. The agreements are hereby declared to have no legal effect after December 15, 1993."

2. Page 2, clause 4: strike out lines 7 and 8 and substitute the following:

"hereby declared to have no legal effect after December 15, 1993."

3. Page 2, clause 5: strike out line 19 and substitute the following:

"declared to have no legal effect after December 15, 1993."

4. Page 2, clause 7: strike out the heading before clause 7 on page 2 and lines 25 to 39 and substitute the following:

"LIABILITY

7. (1) In any action or proceeding that is based on or is in relation to

(a) the Request for Proposals,

(b) the negotiations that followed that Request,

(c) any agreement,

(d) any advice or services provided to Her Majesty in relation to any agreement, or

(e) any thing done by the Government of Canada in relation to the announcement of the cancellation of any agreement,

and that is instituted before or after the coming into force of this Act by anyone against Her Majesty in relation to any agreement, relief shall be granted only by way of an award of damages in accordance with section 8.

(2) In any action or proceeding that is instituted before or after the coming into force of this Act and that is based on or is in relation to any matter referred to in any of paragraphs 9(1)(a) to (e), no relief may be granted against any minister or any servant"

5. Page 3, clause 8: strike out lines 4 to 7 and substitute the following:

"8. (1) In any action or proceeding referred to in subsection 7(1), an award of damages may be made only in respect of claims that

(a) relate directly to Terminals 1 and 2 at Lester B. Pearson International Airport; and

(b) are recoverable by law against Her Majesty.

(2) In any action or proceeding referred to in subsection (1), no award of damages shall be made in respect of

(a) a loss of profit by a claimant or anyone else, or an amount based on the loss of future revenue the payment of which was contingent on the execution and continuation of an agreement;

(b) any fee paid for the purpose of lobbying a public office holder, within the meaning of subsection 2(1) of the Lobbyists Registration Act, in connection with any agreement;

(c) any investment in any company or partnership controlled by one or more partners of T1T2 Limited Partnership, or by the controlling entity of that partner or those partners, that resulted in a change of control of that company or partnership;

(d) any claim for loss of value of any share, partnership interest or investment; or

(e) non-compensatory, punitive, exemplary or aggravated damages."

6. Page 3, clause 9: Delete clause 9 and renumber the subsequent clauses accordingly.

7. Page 3, clause 10: Delete clause 10 and renumber the subsequent clauses accordingly.

OBSERVATIONS

The Progressive Conservative members of the Committee cannot support the Government amendments at this time. They feel that the amendments proposed by the Government are contrary to the principle of Bill C-28, and therefore, should have been the subject of a new bill introduced in the House of Commons. In addition, they feel that legislation which would have a direct impact on a trial should not even be considered, much less agreed to, while the trial is in progress. The Progressive Conservative members also deplore the fact that the Minister of Transport, who is the sponsor of Bill C-28, was unable to appear before the Committee and give testimony on the subject-matter of the bill.

Respectfully submitted,

SHARON CARSTAIRS

Chair


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