Evidence of meeting #56 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site.) The winning word was measure.

A video is available from Parliament.

On the agenda

MPs speaking

Also speaking

Alexandra MacLean  Director, Tax Legislation, Tax Policy Branch, Department of Finance
Miodrag Jovanovic  Director, Personal Income Tax, Tax Policy Branch, Department of Finance
Trevor McGowan  Senior Chief, International Inbound Investments, Department of Finance
Kevin Shoom  Senior Chief, International Taxation and Special Projects, Department of Finance
Pierre Mercille  Senior Legislative Chief, Sales Tax Division, Tax Policy Branch, Department of Finance
Adam Martin  Tax Policy Officer, Sales Tax Division, Tax Policy Branch, Department of Finance
Shari Currie  Acting Director General, Civil Aviation, Department of Transport
Stephen Van Dine  Director General, Northern Strategic Policy Branch, Department of Indian Affairs and Northern Development
Martin Raillard  Chief Scientist, Canadian High Arctic Research Station, Arctic Science Policy Integration, Northern Strategic Policy Branch, Department of Indian Affairs and Northern Development
Elisha Ram  Director, Financial Markets Division, Financial Sector Policy Branch, Department of Finance
François Masse  Chief, Labour, Market Employment Learning, Department of Finance
Joyce Henry  Director General, Marine Policy, Department of Transport
Corrie Van Walraven  Manager, Ports Policy, Department of Transport
Sylvain Segard  Acting Assistant Deputy Minister, Strategic Policy, Planning and International Affairs Branch, Public Health Agency of Canada
Rob Stewart  Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Margaret Tepczynska  Senior Economist, Financial Sector Policy Branch, Department of Finance
Erin O'Brien  Chief, Financial Sector Policy Branch, Department of Finance
Dominique Laporte  Executive Director, Pensions and Benefits Sector, Treasury Board Secretariat
Deborah Elder  Acting Director, Pensions and Benefits Sector, Treasury Board Secretariat

5:45 p.m.

Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance

Rob Stewart

There should be no direct impact on Desjardins. It should not change the way in which they operate at all. The clarification of the regulatory regime will require the Province of Quebec to be clear about its intention to stand behind Desjardins as a credit union in the event of the very unlikely scenario in which Desjardins would require emergency lending assistance. That is the only change in the way in which business is going to be done, and it shouldn't change the way Desjardins operates at all.

5:45 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

We are talking about Quebec, but what will happen with the other branches outside Quebec? Do you think Desjardins will need to have the same guarantee from each of the provinces in which it has operations right now?

5:50 p.m.

Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance

Rob Stewart

Technically speaking, it will, but there is an issue here around significance, in terms of the size of the credit union. If it's a very small credit union, it really won't be in a situation where ELA is going to be an issue.

5:50 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Caron

That is it for division 22. I want to thank the officials on that division for being with us.

Colleagues, we'll now deal with divisions 26, 27, and 31, beginning with division 26.

I have a note from the NDP on division 26. Is that correct, or is it division 27?

Let's go to Mr. Keddy on division 26.

5:50 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

I have two quick questions.

The Canadian Payments Association plays an important role for consumers. How will these changes actually improve CPA's ability to meet its mandate?

5:50 p.m.

Erin O'Brien Chief, Financial Sector Policy Branch, Department of Finance

Thank you for your question.

As you've noted, the Canadian Payments Association is the owner and operator of Canada's national clearing and settlement infrastructure. Through the amendments we are proposing to the Canadian Payments Act, we will be implementing changes to the CPA's governance structure. Notably, we'll be introducing greater independent decision-making within the association. As a result of these changes, we expect that the decisions made by the association in terms of how the core national clearing and settlement infrastructure is operated will be more balanced, reflecting the three public policy objectives that the government has for the association: safety and soundness; efficiency of the systems; assurance that the systems are operated for the benefit of consumers and business users.

5:50 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Really, at the end of the day, are we talking about enhanced oversight or better oversight for consumers?

5:50 p.m.

Chief, Financial Sector Policy Branch, Department of Finance

Erin O'Brien

It isn't oversight per se. The Canadian Payments Association, as I said, owns and operates the systems that are used by Canadian financial institutions to exchange value among themselves. It's just to ensure that decisions made by the Canadian Payments Association's board will reflect the government's broader public policy objectives.

5:50 p.m.

Conservative

Gerald Keddy Conservative South Shore—St. Margaret's, NS

Better oversight on payment mechanisms and user experience for consumers was all I was getting at.

5:50 p.m.

Chief, Financial Sector Policy Branch, Department of Finance

Erin O'Brien

Thank you.

5:50 p.m.

Conservative

The Chair Conservative James Rajotte

That's all I have on division 26.

We'll move to division 27.

Mr. Caron, go ahead.

5:50 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Division 27 is very much about the definition of system risk. Is it not a legislative response to the Supreme Court decision about the federal government's jurisdiction over securities regulators?

5:50 p.m.

Chief, Financial Sector Policy Branch, Department of Finance

Erin O'Brien

Not specifically. In terms of our review of the Payment Clearing and Settlement Act, we've looked at expanding the definition of systemic risk to be more consistent with recent international principles coming from the Bank for International Settlements and the committee there to ensure that our definition of systemic risk is more consistent with those principles. However, it is consistent with the definition as outlined in the federal securities regulations.

5:50 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

So the idea is to make the definition more consistent for the Bank of Canada based on what is already there in terms of securities regulations. Is that correct?

5:55 p.m.

Chief, Financial Sector Policy Branch, Department of Finance

Erin O'Brien

It's a modernization of the term, given recent experience.

5:55 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Let's connect this legislative provision with the one about securities.

Has a legal and constitutional analysis been done on the merits and constitutionality of the definition provided in order to ensure that it complies with the Supreme Court decision from December 2012?

5:55 p.m.

Chief, Financial Sector Policy Branch, Department of Finance

Erin O'Brien

Rob will take that.

5:55 p.m.

Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance

Rob Stewart

My apologies for stepping in, but I'm also responsible for the initiative on this on the securities regulation side.

The definition we're using is subject to extensive legal review and analysis—

5:55 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

So you have an analysis—

5:55 p.m.

Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance

Rob Stewart

—in consideration of the fact that federal legislation has been proposed once and received judgment from the Supreme Court.

5:55 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

It is an analysis that takes into consideration the decision and limits imposed by the Supreme Court.

5:55 p.m.

Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance

Rob Stewart

Yes, indeed.

5:55 p.m.

NDP

Guy Caron NDP Rimouski-Neigette—Témiscouata—Les Basques, QC

Thank you very much.

5:55 p.m.

Conservative

The Chair Conservative James Rajotte

Thank you, Mr. Caron.

Is that it for division 27? Okay.

I thank the officials on that division so much for being with us and staying for the extra time. We do appreciate that.

We'll now finish with division 31.

I only have notice from Mr. Brison, so unless I hear otherwise, I will go to Mr. Brison first for that.

5:55 p.m.

Liberal

Scott Brison Liberal Kings—Hants, NS

Are the measures in division 31 consequential measures resulting from measures in Bill C-42 and Bill C-45?