Evidence of meeting #6 for Finance in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was account.
A video is available from Parliament.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
So it's not clear to the government what the final position of it is.
Director, Energy Systems Management, Petroleum Resources Branch, Department of Natural Resources
It's an ongoing discussion at the moment.
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
Can you describe the federal government's current obligations, liabilities, and rights in connection with these properties? How would the federal government's obligations, rights, and liabilities be affected by this sale?
Senior Chief, Corporate Finance and Asset Management, Department of Finance
In their totality? Are you referring to a broader concept of obligations and rights than just in reference to the aboriginal issues?
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
No, broader than just the aboriginal issues. Are you selling obligations and liabilities?
Senior Chief, Corporate Finance and Asset Management, Department of Finance
I see. It really is too early to discuss the specifics around what the sale would entail, but the notion would really be that the federal government is stepping away from significant parts of this property, therefore ceding the property to provincial jurisdiction, effectively.
Liberal
Senior Chief, Corporate Finance and Asset Management, Department of Finance
All of the aspects that come with land ownership would then be transferred to another party.
Conservative
The Chair Conservative James Rajotte
Thank you.
I want to thank our officials very much for being with us. Thank you for responding very clearly to our questions. We appreciate your time here.
We will now move on. I do have questions on division 12, dealing with the Canada Pension Plan Investment Board Act. We have officials from Finance. My understanding is that there are just questions, that there is no request for an overview.
We'll call our officials forward.
We have Mr. Rudin, Mr. Calof, Mr. Wright, and Mr. Paterson.
Mr. Rudin and Mr. Wright, welcome back. Welcome to the committee.
I understand, Mr. Saxton, you have a question for them.
Conservative
Andrew Saxton Conservative North Vancouver, BC
Yes, thank you, Chair.
Thanks to our witnesses for being here.
My question is regarding the proposed amendment to the Canada Pension Plan Investment Board Act, which would allow for three non-resident directors to be elected to the board.
First of all, the pool of assets that the investment board oversees is close to $180 billion. It must be one of the largest in Canada, if not the largest in Canada, and probably one of the largest in the world as well. I'd imagine that a significant portion of that fund is invested overseas. Simply because of the sheer magnitude of the fund, you can't invest it all in one place.
Can you tell me approximately what percentage of the fund is invested overseas at this time?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Sure, I'd be glad to.
In terms of the overall fund, more than half of the assets are invested abroad. If we subtract from the calculation the part of the fund that is in legacy, essentially provincial bonds that relate to the earlier structure that governed the investment of the CPP funds, it's closer to three-quarters.
Conservative
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
There are currently 12 members on the board, as established under the act.
Conservative
Andrew Saxton Conservative North Vancouver, BC
So we're looking at allowing up to 25% of the board to be non-residents of Canada. I assume that the rationale behind this is that, since a significant portion of the funds are invested overseas, it would be helpful to have members on the board who have expertise in overseas investments. Is that the rationale behind it?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Exactly. It will also increase the overall pool of qualified candidates for these important jobs.
Conservative
Andrew Saxton Conservative North Vancouver, BC
This would allow for up to three members to be non-residents. It doesn't require that three members be non-residents. Is that correct?
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
That is correct.
Conservative
Conservative
The Chair Conservative James Rajotte
Thank you very much, Mr. Saxton.
I want to thank our officials. I understand, Mr. Rudin, that you'll be staying for division 13.
Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Yes, I will.
Conservative
Conservative
Liberal
Ted Hsu Liberal Kingston and the Islands, ON
The question is simply that this section is a result of a B.C. Court of Appeal decision which found that Canada's anti-money-laundering and anti-terrorist-financing regime contravenes section 7 of the Canadian Charter of Rights and Freedoms.
Can you explain how Bill C-4 addresses a response to that B.C. Court of Appeal decision?