This bill is from the 41st Parliament, 1st session, which ended in September 2013.
Jim Flaherty Conservative
This bill has received Royal Assent and is now law.
This is from the published bill. The Library of Parliament has also written a full legislative summary of the bill.
This enactment amends the Financial Consumer Agency of Canada Act to create the position of Financial Literacy Leader within the Agency. The Leader is to be appointed by the Governor in Council to exercise leadership at the national level to strengthen the financial literacy of Canadians. The amendments also provide for the other powers, duties and functions of the Financial Literacy Leader.
All sorts of information on this bill is available at LEGISinfo, an excellent resource from the Library of Parliament. You can also read the full text of the bill.
Bill numbers are reused for different bills each new session. Perhaps you were looking for one of these other C-28s:
Mathieu Ravignat NDP Pontiac, QC
Mr. Speaker, my colleague is quite right.
First, it does not contain a definition of financial literacy. We should first define financial literacy. Furthermore, there is no accountability measure, and no initiatives to increase financial literacy.
Furthermore, the recommendation to create an advisory council composed of union representatives, among others, was not retained. In my opinion, the suggestions we made in committee would improve this bill and help protect Canadians.
Libby Davies NDP Vancouver East, BC
Mr. Speaker, one of the concerns about the bill overall is, as the member has pointed out, that it is very far removed from consumer protection.
One of the things I have always been concerned about over the years because of the riding I represent is protection, particularly for low income people who, in the first place, have difficulty accessing regular services at financial institutions. The protection they have is very minimal.
I just wonder if the member could comment on whether he has had any similar experiences in his own riding where people who are on fixed or very low incomes have a very difficult time with financial institutions and they absolutely need protection.
Mathieu Ravignat NDP Pontiac, QC
Absolutely, Mr. Speaker, that has definitely been the experience in my riding.
Most statisticians would say that there is a relationship between the level of education, poverty and literacy, so we are talking about compounding situations. If our literacy AND education is low, it is perhaps more difficult to understand the financial system.
My hon. colleague is completely right that statistics are worrying. We are talking about 30% of families that lack any retirement savings. The average Canadian household debt is 150% of income and Canadians' debt load has increased by 25%. We know that a lot of those Canadians are either working poor or poor. It is truly unfortunate. We would hope that we would have a more compassionate government that would address this issue.
Jack Harris NDP St. John's East, NL
Mr. Speaker, I would advise the Chair that I will be splitting my time on this bill, which is a bill to establish a financial literacy leader so-called, which is one of 30 recommendations of a task force on financial literacy. It is rather unfortunate that only 1 of the 30 recommendations were followed because this is really just a very minor or modest first step in what is required.
The problem of course is that many financial literacy programs often devolve into simply admonitions for individuals to save more money, which is an impossible situation for many people. In fact, most people going into retirement, for example, 30% have nothing more than CPP for their retirement plans. We have the Minister of Human Resources and Skills Development suggesting that people should save more for an extra two years for retirement. It is totally inadequate.
I see I have only a short time to give this speech and I would encourage my colleagues to ask some questions and make some comments to allow me to speak a little more.
Marjolaine Boutin-Sweet NDP Hochelaga, QC
Mr. Speaker, with respect to literacy in general, we know that 43% of the population has level 3 or lower reading skills. This portion of the population already has difficulty reading. Financial literacy could perhaps help somewhat, but if people cannot read, there may be measures, other than financial literacy initiatives, that would better help people to help themselves financially.
Jack Harris NDP St. John's East, NL
Mr. Speaker, my colleague points to a real inconsistency by the Conservative government in suggesting that financial literacy is so important that we should undertake this task. It is preaching financial literacy now, but back in 2006 it cut nearly $18 million from adult literacy programs across the country. This is a bit of a fig leaf for the Conservatives' inaction, frankly, on the real problems of literacy in this country and its failure to protect consumers and build a better regulatory framework.
Djaouida Sellah NDP Saint-Bruno—Saint-Hubert, QC
Mr. Speaker, as I listened to my colleague's brief speech I realized something: this government does not really understand Canadians' economic situation.
It is well and good to educate people. However, will passing this bill to create this position not result in advertising for banks across Canada? I would like my colleague to talk more at length about this issue.
Jack Harris NDP St. John's East, NL
Mr. Speaker, my colleague asked an important question. As Barrie McKenna, a business columnist with The Globe and Mail, stated:
Looking to financial literacy to fill the void is like asking ordinary Canadians to be their own brain surgeons and airline pilots. The dizzying array of financial products, mixed with chaotic and increasingly irrational financial markets, makes the job of do-it-yourself financial planning almost impossible—no matter how literate you are.
What happens, of course, is that this is just driving people into the institutions that have financial products. In this country, we pay two and three times as much on management fees in the private sector than in the Canada pension plan, which is a better way of saving for Canadians.
We have a problem. It is considered to be a very small first step, but one that requires leadership from the government. We are not sure we are going to get it, but we think this is a start that ought to be made.
Financial Literacy Leader ActGovernment Orders
The Deputy Speaker
Resuming debate.
Is the House ready for the question?
Financial Literacy Leader ActGovernment Orders
Some hon. members
Question.
Financial Literacy Leader ActGovernment Orders
The Deputy Speaker
The question is on the motion. Is it the pleasure of the House to adopt the motion?
Financial Literacy Leader ActGovernment Orders
Some hon. members
Agreed.
Financial Literacy Leader ActGovernment Orders
The Deputy Speaker
Hearing no nays, I therefore declare the motion carried.
(Bill read the third time and passed)