Bill C-26 (Historical)

An Act to amend the Criminal Code (criminal interest rate)

This enactment amends the Criminal Code by exempting persons from the application of section 347 of that Act in respect of agreements for small, short-term loans. The exemption applies to persons who are licensed or otherwise authorized to enter into such agreements by designated provinces that have legislative measures that protect recipients of payday loans and that specify a limit on the total cost of those loans.

Criminal Code

[Ken Boshcoff, Liberal, Thunder Bay—Rainy River, ON]

Mr. Speaker, I rise today to speak in favour of the legislation before us, Bill C-26, An Act to amend the Criminal Code (criminal interest rate).

The legislation seeks to amend section 347 of the Criminal Code of Canada, which criminalized the charging of usurious interest rates. Section 347 limits interest charges on loans to 60% per annum.

When it was enacted, section 347 contemplated larger long term loans. As such, this section of the Criminal Code requires the interest on a loan to be calculated annually, even if the loan is for a short term, such as only five days. Therefore, the interest is calculated by compounding daily over 365 days, even if the loan is only held for a few days. One hundred dollars lent for five days at a cost of $1 therefore amounts to 107% annual interest. This would be the equivalent of requiring hotels to post their annual room rates at $55,000 per year, rather than $150 per night. Similarly, this would be the same as requiring a car rental agency to post its rates at $13,000 a year rather than $35 per day. We use many such short terms devices in our daily lives and we calculate the services using short term pricing, not annual rate, a meal in a restaurant or a tax trip across town.

Payday loans are also a short term product, so annualized rates are the wrong measure of the products cost.

What is a payday loan? This is defined as an advancement of money in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar nature, but not for any guarantee suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, line of credit or a credit card.

In order to qualify for a payday loan, the borrower generally must have identification, a personal chequing account and a pay stub or other proof of a regular income. Payday lenders typically extend credit based on a percentage of the borrowers net pay until his or her next payday. The borrower provides the lender with a post-dated cheque or authorized direct withdrawal for the value of the loan, plus any interest or fees charged.

Who uses payday loans? In early 2005 the Consumer Agency of Canada placed questions on the Canadian Ipsos Reid Express, a national omnibus poll of Canadian adults, about Canadians experiences with and motivations for using cheque cashing and payday loan services. The survey found that approximately 7% of survey respondents had used a cheque cashing or payday loan company. Cheque cashing was the most frequently used service at 57%, followed by payday loans at 25% and tax refund anticipation loans at 5%.

Certain respondents were more likely to have used these services, including men, those between the ages of 18 and 34, urban residents, residents of British Columbia, Alberta, Saskatchewan and Manitoba, those with household incomes less than $30,000 and those with some post-secondary education. Some of the reasons cited included that it was faster, it was more efficient and they needed the money more immediately, that the hours were more convenient, that they were open later than other financial institutions and that they had previous credit card problems, no credit card or no chequing account.

Although I personally never needed to use a payday loan, I can imagine how the service could be very helpful. There are so many scenarios that would require such instantaneous access to cash such as car repairs on a long distance trip, provision of a rental deposit to secure that just right apartment, a sudden illness or death of a family member that requires an unexpected trip to another province.

For those who are living through the challenge of a previous bankruptcy, life is a cash only society, with no access to credit cards to help bridge the wait between paydays. Clearly, payday loans are a required services for many Canadians, but they need to be regulated to ensure that consumers are protected.

The Canadian Payday Loan Association indicates that the payday loan industry first emerged in Canada in the mid-1990s. As of 2004 there were nearly 1,200 outlets, and as the parliamentary secretary advised, there are more than 1,300 right now. In my riding of Thunder Bay--Rainy River, I have recently witnessed the opening of nearly half a dozen payday loan businesses where just 10 years ago there were virtually none.

Why are amendments needed?

As stated earlier, section 347 makes it a criminal offence to charge more than 60% per annum. Section 347 was initially introduced to combat the practice of loan sharking and its links to organized crime. It was not intended to be a consumer protection tool for economic price regulations.

If the rate of interest on a payday loan transaction is calculated according to the definitions and methods specified in the Criminal Code, some payday loan companies appear to be charging in excess of 1,200% per annum. However, it is clear that interest rates on such short term loans should not be calculated the same as those on long term loans. It is also clear at the same time that there is increased demand for payday loan services.

The problem arises because of shared federal-provincial jurisdiction. Financial institutions are regulated either federally or provincially and territorially, depending upon which order of government incorporated them. The federal government has jurisdiction over interest rates, but the day to day regulation and licensing of payday lenders most likely falls under provincial jurisdiction as part of the provinces' power over property and civil rights.

Because of this confusion in jurisdiction, payday lenders have been left essentially unregulated. Provinces are unable to regulate the price of a loan, since any attempt to do so would conflict with section 347 and could therefore be challenged. However, section 347 has not been used in a criminal context to curtail the activities of payday lenders because the consent of a provincial attorney general is required to prosecute an offence.

Provincial governments are wary to prosecute a payday lender for fear that the lack of a payday loan company alternative would result in consumers using illegal alternatives such as loan sharks. The payday lending sector is one of the only segments of Canada's financial services sector that remains unregulated.

All other countries that have experienced rapid growth in the industry, including the United Kingdom, Australia and the United States, have rules in place to protect consumers. The United States, for example, has 22,000 retail store outlets. Forty states have put in place consumer protection rules. To date, no fewer than five provinces have openly called upon the federal government to change section 347 so that they can move ahead with provincial regulation of the industry.

If the payday loan industry is not regulated, its future may ultimately be determined by a number of class action lawsuits that are currently proceeding through Canadian courts. These lawsuits claim that consumers were charged fees in excess of the Criminal Code rate and seek to recover hundreds of millions of dollars worth of interest. Should these class action lawsuits succeed, they could potentially bankrupt the payday loan industry.

There have been significant federal-provincial-territorial consultations regarding regulation of the payday loan industry. Through this consultative process, they have all agreed that section 347 is an inappropriate control for payday loans and that it should be amended to enable provincial regulation of the industry.

In October 2005 the Liberal federal minister of justice acknowledged that section 347 does not make sense and should not apply to payday loan companies. The minister sought and obtained cabinet approval to amend section 347 accordingly.

I am very pleased to see that that Conservative government has chosen to follow through with the introduction of this legislation, which was developed through the hard work of the former Liberal ministers of justice and industry. The dropping of the writ and subsequent election are its own story.

What has been changed with Bill C-26?

The bill adds a definition of payday loan. This is an important addition because it provides a clear definition of a second kind of loan where previously there was no differentiation and all loans were treated equally.

Clause 2 introduces new subsection 347.1(2) which exempts a person who makes a payday loan from criminal prosecution, if the loan is for $1,500 or less and the term of the agreement--

[Rob Moore, Conservative, Fundy Royal, NB]

Mr. Speaker, section 347 of the Criminal Code, which prohibits interest of over 60%, was originally brought forward to address the type of loansharking the hon. member has referenced, the serious cases that we perhaps have seen in the movies. People do not imagine, in many cases, the thousands and, indeed, millions of transactions that take place in Canada with some of the payday lending institutions.

As I mentioned, the payday lending branch is a relatively new phenomenon in Canada. It has developed since those provisions in the Criminal Code were made to combat loansharking.

We feel that section 347, while appropriate to deal with loansharking, those type of serious underworld activities, as the member references, is not the best tool to regulate the payday lending industry as it has developed. We feel the group in the best position to regulate this industry is the provinces. We have talked a bit about Manitoba. I mentioned Nova Scotia. We talked about Quebec.

It could be that each province will take a somewhat different approach to regulate payday lending within its jurisdiction. We recognize the different approaches that provinces wish to take. By passing Bill C-26, at their request, we are enabling them to take that approach. It should be mentioned that if a province chooses not to move in this direction and regulate that area of law, then section 347 of the Criminal Code continues to apply to all transactions.

[Pat Martin, NDP, Winnipeg Centre, MB]

Mr. Speaker, coming from the province of Manitoba, we are anxiously awaiting Bill C-26 to pass. We see it as the enabling legislation so we can start to rein in this burgeoning industry, the payday lenders that are sprouting up like mushrooms in the inner city riding that I represent. They are an absolute scourge on the poor.

It is not any wonder that they are burgeoning and popping up in virtually every vacancy and every strip mall one can imagine. They are not just charging 60%, or 100%, or 1000% interest, some are charging 10,000% interest, according to independent studies done by the University of Winnipeg. Even the old leg-breaking loan sharks could not make money like that. There is no single thing one could do in the country to make 10,000% interest. I am told that selling cocaine does not get one 10,000% interest.

We are anxiously awaiting the implementation of the bill.

However, why were they not prosecuting these people all along? Why did successive governments ignore the fact that these guys were charging usurious rates, clearly against the Criminal Code of Canada and clearly undermining the financial stability of the inner city of Winnipeg and other cities. What possible reason could they have for not busting these guys? Why were these underworld figures, who run these payday lending outfits, not locked up before we had to even take this measure to provide a regulatory framework?

[Rob Moore, Conservative, Fundy Royal, NB]

Mr. Speaker, I listened with interest to the hon. member's question. My speech basically refutes everything the hon. member just said. I said very clearly that not all provinces would wish to or need to do this. For example, in Quebec lending at more than 35% is prohibited, so there is no need for an exemption in that province. In other cases the designation will be required.

As the hon. member correctly pointed out, this means that Quebec has essentially banned the practice of payday lending and payday lending institutions by implementing a 35% cap on the maximum amount of interest that can be meted out in a loan agreement. The other provinces are calling for us to pave the way by amending the Criminal Code, which prohibits an amount that would equal over 60% and makes it a criminal offence to charge interest at a rate over that amount. I mentioned that in my speech. The provinces do not feel comfortable bringing in their own legislative frameworks to accommodate their consumers until we at the federal level pull away from that area of jurisdiction.

Quite to the contrary, we are actually recognizing the competence and the jurisdiction of each province to put in place its own framework. Quebec has done so. Manitoba and Nova Scotia have also done so. The approach that Manitoba and Nova Scotia wish to take requires Bill C-26 to pass. This would allow provinces to legislate in this area to protect their own consumers.

[Paul Crête, Bloc, Montmagny—L'Islet—Kamouraska—Rivière-du-Loup, QC]

Mr. Speaker, Bill C-26 is a blatant example of the Conservatives saying one thing, but doing something else. They claim to want to use a different approach with the provinces and to respect their jurisdictions, but in this case Quebec has had its own Consumer Protection Act for years, to deal with payday loans.

In fact, this industry barely exists in Quebec, because we have eliminated excessive rates. The annual interest rate must be indicated on loan contracts, and the courts have established that an annual interest rate above 35% is excessive. In other words, we already have the tools to legislate this area.

I realize that the other provinces want some legislation, but this is a matter of regulating commercial practices and comes under provincial jurisdiction.

Why did the federal government not simply say that, where relevant legislation exists, such legislation will apply?

The Consumer Protection Act has been in effect for over two decades and it is working very well in Quebec. In committee, we suggested that this be indicated in the legislation, but that proposal was rejected by the other three parties, which completely ignored the fact that Quebec's experience in this regard is conclusive.

Why does the federal government not accept that we simply indicate this in the act, instead of having the Prime Minister give his blessing and the governor in council decide whether or not the Quebec legislation is acceptable?

The government could simply have said that, if a province already has an act, that legislation will continue to apply, and where new legislation is passed, such legislation will have been determined by the provinces.

How do we explain this discrepancy between the Conservatives' rhetoric and the respect for provincial jurisdictions? In the case of payday loans, Quebec has long had in place a tool that is recognized as adequate and acceptable.

The Conservative government has decided to adopt the same attitude as its predecessor and as federal governments in general. This means that the federal government will impose the same measure across the country, without taking into consideration the initiatives implemented by various provinces.

Why does the Conservative government not show good faith for once and accept such an amendment, so that we have an act that will adequately serve Canada, while respecting the practice that has been in use for decades in Quebec?

[Rob Moore, Conservative, Fundy Royal, NB]

Mr. Speaker, that is a good question. Earlier in my speech I mentioned the total annual cost of borrowing, including all fees, some of which I named, and the interest that is charged. Worked out annually it could be over 100%, 200%, 300% or even 1000%. It is in fact the fees that are adding to the overall cost of borrowing, as well as the interest.

What is important to note is that Nova Scotia and Manitoba have taken up the call to protect their consumers in their respective provinces. They have put in place a framework that will put a maximum in place in regard to protection for consumers so that there can be a better understanding of the relationship that the consumer is entering into with a payday lending institution.

But in order for them to feel comfortable in enacting that legislation, in making that legislation the law, they first require the passage of this bill, Bill C-26, which would amend the Criminal Code and in fact would pave the way for the provinces to bring in their own frameworks, frameworks that are appropriate for each province.

[Rob Moore, Conservative, Parliamentary Secretary to the Minister of Justice and Attorney General of Canada]

Mr. Speaker, today it is my pleasure to rise in support of Bill C-26, An Act to amend the Criminal Code (criminal interest rate). The bill has come to be described as the payday lending bill because the amendments that it proposes are targeted at the payday lending industry, an industry which has quickly established itself in Canada but which to date has operated in an essentially unregulated environment.

Bill C-26 proposes amendments to the Criminal Code which will assist in remedying this. The bill is about greater consumer protection for the estimated two million Canadians and their families who use the services of payday lenders on an annual basis. The bill reflects the government's continuing commitment and dedication to improving the lives of all Canadians.

I am proud to speak in strong support of Bill C-26 and I urge all hon. members to join with me to ensure its quick passage into law.

The payday lending industry is flourishing in Canada. The industry first originated in the United States before moving north to Canada in the mid-nineties. Since that time the industry has grown rapidly with an estimated 1,300 payday lending outlets operating across Canada. The industry's principal lobby group, the Canadian Payday Loan Association, notes that there are approximately two million payday loan transactions annually in Canada.

A report prepared by the Public Interest Advocacy Centre in 2002 estimated that between 1 million and 1.4 million Canadians used the service of payday lenders, so the numbers appear to be going up. We also know that nearly $2 billion is borrowed through payday loan centres on an annual basis. These numbers frankly are astounding. Yet, what is most surprising is that the rapid growth of this industry has occurred in the absence of any industry specific regulatory framework. The absence of this framework has left consumers vulnerable to questionable business practices.

Some might ask why would any person choose to use the services of a payday loan centre if doing so puts the individual at risk of some unscrupulous lenders. The reasons are many. Some consumers use the services of the industry because it is a relatively easy, fast and anonymous way to borrow money. Others have suggested that the reason is that payday lenders offer convenience, including the extended hours of operation and the prevalence of such centres in communities across Canada.

This, combined with the fact that many small towns and cities across Canada are losing their local banking branches, makes the payday loan store an attractive way to access one's money. However, it is those consumers who have come to rely upon payday loans in order to pay their bills, to have enough money to put food on the table, and get by from paycheque to paycheque, who are the most vulnerable to abuse.

It is precisely these facts which place already vulnerable consumers into an even more vulnerable position as they may be willing to accept the terms of a loan without question or out of sheer necessity. That is why it is imperative that we move quickly and ensure that Bill C-26 becomes law.

A payday loan has really become a catchy moniker for what is otherwise a short term loan, often for a small amount, secured against proof of one's income. Most often it is demonstrated through proof of employment and hence the term payday loan. This need not be the case however. Other examples include pension income.

A typical payday loan is usually in the range of $300 and lasts for about 10 days. To qualify, in addition to demonstrating an income source, the consumer must have a bank account and provide a post-dated cheque for the amount of money borrowed, plus the associated fees and interest owed on the loan. These fees can include application fees, brokerage fees, administration fees or processing fees and so on.

We all know that payday lending is a very expensive way to borrow money. In some cases estimates for the interest rates charged when calculated on an annual basis reach into the thousands and even tens of thousands of per cent. With rates like that it is no wonder that the profits for payday lending companies continue to go up and the industry continues to thrive.

For better or for worse the reality for the payday lending industry in Canada appears to be right, but the reality for some of its consumers is less so. When consumers have difficulty paying back the loan, lenders may let one short term loan rollover into the next and so on. Debt load goes up, and the already struggling consumers find themselves in a position where the debt load is spiralling out of control.

When they are unable to pay back their loan, there have been concerns expressed with respect to the debt collection practices employed by certain segments of the industry. Oftentimes the borrower may have been unaware of the many terms and conditions associated with the lending agreement, those aspects of the loan that one could expect to find buried among the fine print.

This is confirmed by the Public Interest Advocacy Centre in a report entitled “Fringe Lending and Alternative Banking: the Consumer Experience”, which notes that most consumers of alternative financial services such as payday lending are unaware of the cost of the services they use.

This government believes that consumers should be afforded effective consumer protection from this industry. That is why Bill C-26 is so important.

Many, including the provinces and territories as well as consumer advocacy groups, have said that section 347 of the Criminal Code remains a barrier to the effective regulation of the payday lending industry in Canada. The provinces and territories have said that they will not take steps to regulate the payday lending industry when section 347 makes such activity technically illegal.

Section 347 is the usury provision. It creates two specific offences: one, to enter into an agreement or arrangement to receive interest at an annual rate exceeding 60%; and two, to receive payment or partial payment of interest exceeding 60%.

While these provisions were enacted to combat the practice of loansharking, the reality is that they also apply to most lending arrangements in Canada, including payday lending. Bill C-26 therefore proposes to amend section 347 of the Criminal Code and thereby clear the way for the provinces and territories and provide the flexibility they need to regulate the payday lending industry.

The amendments proposed by Bill C-26 are not long and they are not complicated. Essentially they carve out a limited exemption from the applicability of section 347 for payday lenders in prescribed circumstances. By proceeding in this fashion and crafting a narrow exception rather than repealing section 347 in its entirety, Bill C-26 ensures that all Canadians will be afforded protection from the exploitative practices of loansharking while at the same time responding to the needs of the provinces and territories in relation to the payday lending industry.

The proposed exemption scheme would be established under a new section, proposed section 347.1. This new section prescribes the exact circumstances that would need to exist in order for a payday loan to be exempt from section 347.

First, Bill C-26 proposes to define a payday loan for the purposes of the exemption. This definition is important because it ensures that only a clearly defined class of lending arrangements will be eligible for being exempt. As such, “payday loan” is defined to mean as follows:

--an advancement of money in exchange for a post-dated cheque, a pre-authorized debit or a future payment of a similar nature but not for any guarantee, suretyship, overdraft protection or security on property and not through a margin loan, pawnbroking, a line of credit or a credit card.

In my opinion this definition is appropriate. It appropriately captures the typical payday loan scenario that I described earlier and provides the precision necessary to specify which loans will be captured by the exemption and which ones, where the policy considerations are different, will not be eligible.

Bill C-26 proposes three requirements that must be present before a payday loan will be exempt from section 347. First is that the loan amount not exceed $1,500 and be for a term that is less than 62 days. As such, not all payday loans will be eligible for exemption, only those that fall within these further restrictions. These limits appropriately reflect the fact that payday loans are generally for a small sum over a short period of time.

Second, the payday lender must be licensed or otherwise authorized by the province in which it operates to enter into a payday lending arrangement. This is the crucial component of the amendments proposed by Bill C-26, because this requirement will ensure that for an exemption to apply there must first be laws in place to govern payday lending in the province in question. Ultimately, it will be up to the provinces and territories to decide whether and, in virtually all respects, the extent to which they will legislate.

The only requirement that Bill C-26 requires in relation to the provincial legislative framework for the exemption to apply is that there be a prescribed limit on the total cost of borrowing. This makes sense. This requirement will ensure consumers know exactly how much they are paying for accessing a payday loan.

Finally, Bill C-26 provides that if a province or territory wishes to regulate the payday lending industry in a manner which would exempt payday lenders from section 347 of the Criminal Code, then they will also be required to be designated by the federal government.

Not all provinces will wish to or need to do this. For example, in Quebec lending at more than 35% is prohibited, so there is no need for an exemption in that province. In other cases, the designation will be required.

Seeking this designation is very straightforward. For such a designation, a province would write to the federal Minister of Justice and indicate that it has legislative means in place that provide consumer protection measures for those who seek payday loans, including, as noted already, a limit on the total cost to consumers for payday borrowing.

Upon the province's indication that requirements for an exemption have been met, and upon the recommendation of the federal Minister of Industry, the Minister of Justice would then recommend to the governor in council that the exemption be made.

Importantly, this designation can be rescinded at any point at the federal level in those instances where the province no longer meets the requirements for the designation or where the rescission has been requested by the province. This is a pragmatic and sensible approach in a country as vast and diverse as ours. The decision on how to regulate the payday lending industry will be entirely up to the provinces.

Indeed, consumer protection measures fall within the constitutional competence of the provinces and territories. The provinces already have consumer protection legislation designed to address the specific concerns and realities of their jurisdictions and they are the best place to identify the components that are necessary to ensure effective consumer protection within their own jurisdiction.

The approach provided for in Bill C-26 complements this existing provincial legislative framework. I support this approach. It makes sense and will facilitate greater regulation of the payday lending industry across Canada.

Contrary to what some might say, Bill C-26 is neither encroaching upon provincial jurisdiction in relation to consumer protection measures nor necessitating that provincial governments seek a federal blessing or stamp of approval for its consumer protection measures.

In fact, Bill C-26 does quite the opposite. Bill C-26 would amend the Criminal Code to provide the provinces and territories with the flexibility they need, and indeed, the flexibility they have requested, to enact consumer protection measures within their jurisdiction to better regulate the payday lending industry.

As I mentioned, many jurisdictions have indicated that section 347 of the Criminal Code hampers their ability to enact consumer protection legislation within their own jurisdiction. By removing this barrier, Bill C-26 will facilitate greater regulation at the provincial level and meet the needs of consumers and the groups who have advocated on their behalf.

These proposed amendments are long overdue. As I noted earlier, the payday lending industry originated in the United States before spreading north into western Canada in the mid-1990s. In the United States, many state legislatures have taken the necessary steps to regulate this industry in order to protect their consumers from unscrupulous business practices.

To name only a few, California, Vermont, Michigan, Mississippi, New York and Virginia all have legislation in place to regulate the payday lending industry. While the exact content of the legislation varies from place to place, common features of payday lending legislation in the United States include limits on the amount of money that can be borrowed as well as the cost associated with the loan.

We see the same thing happening right here in Canada. Already, Manitoba and Nova Scotia have enacted legislation in their provinces to provide greater consumer protection for those who use the services of payday lenders. In Manitoba, for example, the Consumer Protection Amendment Act received royal assent on December 7 of last year. In Nova Scotia, the Consumer Protection Act was amended and received royal assent on November 23 of last year.

Both of these pieces of legislation are specifically designed to regulate the payday lending industry in those provinces. They include requirements for lenders and set out rights for the borrower, and both provide that a maximum will be set on the amount that can be charged for a payday loan. Both of these pieces of legislation are not yet in force and are in fact awaiting the passage of Bill C-26 before taking effect.

The governments of Manitoba and Nova Scotia are watching the progress of Bill C-26 because its passage will ultimately mean greater protection and greater regulation for the industry, which of course will be of benefit to consumers in those provinces. Other provinces have indicated they will follow suit.

With the passage of Bill C-26, the provinces and territories will have greater flexibility in addressing the payday lending industry within their own jurisdictions. The approach we are taking is the right one.

In closing, the protection of Canadian consumers is something on which we can all agree, and I believe that Bill C-26 will provide for this. I urge all hon. members to join me in supporting its quick passage into law.

[Rob Nicholson, Conservative, Minister of Justice and Attorney General of Canada]

moved that Bill C-26, An Act to amend the Criminal Code (criminal interest rate), be read the third time and passed.

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons and Minister for Democratic Reform]

Mr. Speaker, I appreciate the fine words of welcome from the opposition House leader.

Today, of course, we will be continuing with the opposition motion. Tomorrow we will continue debate on the report stage amendments to Bill C-31, the election integrity act amendments with which we are all familiar.

For Monday and Tuesday, we are intending to call Bill C-26 on payday loans, which is at third reading, Bill C-32 on impaired driving, Bill C-11, the transport act, and Bill C-33, the technical income tax bill.

On Wednesday we hope to begin debate on the third reading stage of Bill C-31, followed by Bill C-44 relating to human rights.

Thursday, February 8 shall be an allotted day. Next Friday we would like to begin debate on the anti-terrorism motion that would extend the application of certain sections of the Anti-Terrorism Act that are due to expire.

Finally, as members know, democratic reform is a priority for Canada's new government, and given that the Liberal leader has publicly expressed his support for term limits for senators, could the official opposition inform the House as to when it can expect the unelected, unaccountable Liberal senators who are delaying and obstructing that bill to give us a chance to consider it here in the House of Commons?

The House proceeded to the consideration of Bill C-26, An Act to amend the Criminal Code (criminal interest rate), as reported (without amendment) from the committee.

Industry, Science and Technology

[James Rajotte, Conservative, Edmonton—Leduc, AB]

Mr. Speaker, I have the honour to present, in both official languages, the fourth report of the Standing Committee on Industry, Science and Technology regarding its order of reference of Monday, November 6, 2006, Bill C-26, An Act to amend the Criminal Code (criminal interest rate).

The committee has considered Bill C-26 and reports the bill without amendment.

Merry Christmas, Mr. Speaker.

[The Chair, Conservative, James Rajotte]

Okay. We're finished with Bill C-26.

Do you have a point of order, Monsieur Crête?

[The Chair, Conservative, James Rajotte]

We will move immediately to clause-by-clause of Bill C-26. We will just wait for a legislative clerk to come forward.

(On clause 1)

We will start debate on clause 1 of the bill. No debate?

[Robert Vincent, Bloc, Shefford, QC]

I will take a few moments to make a 60-second digression.

I simply want to point out that the party I represent, the Bloc Québécois, is here to uphold democracy. Today, democracy was dealt a blow because on a committee each member has the right to receive the witnesses he or she wants to hear from.

As well, how is it possible to adopt a bill after such a quick study, without calling any witnesses to explain their point of view?

In any case, it was already clear from the start that Quebec does not agree with the process outlined in Bill C-26. However, you want engage us in this debate only to tell us that, although we have been democratically elected, democracy ends when the chair says so. I don't agree with that.

That's all I wanted to say.

[The Chair, Conservative, James Rajotte]

No. It's my understanding, and perhaps the clerk can clarify the rule, that the committee is not actually adjourned until there is a motion to adjourn, because we're on the subject of Bill C-26.