Evidence of meeting #72 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was recommendations.
A video is available from Parliament.
Commissioner, Financial Consumer Agency of Canada
Certainly from our perspective that is the correct definition.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Indeed.
Conservative
The Chair Conservative James Rajotte
I appreciate that very much.
Then I also want to go page 5 of the report, which talks about the five priorities, and in particular the second priority of leadership and collaboration. I'm going to try to make my pitch to all of my colleagues as to why this bill is the best approach. I certainly acknowledge all of their support for my motion.
But I think this bill is the right approach in the sense of...since I introduced that motion, I've had hundreds of organizations and individuals from across this country, starting with FCAC but right on down to all types of volunteer organizations and individuals, contact me and say here's what I'm doing on financial literacy. I've been just amazed and incredibly enthused at the efforts that are going on across this country in schools, with adults and everybody else, in terms of trying to improve financial literacy.
One of the challenges that I've seen with all of this is that there's a lot of overlap. There are people doing programs for the same age groups, there are people doing adult programs, and if they worked together they would probably have one fantastic program.
There are a lot of best practices that we could be sharing and saying, “You know what, they're doing this program in Vancouver. Why don't we take that program and use it in St. John's, Newfoundland?”
To me that second priority of leadership and collaboration—that's why the financial literacy leader is required, and that's why the task force set it as their first recommendation. This person needs to be put in place, in part, so that I don't keep getting hundreds of e-mails that I have to try to respond to and coordinate. But it's so that the actions of the FCAC, the actions of Junior Achievement in Alberta, the actions of the city with respect to your program as well, the actions of individuals who write me—a mother who writes me from Kelowna and says here's the program I've done, here's the book I've written. Somebody has to pull all of this together, obviously within FCAC, but as Mr. Rudin says, we need that leader with the imprimatur of the Parliament of Canada, that position, to lead and collaborate all of this together. That's certainly my pitch for it and my understanding. I wonder if the two of you would comment on that.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I don't think I can improve on that, Mr. Chairman.
Commissioner, Financial Consumer Agency of Canada
The only thing I would say is that we're very anxious to get our hands on some of that money, as well as the leaders, so that we can actually do some of that. We think there's a real need for coordination. We've seen the same things you've seen, and we're looking forward, at a minimum, to starting by creating a portal to gather all that information, so that people know what is available.
We don't have an easy go-to source for that right now.
Conservative
The Chair Conservative James Rajotte
Mr. Rudin, in one of your answers you said there are a lot of the 30 recommendations that wouldn't be done by a finance bill but in fact would be done by another department or government agency. One example is the Canada Foundation for Economic Education. They have actually developed a book for new Canadians that tells them something about Canada on one page and then gives a little financial literacy advice on the other.
These are the kinds of initiatives you wouldn't put in a bill such as this, but they're actions by the government that have taken place. So the government is actually implementing the recommendations, but you will not see them all within this specific piece of legislation. I wanted you to expand on that point.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
That's it exactly, Mr. Chairman. You're doing too good a job for me to really say very much. That's the only problem.
I can say that although the recommendations of the task force are very good and the government is seeking to move ahead on them, very few of them require legislative change. That's why they're not represented in the bill.
Indeed, legislating some of them would be either redundant or irrelevant or would potentially slow down progress.
Conservative
The Chair Conservative James Rajotte
I have 30 seconds. I did want one or both of you—and perhaps I'll start with Ms. Menke—to address financial literacy with respect to our aboriginal communities across Canada. Do you want to address that briefly?
Commissioner, Financial Consumer Agency of Canada
We've undertaken some pilots on that and we're actually working with two cooperatives up north right now. We've prepared some special information for them. We have two modules done.
We are in the process this year of rolling out those two modules across the north, and we are planning to do more.
Conservative
The Chair Conservative James Rajotte
Thank you very much. I appreciate that.
I will now go to Mr. Brison, please, for a five-minute round.
Liberal
Scott Brison Liberal Kings—Hants, NS
Thank you, Mr. Chair.
There is currently a levy on banks that was brought in to help pay for the FCAC. Will there be a new levy on banks to help pay for the new financial literacy leader as well?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
The legislation provides the possibility—but not the necessity—for the commissioner to place an assessment on financial institutions in support of the financial literacy activities. Just as is the case with the other assessment or the existing assessment power, the commissioner is required to make a budget of certain plans and then adjust the assessment accordingly.
Because the government is also prepared to provide funding directly for financial literacy activities, the use of this assessment is not essential, but it is an option the commissioner will have.
Liberal
Scott Brison Liberal Kings—Hants, NS
So the budget of $3 million is from federal government funds, but the actual budget for the office could be higher depending on the amount levied on banks?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I should clarify that in recent years the government has provided the FCAC with $2 million a year from the consolidated revenue fund. That is ongoing. An additional $3 million a year on top of the $2 million will be available once the leader is appointed, and then there is, as I said, the option but not the necessity to raise additional funds through an assessment on the financial institutions in support of these activities as well.
Liberal
Scott Brison Liberal Kings—Hants, NS
Who will make that determination about the assessment on financial institutions? Who has the authority to do it?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
I will double check this. If the commissioner proposes, does the minister have to approve?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
So yes, the commissioner proposes an assessment level, as is the case with the existing assessment, and the minister must approve.
Liberal
Scott Brison Liberal Kings—Hants, NS
Okay.
Has there been a salary expectation determined for the director of the office?
September 24th, 2012 / 5:05 p.m.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Yes. If and when the legislation passes, there's a process to determine, in the context of or in comparison with other Governor in Council appointees, what the appropriate salary would be. This depends in large measure on the responsibilities that go with it.