Evidence of meeting #59 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was unions.
A video is available from Parliament.
NDP
Murray Rankin NDP Victoria, BC
But nothing in the changes will change your ability to speak if, as, and when you want.
Chief Public Health Officer, Public Health Agency of Canada
No, nothing changes that. I will still be the spokesperson for public health for the federal government.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Thank you, Chair. I have a short question, maybe a comment first.
I want to commend both of you, the credit unions. I have a long history with the credit unions myself. They were there, I remember, back in the early nineties when we had some difficulties and the major banks abandoned us. They were there to bring us through, and I've always had a strong kinship and deep appreciation for the credit unions.
I appreciate what the credit unions have done as well through communities. I know that they're important in Chatham-Kent—Essex. Credit unions such as the Heritage Savings & Credit Union, Libro, and Unigasco are all great organizations that have contributed greatly to our community, and I know that's consistent throughout. I just want to tell you how appreciative I am for what you do. You're so very important. You fill a gap that is necessary and critical for this country.
Mr. Saxon was taking about amalgamation.
Ms Durdin, you didn't feel that in the provincial boundary. But for a bank such as yours, a credit union such as yours, Mr. Dobrzanski, is that something that this legislation would impede?
Are you able to do those...? I think I understand what you said, that you have the charter to be able to move across provinces. Am I correct in making that assumption?
Chief Economist, President and Chief Executive Officer, Citizens Bank of Canada, Vancouver City Savings Credit Union
I'll be quite pedantic here. There are specific rules that apply for the credit unions with respect to activity within the area of incorporation in British Columbia. With the bank, while it's under the Bank Act and the federal charter, we also have to register in the provinces we seek to do business in. These are quite separately run organizations even though there is a single shareholder and it's Vancity.
The view that I was presenting today around Bill C-43 is really that, as was noted, as membership-led credit unions, consultations are an essential part of our forum. Over the last decades we've been able to find a forum that builds scale nationally. Some regions have an equal importance of credit unions relative to their population but don't have the same dollars. We run the pool, as Vancity does, by putting all of its scale of clearings and systems in with our region so that our region can aggregate up to be at scale and competitive. Our region then aggregates that up with the other provinces.
That is what we're understanding today and we think that member-led consultation will require a little bit more time than perhaps was anticipated in the bill to get to the new framework. We've said that we're very much in favour of tighter financial regulation, in favour of sound banking services from industry, and we will stand behind that statement.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
You've visited this a number of times for the consultations. I wonder if you want to just brief the committee. I know it's not part of this part of the hearing, but on the specific ask of the 5% of your retained earnings, could you briefly bring that to the foreground—or maybe Ms. Durdin?
President and Chief Executive Officer, Credit Union Central of Canada
You're referring to the tax credit. As you know, credit unions—
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Just so that we understand, this is not part of this consultation on Bill C-43. This is part of future considerations.
President and Chief Executive Officer, Credit Union Central of Canada
That's right, it was part of the budget submission. Is that what you're referring to?
The tax credit relates to retained earnings. It's a credit on 5% growth of retained earnings. It's for credit unions. As you know, credit unions maintain all of their capital through their retained earnings and don't have the same advantages that banks do. That is why we're making that request. It's on the growth of the retained earnings.
Conservative
Dave Van Kesteren Conservative Chatham-Kent—Essex, ON
Is that consistent across the board? Is that something that all credit unions are seeking in the future?
Conservative
The Chair Conservative James Rajotte
Thank you.
Colleagues, we do have bells at 5:45. I know the meeting was supposed to stop at 5:30. Can I ask our four witnesses, are you able to stay until 5:45-ish?
Okay, thank you very much. We all appreciate that.
We go back to the NDP. We'll start with Mr. Rankin.
NDP
Murray Rankin NDP Victoria, BC
Thank you. I'll share my time with my colleague, Mr. Caron.
I just have a question, please, for Ms. Durdin of the Credit Union Central. Just as a premise, I can't imagine the Conservatives going ahead with Bank Act changes without consulting that sector. But I understood in your answer to my colleague, Mr. Cullen, that you weren't consulted with the changes that were brought in by division 22, nor were you consulted last time when the changes were made on the tax regime. Have I got that right so far?
President and Chief Executive Officer, Credit Union Central of Canada
Yes, that's my understanding.
NDP
Murray Rankin NDP Victoria, BC
You are mostly regulated, of course, by the provinces. Do you happen to know, then, whether there was any consultation by the Government of Canada with the provincial governments?
President and Chief Executive Officer, Credit Union Central of Canada
I'm afraid I don't know the answer to that question.
Chief Economist, President and Chief Executive Officer, Citizens Bank of Canada, Vancouver City Savings Credit Union
No.
Murray Rankin NDP Victoria, BC
Okay.
So your ask, if I can put it that way, for division 22 seems to be simply that you want it to be delayed in order for that consultation to occur. Is that right?
President and Chief Executive Officer, Credit Union Central of Canada
It is in order for us to really clearly understand what changes are needed at the provincial level and the time to implement those changes.
NDP
Murray Rankin NDP Victoria, BC
Essentially it's just that you want this not to be promulgated, not to be put into force unless and until that has happened. Are you suggesting a specific period of time?