Mr. Speaker, it is good to have you here as we enthusiastically finish this part of the House of Commons day. This is an interesting debate that we have had with regard to the banks.
The first thing we want to note is that the bill s not thorough enough in its current form. We will support it to get it to committee but we will be looking for amendments. A lot of things are missing in this, such as an opportunity to address some of the unfairness that is happening in the Canadian financial institutions. I think that is important to recognize because it is actually affecting how we compete as a country. It is not just the individual elements related to user fees, ATM fees, credit rates and all those different things. It is also about how the use of capital is not being spread across this country, and where the priorities of the government are.
I would note that this industry getting this attention right now is rather interesting, coming late in the day, given the amount of profits and excess bonus fees that have gone to CEOs and the institutions, as well as the record tax cuts they have had. It is quite significant because it affects other parts of the Canadian economy. We lose money through our coffers.
This also gives an indication of where the priorities of the government are. It clearly has been to give the banks the upper hand, not only at the consumer level but also an economic advantage versus other industries that are suffering.
I would point out that we have not seen an action plan, for example, in the manufacturing sector. One of the things that is really critical to note is that in 2005, when the government came to power, we had a $16 billion trade deficit when it came to exporting and importing manufactured goods. So, a $16 billion deficit already behind, and now it has climbed to $80 billion. It is because of a number of successive trade deals that have taken place that have cost Canadian manufacturing, and we have not addressed many of the significant issues.
It is unfortunate because, as we were seeing the record tax cuts happening, we were witnessing hundreds of thousands of Canadian jobs being lost across Ontario and Quebec, whether it be in the forestry sector, the auto industry or the textile industry. We saw those industries, which were not profitable because of the downturn that took place and the lack of government policies, actually subsidizing the profits in the corporate tax cuts going to banks and other institutions.
As the corporate tax cut rate was being lowered and lowered, if companies were not making a profit it did not matter. While they were witnessing their opportunities diminish, the banks were getting benefits.
It is interesting that the oil companies and the banks in particular would get corporate tax cut reductions. The way it works in the United States is that it taxes on worldwide corporate profits. Therefore, our tax dollars out of Ottawa that were going to these profitable institutions that were making record profits were actually being taxed in Washington. It was getting our money. We were basically sending cheques from Ottawa to Washington. That is a strange economic way to improve a country. It is a strange way to actually benefit, even when we had the challenge in the United States with buy America.
We need to wonder what the Americans think about us over here, as we are actually handing them cash and, in the meantime, they are telling us that we cannot be involved in the buy America plan despite signing the NAFTA.
I would remind members of something that is very important. In a previous debate in this House, a member actually thought that the auto pact was in existence right now and that it came about because of the NAFTA. No. After we signed the NAFTA , one of the repercussions was that Japan took us to the WTO and the WTO ruled against Canada. We lost the auto pact. We lost all those jobs. We went from number two in the world in automotive manufacturing to number eight now, which is unfortunate. Those are value-added jobs.
When we see what is happening here in this sector, we need to wonder why we did not get certain things into the actual study. Part of it is that there was very little consultation. We note that there were only 30 submissions and 27 respondents with regard to this issue because it was not really promoted. If it does not get out there, people do not notice it.
That was the same type of approach we saw when the government did the deal with regard to the Canada and U.S. enhancement of the border perimeter security stuff that was recently announced. It was thrown up on a web site but there was no dialogue with the people presenting evidence and no expanding of the discussion.
It is the same problem we have had from this initial response. Hopefully, we will see that at committee because that is very important. It all depends upon the committee as whether there will be fairness with regard to witnesses, whether they will be heard and whether it will be done out of camera.
For those who follow the things that are happening on Parliament Hill, again today many committees met in camera, which means in secrecy, in private. Only the members who were at that meeting or another subsequent member sworn in later can go back and listen to that testimony again and get that testimony. Everything that is discussed in camera, unfortunately, never becomes part of the public record. We hope there will not be people in camera as witnesses, which would be unfortunate. However, I do not think it will go that far. We would like to see enough witnesses to ensure we will have proper hearings and a proper analysis.
One of the things I want to touch on is a consumer aspect because I have done a lot of work in the past on consumer issues. It is a good example of what we have addressed with regard to the changing world and our banking industry and financial institutions and privacy. In the United States, the patriot act was enacted and it is structured in such a way that when it goes to a company and asks for information about a person who has done business with that company, the company must provide that information to the U.S. government services and law enforcement. That information is used for whatever purposes. People do not have any ability to know that is happening because it is against the law for that company to disclose it.
Why is that important here today? Many of our financial institutions have data assembled in the United States. Therefore, because they are assembled in the United States, like my CIBC Visa, my Visa is now vulnerable to the patriot act without my knowledge and CIBC does not even know. It is used for whatever purposes. That is a good example of why we need an international treaty on the use of information. I do not think it is fair for Canadians to have their documents spied upon by Americans without a warrant. The way the PIPEDA works in Canada is that a warrant is needed to get that information. There is a check and balance through our justice system here. They can go after the cases where they think there are significant issues to look at but at the same time there is e the balance in review so tat people are not just having fishing expeditions done on them.
Why is that important? We have seen cases in the past, such as the Maher Arar case. He was deported but we did not know what information was assembled about Maher Arar. Some of it could have been his financial records or information. However, we had a lead government agency in the United States and a lead government agency in Canada conspire against a Canadian citizen and send him to a known torture state. We do not know, because of the patriot act, how all that took place and what information, if there was, was actually used. I believe we need an international treaty with the United States on how to share and disclose information because it has never been addressed. That took place in 2004. Our Privacy Commissioner has raised it, as have a number of different other people. It is important to recognize that.
Another important issue is the credit card fees. With regard to the honorary system we have now, it is simply outlandish. We cannot have this proprietary notion and predatory rates on credit cards, especially some of those that are the third party lenders. It is very significant. Some of them are at 25% to 27% and that is just wrong and should not happen. Some of the user fees, whether it be ATM or credit cards, all those are affecting our economy because the banks have not been re-investing that capital back into Canada to the degree where that money, if we stretch somebody's budget, would pay the rent, buy some clothes or send our kids to school, and would expand our purchasing power. We could do so on a more even basis if we were to look at those things because there is an economic opportunity for all of us.
