Finance Committee on Nov. 18th, 2013

[The Acting Chair, Conservative, Dave Van Kesteren]

I'm in the chair.

[Andrew Saxton, Conservative, North Vancouver, BC]

Regarding employment insurance, how about the hiring credit for small business? Does that fall within your category?

[Ray Cuthbert]

That we can do.

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you.

In recognition of the challenges faced by small businesses across the country, budget 2011 announced a temporary hiring credit for small business of up to $1,000 per employer. Could you please give me the rationale for that?

[François Masse]

Yes, sir.

The credit was created in recognition of the important role small businesses play as job creators in the Canadian economy. It was in the context of the economic downturn. It was a decision taken to reduce the burden on small businesses, so as to help them create jobs.

[Andrew Saxton, Conservative, North Vancouver, BC]

With regard to the hiring credit, is this an increase from 2011 when it was introduced?

[François Masse]

The hiring credit was created in 2011. It was renewed in 2012. In 2013 it was extended and expanded. I would turn to Ray for the details on how it has been expanded.

[Ray Cuthbert]

Apart from the years involved, which is the extension, the expansion is the ceiling in the base year. The amount of employer EI premiums required has gone from $10,000 to $15,000. Employers who have employer EI premiums in the base year, which is 2012, of $15,000 or less can qualify for a credit. That's the expansion. It has gone from $10,000 to $15,000.

[Andrew Saxton, Conservative, North Vancouver, BC]

Thank you. I have no further questions, Chair.

[The Acting Chair, Conservative, Dave Van Kesteren]

I want to go back to something our previous chair tried to clarify. I think there's still some confusion with the EI fund. I wonder if we could ask you, Mr. Masse, to provide some history for the committee. You mentioned this began back in the 1980s and in the 1990s there was no money left.

The intent is for the premiums to be paid out when necessary; it's not to build some massive fund. I think that's what we tried to clarify a little bit earlier: the transparency part of this was that people could see where the moneys were going.

Could you provide the history of the fund as it grew and as that money was taken out? Sometimes if we put things on a piece of paper, it's a whole lot clearer.

[François Masse]

Here are you referring to pre-2009 or post-2009?

[The Acting Chair, Conservative, Dave Van Kesteren]

I'd like to see it go back possibly to maybe 1986 or something like that, if that's possible.

[François Masse]

Absolutely we can do that, yes.

[The Acting Chair, Conservative, Dave Van Kesteren]

Okay.

Do we have any questions from the NDP?

[The Chair, Conservative, James Rajotte]

Sorry about the musical chairs.

We have about 20 minutes left and we have a number of divisions to get to.

That is it for division 1, as I understand it. I want to thank our officials very much for being with us this afternoon and this evening. We appreciate your answers very much.

Colleagues, I understand we do not have questions on division 2, Financial Institutions, so we will not need those officials to come forward.

As I understand it, I'm hoping we do not have questions on division 3.

Mr. Hsu, do you have a question you want to state for the record? We have 18 divisions to get through. Unless we stay later tonight or we add another session, I'm not sure we can do this.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

I would like to ask it, but I can state it, and then, hopefully, Mr. Chair, you would let somebody ask it. I'm not the chair, but if I could state it, that would....

[The Chair, Conservative, James Rajotte]

You have one question on division 3, then.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Yes.

[The Chair, Conservative, James Rajotte]

Okay.

Let's bring forward those two officials from Finance, and hopefully we can get this question dealt with very quickly.

This is part 3, division 3, Financial Institutions (Investment).

We'll just wait until the two officials get settled.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

As soon as you give me a nod or something, I'll start.

[The Chair, Conservative, James Rajotte]

Yes.

We'll welcome Mr. Rudin and Ms. Ryan back to the committee.

Thank you for joining us here this evening.

Mr. Hsu, your question, please.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Thank you.

I think this is something that only officials can answer.

I understand that the intent of this section on foreign financial institutions is to tighten a perceived gap in the finance minister's authority that was established in Bill S-5. How was this gap in the minister's authority uncovered? How did we discover this gap?

[Jeremy Rudin, Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance]

After Bill S-5 was passed, in discussions with some representatives of the industry, it was brought to our attention that some members of the industry were of the view that not all of the transactions the government intended to be covered by this provision would necessarily be covered by this provision. They contended that it would depend on how the transaction was structured. The government's position is that this needs to be clear and that this amendment will create that clarity.

[Ted Hsu, Liberal, Kingston and the Islands, ON]

Okay. That's it.

[The Chair, Conservative, James Rajotte]

Thank you very much, Mr. Hsu.

I want to thank our two officials for being here. Thank you for answering that question so directly.

We'll now move to division 7, which deals with Dominion Coal Blocks.

We have officials from Finance and officials from NRCan. I understand one of you has a very brief opening statement on this.

Mr. Halverson, you have the opening statement. Please proceed.