Evidence of meeting #32 for Finance in the 43rd Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was question.
A recording is available from Parliament.
NDP
Peter Julian NDP New Westminster—Burnaby, BC
I gather that means the CERB will continue, and I certainly hope that people with disabilities will receive their long-promised commitment for additional supports, but that contrasts with what we've learned over the last few days on this government's support for the banking sector.
We received yesterday from OSFI a response to our question from last week about the supports that are being provided to the big banks. The letter is lengthy. It talks about three programs. The sum total of supports, including regulatory relaxation, is $750 billion. That's three-quarters of $1 trillion.
As you know, the banking sector this week announced substantial profits of $6 billion in profits for the first quarter, in the midst of a pandemic. The banking sector has not reduced its interest rates to zero, like the credit union movement has. The banks have not provided for interest-free, penalty-free, fee-free deferrals, so they're continuing to make money hand over fist.
My question is very simple. This government has tools and this government has powers that allow it to rein in the big banks that are profiteering during this crisis. Why are you not choosing to use those tools?
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
Since the beginning, our government has been in close contact with Canada's banks and credit unions in order to coordinate our response to COVID-19. As for the big banks, they have committed to work with their customers on a case-by-case basis to find solutions to help them manage hardships caused by COVID-19. As a first step, this support includes a payment deferral for mortgages for up to six months and a reduction in credit card rates that are impacting customers.
We are continuing to engage with banks and also with all financial institutions, such as credit unions, which are helping us to service many of the programs that we are bringing forward for businesses. We will continue to work with the banks to make sure they provide the necessary supports for those businesses that apply.
I would maybe invite the deputy minister or any of the public servants who might want to add to this on the specifics MP Julian had brought—
NDP
Peter Julian NDP New Westminster—Burnaby, BC
Thank you. I do have another question, so I'll go to that and re-ask my question to the civil servants who are here later on when you're not, Madam Minister.
My third question is around the LEEFF program. This has basically no cap and provides bailout support to Canada's largest corporations. As you know, they can use tax havens. They're not excluded.
The concerns around the LEEFF program include the fact that it includes two years of interest deferral and a substantial possibility, as we've seen with this government, that the loan will actually turn into a gift. We saw this earlier in the year with the $196 million that was forgiven. For reasons of commercial confidentiality, the government has not released the name of the company that received this gift.
What percentage of the LEEFF program for Canada's largest corporations do you intend to see forgiven?
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
Thank you for the question.
Canada's medium and large businesses employ millions of Canadians, and we want to work with them so that they too can get through this crisis and continue to support families across the country.
The principles that guided the creation of this program aimed to support workers. We therefore put in place the necessary conditions to enable businesses to keep their workers.
We will also be very clear: anyone who breaks the law to avoid paying their fair share will face serious consequences.
As I was saying earlier, the funding provided under the large employer emergency financing facility will be subject to a certain number of conditions and such funding will not be offered to businesses convicted of tax evasion.
The Government of Canada will continue to encourage large businesses to take advantage of the emergency financing if they need it. In fact, this is a program of last resort. The original intent of the program is to ensure the protection of workers across the country.
Liberal
The Chair Liberal Wayne Easter
Thank you very much, both of you.
We will now go to two five-minute rounds and then release you, Madam Minister.
Splitting their time will be Mr. Cooper and Mr. Cumming.
Mr. Cooper, you're up first.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Thank you, Mr. Chair. Just cut me off after two and a half minutes so that Mr. Cumming gets equal time.
I'd like to ask the Minister of Middle Class Prosperity exactly how much middle-class taxpayers paid the failed former CEO of the Canada Infrastructure Bank in the way of bonuses.
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
The change in leadership at the CIB signals a new phase in the development of the bank as we work to build modern public infrastructure, create jobs and make Canada more globally competitive, and the bank is conducting....
Mr. Chair, CEO Pierre Lavallée should be thanked for all of his contributions in standing up for this new institution, which is mandated to find innovative new ways—
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Madam Minister, it has been reported that there is a schedule of six-digit bonuses that were paid to Mr. Lavallée. Can you confirm exactly how much taxpayers are on the hook for in bonuses for this failed former CEO?
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
I can confirm that the compensation range for this CEO is set by the bank and is a matter of public record. Thank you very much.
Conservative
Michael Cooper Conservative St. Albert—Edmonton, AB
Madam Minister, can you please provide the figure?
We're talking about a CEO who left in the middle of his term and an infrastructure bank that has failed to meet any of its targets. We're talking about a bank that is capitalized by taxpayers. Canadian taxpayers have a right to know how much he was paid.
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
The change in leadership at the Canada Infrastructure Bank marks a new phase in its development. In answer to your question, I can confirm that the CEO's pay scale is set by the bank and made public.
Conservative
James Cumming Conservative Edmonton Centre, AB
Thank you, Madam Minister, for being here today.
I want to see if you can give me an answer to a question that I've been asking related to the CEBA program and the changes that have been made so that entrepreneurs who are sole proprietors or get paid through dividends can realize on these loans.
When will this be available? They need some certainty. When will this program actually be available for them?
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
As we have said since the beginning, we have been listening to small businesses and entrepreneurs across the country and we are responding to them. We announced earlier—two weeks ago—an expansion to the eligibility criteria for the CEBA to include many owner-operated small businesses. We will continue to work on potential solutions to help business owners and entrepreneurs who operate through their personal bank accounts or who have yet to file their tax returns, such as newly created businesses.
Thank you very much for sharing that concern that you have.
Conservative
James Cumming Conservative Edmonton Centre, AB
The concern I have is that they can't get a date. The problem is that they're trying to run their businesses and they can't find out from you, as the minister, from the Minister of Small Business or from anybody, when that will happen. Please, I'm hoping that this date will happen in due course.
Going back to some of the loans that the EDC guarantees, my colleague asked you several times for some kind of information on how those loans are going. Your testimony suggests that businesses are flocking to these loans. We just had a panel on who suggested that they can't think of anyone who has received a loan or received a guarantee, and that the program is not effective.
Is there any chance you can at least tell us how many applications there are, how many applications have been turned down? Surely, someone knows.
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
Once again, this program is very important. It involves loans that require due diligence and important adjudication by financial institutions. What we can say is that applications have been received and liquidity support is already flowing to businesses in need. We will continue to be open and transparent by sharing complete and accurate information as it becomes available to us.
Liberal
The Chair Liberal Wayne Easter
Thank you, both.
Turning to Ms. Koutrakis, you have five minutes to wrap it up with the minister.
Annie, the floor is yours.
Liberal
The Chair Liberal Wayne Easter
Annie, can you try moving your mike around? You're not coming through clearly at all to the interpreter.
Liberal
Annie Koutrakis Liberal Vimy, QC
Thank you very much, minister, for your testimony and for the great work that you and your team are doing during this rather difficult and unprecedented period.
I have a few questions for you.
First, what are you hearing in the virtual town halls being held nation-wide? What are the main concerns of middle-class Canadians across the country?
Liberal
Mona Fortier Liberal Ottawa—Vanier, ON
Thank you very much for your question and especially for your leadership, not only in your riding but also on the Standing Committee on Finance.
Since the beginning, I have had the privilege of participating in over 18 town halls and speaking with many mayors across the country. I have spoken to representatives of chambers of commerce and business owners. Every time we have started a conversation, it has been to see how we can improve our programs while ensuring that no one falls through the cracks.
For example, during one of my first consultations in western Canada, in Surrey, I was told that the criteria for the Canada emergency business account were a bit too strict. Some businesses were not eligible for it. We therefore made sure that those business owners got access to the program. Today, over 633,000 businesses have received a loan of up to $40,000.
The other point concerns the wage subsidy. Our first proposal involved a subsidy of 10% to support employers. We received a number of suggestions from parliamentarians and Canadians across the country, particularly during my meetings with representatives of chambers of commerce. I was being told that 10% was not enough and that it was not going to help businesses survive this crisis.
The government therefore decided to implement a benefit that would cover 75% of the first $58,700 of an employee's pay. That is a major initiative. We went from 10% to 75%. We listened. Just recently, we decided to expand the program even further. All of that comes from conversations that we have had.
Liberal