Finance Committee on May 30th, 2024

[Kirsten Fraser]

Okay.

The objective of the framework is to establish a system for all entities and all Canadians with the aim of ensuring that all Canadians have equal protections and equal access when they decide to provide their financial data.

The framework is the first step. We are continuing to work with all stakeholders, including the provincial governments and regulatory agencies, to avoid federal barriers to participation in the system.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Okay—

[Kirsten Fraser]

However, yes, the system is optional for credit co‑operatives.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

The framework is optional, but if credit co‑operatives want to compete with the banks and participate in the open banking system, they will have to comply with the framework, which is under federal jurisdiction.

That means that rather than simply ensuring that a common technical standard is adopted for all financial institutions, the framework will duplicate what already exists in the provinces, in terms of the protections and regulation of relationships between consumers and financial services providers.

During testimony at the Senate committee, we understood that the laws of Quebec and the provinces could continue to apply. However, there then would be duplication. Rather than have a harmonized common standard, as was done in the case of securities, an institution under provincial jurisdiction will have to comply with the province's standards, such as consumer protection standards, and also the federal standards.

For provincial financial institutions, this will double their responsibilities, and that will undermine their competitiveness vis-à-vis the federal financial institutions. Do you agree with that reading?

[Kirsten Fraser]

As I said, the framework is the first step. [Technical difficulty—Editor]

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Unfortunately, Ms. Fraser, the connection seems—

[The Chair, Liberal, Peter Fonseca]

I'll interrupt. We are having challenges with connectivity.

MP Ste-Marie, we are not getting the connectivity that we need to continue for the interpretation.

[Kirsten Fraser]

Right. I apologize.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

That seems to be better.

[Kirsten Fraser]

It seems to be better when I turn my camera off.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Yes.

[Kirsten Fraser]

I will repeat what I was saying.

When it comes to common rules in the banking system, it is important, first, to note that those rules apply to the system, to the activities that come within the system. The interaction with the—

[The Chair, Liberal, Peter Fonseca]

I'm sorry. I'm going to have to interrupt again. It's just not possible. The interpreters are not able to do their jobs with the sound we have.

We can ask, MP Ste-Marie, if you would like a response in writing.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Yes, Mr. Chair.

I will send the department a series of questions to which I would like to get answers in writing, if possible. I would like to receive the answers fairly quickly, given that we are moving on to clause-by-clause consideration on Tuesday.

In the next round of questions, I will be asking questions about another part of the bill.

I see my speaking time has run out.

[The Chair, Liberal, Peter Fonseca]

Okay.

I would request the department, to the best of its ability, to provide those answers to MP Ste-Marie, please.

MP Ste-Marie, you have approximately another minute and 20 seconds.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Okay.

I would like to ask some questions about the global minimum tax. I don't know whether the person—

[The Chair, Liberal, Peter Fonseca]

Yes, they're coming to the table.

If you could introduce yourself, please.

[Peter Repetto, Senior Director, International Tax, Department of Finance]

I'm Peter Repetto. I'm a director in the tax policy branch at the Department of Finance.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Thank you, Mr. Repetto. I am pleased to see you at the committee again.

I would like to talk about the global minimum tax. What is there in Bill C-69 that determines what share goes to the federal government and what share goes to the provinces?

[Peter Repetto]

In the proposed global minimum tax act, which is in part 2 of the bill, there are no provisions relating to the allocation of revenues between the federal government and provincial governments. There, I'm speaking of revenues that are projected to result from the application of this new global minimum tax.

[Gabriel Ste-Marie, Bloc, Joliette, QC]

Okay; thank you.

I will have more questions to ask during the next round of questions.

[The Chair, Liberal, Peter Fonseca]

MP Ste-Marie, that is the time.

We will do all we can, I think, through the department, to get you some written answers to the questions that you posed.

We are now going to MP Davies for six minutes.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you, Mr. Chair.

For efficiency, I intend to explore the following areas: the prohibition on the purchase of residential property, the school nutrition program, immigration detention, Canada student loan forgiveness and the food and drugs act.

I could maybe ask those responsible for those areas to please come forward.

[The Chair, Liberal, Peter Fonseca]

If you can make your way to the table, please do. Again, introduce yourselves before answering any question that is put to you.

Go ahead, MP Davies.

[Don Davies, NDP, Vancouver Kingsway, BC]

Thank you.

In terms of the Prohibition on the Purchase of Residential Property by Non-Canadians Act, which is being extended by the budget, what has been the impact of this prohibition, so far, particularly on housing prices, and what might be expected in 2025 and 2026?