Bill C-28 (Historical)

Financial Literacy Leader Act

An Act to amend the Financial Consumer Agency of Canada Act

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.

[Glenn Thibeault, NDP, Sudbury, ON]

Wow, that was quick.

What we have seen, then, is that Bill C-28 is more of a job posting than a bill, because we don't have any definition as to what financial literacy is all about. We're hoping—you used “perhaps”, and those were your words—that perhaps that will be laid out.

Second, the recommendations from the task force talked about bringing the advisory council along. That's not even there.

There is nothing about bilingualism. People who speak French need financial literacy as well, Minister, so this bill is more of a job posting and really doesn't address the motion that was presented in the House that we all voted in favour of about a month earlier. This bill needs a lot more work, and I hope we can work on that together with some amendments.

[Glenn Thibeault, NDP, Sudbury, ON]

Thank you, Mr. Chair, and congratulations on your re-election.

Welcome, and thank you for your opening remarks, Minister Menzies.

You mentioned several points that I think all of us around the table would agree with. You talked about—and I'm trying to quote it, but you were speaking very fast and it was very informed, so I couldn't write it all down and I may not get it exactly right—the idea that informed financial choices are vital in advancing the financial future of families. I think that's something we could all agree with. However, we don't see that in Bill C-28.

What Bill C-28 talks about is the creation of a financial literacy leader. That comes from the task force on financial literacy, but the leader also needed to come with an advisory council, and there's no definition of “financial literacy”. Therefore, Minister Menzies, what we've seen and what I think you and I could agree on is that we have different ideas of financial literacy. You could ask the OECD, and they would have a different definition of what financial literacy would be compared to what the task force on financial literacy brought forward.

The first thing I would ask then, Minister, is this: why was a definition of financial literacy not included in this bill?

[The Chair, Conservative, James Rajotte]

I call this meeting to order.

This is the 72nd meeting of the Standing Committee on Finance. Our orders today are a study of Bill C-28, an Act to Amend the Financial Consumer Agency of Canada Act.

We are very pleased to have with us the Hon. Ted Menzies, the Minister of State for Finance, a former very hard-working member of this committee.

It's wonderful to have you back, Minister Menzies. You have some officials with you. Perhaps I'll let you introduce your officials and give your opening statement, and then we'll have questions from members of the committee.

[The Chair, Conservative, James Rajotte]

Good afternoon, ladies and gentlemen. It's wonderful to see you all again. I hope all of you had a very fruitful summer back in your constituencies.

I want to thank you for expressing your confidence in me again as your chair. I want to congratulate Ms. Nash on becoming the first vice-chair and Mr. Brison as second vice-chair. I look forward to working with them again this session.

Colleagues, we don't have anything official on our agenda other than the election of a chair, but I would recommend that we start with Bill C-28. We have Minister Menzies with us on that topic. Your subcommittee agreed to that last week. I'm recommending that we take a two-minute break and then we will switch to televised proceedings, and then we will ask Mr. Menzies and his officials to come to the table to start on Bill C-28, the Financial Literacy Leader Act.

Do I have your concordance with that?

Financial Literacy Leader Act

[The Deputy Speaker, NDP, Denise Savoie]

The House will now proceed to the taking of the deferred recorded division on the previous question at the second reading of Bill C-28.

The House resumed from June 19 consideration of the motion that Bill C-28, An Act to amend the Financial Consumer Agency of Canada Act, be read the second time and referred to a committee, and of the motion that this question be now put.

[Pat Martin, NDP, Winnipeg Centre, MB]

Madam Speaker, I thank my colleague from Newton—North Delta for perhaps setting the tone of the debate as we enter the conversation about Bill C-28 and this notion of a new financial literacy leader.

It surprises me that we are having this debate. In this era of belt tightening, the best thing that the Conservatives can come up with to address the issue of financial literacy is to create a high level, expensive, bureaucratic position with no real plan and no guarantee that it will have any of the desired effects in elevating the financial literacy of the general population. It seems like a big PR campaign and, frankly, a phenomenal waste of money.

What is even more worrisome is that there this element of blame the victim that runs throughout this whole notion, which is that if we are seeing greater financial inequality, somehow it is the consumers who are to blame for getting themselves into this mess.

We should note that the notion of a financial literacy leader has its origins in a national task force on financial literacy that was criticized as soon as it got out of the gate because the chair was, of course, a banker. The majority of the members on the task force were either bankers, or in the financial sector, or associated with it. The recommendations they came up with had more to do with making Canadians into good customers for the banks rather than elevating the standard of living conditions or even the financial literacy of the general public. The recommendations were suspect from the very outset given the origins, the motivations and, I would say, the conflict of interest from the principals chosen to be on this task force.

Even he recommendations that came out of the task force were ignored when it came to putting them into a bill. The task force recommended that this new financial literacy leader be guided by input from an advisory council made up of industry, unions, educators, volunteer organizations, et cetera. However, there is no mention of that whatsoever in Bill C-28. It seemed reasonable to have an advisory committee to at least steer, give some direction and some sense of purpose to this new expensive bureaucracy, but that notion was ignored.

The other thing the task force recommended was that the financial literacy leader should be accessible to the general public through reports tabled by the Minister of Finance in Parliament. That did not find its way into the bill either.

Therefore, the financial literacy leader would be operating in isolation doing, we do not know what, having the effect of, we do not know what. Who will audit the efficacy of the financial literacy leader?

Those are some of the things that bother me. This is an urgent issue but the problem lies more with the lack of protection for consumers than it does the consumers' personal education.

I want to talk for a minute about what the government could be doing.

There used to be a time within living memory, and I am not that old but I remember, when there was a minister of consumer and corporate affairs. It was a whole department with a fairly high profile minister. This was not just a small portfolio in cabinet. There were heavyweights like André Ouellet, big names in Canadian politics were the ministers of consumer and corporate affairs. Their stated mandate was to protect the best interests of the consumer, not the financial sector, not the predatory lenders and not the gougers and users who charge 10 and 15 points above prime for credit card lending rates.

If the government really wanted to do something for the consumers' best interest against predatory lending, why would it not cap the credit rates to 6 points above prime and never mind 18 points above prime? Why does it not enforce the Financial Administration Act and the Bank Act to make banks live up to their charter and provide reasonable access to Canadians to basic financial services, and if they will not live up to their charter, why do we not pull their charters?

The banks have an exclusive monopoly on some very lucrative financial transactions, like cashing cheques and credit cards, in exchange for providing basic services to Canadians, even when it is not the most profitable thing in the world. However, what do they do? They close down bank branches in every neighbourhood in this country.

In my riding alone, 15 bank branches have closed down. That is a vote of non-confidence in my neighbourhood and it is an abrogation of their obligation under their charter. We have charter banks for a reason. We should pull their charters if they are not going to live up to their financial obligations. Every time a bank pulls out of my neighbourhood, do members know what pops up? Another Money Mart or another Payday lender, and it is not charging interest at 60%, that is in the Criminal Code. If a lender charges more than 60% per annum, it is a criminal offence called usury. The interest rate at these Payday lenders is not 1,000% or 2,000%. It is as high as 10,000% per annum. People cannot make that kind of money selling cocaine but yet it is happening on the street corners of every major city in this country because the banks have reneged on their obligation to provide basic financial services. They are charging 3% to cash a government cheque. It is against the law and the government will not enforce it.

Members can walk to the Sparks Street Mall right now and some money lender in a Money Mart will charge them 3% to cash a government cheque. It is illegal but the government does nothing to enforce it. Instead, it will put in place this expensive bureaucrat, God knows who. I presume some failed Conservative candidate is in line to be the new financial literacy leader.

This is the most appalling thing. I believe this is all part of the whole notion of driving down Canadians' expectations. The government believes in a low wage, low cost economy and low wage, low cost economy is a recipe for poverty, mark my words.

Forty-seven percent of the children in my riding live below the poverty line, and members heard me correctly. The child poverty rate in Norway, Denmark and Sweden is less than 3% because they do not have this notion of a low wage, low cost economy. They do not see it virtuous to drive down workers' wages. They do not see it as virtuous to smash unions.

I saw a bumper sticker the last time I was in Washington, DC. that read, “At least the war on the middle-class is going well”. That government has embarked on a comprehensive detailed attack on labour and the left, just like the neo-Conservatives in Canada have followed suit, eliminating things like the Fair Wages Act, enabling the Merit shop contractors and the non-union sector to flourish and prosper.

This is the way to drive down the middle-class. This is the way to drive down wages and drive down expectations. Then the government will blame people for not saving their money and, instead of having a real pension plan, they can have one of these pooled pension plans that the employer does not have to pay into, only the worker.

It is all part of picture. The Conservatives' vision of Canada is to recreate Canada in the image of the United States, and t is not a model we want to follow. I have been to the United States recently where in North Carolina a decent job pays $9 to $10 an hour. Is that the economy and the vision of the Conservatives where the rich get richer and the poor get poorer, and then some guy is getting gouged by these financial institutions?

My colleague from Newton—North Delta had a good point. No amount of financial literacy will help somebody understand how to sell short on a derivative of a hedge fund or understand some of these arcane financial instruments that these financial engineers put in place to deliberately obfuscate and make it impossible to make an informed choice or decision. I challenge any stockbroker on Bay Street to explain some of these derivative hedge fund monstrosities that were actually a great cause of the demise in the most recent downturn.

If we had kids going to engineering school and actually learning how to build things instead of going to financial engineering school to learn how to construct these incomprehensible financial instruments, we would be a lot better off. We would have a generation of young people who could do things instead of a generation of young people who are trained to cheat people and help the financial sector cheat Canadians.

We want to see consumer protection in its purest form. As I said, we do not have to look very far back in Canadian history to when we had a minister of consumer and corporate affairs who was a champion for Canadians, not a shill for the financial sector. That is what we are seeing here.

We cannot support this bill. We disagree profoundly with the Conservative vision of any kind of enhancing or enabling of people to cope with the financial services sector.

The House resumed from March 2 consideration of the motion that Bill C-28, An Act to amend the Financial Consumer Agency of Canada Act, be read the second time and referred to a committee, and of the motion that this question be now put.

Business of the House

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

Madam Speaker, I am pleased to start my one-day-late Thursday statement with the Conservatives' deep gratitude to all of the staff and pages of the House of Commons, who were forced to endure a rather long Wednesday sitting. I thank them for that and I apologize that they were subjected to it.

On to the remaining business of the House, this afternoon will we complete third reading debate of Bill C-11, the copyright modernization act. On Monday we will have the third reading debate of Bill C-38, the jobs, growth and long-term prosperity act, now that we are past the opposition's theatrical and ideologically driven delay tactics at report stage, which caused you, Madam Speaker, to have to spend an undue length of time here, in particular during the unfortunate act of slow votes, which really achieved nothing but inconvenience to the staff and pages of the House of Commons.

If we have extra time on Monday, we will resume second reading debate on Bill C-15, the strengthening military justice in the defence of Canada act. For the remainder of the week, I want to see the House dispose of the many bills that are still awaiting our work and attention. To accommodate the House, we have voted to sit into the evenings next week.

I would welcome any co-operation from my counterparts on moving these bills forward efficiently. I would like to start with securing second reading and referral to committee before the fall sitting of the following bills: Bill C-24, the Canada—Panama economic growth and prosperity act; Bill C-28, the financial literacy leader act; Bill C-36, the protecting Canada's seniors act; Bill C-15, the military justice bill that I mentioned moments ago; Bill C-27, the first nations financial transparency act; and Bill S-2, the family homes on reserves and matrimonial interests or rights act.

Of course, this is only the start of my list, but it would be a good message for us to send to Canadians to show that we are actually willing to do our jobs, the jobs they sent us here to do, and actually vote and make decisions on the bills before us. A productive last week of the spring sitting of our hard-working Parliament would reassure Canadians that their parliamentarians are here to work.

To get on in that direction, since today is World Elder Abuse Day, I want to draw attention to our Bill C-36, the protecting Canada's seniors act. I believe this bill to combat elder abuse has the support of all parties. I have heard the suggestion of the opposition whip, but I would like to suggest we go one step further. I know the opposition has shown it likes to talk about things; we actually like to make decisions and get things done on this side of the House. With that in mind, and in recognition of this day, it is appropriate to advance this important bill right now and send it to committee for study. Therefore, I would like to ask for unanimous consent for the following motion:

That, notwithstanding any Standing Order or usual practices of the House, Bill C-36, An Act to amend the Criminal Code (elder abuse) be deemed to have been read a second time and referred to the Standing Committee on Justice and Human Rights.

Extension of Sitting Hours

[Peter Van Loan, Conservative, Leader of the Government in the House of Commons]

moved:

That, pursuant to Standing Order 27, the ordinary hour of daily adjournment shall be 12 midnight, commencing on Monday, June 11, 2012, and concluding on Friday, June 22, 2012, but not including Friday, June 15, 2012.

Today I rise to make the case for the government's motion to extend the working hours of this House until midnight for the next two weeks. This is of course a motion made in the context of the Standing Orders, which expressly provide for such a motion to be made on this particular day once a year.

Over the past year, our government's top priority has remained creating jobs and economic growth.

Job creation and economic growth have remained important priorities for our government.

Under the government's economic action plan, Canada's deficits and taxes are going down; investments in education, skills training, and research and innovation are going up; and excessive red tape and regulations are being eliminated.

As the global economic recovery remains fragile, especially in Europe, Canadians want their government to focus on what matters most: jobs, economic growth and long-term prosperity. This is what our Conservative government has been doing.

On March 29, the Minister of Finance delivered economic action plan 2012, a comprehensive budget that coupled our low-tax policy with new actions to promote jobs and economic growth.

The 2012 budget proposed measures aimed at putting our finances in order, increasing innovation and creating suitable and applicable legislation in the area of resource development in order to promote a good, stable investment climate.

The budget was debated for four days and was adopted by the House on April 4. The Minister of Finance then introduced Bill C-38, Jobs, Growth and Long-term Prosperity Act, the 2012 budget implementation bill. The debate at second reading of Bill C-38 was the longest debate on a budget implementation bill in at least two decades, and probably the longest ever.

On May 14, after seven days of debate, Bill C-38 was passed at second reading.

The bill has also undergone extensive study in committee. The Standing Committee on Finance held in-depth hearings on the bill. The committee also created a special subcommittee for detailed examination of the bill's responsible resource development provisions. All told, this was the longest committee study of any budget implementation bill for at least the last two decades, and probably ever.

We need to pass Bill C-38 to implement the urgent provisions of economic action plan 2012. In addition to our economic measures, our government has brought forward and passed bills that keep the commitments we made to Canadians in the last election.

In a productive, hard-working and orderly way, we fulfilled long-standing commitments to give marketing freedom to western Canadian grain farmers, to end the wasteful and ineffective long gun registry, and to improve our democracy by moving every province closer to the principle of representation by population in the House of Commons.

However, in the past year our efforts to focus on the priorities of Canadians have been met with nothing but delay and obstruction tactics by the opposition. In some cases, opposition stalling and delaying tactics have meant that important bills are still not yet law. That is indeed regrettable.

In the case of Bill C-11, the copyright modernization act, a bill that will help to create good, high-paying jobs in Canada's creative and high-tech sectors, this House has debated the bill on 10 days. We heard 79 speeches on it before it was even sent to committee. This is, of course, on top of similar debate that occurred in previous Parliaments on similar bills.

It is important for us to get on with it and pass this bill for the sake of those sectors of our economy, to ensure that Canada remains competitive in a very dynamic, changing high-tech sector in the world, so that we can have Canadian jobs and Canadian leadership in that sector.

Bill C-24 is the bill to implement the Canada-Panama free trade agreement. It has also been the subject of numerous days of debate, in fact dozens and dozens of speeches in the House, and it has not even made it to committee yet.

Bill C-23 is the Canada-Jordan economic growth and prosperity act. It also implements another important job-creating free trade agreement.

All three of these bills have actually been before this place longer than for just the last year. As I indicated, they were originally introduced in previous Parliaments. Even then, they were supported by a majority of members of this House and were adopted and sent to committee. However, they are still not law.

We are here to work hard for Canadians. Adopting today's motion would give the House sufficient time to make progress on each of these bills prior to the summer recess. Adopting today's motion would also give us time to pass Bill C-25, the pooled registered pension plans act. It is a much-needed piece of legislation that would give Canadians in small businesses and self-employed workers yet another option to help support them in saving for their retirement. Our government is committed to giving Canadians as many options as possible to secure their retirement and to have that income security our seniors need. This is another example of how we can work to give them those options.

In addition to these bills that have been obstructed, opposed or delayed one way or another by the opposition, there are numerous bills that potentially have support from the opposition side but still have not yet come to a vote. By adding hours to each working day in the House over the next two weeks, we would allow time for these bills to come before members of Parliament for a vote. These include: Bill C-12, safeguarding Canadians' personal information act; and Bill C-15, strengthening military justice in the defence of Canada act. I might add, that bill is long overdue as our military justice system is in need of these proposed changes. It has been looking for them for some time. It is a fairly small and discrete bill and taking so long to pass this House is not a testament to our productivity and efficiency. I hope we will be able to proceed with that.

Bill C-27 is the first nations financial transparency act, another step forward in accountability. Bill C-28 is the financial literacy leader act. At a time when we are concerned about people's financial circumstances, not just countries' but individuals', this is a positive step forward to help people improve their financial literacy so all Canadians can face a more secure financial future. Bill C-36 is the protecting Canada's seniors act which aims to prevent elder abuse. Does it not make sense that we move forward on that to provide Canadian seniors the protection they need from those very heinous crimes and offences which have become increasingly common in news reports in recent years?

Bill C-37 is the increasing offenders' accountability for victims act. This is another major step forward for readjusting our justice system which has been seen by most Canadians as being for too long concerned only about the rights and privileges of the criminals who are appearing in it, with insufficient consideration for the needs of victims and the impact of those criminal acts on them. We want to see a rebalancing of the system and that is why Bill C-37 is so important.

Of course, we have bills that have already been through the Senate, and are waiting on us to deal with them. Bill S-2, which deals with matrimonial real property, which would give fairness and equality to women on reserve, long overdue in this country. Let us get on with it and give first nations women the real property rights they deserve. Then there is Bill S-6, first nations electoral reform, a provision we want to see in place to advance democracy. Bill S-8 is the safe drinking water for first nations act; and Bill S-7 is the combatting terrorism act.

As members can see, there is plenty more work for this House to do. As members of Parliament, the least we can do is put in a bit of overtime and get these important measures passed.

In conclusion, Canada's economic strength, our advantage in these uncertain times, and our stability also depend on political stability and strong leadership. Across the world, political gridlock and indecision have led to economic uncertainty and they continue to threaten the world economy. That is not what Canadians want for their government. Our government is taking action to manage the country's business in a productive, hard-working and orderly fashion. That is why all members need to work together in a time of global economic uncertainty to advance the important bills I have identified, before we adjourn for the summer.

I call on all members to support today's motion to extend the working hours of this House by a few hours for the next two weeks. For the members opposite, not only do I hope for their support in this motion, I also hope I can count on them to put the interests of Canadians first and work with this government to pass the important bills that remain before us.

Motion in Amendment

[Dave Van Kesteren, Conservative, Chatham-Kent—Essex, ON]

Mr. Speaker, I am pleased to speak to Bill S-5, the financial system review act, at third reading.

As members are aware, the recent financial crisis tested the skills of many: policy-makers, regulators, bankers and investors. However, it also served to demonstrate the overall soundness of our financial system.

It was no accident that Canada escaped the worst of the global financial crisis with no bank failures or forced bailouts by taxpayers. Our legislative framework was built to withstand such shocks with high prudential standards, excellent regulation supervision, a flexible monetary system and good mechanisms to ensure financial stability.

However, when faced with such unprecedented market volatility in 2008-09, our government went further by acting quickly to improve this excellent framework, boost financial stability and ensure access to credit during a liquidity crunch.

Bill S-5 will build on the existing strengths of Canada's financial system and fine-tune a framework that has proven to be both efficient and effective. In the words of Canadian Life and Health Insurance Association Inc., Bill S-5 represents a welcome fine-tuning of the various financial institution statutes.

How will Bill S-5 achieve this? The bill will improve the ability of regulators to share information efficiently with their international counterparts. This will help fulfill our G8 commitments at a time when financial institutions increasingly operate on a global scale. It will ensure effective supervision and regulation across the borders.

Bill S-5 also proposes to improve the consumer protection framework, including enhancing the supervisory powers of the Financial Consumer Agency of Canada, FCAC, and increasing the maximum fine that would be levelled by the FCAC for the violation of a consumer provision of its act to make it consistent with administrative monetary penalties levied by other regulatory agencies.

The FCAC is mandated with ensuring that the federally regulated financial institutions adhere to the consumer provisions of the legislation governing financial institutions and their public commitments.

The FCAC is also the government's lead agency on financial education and literacy, and has moved forward with an array of excellent incentives in recent years. The agency has developed innovative tools to help Canadians, such as a mortgage calculator that quickly determines mortgage payments and the potential savings resulting from early payments. It has also created innovative online information to help consumers shop for the most suitable credit card and banking packages for their needs.

Our government believes Canadian consumers deserve accessible and effective financial services that meet the needs of consumers and operate in the public interest. That is why in budget 2010 we announced we would take action to prohibit negative option billing and require timelier access to funds.

The regulations will come into force this August and will require federally regulated financial institutions to obtain consumers' express consent before providing a new optional product or service. This will allow Canadians to receive all required information on the optional product or service to help them make the financial decisions that are best for their circumstances.

The regulations will also reduce the maximum cheque hold period for retail depositors and small and medium size businesses, and will provide retail depositors faster access to the first $100 deposited by cheque. Shorter cheque hold periods and faster access to funds will benefit Canadians by enabling them to manage their personal finances more effectively. After all, well-served and confident consumers contribute to the well-functioning financial markets and the economy.

Indeed, in the words of a recent Globe and Mail editorial:

Of the many things that frustrate the retail customers of Canada's federally regulated banks, one of the most egregious has been the practice of putting a hold of as many as seven days on deposited cheques. Now, thanks to new measures recently...announced...that upsetting practice and others are coming to an end.

[T]he government has shown a commitment to its promise to improve banking regulations in Canadians' favour. This is welcome news.

Similarly, in 2009, as part of the measures to improve access to financing, the government announced that it would bring forward measures to help consumers of financial products, including launching a task force on financial literacy.

The task force on financial literacy was mandated to provide advice and recommendations to the Minister of Finance on a national strategy to strengthen the financial literacy of Canadians. In support of the recommendations of the task force on financial literacy and delivering on a commitment from budget 2011, the government introduced Bill C-28, the financial literacy leader act. Bill C-28, a piece of legislation which I urge all members of the House to support, would provide for the appointment of a financial literacy leader who would collaborate and coordinate with stakeholders to strengthen the financial literacy of Canadians.

Canada's national strategy on financial literacy will support the excellent efforts under way throughout the country and empower Canadians to act knowledgeably and with confidence in managing their personal financial affairs.

I would be remiss if I closed without quickly reviewing other important initiatives in Bill S-5. They include: updating financial institutions legislation to promote financial stability and ensure Canada's financial institutions continue to operate in a competitive, effective and stable environment; improving efficiency by reducing the administrative burden on financial institutions and adding regulatory flexibility; promoting competition and innovation by enabling co-operative credit associations to provide technology service to a broader market; and reducing the administrative burden for federally regulated insurance companies offering adjustable policies in foreign jurisdictions by removing duplicative disclosure requirements.

In summary, the financial system review act provides for a framework that will benefit all participants in the financial sector, financial institutions as well as all Canadians. It maintains the long-standing practice of ensuring regular reviews of the regulatory framework for financial institutions, a unique practice that sets Canada apart from almost every other country in the world.

In fact, U.K. Prime Minister David Cameron said it best:

In the last few years, Canada has got every major decision right. Look at the facts. Not a single Canadian bank fell or faltered during the global banking crisis.

He went on to say that our economic leadership has helped the Canadian economy to weather the global storms far better than many of our international competitors.

Clearly, this government recognizes that it must continually consider what regulatory changes are needed to ensure that the fundamentals of the Canadian economy remain sound, that consumers are well protected, and that Canada continues to be an attractive place to do business in today's competitive global economy. This is precisely what the government has done with this bill.

On that note, I urge members of the opposition to stand up and support the swift passage of Bill S-5. To vote against the bill would not just be a vote against the Canadian economy, but a vote against the Canadian consumer.

Financial Literacy

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

Mr. Speaker, I want to thank all the members of Parliament who spoke to this motion today and in November. I certainly appreciate all their thoughts and words on this.

We delved a little into financial literacy and fiscal policies of the government. It is certainly possible for there to be people who are financially literate but who disagree with the fiscal policies of the government. We ought to ensure that we are focused on financial literacy when members come to vote on this motion and also when discussing Bill C-28.

In wrapping up, I want to thank all of the individuals and organizations that have been working in this area for years. Most of them have been doing so on a voluntary basis. I have been amazed by the number of people who have contacted me by email or letter and who have come to my office to talk about the initiatives they have been working on. The non-governmental organizations have talked about the work they are doing in schools. They are bringing mentors into schools to teach young people about financial literacy.

In fairness, I should point out that people in the media have been doing a lot of work in this area. Many journalists have been writing about financial issues for years and making some real efforts to educate Canadians about financial literacy and to educate and inform them as best as possible in terms of making their own financial decisions.

I have to point out I received many emails, calls and letters after Jane Taber wrote an article in the Globe and Mail on this issue, much more than after the original debate in the House of Commons. I am somewhat surprised that she has a wider readership than Hansard on a daily basis, but I do tip my hat to her because that article certainly did cause a discussion nationally.

What has been driven home to me in discussing it with people is that there is a lot of effort being made out there and a lot of outstanding work, but there is a lot of duplication and overlap.

I want to emphasize the second priority of the task force report, which is leadership and collaboration. Why this is so important is there are so many people and organizations doing so many good things across the country that we need to have some collaboration with all of these groups. That is addressed in the motion in terms of having the one website portal working with the Financial Consumer Agency of Canada. It is also why leadership is so important.

I strongly encourage members in the House to do as the member for Edmonton Centre suggested, which is to vote for Bill C-28, because that is the first recommendation of the task force report. It is the very first recommendation and the one in my view which must be put into play.

I want to acknowledge the work of organizations such as the Financial Literacy Action Group. I will list the seven organizations for members' benefit: ABC Life Literacy Canada, the Canadian Foundation for Economic Education, Credit Canada, Financial Planning Standards Council, the Investor Education Fund, Junior Achievement, and Social and Enterprise Development Innovations. There are other organizations as well. The Economic Club of Canada has started an initiative where it takes students to the TSX or to another institution to teach them about financial literacy. It should be commended as well.

I want to thank the members of the task force, the chair, Don Stewart, and others. I encourage people to read the report. It is very readable. It is an excellent report with 30 recommendations and five priorities. I encourage members to read the report and to work on implementing it as best we can. That is obviously the first point in my motion, which is to work to implement the recommendations of the report, to work toward a single source website for financial literacy, to require federally regulated financial institutions to disclose their contributions, that the Financial Consumer Agency of Canada curriculum be in schools, and to designate November as financial literacy month.

I take the point members have made in the House and others have made by email. This is very much about lifelong learning. Lifelong learning is one of the five priorities identified by the task force. This will very much be part of it. It does not simply stop at high school and leave people on their own. It is very much about lifelong learning.

I encourage people and members in the House to support this motion. I thank them for their words thus far. This is an increasingly complex world for all of us and we need to empower people. This motion on financial literacy is about empowering individuals, families and businesses so that they can make better decisions for themselves. I thank members for their comments and I hope they will support this motion when it comes up for a vote.

[Laurie Hawn, Conservative, Edmonton Centre, AB]

Mr. Speaker, I am pleased to have the opportunity to discuss Motion No. 269, sponsored by the member for Edmonton—Leduc. In his decade-plus period of service to his constituents here in Parliament, the member has become highly regarded among his colleagues and observers across Canada, especially in his current capacity as chair of the finance committee. I was proud to serve as president of his constituency association. I am proud to vote for him as my own MP. I also applaud him for his work today in promoting and increasing awareness of an important issue affecting all Canadians, financial literacy.

That is enough sucking up to one of my colleagues. Today we want to talk about the motion that presents constructive ways to improve financial literacy in Canada. It is good news, and I appreciate that my colleague from across the floor mentioned it. We would respond to the recommendations of the task force on financial literacy. We would create, promote and continuously upgrade a single source website for financial literacy to increase public awareness and improve access to information for all Canadians. We would require federally regulated financial institutions to publicly disclose their contributions to financial literacy initiatives. We would ensure that the Financial Consumer Agency of Canada works with willing provinces and territories to promote financial literacy to youth in particular. As well, we would designate November as financial literacy month.

Everybody agrees that those are things to do, but surprise, surprise, the folks across the floor do not think we are doing it properly. Welcome to Parliament.

Our Conservative government supports today's motion, as we support improving financial literacy to assist Canadians achieve greater control over their own finances.

Our economy is built on the millions of financial decisions that Canadians make every day. More than 60% of total spending in Canada's economy, which is the lion's share of our economy, is consumer spending. Investment and consumer spending go hand in hand. They create jobs, growth and wealth. Improving financial literacy helps consumers act knowledgeably and with confidence in managing their personal financial affairs. That is why ensuring that all Canadian consumers have access to the right tools and the right information is so important. It will allow them to make choices that best serve their interests, especially younger Canadians.

As Steve McLellan, head of the Saskatchewan Chamber of Commerce recently observed:

...an element of the whole person certainly is the writing and the reading, but it's also to be able to plan their own life and manage their own [finances]....

A good foundation of financial literacy, including an understanding of personal budgeting and the impact of interest rates, can help our young people successfully manage their money now and build a higher quality of life in the future.

Whether it is a question of saving for retirement, financing a new home or balancing the family budget, improving the financial literacy of Canadians would add to our competitiveness, the stability of our financial system and the strength of our economy. That is why, as outlined in budget 2009, Canada's economic action plan, we put a plan in motion to build a cohesive strategy on financial literacy, starting with the creation of a task force on financial literacy. This builds on our government's already strong actions in this regard.

For example, in budgets 2007 and 2008, we provided the Financial Consumer Agency of Canada with new funding to undertake financial literacy initiatives, focusing initially on youth. This included a partnership with the British Columbia Securities Commission in developing The City, a web-based high school financial literacy program available across the country. This strategy of boosting the financial knowledge of Canadians goes hand in hand with our Conservative government's ongoing leadership to enhance consumer protection for Canadians using financial services.

For instance, to help out consumers of credit cards, we introduced measures in 2009 that require clear and simple information on credit card application forms and contracts, and timely advance notices of changes in rates and fees. Just today it was announced that we are taking action on unsolicited credit card cheques, something that is overdue. We also limited credit card business practices that are not beneficial to consumers. We established a 21 day minimum grace period for new purchases made with a credit card and limited some debt collection practices. These measures were widely applauded by consumer groups. The Consumers Association of Canada gave them high marks remarking, “they will address the key consumer concerns in the market without having unexpected adverse consequences for consumers”.

A strong and stable financial system also depends on the ability of its users to make informed decisions. That is why our Conservative government launched the task force on financial literacy, to make recommendations on a national strategy to improve financial literacy in Canada. The task force delivered its final report in February 2011. We are working to implement many of its recommendations.

In fact, Bill C-28 is before Parliament as we speak. Bill C-28, the financial literacy leader act, responds to the central recommendations of that task force report by calling for the appointment of a financial literacy leader to spearhead the government's ongoing role in strengthening the financial literacy of all Canadians.

While the task force acknowledged that excellent work was being done across Canada to improve financial literacy, more can always be done. In fact, the report's number one recommendation was as follows:

The Task Force recommends that the Government of Canada appoint an individual, directly accountable to the Minister of Finance, to serve as dedicated national leader. This Financial Literacy Leader should have the mandate to work collaboratively with stakeholders to oversee the National Strategy, implement the recommendations and champion financial literacy on behalf of all Canadians.

I believe that our Conservative government's outstanding record of promoting financial literacy and consumer protection would only be enhanced by this appointment which would coordinate our efforts to ensure that they remain effective.

As the task force report tells us, improving financial literacy in Canada will “require a focused, centrally recognized champion. Clear leadership and coordination are needed at the national level. Sustained, steady progress over the long term is unlikely to be achieved without dedicated stewardship”. I am confident that the appointment of a financial literacy leader would achieve these goals in coordination and bring us further to the worthy goal of the member for Edmonton—Leduc of improving financial literacy in Canada.

I spent 12 years before coming to Parliament as an investment adviser, stockbroker and branch manager. My wife and son are still in those roles. Most people are too busy to pay close attention to their investments. That makes sound financial advice very important. Financial literacy though, makes the average investor more comfortable with what that financial advice means.

If an investment adviser cannot explain an investment to the understanding of the average investor, then the investment is probably a bad idea. Sound and effective investing is not rocket science. Neither is financial literacy. It simply takes an effort by those giving advice and a reasonably informed investor. At the very least, people should read books like The Wealthy Barber.

Our government's commitment to financial literacy through programs that will be started as a result of Motion No. 269, and the expertise of a financial literacy leader will provide an important step forward for Canadian families. Statistically, only 51% of Canadians maintain a budget and 31% struggle to balance their books and pay their bills.

Let me conclude by saying that our government has shown its faith in the long-term effects of financial literacy on the well-being of Canadians and the Canadian economy by increasing funding of financial literacy initiatives on an ongoing basis. We remain committed to doing everything we can to help Canadians as they prepare for a healthy financial future. We are doing things almost on a daily basis. I just mentioned the unsolicited credit card cheques. We also took action today to introduce a mortgage code to help Canadians better understand what a mortgage means because that can be a fairly confusing financial transaction. Obviously, it is probably the most important or biggest financial transaction that most people will make.

I certainly applaud my colleague from Edmonton—Leduc for bringing this motion forward. It is one that I sense will be supported, notwithstanding the typical rhetoric we get that is just part of this place and I understand that. I strongly recommend that all members vote in support of this motion.

Financial Literacy Leader Act

[Raymond Côté, NDP, Beauport—Limoilou, QC]

Mr. Speaker, I wish to congratulate my hon. colleague on her speech on such an important topic.

In my speech yesterday on the same topic, I spoke at length about the government's reprehensible abandonment, which Bill C-28 will definitely not resolve. What really troubles me is that, because of this abandonment, and because of the complexity of the financial products coming on the market more and more, many people have become victims of their own lack of knowledge and inability to face the music.

Is the government not trying to heap blame on the very people who are likely to lose out here, who will become victims of abuse of these products?

[Laurin Liu, NDP, Rivière-des-Mille-Îles, QC]

Mr. Speaker, I am pleased to have this opportunity to speak to Bill C-28, An Act to amend the Financial Consumer Agency of Canada Act, which would create the position of financial literacy leader to strengthen Canadians' financial literacy. This initiative was inspired by a report from the task force created by the Conservative government and chaired by bankers, including Donald Stewart of Sun Life Financial and Jacques Ménard of BMO Nesbitt Burns.

I went through the literacy report that was released in February 2011. To my great surprise, it contained not a word about credit card companies' quasi-usurious interest rates, not a word about financial institutions' lack of transparency concerning their fees, not a word about the questionable practices of banks that demand exorbitant fees when people try to pay off their mortgages early. Do not expect to find a mea culpa in this report from bankers who have sold highly speculative toxic financial products for years and continue to do so. Honestly, I was very disappointed.

The Conservatives keep telling us that consumers get themselves into debt because they do not know how to read a credit contract. But the government is ignoring the fact that annual interest rates on credit cards are often around 20%.

I would like to quote from the evidence given by a few individuals who expressed concern about this bill. First of all, Ken Georgetti of the Canadian Labour Congress said, “Canadians need better government policy rather than lectures on how to save money.... This report heaps blame on 'uninformed' individuals, and completely ignores the predatory behaviour of financial institutions.”

Jim Stanford of the CAW said,“Many financial literacy programs devolve into admonishments for individuals to save more. This is misplaced....”

Lauren Willis, a professor at Loyola Law School in the United States, also denounced the government's approach. She said, “When consumers find themselves in dire financial straits, the regulation through education model blames them for their plight, shaming them and deflecting calls for effective market regulation.”

The ministers of this government like to rise here in the House of Commons and tell us that it is up to Canadians to save and plan for their futures. Those same ministers then turn around and slash social programs like the ones designed to ensure a decent retirement for our seniors.

For instance, instead of strengthening the public pension system, they created a pooled registered pension plan, which will only encourage investors further to choose risky private funds and stock markets.

We also know that the Prime Minister told the bankers in Davos that he was going to make cuts to the old age security program and that one way he was going to do so was by increasing the eligibility age from 65 to 67.

Last week, I held a public consultation in the town of Boisbriand in my riding. I can tell you that people are very worried about the fact that the government refuses to take responsibility where the financial security of our seniors is concerned.

It is not up to the public to pay for the Conservatives' F-35s. It is not up to the public to pay for the tax credits that are given to corporations.

With the creation of pooled registered pension plans, the dismantling of old age security and the reinforcement of tools for small investor autonomy, the Conservatives' message is very clear: the government, as they see it, does not need to look after the financial security of seniors and retirees. That approach makes no sense.

For Barrie McKenna of the Globe and Mail, “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”.

The other problem is that households with a high debt load often do not have the means to use these individual retirement planning mechanisms. Some 30% of Canadian families do not have any retirement savings outside the Canada pension plan.

As Jim Stanford of the CAW clearly observed, personal savings will never be a significant source of financial security for most Canadians since they are unable to save as a result of their low incomes.

It is all well and good to encourage personal saving, but it is this government that caused Canadians to lose well-paid jobs, particularly in the manufacturing sector, and replaced them with unstable jobs. It is under this government that Canadians' quality of life has declined. Single mothers who struggle to put something away for retirement are not to blame. Students in debt who cannot count on secure employment when they graduate are not to blame. And the seniors whom the government is asking to work two more years even though it knows that many of them not capable of doing so are certainly not to blame.

The New Democrats have a better plan for financial security at retirement. We are proposing that the government strengthen the guaranteed pension plans in Canada and Quebec and gradually double benefits in an affordable manner, thereby giving Canadians an acceptable level of guaranteed income during retirement. These are the general circumstances surrounding Bill C-28.

In the time I have remaining, I would like to address two other issues: the bill adds a useless bureaucratic institution and it does not require the candidate to be bilingual.

Given that Canada's current consumer protection regime is extremely fragile, I fail to see how adding a new layer of bureaucracy will help consumers. Without any real political direction, guidance on how to increase financial literacy or accountability mechanism, there is no reason to believe that the financial literacy leader will have the tools needed to carry out his mission. As the hon. member mentioned, this bill does not even include a definition of financial literacy.

At a time when the Conservatives are preparing to cut government programs by 10%, it does not make any sense to create another bureaucratic structure responsible for protecting consumers. If the government really wants to invest in protecting consumers, why does it not simply support the Financial Consumer Agency of Canada, Option consommateurs or the Réseau de protection du consommateur du Québec?

I am thinking of an organization in my riding, the Lower Laurentians ACEF, which does an excellent job of teaching budgeting on a low income. This organization really helps the people in my riding. As an aside, I cannot help but criticize the fact that the bill does not explicitly state that the financial literacy leader must be bilingual. The past actions of this government betray its insensitivity towards French. Members will recall that this government did not hesitate to appoint judges and an auditor general who do not know French.

In the circumstances, it is understandable that the official opposition will try to amend the bill to ensure that bilingualism is one of the job requirements. Yes, financial literacy is very important, but this is not the type of debate that we should be having right now in the House of Commons. Furthermore, creating the position of financial literacy leader is a false solution. This new bureaucratic creature does nothing to allay the growing financial concerns of small investors.

We believe that the best way to support consumers is to create a department or agency that would be a one-stop shop for all consumer protection issues. This organization would cut down on bureaucracy because it would consist of structures that already exist, but are scattered throughout government.

I will now take questions from my hon. colleagues.