Under the
Canada Assistance Plan (a federal-provincial fiscal arrangement) the
Parliament of Canada was contributing 50 per cent of the costs for
social assistance and
welfare in the province of British Columbia. sec. 8 of the Plan provided that the agreements entered between the federal Govt and the provinces to this respect would continue in force as long as the relevant provincial law was in operation, subject to termination by consent, or unilaterally by either party on a year's notice. In 1990, Federal Government introduced a bill that provided a cap on Ontario, BC and Alberta. The Lieutenant Governor in Council of British Columbia, referred to the
British Columbia Court of Appeal two constitutional questions to determine: • whether the
Government of Canada has any authority to limit its obligation under the Plan and its Agreement with British Columbia; • whether the terms of the Agreement, the subsequent conduct of the Government of Canada pursuant to the Agreement and the provisions of the Plan give rise to a legitimate expectation that the Government of Canada would introduce no bill into Parliament to limit its obligation under the Agreement or the Plan without the consent of British Columbia. The Court of Appeal answered the first question in the negative and the second question in the affirmative. ==Reasons of the court==