Finance Committee on March 12th, 2009

[Nancy Hughes Anthony]

I think I was actually referring to the federal regulatory system. I stressed the fact that when it comes to the securities market, the system is still not effective, and this means additional costs for those who are part of the system. What's more, the system is not efficient enough in terms of managing market risk. That's a lesson that we have all learned from the current situation: risk management is of the utmost importance. As I said, I think we can be more effective when it comes to the costs of those who are within the system, and also in terms of risk management for society in general.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

I still see a contradiction here. In particular, you said that all in all we did better in terms of the risks. That was in response to a question from Mr. Bernier. He asked what we have done better here than in the United States. In response to that question, you said that our regulatory system was an advantage.

I have to conclude that your opinion is somewhat contradictory, because you're saying that the system is both a success and a barrier. I am having a lot of trouble understanding that.

[Nancy Hughes Anthony]

No. Just to clarify what I said, I meant that the federal system, which regulates banks and also includes things like OSFI and the Financial Consumer Agency of Canada, is very effective, but when it comes to securities, I think we could do much better.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

Thank you.

[The Chair, Conservative, James Rajotte]

Okay. Merci, Monsieur Laforest.

Thank you all for being with us here today, and for your presentations and responses to our questions. It was a very interesting discussion on some very big and challenging topics.

Members, we do have an operational budget request for $16,600 to cover all expenses of witnesses.

Monsieur Laforest.

[Jean-Yves Laforest, Bloc, Saint-Maurice—Champlain, QC]

When we discuss this matter, I may have a question about a motion that we have already passed. The motion requests that the Parliamentary Budget Officer appear before the Standing Committee on Finance after the government's report is tabled. I'd like us to discuss this next.

[The Chair, Conservative, James Rajotte]

Let's deal with this budget request first.

Do I have somebody to move this?

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

I so move.

[The Chair, Conservative, James Rajotte]

Mr. Pacetti has so moved.

Mr. Pacetti.

[Massimo Pacetti, Liberal, Saint-Léonard—Saint-Michel, QC]

Just for the record, I want to thank the clerk for providing us with the back-up of how we got to the amount.

[The Chair, Conservative, James Rajotte]

Yes, I think we should thank the clerk for that. It was very helpful.

Mr. Menzies, do you have a clarification?

[Ted Menzies, Conservative, Macleod, AB]

Just very quickly, I don't like to belabour this point, but these are the maximum amounts.

[The Chair, Conservative, James Rajotte]

That's correct.

[Ted Menzies, Conservative, Macleod, AB]

Please tell me that we're not flying people in business class as witnesses.

[The Chair, Conservative, James Rajotte]

No, no, these are the maximum amounts. Witnesses do have to submit expenses, and then they are reimbursed.

[Ted Menzies, Conservative, Macleod, AB]

Okay, so we trust these won't be the figures we're paying out?

[The Chair, Conservative, James Rajotte]

I would suspect not, but people fly in. It also depends on whether or not we call them in for a meeting two days from now, when it will be full-fare economy, so it will be more expensive.

[Ted Menzies, Conservative, Macleod, AB]

But we would encourage them to find the cheapest fare available.

[The Chair, Conservative, James Rajotte]

Yes, of course.

[Ted Menzies, Conservative, Macleod, AB]

Sorry to belabour that point, but it sticks in my craw.

[The Chair, Conservative, James Rajotte]

Monsieur Carrier.

[Robert Carrier, Bloc, Alfred-Pellan, QC]

Actually, I need some clarification about the budget. The costs for witness travel that we see here are very high, but they do not correspond to the chart that you provided us with at the same time as the budget. In the case of Quebec City, the chart indicates travel costs of $2,400, whereas the amount in the budget is $1,700. The amounts are not the same. What is the link between the chart that you are providing and the budget?

As well, the chart indicates costs of $1,700 for travel from Toronto, whereas the budget shows $1,500. Is this some kind of mistake? I would just like to know why these figures are different.

[The Chair, Conservative, James Rajotte]

If you're looking at the operational budget request for the witnesses, if you do Toronto at $1,500 each, my understanding is that if you go to the rounded figure for Toronto, at the end, it's $1,700. But that includes airfare, hotel room, taxis, and the per diem.

Does that not answer your question?

[Robert Carrier, Bloc, Alfred-Pellan, QC]

No. Again, if we look at the case of Toronto, the amount is rounded to $1,700 in the chart, whereas the budget shows $1,500 for each witness. These are not the same figures.

[The Chair, Conservative, James Rajotte]

Well, this is under part 2, and then under the rounded figure....