At the time this article was published
John McDonough was a researcher with the Research Branch of the Library of
Parliament.
The basic and most readily identifiable
payment made to Canadian parliamentarians is the "sessional or annual
indemnity" sometimes referred to as a "sessional or annual
allowance". The indemnities of federal and provincial legislators together
with expense allowances and salaries for government, and parliamentary office
holders are given in Table II. The words "indemnity" or
"allowance" are used instead of the word "salary". The
distinction seems to rest on the assumption that Members are basically ordinary
citizens who have their own occupations, who give of their time to serve the
interest of their communities and that their service is worth far more than
what they receive in their capacity as Members. The term salary is generally
used for those fulltime occupants of government and parliamentary office. This
language harkens back to the 19th century concept of a Member as an amateur and
part-time legislator, as well as the expectation that he would be a responsible
member of the propertied classes. These assumptions no longer hold, especially
in the federal Parliament and the larger provinces where being a legislator is
a full-time vocation with remuneration to match.
The indemnity and expense allowance payments
usually cover a one-year period regardless of the number of parliamentary
sessions or their length. Manitoba is an exception. If a second or special
session is called an infrequent occurrence an Order-in-Council is passed
authorizing the payment of an additional sum, related but not necessarily equal
to the normal sessional indemnity for that year. In 1978, the Nova Scotia House
of Assembly Act became the centre of public controversy when its provisions for
the indemnity and expense allowance were interpreted to apply for only one
parliamentary session. As there were two sessions in 1978 the Nova Scotia
Members were paid a full indemnity and expense allowance for each session. This
anomaly was eliminated by an amendment to the House of Assembly Act on May 15,
1979. Saskatchewan is the only jurisdiction which has a separate and explicit
"sessional allowance" which is paid on a sessional basis, although
there is usually only one session per year.
The indemnity payments range from a high of
$31,236 for Members of the Quebec National Assembly followed closely by
indemnities for federal legislators to $9,962 for Members of the Saskatchewan
Legislature; this, however, is augmented by at least one sessional allowance of
$5,385 for a total of $15,347, so the indemnity for Prince Edward Island
legislators is the lowest at $10,000 per annum followed closely by indemnities
paid in the Northwest Territories and the Yukon. This kind of straight
comparison is inadequate because it does not consider the impact of the other
allowances and services and because the legislative role in some jurisdictions
is more demanding of a Member's time and financial resources than it is in
others. The length of the sessions, and the workload of the House of Commons
means that most, although certainly not all, Members of Parliament look upon
their position as a fulltime vocation and many are effectively precluded from
earning very much in the way of additional income. Most Members of the federal
House have also to maintain more than one yearly residence. The demands are not
nearly so stringent in most of
For many years, the salaries of Canadian
legislators could only be increased by passing the requisite bill through the
legislature. The problem with this process was that, even when the raise was
based on the recommendations of an impartial committee, it invited general
criticism from the public. This meant that governments tended to delay the
legislation, thus increasing the need for more dramatic and therefore more
unpopular increases. To eliminate the need for a full scale debate on each and
every increase, the Canadian Parliament passed an amendment to the Senate and
House of Commons Act in 1975 which would bring about an automatic increase in
the indemnity, expense allowance and parliamentary salaries of an amount equal
to the percentage increase in the Industrial Composite Index for the preceding
year or 7 per cent, whichever was the lesser. Manitoba, in 1974, has been the
first Canadian jurisdiction to introduce an indexing formula; although, it was
only to apply to the indemnity and expense allowance. The other salaries in
Manitoba are to be reviewed on an "as when required basis". Quebec
also made provision for an index mechanism in 1974. This legislation was
revised in 1979 to establish a 6 per cent ceiling on increases, and for 1979
and 1980 the salaries of government and parliamentary officials have been frozen.
New Brunswick introduced their indexing formula on the indemnity and expense
allowance in 1975.
In 1979, after major reviews of legislative
remuneration by the Royal Commission on Electoral Reform the Eckardt
Commission, in British Columbia and an independent committee of review the
Miller Committee in Alberta, these two provinces introduced the indexation of
indemnities, allowances and salaries. In British Columbia, the indexing
mechanism used an "adjustment factor" based on 75 per cent of the
rate of increase or decrease of the "average weekly wage" in the
province. Alberta set a ceiling of 5 per cent on any possible increase or
decrease and it was to be based on the "All-items Consumer Price
Index" for Edmonton and Calgary.
Saskatchewan also revised its legislation in
1979 to include the indexation of indemnities, allowances and salaries based on
the Industrial Composite Index with no upper or lower ceiling on the potential
increase or decrease. As a result Saskatchewan Members will receive an increase
of 7 1/2 per cent over 1979 remuneration levels.
There is no indexation formula for Ontario
legislators. However, the Commission on Election Contributions and Expenses
shall review and make recommendations with respect to indemnities and allowances.
The Commission reports to the Speaker who, in turn, lays the report before the
Assembly. This procedure is performed annually and adjustments are made
effective April 1. Nova Scotia is required by statute to review the indemnity
and expense allowance rates, and the salaries of parliamentary officials every
four years by a Select Committee of the House. The last review in 1978 not only
established, the indemnity and expense allowance rates for that year but
provided increased rates to come into effect on the first of January for every
year through to 1982. The indemnity was to rise by $800 each year and the
expense allowance by half that much. This leaves only Newfoundland and Prince
Edward Island following the traditional process of having changes in
parliamentary indemnities left on and ad hoc basis to government initiative.
The other widely known payment to Canadian
legislators is the expense allowance. This payment is expected to cover those
expenses that arise in relation to a Member's performance of his duties hence
their usual tax-free status. These payments are known by various names:
entertainment allowance, travel allowance, constituency allowance. The Federal
Government, Newfoundland, Saskatchewan, and the Northern Territories offer an allowance
which varies according to categories established for their constituencies.
Special consideration is given to Members who represent districts which are
particularly large and/or isolated and who can thereby be expected to entail
additional transportation and communication costs. These "expense"
allowances vary from a high of $13,500 to $17,500 for Canadian MPs to $5,000
for PEI.
The provincial legislatures, especially the
smaller ones, where most Members spend less time away from their homes and often
retain other occupational responsibilities.
Again, these figures are deceptive as there
are great many additional subsidies which vary greatly from jurisdiction to
jurisdiction. Table III lists in a concise and abbreviated way, most of these
additional perks. Note that federal legislators do not receive a rent
allowance, as this is expected to be covered by their more generous expense
allowance. If we add the maximum rend subsidy to the Ontario and Quebec expense
allowances, they would total $13,460 and $12,100 respectively and be quite
comparable to the federal expense allowance. Many jurisdictions have generous
allowances for Members to use for travelling and, in general, an effort is made
to cover their travelling and accommodation expenses to attend committees and
other official functions when their legislature is not sitting.
Most jurisdiction base their remuneration
for travelling on a flat rate per mile or kilometre and there is considerable
variance not only in the amount per unit (these rates have not been included
here) but in the number of trips allowed. Alberta is unique in its use of
credit cards for gas and oil. Ministers of the Crown in most jurisdictions and
sometimes other officials such as the Speaker, leaders of opposition parties,
among others, receive increased payments under many of the allowances listed
for the ordinary Member; they may receive additional allowances and other perks
not included in these tables such as access to government limousines. This is
another complex topic and it has not been discussed here.
Some jurisdictions extract a financial
penalty from their legislature if they fail to attend the legislature for more
then a stipulated number of days during a session without reasonable cause. The
severity of the penalty varies from $250 a day (after 10 days) in British
Columbia to no penalty at all in Manitoba, Newfoundland, Nova Scotia, Ontario
and Prince Edward Island. There are other possible compensations such as
subsidized meals, barber shops, relocation allowances, and severance allowances
which have not been Table IV examines some other services and funds which are
provided to assist the legislator in the carrying out of his duties. Most
individual Canadian legislator have some office space in or near the
legislature and have access to, at the very least, a secretarial pool. Federal,
Ontario and Quebec parliamentarians have their own secretary, indeed federal
Members may employ up to four staff personnel in their Ottawa offices. Now all
but New Brunswick, Newfoundland, Prince Edward Island and the Yukon provide at
least some financial assistance to help the Member run a constituency office.
Quebec is certainly the most generous in this regard, making some provision for
the possibility of two offices in its largest constituencies. Non partisan
research services and Parliamentary Intern programs which have been proven
effective in Ottawa are becoming popular in the larger provinces. Additional
funds and services for the parliamentary parties are handled in a number of
ways.
Most jurisdictions now make at least a
modest provision for research assistance to the parties represented in their
legislatures. In Alberta and to a lesser extent of the opposition parties. In
Nova Scotia funds for research and secretarial assistance are passed through
the caucus offices of the parties. British Columbia and Manitoba also use the
legislature caucus offices for secretarial pools but the basic research funds
are additionally provided. This is also the situation in Saskatchewan, and in
its regard, it is the most generous of the small provinces. Ontario, Quebec and
the federal Parliament provide relatively major research facilities for the
parties, utilizing both the offices of the opposition leaders and special
research funds. Ontario also supplies monies to the caucuses. This is not to
suggest that any party in any jurisdiction is satisfied that its research needs
can be met with the funds provided.