Evidence of meeting #207 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was money.
A video is available from Parliament.
11:30 a.m.
Liberal
The Chair Liberal Wayne Easter
We'll call the meeting to order. We're continuing our meeting with officials on the budget implementation act, Bill C-97.
I'm not sure whether you were done your presentation or not, Ms. Tepczynska. Do you have anything more to add? If not, we'll go to questions on part 4, division 1, which is subdivision A, the Bank Act. Was there anything more you wanted to add?
11:30 a.m.
Margaret Tepczynska Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
No, Mr. Chair.
11:30 a.m.
Liberal
The Chair Liberal Wayne Easter
Okay. I know there are some who are here but weren't here yesterday. We went through the presentation from the group before us, so we're open to questions.
Mr. Sorbara.
11:30 a.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Thank you, Mr. Chair.
Before we were stopped yesterday.... In reference to the changes that will impact credit unions in Canada, these will only apply to federally regulated credit unions. Is that correct?
11:30 a.m.
Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
That is correct.
11:30 a.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
As the chair of the all-party credit union caucus, that will have the benefit to them that it will not be as cumbersome to reach out to their shareholders, if I'm not mistaken.
11:30 a.m.
Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
That is correct as well.
11:30 a.m.
Liberal
Francesco Sorbara Liberal Vaughan—Woodbridge, ON
Okay, so there should be some cost savings for the credit unions. I think there are two federally regulated credit unions. Is that correct?
11:30 a.m.
Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
There are two federally regulated credit unions: Coast Capital Savings and UNI Coopération financière. Indeed, the changes that are being proposed will increase optionality with respect to voting, and will allow the federal credit unions that have transitioned from the provincial regimes to continue to use some of the methods that they used under provincial regimes. Yes, indeed, there will be cost savings.
11:30 a.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Just quickly, out of those two federal credit unions, how many of their votes are presently done by proxy?
11:30 a.m.
Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
The credit unions do not vote by proxy. They have a different regime. Most of the members would be either voting in person or voting in advance. That is one option that members have, given that the proxy system is not available.
11:30 a.m.
Liberal
Greg Fergus Liberal Hull—Aylmer, QC
Then do you feel that these changes would increase or decrease the participation of their members?
11:30 a.m.
Director, Strategic Initiatives, Financial Institutions Division, Department of Finance
Federal credit unions have indicated that it would increase participation of members, and they see these changes as beneficial to the improvement of the democratic process at general meetings.
11:30 a.m.
Liberal
The Chair Liberal Wayne Easter
Are there any other questions from anyone else?
Okay, thank you very much. That deals with subdivision A.
Then on part 4, division 1, subdivision B this time, Ms. Trepanier and Mr. Gibson, the floor is yours.
11:30 a.m.
Julie Trepanier Director, Payments Policy, Financial Systems Division, Department of Finance
Thank you, Chair.
I'm Julie Trepanier. I'm the director of payments policy at the Department of Finance. I'm joined by William Gibson, who is an economist and on the payments team as well.
The Canadian Payments Act prescribes Payments Canada's mandate, membership and governance framework. Part 4, division 1, subdivision B, makes technical amendments to the Canadian Payments Act in order to, first, allow elected directors to be elected for two additional three-year terms, from the present one additional term; extend the term of the chair and the deputy chair of the board from two to three years; and add an overall limit of six years.
In addition, these amendments would permit the remuneration of members of the stakeholder advisory council subject to by-laws. For example, some members of the advisory council, such as consumer organizations, face resource constraints that may inhibit their ability to participate. These technical amendments were announced in the budget and follow a statutory review of the Canadian Payments Act concluded by the government in February 2019.
11:30 a.m.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
You just said that consumer representatives will now be remunerated. Is that correct?
11:30 a.m.
Director, Payments Policy, Financial Systems Division, Department of Finance
Thank you for the question.
The proposed changes will make it possible to remunerate the representatives of consumer organizations.
11:30 a.m.
NDP
Pierre-Luc Dusseault NDP Sherbrooke, QC
What's the scale of the remuneration being considered? Will sitting on the committee become almost a full-time job? Will the remuneration be symbolic, and will it enable people only to travel and spend a few hours a month or a year working on the committee?
11:30 a.m.
Director, Payments Policy, Financial Systems Division, Department of Finance
The details will be specified in the by-laws. The advisory council will meet three or four times a year. Remuneration will be based on participation.
11:30 a.m.
Director, Payments Policy, Financial Systems Division, Department of Finance
No.