Evidence of meeting #222 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was million.

A recording is available from Parliament.

On the agenda

MPs speaking

Also speaking

Darlene Bess  Chief Financial Officer, Department of Finance
Andrew Marsland  Senior Assistant Deputy Minister, Tax Policy Branch, Department of Finance
Paul Samson  Associate Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance
Leah Anderson  Assistant Deputy Minister, Financial Sector Policy Branch, Department of Finance
Michele Bridges  Managing Director, Finance and Corporate Planning, Office of the Superintendent of Financial Institutions
Marc Desautels  Chief Financial Officer, Office of the Superintendent of Financial Institutions
Lynn Hemmings  Acting Director General, Financial Systems Division, Financial Sector Policy Branch, Department of Finance
Christopher Veilleux  Manager, Finance and Administration, Financial Transactions and Reports Analysis Centre of Canada
Suzy McDonald  Assistant Deputy Minister, Opioid Response Team, Department of Health
Pierre Leblanc  Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Clerk of the Committee  Mr. David Gagnon

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Could you provide that information to the committee later?

11:15 a.m.

Associate Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance

Paul Samson

Certainly. The last ones did go out in the first quarter, but we'll verify whether that is a requirement.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

The last one was 2017-18 in Q1?

11:15 a.m.

Associate Assistant Deputy Minister, International Trade and Finance Branch, Department of Finance

Paul Samson

That was for the last two years. We've made two payments to date.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Okay.

My next question is going to be just on one of the budgetary line items here. It says, “other interest costs”. What is “other interest costs”? That's a significant amount of money, and it's actually decreasing year over year. I know what “interest on unmatured debt” is, but as for "other interest costs”, what is that?

11:15 a.m.

Chief Financial Officer, Department of Finance

Darlene Bess

That's the interest on the public sector pensions, and it's based on a 20-year average long-term bond rate, which is decreasing.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

My next question, then, is this. On the back side there is authorization being sought for additional monies for ministers' salaries and motor car allowances, for $87,700. What is that for, exactly? Is that a new minister's salary boost and car allowance?

11:15 a.m.

Chief Financial Officer, Department of Finance

Darlene Bess

I think that shouldn't be anything unusual. It should be typical of the costs we typically have, so I don't think there's anything new there.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Okay.

11:15 a.m.

Chief Financial Officer, Department of Finance

Darlene Bess

If there is, maybe it's refurbishment for a new car.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Okay.

The rest of my questions are for OSFI.

11:15 a.m.

Liberal

The Chair Liberal Wayne Easter

Can somebody answer for OSFI here? I believe there is someone. We will hold your time.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

You won't dock my time?

11:15 a.m.

Liberal

The Chair Liberal Wayne Easter

It's Ms. Bridges.

Go ahead, Tom.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

My questions are general to OSFI's program domestically for the D-SIBs. That's the acronym for the domestic systemically important banks. One of the capital requirements went from 1.75% to 2%. I want to know why that was.

For the D-SIBs, one of the capital requirements has gone up 0.25% to 2%. I want to get more information from you on why that was, and why that was being done.

11:15 a.m.

Michele Bridges Managing Director, Finance and Corporate Planning, Office of the Superintendent of Financial Institutions

Could you refer me to where in the main estimates?

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

It's program expenditures. It's all the work that OSFI is responsible for.

11:15 a.m.

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

Leah Anderson

Would you be referring to the domestic stability buffer increase recently announced?

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Is that the correct acronym for it? There are tons of acronyms on OSFI's website.

11:15 a.m.

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

Leah Anderson

There are a lot of acronyms.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Yes.

11:15 a.m.

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

Leah Anderson

I wouldn't think that would be an item for the main estimates, but just on the domestic stability buffer, it is a buffer that the superintendent puts in place to help domestically support systemically important banks and to deal with the range of vulnerabilities in the economy, such as high household indebtedness, for example.

11:15 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Is there a particular reason that the increase happened now, as opposed to just a few years ago?

11:20 a.m.

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

Leah Anderson

It's a function of the observation of vulnerabilities in the economy.

11:20 a.m.

Conservative

Tom Kmiec Conservative Calgary Shepard, AB

Is there anything particularly different that has happened over the past four years that's warranted an increase? I can quote tons of numbers on the residential debt having gone up, such as homeowner debt. Other debts have gone down as a proportion of it. Is there still something in particular?