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

Facts:

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

Issue(s):

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

Ratio:

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)

Analysis:

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”

Holding:

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

Comments:

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


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