The federal government is filing an appeal and is supported by the Liberal government of Ontario.
This appeal is in keeping with the 1990 Supreme Court of Canada decision referenced above cited as Reference re ss. 193 & 195.1(1)(c ) of Criminal Code (Canada), (the Prostitution Reference)
,  1 S.C.R. 1123 is a leading decision of the Supreme Court of Canada on the right to freedom of expression under section 2(b) of the Canadian Charter of Rights and Freedoms, and on prostitution in Canada. The Court held that the criminal code provision that prohibited communication for the purpose of engaging in prostitution was in violation of the right to freedom of expression however it could be justified under section 1 of the Charter and so it was upheld.
The majority found that the purpose of eliminating prostitution was a valid goal and that the provision was rationally connected and proportional to that goal. Accordingly, the provision was upheld.http://scc.lexum.umo...0scr1-1123.html
The appeal would be in keeping with long-standing federal government policy - both Conservative and Liberal.
Two years ago, Nicholson flatly rejected a majority recommendation from the House of Commons status of women committee that federal prostitution laws be amended to stop charging prostitutes and start prosecuting only those procuring sex, or exploiting prostitutes, such as pimps and bawdy house owners.
"We have no intention of changing any of the laws relating to prostitution in this country," Nicholson told the committee during hearings.
"We have laws with respect to street soliciting or soliciting in public places that criminalizes completely the activity — the individual that is trying to purchase that service and the individual that is offering it. And (those) will continue to be the laws of this country."
As CBC reports:
The federal Conservatives will appeal an Ontario court ruling that struck down key parts of Canada's prostitution laws, Justice Minister Rob Nicholson said Wednesday.
"Prostitution is a problem that harms individuals," Nicholson said in question period. "[The government] will appeal and seek a stay of that decision."
Tuesday's ruling by the Ontario Superior Court said laws against keeping a common bawdy house, communicating for the purposes of prostitution and living on the avails of the sex trade put sex workers in danger.
But NDP MP Libby Davis, a longtime advocate of sex trade workers, questioned why the government would waste money on a costly and lengthy appeal — money it could spend instead on helping affected communities.
She said the laws that were struck down don't protect society and are harmful to communities.
Earlier Wednesday, Nicholson's parliamentary secretary, Bob Dechert, told the CBC's Susan Lunn that anyone who thinks women involved in the sex trade "are not victims is very mistaken."
"There's a lot of victims in that industry and we need to protect them."
He also stressed that the ruling was the decision of one court only and should be tested in other courts.
The Superior Court judgment is subject to a 30-day stay during which the law remains in place, and the federal government can seek an extension of the stay period.
Ontario supports appeal
Nicholson had signalled Tuesday night that the Conservatives were considering an appeal, saying Ottawa would "fight to ensure that the criminal law continues to address the significant harms that flow from prostitution to both communities and the prostitutes themselves."
The government has argued that striking down the provisions of the prostitution laws without enacting something else in their place would "pose a danger to the public."
Ontario Premier Dalton McGuinty said Wednesday his government "looks forward" to supporting the Conservatives in an appeal. He said the ruling proposes some profound changes to laws that have been on the books for decades.