Finance Committee on Sept. 24th, 2012

[Scott Brison, Liberal, Kings—Hants, NS]

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you, Mr. Brison.

We'll go to Mrs. McLeod, please.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Thank you, Mr. Chair.

I think I need to go back and reflect on some of the comments of my colleagues that really we were just creating a job description and doing nothing more.

First, and I think Mr. Rudin did talk about it a little bit, to actually create this role within legislation as opposed to a position being created.... Could you perhaps talk about that?

I also note that this legislation also adds to the existing objects of the Financial Consumer Agency of Canada.

Perhaps you could speak to those two things and really share why this is such a great and important first legislative step in terms of moving forward on this particular initiative.

[Jeremy Rudin]

Thank you. I'd be glad to.

As we've been discussing, the government's decision was to create a financial literacy leader position and to create it within the Financial Consumer Agency of Canada. The duties of the financial literacy leader are spelled out in the legislation. It's important that these be commensurate with the responsibilities of the Financial Consumer Agency of Canada, so they are emended to ensure that these two things fit together well.

In terms of the position itself, as we were discussing, the government's view is that this is an important and high-profile position; that it's appropriate, then, that the duties and responsibilities be enshrined in legislation; and that the position be a Governor in Council appointee, chosen by the Governor in Council on the recommendation of the Minister of Finance, and then subject to all of the procedures and rules that go along with a Governor in Council appointee. That requires legislation.

I think, as we've been discussing, this is designed to ensure that the position will be of interest to and will attract a highly competent person and will provide them with the imprimatur of a GIC appointment on the minister's recommendation so that it will be clear that this person speaks for the Government of Canada on this issue and is by no means a minor functionary appointed by someone other than a minister or the Governor in Council.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Thank you.

To Ms. Menke, certainly it looks like your group has done some fantastic work in terms of financial literacy, but perhaps you can speak to what some of your constraints have been and why you believe this will be helpful in terms of furthering that particular section. As I go to your website, I see a whole realm of responsibility. This must have been a very important but sidebar piece of the actual work that your agency does.

[Ursula Menke]

Well, I think what it does is it enables us to expand our work in new directions. Given the budget that we had, we were somewhat constrained. I mean, as far as I'm concerned, it's the more the merrier, if you will.

We're very excited about this because we're able to do things that we really didn't have the resources for before, and we'll have someone who will really focus. I am very excited to get the person who is going to really spend their time on this who has a profile, who has the ability to get people's attention and to “sell”, if you will, financial literacy. But it's not really a matter of selling financial literacy; it's that little bit of extra to convince people that they need to do it. We haven't been able to get into the community groups as much as we would like to because there are so many of them and they're so dispersed.

Employers are another area that we would really like to focus on in terms of “What are you doing for your employees?” We talked about the portal, about the ability to do that, to start that, to get that resource in place so that the financial literacy leader can go to people and say, “Look, here's what is available. Don't do another resource yet. Spend your time on delivery.” The real challenge in financial literacy is not so much the resources as it is the delivery.

We have the opportunity to really move that part of the agenda forward, so I'm very excited about this.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Do I have any more time?

[The Chair, Conservative, James Rajotte]

You can ask a very brief one.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

I have a quick question.

There are lots of resources, it sounds like. Is there good research in terms of effectiveness of programs, or is that another piece?

That's probably way too long for ten seconds.

[Ursula Menke]

We're working on it. How's that?

This is a very difficult area. It isn't easy to determine what works in education, because it's difficult to isolate cause and effect. We're working on trying to test at least to make sure that we do get results from the products that we do have.

[Cathy McLeod, Conservative, Kamloops—Thompson—Cariboo, BC]

Thank you.

[The Chair, Conservative, James Rajotte]

Thank you very much, Mrs. McLeod.

I want to thank all of our witnesses for being here today from the Department of Finance and the Financial Consumer Agency of Canada. We appreciate your efforts.

I should give the website for FCAC. It's www.fcac-acfc.gc.ca, if anyone wants to survey and research that on their own.

Thank you so much for being with us.

Colleagues, we will see you on Wednesday afternoon at 3:30.

Thank you. The meeting is adjourned.