Federal-Provincial Fiscal Arrangements Act

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 24.2 or 24.5 or subsection 24.6(3) 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 24.2 or 24.5 or subsection 24.6(3) 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).