Mr. Chair, during the committee hearings we heard significant testimony on this area from the credit unions. They are extremely concerned about the impact this tax hike is going to have on credit unions. It will hinder their ability to compete with the big banks.
The largest of the credit unions in Canada is one-sixteenth of the size of the smallest of the big banks, and the credit union sector is a key sector in Canada's financial community. It represents 5.2 million Canadians outside of Quebec who belong to credit unions, many of whom are in communities where a credit union is in fact the only financial institution. Canadians have long appreciated the structure provided by credit unions as an alternative to the major banks. They appreciate the community service that credit unions offer. Credit unions get engaged in local initiatives. They're very generous in terms of their donations and sponsorship of various community activities. The fact that credit unions were not consulted about this change has created significant uncertainty for many credit unions and for the Canadians who rely on the services of credit unions.
I know in my own riding I have had meetings with the credit unions. They have expressed grave concern about the impact of this change. It's a shock to the credit unions, which don't have the ability to go out and just raise money on the markets, as the banks do. They get their money from their members and they invest that money and try to see it grow over time. They perform a very different role for Canadians in the financial sector.
I want to strenuously oppose clause 12 in part 1 and urge the government to reconsider.