Finance Committee on Oct. 1st, 2012

Evidence of meeting #74 for Finance in the 41st Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was amendment.

A recording is available from Parliament.

On the agenda

Bill C-28, An Act to amend the Financial Consumer Agency of Canada Act

MPs speaking

Also speaking

Eleanor Ryan Senior Chief, Strategic Planning and Trade, Department of Finance

Rambod Behboodi General Counsel, General Legal Services, Department of Finance

3:50 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Thank you, Mr. Chair.

In fact I respectfully disagree with my colleague across the way. Paragraph 3(2)(e) of the act actually already gives this authority, and I'll read it:

(e) foster, in co-operation with any department, agency, or agent corporation of the Government of Canada or of a province, financial institutions and consumer and other organizations, an understanding of financial services and issues relating to financial services

It is in fact already in the act and doesn't require repetition in another section.

I would ask a question of the witness, if I might. In 2010 the commissioner actually used her ability to consult an external stakeholder advisory committee. Was it not under that section of the act that she chose to do that?

3:55 p.m.

Senior Chief, Strategic Planning and Trade, Department of Finance

Eleanor Ryan

Exactly.

Under the existing framework of the legislation, the commissioner did establish and does actually currently have an external advisory committee made up of representatives from the public, private, and voluntary sectors. They meet twice a year. They provide the FCAC with advice and subject matter expertise. The FCAC, or the financial literacy leader and the commissioner, can look at the composition of the committee to make sure that it reflects the recommendations of the task force.

3:55 p.m.

Conservative

Shelly Glover Conservative Saint Boniface, MB

Thank you for the clarification.

Thanks, Chair.

3:55 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Mrs. Glover.

Mr. Mai, over to you.

3:55 p.m.

NDP

Hoang Mai NDP Brossard—La Prairie, QC

Actually, that's not really a concern. What it really comes down to is respecting the recommendations that were made. On the other side, I'd say we've been talking about that consistently. The first recommendation was indeed to have a leader. But the second was to have an advisory council, as called for in the amendment.

The bill sets out the intention to cooperate, and that's good. But with this amendment, we're proposing a structure. We're saying yes, it is important that the members represent and reflect the diversity of the stakeholders and that they be appointed by the commissioner. So we're talking about diversification. And that means going further.

I think we can agree that it may end up working that way. But there could be a partisan appointment—not to say that it would happen. We could have a leader with a very closed vision of things, someone who is even slightly partisan. So the point to all this is really to have openness, to have consultation, to have a structure.

In its current wording, the bill doesn't provide for a structure. I think we would all agree that there has to be cooperation. The point of this amendment is really to build the foundation for cooperation and true consultation.

3:55 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you.

We'll go to Ms. Nash and then Mr. Thibeault.

3:55 p.m.

NDP

Peggy Nash NDP Parkdale—High Park, ON

Thank you, Mr. Chair.

Just to pick up on what my colleague said, although there was quite a lengthy delay, it was the publishing of the report on financial literacy that prompted this legislation. The report is very clear that the task force recommends that the Government of Canada establish an advisory council on financial literacy. Their goal in saying that is that it should be a forum for collaboration and provide ongoing financial literacy advice on the implementation and evolution of the national strategy as well as have a council membership that reflects the diversity of stakeholders with an interest in the national strategy.

Now here we are: not only do we not have a definition of what the financial literacy leader should be doing, but there is no clear requirement that there be a diversity of advice or opinion going forward to the financial literacy leader.

It seems to us that this is a very important recommendation. Financial literacy is not just about the banks and it's not just about the financial sector; it is about Canadians right across this country, and their views and their representation come from a diversity of voices. We think that establishing this advisory council is really fundamental to the success and optimal usage of this new position.

We feel very strongly that my colleague has put forward a key amendment.

3:55 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Ms. Nash.

Mr. Thibeault is next, please.

3:55 p.m.

NDP

Glenn Thibeault NDP Sudbury, ON

Thank you, Mr. Chair.

In relation to the comments from my friend across the way, Mrs. Glover, in relation to the FCAC Act and paragraph 3(2)(e) that she was referring to, it's a general clause, with no necessity bearing on what we're talking to here, which is to create the advisory council for the financial literacy leader.

If paragraph 3(2)(e) were good enough, why would the task force ask for something new in relation to their second recommendation? It's obviously not good enough, in terms of what the task force was recommending, and by making sure we have an advisory council, we'll make sure this financial literacy leader is compelled to listen to a full range of stakeholders. We heard that from our witnesses. I truly believe that's what we need in this act.

Thank you, Mr. Chair.