R-2.2.0.1 - Act to reduce the debt and establish the Generations Fund

Updated to 1 January 2007

This document has official status.

chapter R-2.2.0.1

Act to reduce the debt and establish the Generations Fund

1. The object of this Act is to reduce the debt of the Government to less than 38% of Québec’s gross domestic product not later than 31 March 2013, less than 32% of Québec’s gross domestic product not later than 31 March 2020 and less than 25% of Québec’s gross domestic product not later than 31 March 2026.

2006, c. 24, s. 1.

2. A Generations Fund is established at the Ministère des Finances.

The Fund is dedicated exclusively to repaying the Government’s debt.

In this Act, “the Government’s debt” means the total debt set out in the public accounts.

2006, c. 24, s. 2.

3. The Generations Fund is made up of

(1)  the sums derived from the lease of hydraulic power under section 3 of the Watercourses Act (chapter R-13) and the sums derived from the development of hydraulic power under sections 68 to 70 of that Act and the development of water power under section 32 of the Hydro-Québec Act (chapter H-5);

(2)  sums representing a part of Hydro-Québec’s earnings on the sale of electricity outside Québec as a result of increased generating capacity, subject to section 15.2 of the Hydro-Québec Act;

Not in force

(3)  sums derived from fees or charges for water withdrawal, except sums paid into the Green Fund under paragraph 5 of section 15.4 of the Act respecting the Ministère du Développement durable, de l’Environnement et des Parcs (chapter M-30.001);

(4)  sums derived from the sale of government assets, rights or securities;

(5)  the sums deposited under section 41.1 of the Public Curator Act (chapter C-81);

(6)  the gifts, legacies and other contributions received by the Minister that the Minister pays into the Fund to reduce the Government’s debt; and

(7)  the income generated by the investment of the sums making up the Fund.

Water-power royalties from Hydro-Québec are payable out of production revenue.

The Government establishes, under the conditions it determines and on the recommendation of the Minister, the part of the sums or revenue under subparagraphs 2 to 4 of the first paragraph that must be paid into the Fund.

An order establishing the sums referred to in subparagraph 2 of the first paragraph must be made on the recommendation of the Minister, in consultation with Hydro-Québec.

2006, c. 24, s. 3.

4. Despite section 5 of the Financial Administration Act (chapter A-6.001), the Government may, under the conditions it determines and on the recommendation of the Minister, order that a part, which it establishes, of any sums it collects or receives and over which Parliament has the power of appropriation, is to be paid directly into the Fund.

2006, c. 24, s. 4.

5. The Minister is responsible for the administration of the Fund. The sums making up the Fund are credited to the Minister, who must deposit them with the Caisse de dépôt et placement du Québec.

The expenditures relating to the Fund are charged to the Fund.

The Minister keeps the Fund’s books and records the financial commitments chargeable to it.

2006, c. 24, s. 5.

6. The Caisse de dépôt et placement du Québec manages the sums derived from the Fund in accordance with the investment policy the Minister determines in collaboration with the Caisse. The policy is designed to achieve optimal return on the sums making up the Fund while contributing to Québec’s economic development.

2006, c. 24, s. 6.

7. The Minister may take any sum making up the Fund to repay the Government’s debt.

2006, c. 24, s. 7.

8. Sections 26, 27 and 89 of the Financial Administration Act (chapter A-6.001) apply to the Fund, with the necessary modifications.

2006, c. 24, s. 8.

9. Despite any provision to the contrary, the Minister must, in the event of a deficiency in the consolidated revenue fund, pay out of the Generations Fund the sums required for the execution of a judgment against the State that has become res judicata.

2006, c. 24, s. 9.

10. The fiscal year of the Fund ends on 31 March.

2006, c. 24, s. 10.

11. The Minister must report to the National Assembly, in the Budget Speech, on the sums making up the Fund and on any sums used to repay the Government’s debt.

2006, c. 24, s. 11.

AMENDING PROVISIONS

12. (Amendment integrated into c. A-6.001, s. 86).

2006, c. 24, s. 12.

13. (Amendment integrated into c. C-81, s. 41.1).

2006, c. 24, s. 13.

14. (Amendment integrated into c. E-12.00001, s. 2).

2006, c. 24, s. 14.

15. (Amendment integrated into c. H-5, s. 16).

2006, c. 24, s. 15.

16. (Amendment integrated into c. H-5, s. 32).

2006, c. 24, s. 16.

17. (Amendment integrated into c. R-13, s. 3).

2006, c. 24, s. 17.

18. (Amendment integrated into c. R-13, s. 68).

2006, c. 24, s. 18.

19. (Amendment integrated into c. R-13, s. 69.2).

2006, c. 24, s. 19.

20. (Amendment integrated into c. R-13, s. 69.3).

2006, c. 24, s. 20.

21. (Amendment integrated into c. R-13, s. 70).

2006, c. 24, s. 21.

TRANSITIONAL PROVISIONS

22. For the calendar year 2007, half the charges payable by the holders of hydraulic power, except Hydro-Québec, under section 68 of the Watercourses Act (chapter R-13) as amended by section 18 of chapter 24 of the Statutes of 2006, or under any order or contract under section 3 of the Watercourses Act, is paid into the Generations Fund. The other half of the charges is paid into the Consolidated Revenue Fund.

The charges on hydraulic power payable by Hydro-Québec for that year are halved and are paid into the Generations Fund.

2006, c. 24, s. 22.

FINAL PROVISIONS

23. The Minister of Finance is responsible for the administration of this Act.

2006, c. 24, s. 23.

24. (Omitted).

2006, c. 24, s. 24.