If Canada is to meet the challenges of a knowledge-based society and if Canada is to ensure a well-functioning marketplace, Canadian consumers must have the necessary skills in reading, writing and numeracy. According to the data for Canada to be found in the International Adult Literacy and Skills Survey of 2003, the performance of Canadians between the ages of 16 and 65 in literacy, numeracy and problem-solving is directly linked to their performance on the labour market. The unemployed and those outside the labour force have average results at Level 2 while the employed are at Level 3. These facts show a clear link between literacy and employability. Several of our own studies demonstrate an equally strong link between literacy and sound consumer choices.
Since Canada must absolutely develop a knowledge-based economy for the future, the Minister of Finance must pay special attention to literacy and numeracy training for the unemployed so that they can play an active role as workers and as consumers.
It is not only the labour market which is undergoing a major transformation; Canadian citizens are falling even deeper into debt. The most recent figures published by Equifax Canada for June 2009 show that an ever-growing percentage of Canadian consumers are unable to meet their credit card payments. The number of people falling behind in their payments has increased by 24%. Some of the practices engaged in by credit card issuers can encourage consumers to spend or borrow money. These include offering low introductory rates, cheques for advancing funds, lower minimum payments, options to waive payments and cash back on purchases.
Because many Canadian consumers have fallen prey to abusive practices by financial institutions that issue credit cards, the Minister of Finance must take firm action to regulate and supervise market practices in the area of credit costs and information disclosure.
The Canadian economy is on life support and many Canadians are in critical condition. We would therefore like to make the following three recommendations.
Firstly, the federal government should adopt income stabilization tax measures targeted at Canada's most vulnerable consumers, particularly single people, the elderly and single-parent families.
Secondly, as part of the reforms of the employment insurance system, the federal government should include literacy and numeracy programs to help build Canadians' financial understanding and capacity.
Thirdly, the federal government should honour its commitment to regulate credit, specifically by implementing the recommendations of the Senate committee, so as to create a level playing field for Canadian consumers.
Ladies and gentlemen, thank you for your attention. We will be pleased to take your questions.