Bill S-5 (Historical)

Financial System Review Act

An Act to amend the law governing financial institutions and to provide for related and consequential matters

This enactment amends a number of Acts governing financial institutions. It also amends legislation related to the regulation of financial institutions. Notable among the amendments are the following:
(a) amendments to the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act and the Trust and Loan Companies Act aimed at reinforcing stability and fine-tuning the consumer-protection framework; and
(b) technical amendments to the Bank Act, the Cooperative Credit Associations Act, the Insurance Companies Act, the Trust and Loan Companies Act, the Bank of Canada Act, the Canada Deposit Insurance Corporation Act, the Canadian Payments Act, the Winding-up and Restructuring Act, the Office of the Superintendent of Financial Institutions Act, the Payment Clearing and Settlement Act and the Financial Consumer Agency of Canada Act.

[The Speaker, Andrew Scheer]

I have the honour to inform the House that a communication has been received as follows:

Rideau Hall

Ottawa

March 29, 2012

Mr. Speaker:

I have the honour to inform you that the Right Honourable David Johnston, Governor General of Canada, signified royal assent by written declaration to the bills listed in the Schedule to this letter on the 29th day of March, 2012, at 2:06 p.m.

Yours sincerely,

Stephen Wallace,

Secretary to the Governor General

The bills assented to are: Bill C-34, An Act for granting to Her Majesty certain sums of money for the federal public administration for the financial year ending March 31, 2012; Bill C-35, An Act for granting to Her Majesty certain sums of money for the federal public administration for the financial year ending March 31, 2013; and Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters.

Finance

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

Mr. Speaker, I have the honour to present, in both official languages, the seventh report of the Standing Committee on Finance regarding Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters.

The committee has studied the bill and has decided to report the bill back to the House without amendment.

Business of the House

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

Mr. Speaker, on the contrary. It has been suggested in the past when we have had budgets on Thursdays that we were doing that so we could go out and talk to Canadians about it for several days. Clearly, our interest is to tell Canadians about our economic action plan 2012 which is focused on keeping taxes down and creating jobs and economic growth for Canadians. We hope we will be able to speak about it a lot to Canadians. We are confident that they will see that we share their priorities strongly. I thank the opposition House leader for giving me the opportunity to explain that.

We will conclude this hard-working, productive and orderly week in Parliament by continuing debate on Bill C-31, the protecting Canada's immigration system act this afternoon and tomorrow. We will also debate that bill on Monday, March 26.

Next week is a constituency week where we will all be hard at work in our ridings.

The highlight of the week we return to Ottawa will be when the Minister of Finance rises in the House to present Canada's economic action plan 2012. That will be on Thursday, March 29 at 4 p.m. Canadians can look forward to our economic action plan which will include, as I indicated earlier, important measures focused on jobs and economic growth.

I understand that the Standing Committee on Finance agreed to a responsible work plan for its study of the financial system review act, Bill S-5 so that this House can pass the bill before Canada's banking laws expire in mid-April. Canada has the world's soundest banking system. It is important that we keep it this way. That is why I trust we will see a responsible approach to this bill in the House, similar to what we saw at committee. In anticipation of the bill being reported back to the House tomorrow afternoon, I will be giving priority to report stage and third reading of Bill S-5 on Tuesday, March 27 and Wednesday, March 28.

If we have additional time on those days, I hope we can finish second reading debate of Bill S-4, the Safer Railways Act, and then deal with Bill C-12, the Safeguarding Canadians' Personal Information Act, at second reading.

On Thursday, March 29, we will resume debating Bill C-24, the Canada–Panama Economic Growth and Prosperity Act, before question period. After question period, the House will turn to Bill C-15, the Strengthening Military Justice in the Defence of Canada Act.

Friday, March 30, shall be the first full day of debate on the budget.

Standing Orders and Procedure

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

Madam Speaker, I am not making any accusations; I am just pointing out the obvious. I have given one example of Bill S-5, which was unduly delayed by the NDP opposition. I have many more, but I will just give one because I know we have a limited amount of time here, and that is Bill C-11, the copyright modernization act.

We brought the bill in the same form that it was presented in the last Parliament, which had the bill before committee. When we reintroduced it in this Parliament, after 75 speeches, the NDP opposition still refused to send it to committee. Those members still said that they had more people wanting to speak to it. The ironic thing is they said, at the same time, that they thought the bill needed amendments. Well the committee is the place to make amendments, yet they refused to send it. They forced us into time allocation so then they could turn around and say that the government was being anti-democratic.

The strategy of the NDP is clear. We understand that. I think all Canadians understand it by now as well.

[Tom Lukiwski, Conservative, Regina—Lumsden—Lake Centre, SK]

One of my Liberal colleagues says he is getting a Twitter feed right now from one of the two individuals I just mentioned.

All kidding aside, these were two very experienced parliamentarians who were very knowledgeable about Standing Orders and chose to share their expertise at every opportunity in the House. I am glad to hear that they are watching this debate.

This is the fourth time we have had the opportunity to debate Standing Orders in this place. In 1982 a special committee on Standing Orders and procedures recommended that in each Parliament in the first session following an election there should be a debate on Standing Orders. In the past there were many suspensions of this debate, sometimes because of an early election, or prorogation or because there had been debates on Standing Orders in other forums.

To stand here today and debate the Standing Orders and to talk about some of the proposed changes that we would like to see is a healthy thing for democracy. It allows all backbenchers as well as frontbenchers to express their views on how we govern ourselves and the rules that we adopt.

I should also point out that many of the Standing Orders that we follow today have been around literally for decades, in some cases for 100 years. There are many Standing Orders that just need to be modernized, that is some of the ones our party will be advocating and some of them will be suggestions that we will bring forward to committee.

I will give the House a few illustrations of what I mean to try and give a sense got the rest of the members in this place of the type of modernization that we think is necessary.

Standing Order 16(4) says “When the House adjourns, members shall keep their seats until the Speaker has left the Chair”. That has not been observed for generations, so why have it at all? We suggest we may want to look at deleting that phrase.

There are also references in the Standing Orders to something called “dinner hour”. In previous Parliaments many years ago, Parliament sat during the afternoon and evening and there was a specified dinner hour. That does not happen anymore, but we still have the reference in the Standing Order. We feel modernizations, deletions of terms like that, which are somewhat archaic, are necessary to ensure we have Standing Orders that actually fit the time.

I want to focus most of my remarks on a couple of issues raised by my friends in opposition, primarily on time allocation. A lot of members in this place, and a lot of members of the general public, confuse the term time allocation with closure. They are completely different elements of the democratic process that we follow in Parliament.

With respect to time allocation, what I hear from members opposite is that our government has used time allocation indiscriminately, that we have used it to try and advance our agenda without consideration to debate or to members comments opposite. In fact, nothing could be further from the truth.

My colleague and my friend, the chief opposition whip, said that time allocation should only be used in cases where the opposition tends to filibuster a bill. That is exactly what has been happening. We have seen time and time again with pieces of legislation that our government has introduced the opposition quite clearly and openly demonstrate to Parliament and to Canadians that it has no interest in simply debating the bill. It simply wants to delay the passage of the bill and if it had the opportunity, it would, with apologies to Quentin Tarantino, kill the bill. That is not democratic. That is simply an opposition trying to run roughshod over Parliament.

We have a democracy in the country that elects governments. We have been fortunate. We have been graced to have been given a majority government by the people of our country. Therefore, we feel very compelled to advance our legislative agenda as quickly as we can after adequate debate. However, the opposition does not believe in normal or adequate debate. It wants to delay, delay, delay and obstruct, obstruct, obstruct.

I will provide just two examples of many which prove my point.

The first example is Bill S-5, a financial institutions bill. This bill, quite frankly, is almost pro forma. The bill comes before Parliament once every five years. Its intent is to merely ratify the rules and regulations of financial institutions in Canada. In the past number of Parliaments that have dealt with Bill S-5, debate has primarily lasted one day. Usually one speaker from each party makes comments, the bill is referred to committee, in which members look at the legislation to ensure that all of the elements of the legislation in the bill are unchanged, and it is passed. Without doing so, the regulations that govern our financial institutions would basically be gone.

This bill is non-controversial and it is one that should be passed quickly. However, when we asked our friends in the opposition, primarily the official opposition, the NDP, they demonstrated absolutely no willingness to accommodate the quick passage of it out of this place and into committee so we could ensure our financial institutions would have the ability to perform as they always have. That is obstruction.

Bill S-5—Time Allocation Motion

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Madam Speaker, I have been a house leader. I have gone through majority and minority governments. I have dealt with government House leaders, both Conservative and New Democrat. I can honestly say that I have never yet experienced a government trying to incorporate time allocation as a standard procedure. That is actually what the government is doing.

It does not matter how long a bill has been debated for, it is standard procedure. That is what I see this government House leader moving toward, if he is not already there. Canadians need to be aware that it is not democratic. The government needs to sit down and start working with opposition House leaders in order to negotiate matters.

In the past, numerous government House leaders provided all the bills that they wanted to talk about. They worked with the opposition as to when they would like to see which bills go through. Some are dated, like Bill S-5, which is relatively non-controversial and should be able to pass through relatively quickly. For other bills, such as the Canadian Wheat Board or the pooled pension plan, time allocation should be put off until well after the opposition has been afforded the opportunity to legitimately debate the issue.

I ask the government House leader with all sincerity if he does not see the merit of working with opposition House leaders to have better, more functional House proceedings that would allow for adequate debate on those bills that are important to Canadians.

As I say, we do not have a problem with Bill S-5 going through. Where we have a problem is that this particular government House leader is so focused on making time allocation standard procedure. This is not healthy for the House of Commons.

[Joe Comartin, NDP, Windsor—Tecumseh, ON]

Madam Speaker, I am just amazed that the House leader of the Conservative party thinks I have that kind of control or sway over my caucus. The reality is I have a number of members of our caucus who want to speak on this bill. Madam Speaker, you have the list in front of you today. They want to address this bill. Part of the reality is, we have a large new caucus here. Maybe the Conservatives could have asked us why we have that large new caucus, rather than spending $16,000 on it. Caucus members want to communicate to their ridings what their positions are on any number of bills, including S-5.

I want to go back to the point that my colleague from the Liberals raised. This really is about the incompetence of the government House leader. The government knew the April 20 deadline was there since Parliament came back. It is there. It is the reality. By moving the bill at a much earlier stage, the government House leader could have accomplished what he needed to accomplish in order to meet that deadline. Therefore, why do we see this bill at the last minute, forcing us to be confronted with a time allocation motion? That is not the way to be the general manager in the House. The fact that we are faced with this is his responsibility, not that of the opposition. Not at all.

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, the past few weeks have given us an opportunity to see exactly what the strategy of the official opposition is. It is one of seeking to simply run up the score by compelling the government to resort to time allocation in order to advance any proposition.

We had to resort to time allocation with respect to the pooled registered pension plan bill. That bill is broadly supported by every province and generally is seen as non-controversial. However, it was impossible to get any agreement from the official opposition on the length of time for debate.

We saw it with the copyright bill. The identical bill in the previous Parliament went to committee after seven hours of debate. After 75 speeches here in the House, the official opposition simply had not shown any willingness to come to any agreement on the number of speakers it would require before sending the bill to committee where the detailed study could actually occur and it could advance. That is an important bill for the economy, the high tech sector and for job creation. Again, it was impossible to get that bill to advance without resorting to time allocation.

We see the same thing with Bill S-5. A highly technical bill comes along every five years. The last two times it has come along all the parties have agreed to send it to committee after one day of debate. We could not get any agreement out of the NDP. Those members would not ever provide us with a single list of the number of speakers they had, the number of days they wanted for debate. The Liberals, in fairness, did. They were in agreement with approaches to move this matter forward. The only way to move this legislation forward is to resort to time allocation again because the NDP simply will not co-operate.

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

moved:

That in relation to Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters, not more than one further sitting day shall be allotted to the consideration at second reading stage of the said bill; and

At fifteen minutes before the expiry of the time provided for government business on the day designated for the consideration of the said stage of the said bill, any proceedings before the House shall be interrupted, if required for the purpose of this order, and in turn every question necessary for the disposal of the said stage of the bill shall be put forthwith and successively without further debate or amendment.

Bill S-5--Notice of Time Allocation Motion

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

Mr. Speaker, Bill S-5, the financial system review act, is a very important and generally uncontroversial bill.

The NDP member for Dartmouth—Cole Harbour has even said that his party would be supporting it at second reading, probably even at third reading. The hon. member for Wascana has described it as routine.

It is very important that the bill pass by April 20, so that Canada's financial system can continue to operate and be the world's soundest banking system.

To accommodate sufficient time for committee study, which members in debate so far have said is their most important priority, I have attempted to seek an agreement with the other parties, including two offers made right here in the House. Unfortunately, it appears that the New Democratic Party is simply looking to run up the score and force as many time allocation motions as possible, even on routine bills it says it will support.

For that reason, I am compelled to advise that agreement could not be reached under the provisions of Standing Order 78(1) or 78(2) with respect to the second reading stage of Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters.

Under the provisions of Standing Order 78(3), I give notice that a minister of the Crown will propose at the next sitting a motion to allot a specific number of days or hours for the consideration and disposal of proceedings at the said stage.

Criminal Code

[Peter Van Loan, Conservative, York—Simcoe, ON]

Mr. Speaker, as you know, the House has before it Bill S-5 that deals with the banking system. It has in it a sunset clause which is coming up later this spring, so we need to get the bill through in a timely basis. I noticed that all parties seem to be in support of it.

The member for Wascana says, “the legislation is rather routine”.

The member for Brossard—La Prairie says, “We would definitely like to examine this bill more closely when it is sent to the Standing Committee on Finance”.

Everybody seems to want to support it and get it to committee for as much study as possible and as quickly as possibly so we can respect our obligations. I have been trying to get an answer from the official opposition on what we could do.

In that spirit, again I offer the following motion about which we have had discussion. I hope this time we will have unanimous consent for this motion. I move: That, notwithstanding any Standing Order or usual practice of the House, Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters, shall be disposed of as follows: not more than one further sitting day shall be allotted to the second reading stage of the bill and at the end of government orders on the day allotted, the bill shall be deemed read the second time and referred to the Standing Committee on Finance, and if the bill has not been reported back to the House by Wednesday, March 28, 2012, during routine proceedings, it shall be deemed reported back without amendment; when the order for consideration of the report stage of the bill is called, the bill shall be deemed concurred in at report stage without amendment, and a motion for third reading may be made immediately, and not more than one sitting day shall be allotted to the third reading stage of the bill provided that the motion for third reading shall not be subject to amendment, and at the end of government orders on that day or when no further member rises to speak, the bill shall be deemed read a third time and passed.

I hope this time we will see favour for that motion.

Business of the House

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

Mr. Speaker, I would like to begin by re-extending my invitation to the opposition House leader to actually move forward on some of the most non-controversial bills before the House. For example, Bill C-28, the Financial Literacy Leader Act, will help to promote and enhance the financial literacy of Canadians. I know this is an issue that the NDP has often raised in the past, especially the member for Sudbury. I look forward to hearing a proposal from the NDP on how much debate it would like to see on that non-controversial bill before moving it to committee.

What will disappoint Canadians is what we saw this morning when the NDP rejected a responsible work plan based on the views actually expressed by all parties right here in debate last week to pass Bill S-5, the Financial System Review Act, before Canada's banking laws expire in mid-April. Again, the NDP House leader is apparently blocking the will of the members of his own party, who are responsible for the legislation, on how it should be dealt with in the House.

Nevertheless, we will give the NDP another chance. We have asked for a debate on this bill next Tuesday. I hope that we will be able to move forward then and refer the bill to committee.

When we returned to Parliament last month, I laid out our government's plan for a productive, hard-working and orderly House of Commons. We are going to continue in that direction. Unfortunately, we have also seen the NDP lay out its own plans for the House. It wants to force the government to resort to time allocation in every case possible in the hope of running up the score. It wants to be able to quote the number of times the government has been forced to resort to time allocation to get bills advanced in Parliament. For this, it has refused to agree to processing even the most non-controversial bills, or in the case of the copyright bill, one that had only seven hours of debate before we all agreed to send it to committee in the last Parliament. This time, even after 75 speeches on the identical bill, it refuses to let it go to committee for detailed examination.

While the NDP hopes that this statistic, the running up of the score that it is forcing, will somehow help it in the next election, what the number actually stands as proof of is the NDP's commitment to paralyze Parliament, to obstruct and delay to the maximum and to refuse to co-operate on even the simplest, most straightforward and broadly supported legislation.

We demonstrated that yesterday with Bill C-11, An Act to amend the Copyright Act. We had to take action once we realized that a co-operative solution was not viable. Seventy-five speeches later, the end was still not in sight. During the previous session, an identical bill was sent to committee after just seven hours of debate, as I said.

Tomorrow, we will have the eighth and final day of debate on second reading of Bill C-11, An Act to amend the Copyright Act, which would protect high-quality jobs in the digital and creative sectors. This bill is important to Canada's economy. Today, we will complete debate on the New Democrats' opposition day motion.

I am pleased to inform the House that on Monday and Wednesday we will deal with third reading of Bill C-19, Ending the Long-gun Registry Act. Next Wednesday night, we will have a momentous vote to end the wasteful and ineffective long gun registry once and for all.

Finally, Mr. Speaker, I can advise that I will be scheduling Friday, February 17, as the day, pursuant to Standing Order 51, on which the House will hold a day of debate taking note of the Standing Orders and the rules of this House and its committees. I also want to say that Thursday, February 16, will be the third allotted day.

Canada's economic stability and advantage in these uncertain times depends on political stability and strong leadership. That is why we will continue to manage the country's business in a productive, hard-working and orderly fashion.

Railway Noise and Vibration Control Act

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

Mr. Speaker, I have been making considerable efforts to invite other parties to arrive at workable approaches to dealing with bills before the House. In fact, I have asked them on specifically 10 bills to agree to work plans. I am particularly optimistic on one bill and that is Bill S-5, because speakers from all parties have indicated that they are willing to move forward quickly.

Therefore, based on those speeches, we have proposed the following work plan in this motion, for which I hope there will be unanimous consent. I move: That, notwithstanding any Standing Order or usual practice of the House, Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters, shall be disposed of as follows: The bill shall be deemed read the second time and referred to the Standing Committee on Finance; if the bill has not been reported back to the House by Wednesday, March 28, 2012, during routine proceedings, it shall be deemed reported back without amendment and when the order for consideration of report stage of the bill is called, the bill shall be deemed concurred in at report stage without amendment and a motion for third reading may be made immediately and not more than one sitting day shall be allotted to the third reading stage of the bill provided that the motion for third reading shall not be subject to amendment and that at the end of government orders on that day, when no further member rises to speak, the bill shall be deemed read the third time and passed.

This would allow ample time for study at committee.

Business of the House

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

First, let me wish you, and all honourable members, a happy new year. I am looking forward to working with all members of Parliament of all parties to address Canadians’ priorities to the benefit of all Canadians.

In response to the first question from my friend with regard to management of House business and ensuring things actually do make it to votes in the House, I understand that the opposition has adopted a posture where it intends to run up the score. We have had now 13 or 14 occasions where it has refused to come to any reasonable agreement on any length of debate, or on any limitation on the number of speakers. Every time we run up to the point where we are looking at over 50, 60, 75 or 80 speakers, it becomes apparent that its intention is simply to bring paralysis and gridlock to the House.

It is not surprising. The opposition looks to its friends in Europe and in the United States and that is what it sees. That is not our approach. Our approach is to ensure that we have an orderly, productive and hard-working House that actually delivers results, and we will continue to do that.

Of course, our government's top priority is, and remains, jobs and economic growth.

Of course, our government’s top priority remains jobs and economic growth. Tomorrow, we will start debating second reading of Bill S-5, the Financial System Review Act. This bill will maintain and improve the stability of Canada’s banking system, a system that has been named the world’s soundest banking system four years in a row by the World Economic Forum. This bill needs to be law by April, so it is important to have timely passage.

Bill C-11, the Copyright Modernization Act, will provide a boost to the digital and creative sectors, which employ Canadians in high-quality jobs. This is another bill that the opposition has opposed and has tried to delay. There have already been 75 speeches debating this bill.

In context, this has been the subject of 75 speeches already in the House and a vote on a motion that it never go to second reading. It is clear what the strategy is. The identical bill in the previous House went to committee after just a few hours. Obviously, the opposition is implementing its strategy of simply running up the score and forcing the government to impose time allocation in order to get anything through the House. That being said, we want to see it go through the House.

I will be calling Bill C-11 for further second reading debate on Wednesday and next Friday. I look forward to concluding the debate and moving the bill to committee, where bills are traditionally studied in detail.

I would be pleased and delighted if they would come to an agreement to limit debate. I have invited them to do that many times. They have never come forward with any proposal on the number of speakers they would like. I invite them once again to present that to us and to do it here in the House.

I am also pleased to advise the House that next week we will start the final stages of scrapping the ineffective and wasteful long gun registry once and for all. I will be calling report stage debate on Bill C-19, Ending the Long-Gun Registry Act, on Monday and Tuesday.

Finally, I wish to designate Thursday, February 9, as the second allotted day.

Message from the Senate

[The Acting Speaker, Barry Devolin]

I have the honour to inform the House that a message has been received from the Senate informing the House that the Senate has passed Bill S-5, An Act to amend the law governing financial institutions and to provide for related and consequential matters.