Evidence of meeting #58 for Finance in the 42nd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was rules.
A video is available from Parliament.
6:05 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you.
Are there no other questions?
Thank you very much, Mr. van Raalte.
Division 6 concerns the Royal Canadian Mint Act.
Mr. Moreau and Mr. Joshua, go ahead.
6:05 p.m.
Nicolas Moreau Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Thank you, Mr. Chair.
Budget 2016 proposed adjustments to the Royal Canadian Mint Act. Amendments to the act are proposed to facilitate effective and efficient operation of the Royal Canadian Mint. The following are the proposed amendments.
First, clause 136 amends the Royal Canadian Mint Act to restore the ability of the Mint to anticipate a profit from the provision of goods and services to the Government of Canada and its agents. This includes the sale of Canadian coins to the Department of Finance for resale to financial institutions. By restoring the capacity of corporations, the corporation will benefit from its transactions with the government and its agents. This change will foster innovation and improve processes, and lead to lower costs to the government as a whole.
Next, clause 137 amends the Royal Canadian Mint Act by clarifying in section 4 the specific types of incidental activities that the Mint may undertake. As currently worded, section 4 refers to four general activities relating to coins and metals, which may leave room for interpretation. The proposed amendments to section 4 clarify the activities that the Royal Canadian Mint may undertake and includes activities such as marketing, consulting, storage services and exchange-traded receipts for precious metals associated with the gold and silver reserves of the Royal Canadian Mint. These amendments will help to clarify the corporation's mandate and will help to minimize the operational and reputational risks to the corporation and the Government of Canada.
Furthermore, clause 138 amends the Royal Canadian Mint Act by adding provisions to ensure that $350 coins minted between 1999 and 2006 have legal tender status. This clarification stems from the fact that the Royal Canadian Mint Act, as it existed between 1999 and 2006, did not include references to $350 coins.
Lastly, clause 139 amends the Royal Canadian Mint Act by removing the requirement that the Mint's directors must have experience in the field of precious metal fabrication or production. This will help significantly broaden the pool of candidates available for appointments to the board of directors. Collectively, these amendments will encourage and facilitate effective and efficient operation of the Royal Canadian Mint.
My colleague and I will be pleased to answer your questions.
6:05 p.m.
Liberal
The Chair Liberal Wayne Easter
We will remind the witnesses to speak more slowly for the interpreters.
Are there any questions here?
Mr. Ouellette, it had better be quick. We only have—
6:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
These are very short questions.
It's great to hear that they're getting the $350 coins back from sitting in the vault and spending them. Does this mean that the Canadian mint will now be able to accept gold and sell gold? What you said was “trade in financial services and products relating to gold, silver, and other metals”.
6:05 p.m.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
The Royal Canadian Mint is already selling and buying gold. It's only that we're clarifying the fact that they are allowed to do it by precisely writing it into the legislation. It's not there now.
6:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Yes. I was always under the impression that the mint could sell gold but couldn't buy gold from individual people who might have gold coins that were printed by the Canadian mint but who couldn't sell them back to the Canadian mint.
6:05 p.m.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
That's right. Basically, they're not buying gold from individuals right now.
6:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Will they now be allowed to buy gold from individuals?
6:05 p.m.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
No, they won't be allowed to buy gold from individuals. They're only going to continue to buy gold in order to produce coins.
6:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
We still have to go through the gold traders in order to get to the Canadian mint?
6:05 p.m.
Director, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Exactly.
6:05 p.m.
Liberal
Robert-Falcon Ouellette Liberal Winnipeg Centre, MB
Okay. It makes the system less than efficient.
Thank you.
6:05 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you, all.
Mr. Wu, we're going to have to have you at the start of another meeting. I apologize for that.
We are down to the wire in terms of a vote, so the meeting is adjourned.