Okay, let's hear from Jean-François.
Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
Evidence of meeting #51 for Finance in the 43rd Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was agreed.
A video is available from Parliament.
8:25 p.m.
Senior Director, Financial Stability and Capital Markets Division, Financial Sector Policy Branch, Department of Finance
Essentially, in the aftermath of the financial crisis in 2008, there was an agenda for improvement to the system, to the legislative regime, and major reforms were introduced in subsequent years. Over time, these are being examined. They are being tested. In particular, the CDIC , for example, does tabletop exercises that simulate a failure, and sometimes some improvements or some precision that should be included in the legislation is identified.
As I described, these are very, very technical points, and they are not really reflecting a new policy reorientation. It is really fine-tuning and clarification.
8:25 p.m.
Bloc
Gabriel Ste-Marie Bloc Joliette, QC
I want to react to the comment you have just made, Mr. Chair.
Our timelines are impossible. The budget was brought down later than scheduled. It contains an unprecedented number of pages and deals with a whole host of topics. I don't know how many times I have read the budget implementation bill that we are studying here, yet each time I read it again, I find something new.
So no one can say that we are not sufficiently prepared. The deadlines that the government is imposing on us are so tight, even for this stage of clause-by-clause consideration. I believe that it is still a time for us to ask all questions we need to put our minds at rest. Sometimes, it takes four and five readings for me to see that there may be a catch, or something that has to be brought up.
So I encourage all my colleagues to ask all the questions they consider appropriate, even at this stage. This a very important exercise.
8:25 p.m.
Liberal
8:25 p.m.
Conservative
Ted Falk Conservative Provencher, MB
Thank you, Mr. Chair, and thank you, Gabriel, for those comments. I appreciate them.
On exactly the question that Ms. Jansen asked about what the anticipation is that's invoking all of these changes and the tidying up of legislation, you referenced the bank failures—or, not the bank failures, but the financial crisis in 2008.
I'm wondering. We heard a lot from the Bank of Canada, from the governor and from other financial experts, that inflation is actually quite high right now. We know that. We know from economists that it's nipping at 4%, and that's without the increase in housing.
Interest rates are low. We know that interest rates have to go up. We know that credit has been easy to get in the last several years and that interest rates are low today.
Have you done some scenario planning in which you're anticipating some significant losses in the banks, and this is a matter of tidying up legislation to prepare for that situation?
8:30 p.m.
Senior Director, Financial Stability and Capital Markets Division, Financial Sector Policy Branch, Department of Finance
In terms of scenario planning, I'm not in a position really to speak about losses to the banks. What the legislation deals with is really the framework.
I think Mr. Chair made a reference to the Boy Scouts. It's all about being ready and drawing from, as I mentioned, major reforms that were made a number of years ago. We're really into the refinement stage of the legislation here.
8:30 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 137 carry on division?
(Clause 137 agreed to on division)
8:30 p.m.
Liberal
The Chair Liberal Wayne Easter
There was an explanation of clause 138 previously. Is there anything further?
Shall clause 138 carry on division?
(Clause 138 agreed to on division)
(On clause 139)
8:30 p.m.
Senior Director, Financial Stability and Capital Markets Division, Financial Sector Policy Branch, Department of Finance
Clause 139 is the coming-into-force provisions of clauses 129 to 131. It also includes that transition period that I mentioned of two years. Clause 132 would come into force to repeal the transition rule after two years.
8:30 p.m.
Liberal
The Chair Liberal Wayne Easter
Shall clause 139 carry on division?
(Clause 139 agreed to on division)
8:30 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you all very much.
I will turn to division 2, “Unclaimed Amounts”.
From previous explanations, this is pretty straightforward. Could we see clauses 140 to 150 as one, with one explanation?
8:30 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
No, I don't think so. We'll do them separately.
Thank you, Mr. Chair.
8:30 p.m.
Liberal
The Chair Liberal Wayne Easter
Thank you, Mr. Fast.
(On clause 140)
Then we'll go to clause 140. I'm not sure who is coming in on this one. I see that Ms. O'Brien is still here.
8:30 p.m.
Director General, Financial Services Division, Financial Sector Policy Branch, Department of Finance
Mr. Chair, I would direct this to my colleague, Nicolas Moreau.
Nic, are you on the line?
May 27th, 2021 / 8:30 p.m.
Nicolas Moreau Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
Good evening, Mr. Chair. Sorry about that.
8:30 p.m.
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
It's “Moreau”. Yeah, you see that often.
8:30 p.m.
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
No problem.
I will cover sections 140 to 150.
The changes proposed here amend the framework dealing with unclaimed assets. They propose legislative amendments intended to increase the efficiency of the program and to allow Canadians to recover sums that they have lost or forgotten.
Let me start with clause 140. The clause amends the Bank of Canada Act to allow the bank to publish on its website information on deposits and other unclaimed amounts, in order to facilitate research into unclaimed assets.
8:30 p.m.
Conservative
Ed Fast Conservative Abbotsford, BC
Am I correct in understanding that right now the Bank of Canada does not have the power to publish this information publicly? How do people find out right now whether there are unclaimed amounts in their names?
8:30 p.m.
Director General, Funds Management Division, Financial Sector Policy Branch, Department of Finance
That's a good question, Mr. Fast. They do have the power, but it's not explicit in the act right now. That's why we want to make it more explicit and to make sure that they will be allowed to publish some of the extra information that we are requesting through those amendments.