Reference re Anti-Inflation Act
Encyclopedia
Reference re Anti-Inflation Act, [1976] 2 S.C.R. 373 was a landmark reference question
opinion of the Supreme Court of Canada
on the constitutionality of the Anti-Inflation Act
. In what has become among the most significant federalism
cases of the supreme court, the Act was held to be within the power of the federal government.
The Anti-Inflation Act was passed in 1975, on recommendation of the Bank of Canada
, to control the growing inflation of the past several years. Due to growing unease with the Act, the federal government put two questions to the Supreme Court on the validity of the Act. The major question being whether the Act was ultra vires
of the federal government.
First, the Court noted that the subject-matter of the Act being inflation made it impossible to assign to one of the enumerated powers in the Constitution Act, 1867
. Consequently, the Act would be able to be upheld only under the peace, order and good government
power under the Constitution which allowed the federal government to legislate in matters related to emergencies or matters of national concern. The Court looked at both options and found that the law could be saved under the emergency power of the peace, order and good government power.
that independent commissions should recommend the salaries of judges. If governments reject the recommendations, the Supreme Court said courts should analyze these rejections in the same way it analyzed the Anti-Inflation Act in this case. In Provincial Court Judges' Assn. of New Brunswick v. New Brunswick (Minister of Justice)
(2005), the Supreme Court clarified that that did not mean an economic emergency was needed to justify not following recommendations. It merely referred to a reviewing method to determine whether the rejection was rational.
Reference question
In Canadian law, a Reference Question is a submission by the federal or a provincial government to the courts asking for an advisory opinion on a major legal issue. Typically the question concerns the constitutionality of legislation....
opinion of the Supreme Court of Canada
Supreme Court of Canada
The Supreme Court of Canada is the highest court of Canada and is the final court of appeals in the Canadian justice system. The court grants permission to between 40 and 75 litigants each year to appeal decisions rendered by provincial, territorial and federal appellate courts, and its decisions...
on the constitutionality of the Anti-Inflation Act
Anti-Inflation Act
The Anti-Inflation Act was a Canadian Act of Parliament that was passed in 1975 by Pierre Trudeau's government in order to slow down the rapidly increasing price and wage inflation...
. In what has become among the most significant federalism
Canadian federalism
Canada is a federation with two distinct jurisdictions of political authority: the country-wide federal government and the ten regionally-based provincial governments. It also has three territorial governments in the far north, though these are subject to the federal government...
cases of the supreme court, the Act was held to be within the power of the federal government.
The Anti-Inflation Act was passed in 1975, on recommendation of the Bank of Canada
Bank of Canada
The Bank of Canada is Canada's central bank and "lender of last resort". The Bank was created by an Act of Parliament on July 3, 1934 as a privately owned corporation. In 1938, the Bank became a Crown corporation belonging to the Government of Canada...
, to control the growing inflation of the past several years. Due to growing unease with the Act, the federal government put two questions to the Supreme Court on the validity of the Act. The major question being whether the Act was ultra vires
Ultra vires
Ultra vires is a Latin phrase meaning literally "beyond the powers", although its standard legal translation and substitute is "beyond power". If an act requires legal authority and it is done with such authority, it is...
of the federal government.
First, the Court noted that the subject-matter of the Act being inflation made it impossible to assign to one of the enumerated powers in the Constitution Act, 1867
Constitution Act, 1867
The Constitution Act, 1867 , is a major part of Canada's Constitution. The Act created a federal dominion and defines much of the operation of the Government of Canada, including its federal structure, the House of Commons, the Senate, the justice system, and the taxation system...
. Consequently, the Act would be able to be upheld only under the peace, order and good government
Peace, order and good government
In many Commonwealth jurisdictions, the phrase "peace, order and good government" is an expression used in law to express the legitimate objects of legislative powers conferred by statute...
power under the Constitution which allowed the federal government to legislate in matters related to emergencies or matters of national concern. The Court looked at both options and found that the law could be saved under the emergency power of the peace, order and good government power.
Aftermath
In 1997, the Supreme Court found in the Provincial Judges ReferenceProvincial Judges Reference
The Provincial Judges Reference [1997] 3 S.C.R. 3 is a leading opinion of the Supreme Court of Canada in response to a reference question regarding remuneration and the independence and impartiality of provincial court judges...
that independent commissions should recommend the salaries of judges. If governments reject the recommendations, the Supreme Court said courts should analyze these rejections in the same way it analyzed the Anti-Inflation Act in this case. In Provincial Court Judges' Assn. of New Brunswick v. New Brunswick (Minister of Justice)
Provincial Court Judges' Assn. of New Brunswick v. New Brunswick (Minister of Justice)
Provincial Court Judges’ Assn. of New Brunswick v. New Brunswick ; Ontario Judges’ Assn. v. Ontario ; Bodner v. Alberta; Conférence des juges du Québec v. Quebec ; Minc v. Quebec [2005] 2 S.C.R...
(2005), the Supreme Court clarified that that did not mean an economic emergency was needed to justify not following recommendations. It merely referred to a reviewing method to determine whether the rejection was rational.