First of all, the provision that Quebec has recently abolished was different from the one that the federal government is now presenting. I feel that the government is on the wrong track by treating credit unions and caisses populaires simply as small businesses. They operate in the financial sector and they presently compete with private institutions like the banks. The officials and the witnesses we heard from spoke very eloquently about the role of credit unions and caisses populaires, especially in small municipalities.
I represent a constituency that is largely rural; credit unions are to be found in many of its small municipalities, but no other financial institutions. In those communities, credit unions play a role that no bank can play in terms of regional investment and community involvement. The number one task for a bank is to make a profit, which is quite legitimate. Credit unions and caisses populaires play a very different role, one that involves extra costs.
This supplementary credit reflects the unique role of credit unions, and the measures that the government has proposed for caisses populaires and credit unions runs counter to that role. The measures will get in the way of that role, a role that cannot be played by private financial institutions. They will automatically make caisses populaires and credit unions much less competitive; the two will not be playing on a level playing field or by the same rules.
For that reason, we urge this committee to set aside these proposals and, if appropriate, to evaluate the role of taxation for caisses populaires and credit unions. It needs to be done in a much more comprehensive, much more complete way, so that we are able to see how the roles of these institutions differ.