House of Commons passes motion seeking amendment to The Saskatchewan Act

Canada’s House of Commons on Wednesday approved a motion supporting Saskatchewan’s proposed amendments to the Constitution of Canada.

The amendments would see Section 24 of The Saskatchewan Act repealed retroactively to Aug. 29, 1966.

Saskatchewan’s Legislative Assembly unanimously passed a similar motion on Nov. 29, seeking what it called Wednesday “certainty regarding Canadian Pacific Rail’s taxation requirements.”

In mid-December, Conservative MPs from the province put forward the motion in the House of Commons seeking to have the section repealed. CP Rail argues Section 24 exempts it from many taxes in the province.

The company has been in a contentious legal battle with the province for years. CP is suing Saskatchewan to get back $341 million in taxes paid, citing the clause which first appeared in an 1880 contract between Canada and the railway company’s predecessor.

According to the province, repealing Section 24 “will level the playing field for all businesses while supporting Saskatchewan’s autonomy and cementing its place as an equal partner in Confederation.”

Having been approved by the House of Commons, the motion now will move to the Senate.

“I would like to extend our sincere thanks and gratitude to the Members of the House of Commons who voted in support of this motion to amend the Constitution,” Justice Minister and Attorney General Gordon Wyant said in Wednesday’s release.

“This change will ensure that all Saskatchewan taxpayers, both citizens and businesses alike, continue to be fairly treated and bear responsibility for provincial taxes which support our provincial infrastructure and economy.”