Senator Gold: Thank you for your question. The exemption does currently exist in Alberta in the same terms as we find in The Saskatchewan Act. There is also an exemption in Manitoba in slightly different terms because Manitoba was already a province by the time that the arrangement was made with Canadian Pacific Railway. To date, neither the Province of Manitoba nor the Province of Alberta has approached the Government of Canada with an indication that they want to proceed as Saskatchewan has done.

Hon. Paula Simons: May I ask you, Senator Gold, to speak more as a former professor than as the government representative? Alberta and Saskatchewan entered Confederation at the same time under very similar legal frameworks. The railroad, of course, also runs through Alberta. I’m just curious, did this exemption ever exist in Alberta? Does it still exist in Alberta? If it doesn’t exist anymore, at what point, do you know, was it changed in my province?

Senator Dupuis: Senator Gold, you just told us about a lawsuit filed by Canadian Pacific against the governments. Can you specify which governments? Are we talking about the Government of Saskatchewan only? Are we talking about the Government of Saskatchewan and the Government of Canada?

Senator Gold: Thank you for the question. That is correct. I was informed that the matter of provincial and municipal taxes has been of great concern to the Province of Saskatchewan for some time.

Senator Ringuette: I understand that the Province of Saskatchewan is concerned about this, but as a Canadian citizen, I am also concerned about the corporate taxes paid to the federal government.

Canadian Pacific has been paying taxes in Saskatchewan, despite the exemption. Can you tell us whether it has been paying corporate taxes at the federal level as well? If not, why?

Senator Gold: Thank you for your question. It’s the position of the Government of Canada that it is appropriate to respond to the initiative of the legislature of Saskatchewan to redress what is now clearly an anomaly and an unfair situation for the people of Saskatchewan. I do hope we deal with this quickly and appropriately. I leave it open to the Senate, as we are masters of our own house, to decide how long the debate shall take and how we ultimately proceed to a final vote.

[Translation]

Senator Gold: Thank you for the question. As I mentioned earlier, the company has been paying taxes for some time now. More recently, it initiated a process to ensure it would no longer have to continue paying taxes. Maybe that’s one reason the Government of Saskatchewan, or the Saskatchewan legislature, decided to proceed with the resolution that was passed last year.

Senator Gold: Thank you for the question. I think Senator Cotter will have more to say about that in his speech, but I believe the date was chosen because, on that date, there was an agreement between the Government of Saskatchewan and other governments. In addition, the president of Canadian Pacific at the time knew the railway company was going to start paying tax. The terms of the agreement were a little complicated. Anyway, that’s why this amendment would be retroactive to that date, the date on which Canadian Pacific decided to pay tax to Saskatchewan regardless of the constitutional provision on Saskatchewan.

[English]

Senator Batters: I’m sure that is because it was all about Saskatchewan, and quite wonderful at that. Thank you to the Government of Canada for bringing this forward in an expeditious way in the Senate so that we can take what has happened in the Legislative Assembly of Saskatchewan and what is, I believe, concurrently happening in the House of Commons as a result of the hard work of my Saskatchewan Conservative caucus colleagues there so we can make this fair for Saskatchewan.

I also wanted to give you the chance, as a former constitutional law professor, to perhaps impart some wisdom on the constitutional aspect of this and tell us if there is anything else that we should know, or you would like us to know, as to why this is a constitutionally sound manner in which to proceed.

Senator Dupuis: I understand the procedure for presenting the motion as a request from the Government of Saskatchewan, following a resolution adopted by its legislative assembly to amend the Constitution as it relates to the Province of Saskatchewan. However, if this is a dispute between Canadian Pacific and a government other than the Government of Saskatchewan, for instance the Government of Canada and the Government of Saskatchewan, this would no longer be part of the same constitutional discussion, because this amendment will have a direct impact not only on the Constitution as it relates to Saskatchewan, but also on federal government operations.

Senator Gold: I understand your question. Once again, the objective of this resolution is to eliminate an inequity, or lack of equity, for the Province of Saskatchewan and its taxpayers, because Canadian Pacific has a tax exemption that was granted a long time ago and is no longer warranted, not just in the opinion of the Government of Saskatchewan, but also in the opinion of the Government of Canada.

Senator Gold: Thank you, senator. You’re far more intimately involved with the history of this than I would be, considering where I come from. It is true. Thank you for underlining the fact that this has been a matter of some concern for the people and the Government of Saskatchewan, regardless of their political stripe. Indeed, elsewhere in the Prairies it has been a concern.

That it has come to a head is a good thing, at least from the point of view of the Government of Canada, so that it can partner with the Province of Saskatchewan to address this historical inequity.