The federal Liberals’ move to amend a law retroactively is being criticized by the Conservatives as a potential strategy to avoid compensating veterans for an overcharging error that could have cost them thousands of dollars. The amendment in the Carney government’s budget implementation act aims to clarify the formula for calculating long-term care costs for veterans, but lawyers in a proposed class action argue that veterans have been overcharged due to a long-standing miscalculation by the federal government.
If the amendment is approved, it could halt ongoing litigation seeking reimbursement for affected veterans and their families. Conservative veterans affairs critic Blake Richards condemned the government’s approach, accusing them of burying the amendment deep within the budget implementation act instead of admitting to their mistake.
In a report by CBC News in October 2024, it was revealed that the federal government had likely misinterpreted its own law regarding long-term care costs for veterans. The issue, which sources claim was internally acknowledged but ignored, revolves around the definition of “province” in federal law. Despite regulations stating that the cost should be based on the lowest room and board rates in the least expensive province or territory, Veterans Affairs had excluded territories from the calculation, potentially resulting in veterans being overcharged.
The government’s proposed retroactive amendment seeks to redefine “province” to exclude territories, effectively enshrining the error in law. The budget bill containing this amendment will need to navigate through a minority Parliament for approval, with Richards expressing willingness to amend the bill to remove the contentious section and protect veterans’ interests.
A spokesperson for Finance Minister François-Philippe Champagne defended the amendments, stating that they aim to clarify the methodology for calculating benefits and asserting the government’s right to make such changes. The spokesperson highlighted the legislative intent to apply the law retroactively in cases where clear intent exists to do so.