Mr. Speaker, on June 9, I asked the government to introduce concrete measures to protect families and consumers. I pointed out that, since 2004, personal debt in Canada has increased by 40% and is at an all-time high. In Quebec alone, between 15% and 20% of credit card holders cannot make even the minimum payment. Families are finding it increasingly difficult to make ends meet. The government must help them.
What was the finance minister's response at the time? He lauded the code of conduct for the credit and debit card industry. The finance minister replied that this infamous code of conduct, and I quote, “is working”. I would like to know how this code of conduct is working and how that success was measured. I am very curious to hear the parliamentary secretary's response.
The government is proposing to improve Canadians' basic knowledge, but by doing so, it becomes clear that the government is laying the blame on Canadian families and suggesting that they are not capable of managing their credit cards when, in reality, the credit card companies are making outrageous profits.
Just this morning there was a statement in the Globe and Mail which summed this up very well:
Looking to financial literacy to fill the void is like asking ordinary Canadians to be their own brain surgeon and airline pilots.
It is not me or the NDP saying that. It was the Globe and Mail.
Education is something that would be helpful if we did not have a system that held Canadians hostage. It is a step that puts the blame on Canadian families and does not look to the obstacle, ignorance in the system, an obstacle which families on their own cannot solve. This is where the government is expected to stand up for Canadian families, but it is not doing anything concrete.
This government program is not a program. It is just a set of good intentions. There is no way to assess the impacts and benefits.
What concrete suggestions has the NDP made? First, the NDP suggested capping credit card interest rates at prime plus 5%. The prime rate is currently 3%, so the interest rate on credit cards would be 8%. Second, we suggested banning excessive charges on credit cards, payday loans, store cards and all other forms of consumer credit. Third, we want to require lenders to disclose the real cost of credit cards and other types of loans so it is easier for consumers to understand. Lastly, we suggested putting an end to unfair transaction charges for consumers and small businesses.
What Canadians want to hear is a practical list of things the government will do to protect them from the unlimited greed of credit granters.