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ΠΑΓΚΥΠΡΙΟΣ ΔΙΚΗΓΟΡΙΚΟΣ ΣΥΛΛΟΓΟΣ
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(1985) 3 CLR 2132
1985 September 6
[TRIANTAFYLLIDES, P., A. LOIZOU, MALACHTS,
DEMETRIADES, LORIS, STYLIANIDES, KOURRIS, JJ.]
IN THE MATTER OF ARTICLE 140 OF THE CONSTITUTION
THE PRESIDENT OF THE REPUBUC,
Applicant,
v.
THE HOUSE OF REPRESENTATIVES,
Respondents.
(Reference No.2/85).
Constitutional Law-Constitution Art. 61-Legislative power of House of Representatives-Can be exercised both in relation to matters of general nature and in relation to matters of specific nature.
Constitutional Law-Constitution Articles 46, 54, 81,166, 167 and 168-The provisions of said articles, not create exclusive competence of the executive power in relation to loans, guarantees and the similar to them legal obligations of the Government.
On the 29th June 1985 the President of the Republic referred, under Article 140 of the Constitution, to the Supreme Court for its opinion the question as to whether the Exercise of Certain Financial Powers by the House of Representatives Law, 1985, is repugnant to, or inconsistent with, the provisions of Articles 46, 54, 61, 81, 166, 168 and 179 of the Constitution.
Held, (1) The House of Representatives may, under Article 61 of the Constitution, exercise the legislative power of the Republic not only in relation to matters of general nature, but, also, in relation to matters of specific nature, such as the loans, the guarantees and the similar to them legal obligations of the Government that are specified in sections 2 and 3 of the sub judice Law.
(2) Articles 46, 54, 81, 166, 167 and 168 of the Constitution do not create exclusive competence of the executive power in relation to the matters, of the loans, guarantees and the similar to them legal obligations, of the Government that are specified in sections 2 and 3 of the said Law.
(3) It follows that the sub judice Law is not inconsistent with or repugnant to the provisions of Articles 61, 46, 54, 81, 166, 167 and 168 of the Constitution; and for this, reason it is not unconstitutional as being repugnant to or inconsistent with Article 179 of the Constitution.
Opinion as above.
Reference.
Reference by the President of the Republic for the opinion of the Supreme Court of the question whether the Exercise of Certain Financial Powers by the House of Representatives Law, 1985, is repugnant to, or inconsistent with, the provisions of Articles 46, 54, 61, 81, 166, 168 and 179 of the Constitution.
L. Loucaides, Deputy Attorney-General of the Re public with R. Gavrielides, Senior Counsel of the Republic, for the President of the Republic.
A. Markides with D. Chrysomilas, for the House of Representatives.
Cur. adv. vult.
TRIANTAFYLLIDES P. read the following opinion of the Court: On the 29th June 1985 the President of the Republic referred, under Article 140 of the Constitution, to the Supreme Court for its opinion the question as to whether the Exercise of Certain Financial Powers by the House of Representatives Law, 1985, is repugnant to, or inconsistent with, the provisions of Articles 46, 54, 61, 81, 166, 168 and 179 of the Constitution.
The said Law was enacted by the House of Representatives on the 16th May 1985.
The President of the Republic, on the 30th May 1985, returned it to the House of Representatives for reconsideration, under Article 51 of the Constitution.
On the 13th June 1985 the House of Representatives decided to persist in the, with certain amendments, enactment of the Law. (The whole text of the Law is attached to the present Opinion).
On the 14th June 1985 the House of Representatives notified its decision to the President of the Republic, who, before he promulgated the Law under Article 52 of the Constitution, filed the present Reference.
The Supreme Courts on the 1st, 2nd, 6th and 7th August 1985, heard, through their counsel, arguments on behalf of the President of the Republic and the House of Representatives, pursuant to Article 140.2 of the Constitution.
The Supreme Court considered the matter referred to it and its unanimous Opinion is the following:
(1) The House of Representatives may, under Article 61 of the Constitution, exercise the legislative power of the Republic not only in relation to matters of general nature, but, also in relation to matters of specific nature, such as the loans, the guarantees and the similar to them legal obligations of the Government that are specified in sections 2 and 3 of the sub judice Law which therefore, is not repugnant to or inconsistent with, Article 61 of the Constitution.
(2) Also, the sub judice Law is not repugnant to, or inconsistent with, Articles 46, 54, 81, 166, 167 and 168 of the Constitution because the aforesaid. Articles of the Constitution do not create exclusive competence of the executive power in relation to the, matters of the loans, guarantees and the similar to them legal obligations of the Government that are specified in sections 2 and 3 of the said, Law, and therefore, such Articles do not exclude the, by virtue of Article 61 of the Constitution, regulation or control by the House of Representatives of the decisions of the executive power in relation to such matters.
(3) As the sub judice Law is not repugnant to, or inconsistent with, Articles 61, 46, 54, 81, 166, 167 and 168 of the Constitution it is not unconstitutional as being repugnant to, or inconsistent with, Article 179 of the Constitution.
The present Opinion is notified, in accordance with Article 140.2 of the Constitution, to the President of the Republic and to the House of Representatives.
Opinion as above.
("A LAW PROVIDING FOR THE EXERCISE OF CERTAIN FINANCIAL POWERS OF THE HOUSE OF REPRESENTATIVES
The House of Representatives enacts as follows:
Whereas the external debt of the Republic of Cyprus has during the last years increased in alarming proportion with the result that a substantial part of the public revenue is appropriated for the service of such debt:
And whereas the uncontrolable increase of the public debt in general may prejudicially affect not only the public credit but also the rational principles of public expenditure:
And whereas under the circumstances the exercise of the financial powers of the House of Representatives through the Budget of the Republic may be neutralised, if the necessary principles and. conditions of drawing up the Budget, relating in particular to the distribution of the various public needs in order of importance, are not secured to the degree required:
Now, therefore, the House of Representatives enacts as follows:
1. This Law shall be cited as the Exercise of Certain Financial Powers of the House of Representatives Law of 1985.
2. For the purposes of this Law the term "loan" means a sum of money borrowed by, the, Government or for which the Government by way of guarantee becomes liable as guarantor for its repayment and includes the transfer to the Government, in whole or in part, of, contractual obligations derived from contracts between third parties but it does Snot include development bonds, public bonds, saving bonds, certificates of saving or borrowing by the Central Bank of Cyprus.
3 (1) Subject to the provisions of Article 169.1 of the Constitution, any other agreement relating to the contracting of a loan, in the sense of section 2 of this law, for a sum exceeding in each particular case the total sum of one million Cyprus Pounds, shall not bind the Republic, except, only if it is sanctioned by a law enacted by the House of Representatives.
(2) Upon such sanction by the House of Representatives any sum payable by virtue of the loan and which the Republic is bound to pay is shown in the Budget in relation to each financial year and is charged on the Consolidated Fund of the Republic in accordance with the provisions of Article 166 of the Constitution.
4. As from the date when: this law shall come into force, the Removal of Doubts In Respect of the Powers of the Republic to Give Guarantees for Loans or Credits to Third Persons Law of 1974 shall continue to be in force, construed and applied with such modifications as may be necessary to bring it into conformity with the provisions of this Law").