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Caloil Inc. v Attorney General of Canada, [1971] SCR 543


Fed government passed regulations that prevented oil importers from transporting gas along a line running through ON and QC. C lost license for violating this, and got ruling that regulation was unconstitutional as it invaded prov property and civil rights – fed gov passed new legislation


Is the new law ultra vires of Parliament's jurisdiction?


Federal regulation over trade matters in the provinces is permitted if such regulation is “necessary” to the effective regulation of interprovincial or int’l trade (must be trade between provinces)


True character of the enactment appears to be an incident in the administration of an extra-prov marketing scheme as in Murphy
*Regarding schemes regulating trade that affects local property rights
**Clear that regulations were intended to control the imports of a specific commodity in order to foster development and use of Canadian oil resources
**The restriction of imported products in certain provinces is for the benefit of products from other provinces
**True character appears to be incident in the admin of extra-provincial marketing scheme
**Restriction of local trade, restricted to an imported commodity, is an integral part of the control of imports in the furtherance of an extra-provincial trade policy and cannot be termed an “unwarranted invasion of provincial jurisdiction”


Law is intra vires – unlike old law the new one is limited in scope to imported oil


Like Klassen: what would otherwise be a local transaction is integrated into larger economic scheme

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