Time is going quick, but we've got—
Evidence of meeting #67 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.
A video is available from Parliament.
Evidence of meeting #67 for Finance in the 44th Parliament, 1st Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was chair.
A video is available from Parliament.
5:15 p.m.
Liberal
Terry Beech Liberal Burnaby North—Seymour, BC
Chair, I think you need to check. I think we have unanimous consent.
(Amendment agreed to)
5:15 p.m.
Liberal
The Chair Liberal Peter Fonseca
Okay, there was unanimous consent, everybody, on MP Baker's amendment.
MP Baker.
5:15 p.m.
Liberal
Yvan Baker Liberal Etobicoke Centre, ON
Thank you, Chair.
I'm moving to the next amendment. I move that after the words “for 90 minutes each”, we add the following: “provided resources allow for a three hour meeting, otherwise these invitations be for 60 minutes each”.
This would allow for the governor and the finance minister to appear at the same meeting when we are unable to secure a three-hour meeting. As we know, the committee has a really limited amount of time to conduct the studies. For example, on pre-budget consultation we've only had three meetings so far. Therefore, this amendment would help us ensure that we can continue our good work while hearing from the deputy prime minister.
That's what I have to add.
5:15 p.m.
Liberal
The Chair Liberal Peter Fonseca
Thank you, MP Baker. Is there any discussion on this amendment? No? Is there unanimous consent, members?
5:15 p.m.
Some hon. members
No.
5:15 p.m.
Liberal
5:15 p.m.
Liberal
Heath MacDonald Liberal Malpeque, PE
I'd like to move an amendment as well, Chair.
I move that we delete the words “quarter within three weeks of the release of the Bank of Canada's Key Interest Rate Announcement”, and replace it with the words, “Spring and Fall sitting of the House”, and that after the words “and that these”, we delete the second use of the word “quarterly”. This would lay out appearances for the governor during the spring and fall session rather than quarterly, so it's basically on a schedule.
5:15 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Thank you very much for the amendment, Mr. MacDonald.
In a regular time, I think it would be wonderful practice to have a standing situation where the governor would come in the spring and the fall, but since I think we're in the situation now with an elevated inflation, I think a quarterly appearance is appropriate.
5:15 p.m.
Liberal
The Chair Liberal Peter Fonseca
Is there any further discussion?
(Amendment negatived: nays 6; yeas 5)
Is there any discussion? Now we're at the motion as amended.
MP Hallan, no further discussion?
5:15 p.m.
A voice
That's fine, if he wants.
5:15 p.m.
Liberal
The Chair Liberal Peter Fonseca
Did I hear a call for a recorded vote?
(Motion as amended agreed to: yeas 6; nays 5 [See Minutes of Proceedings])
Members, now we will return to our witnesses.
We have approximately eight minutes left.
MP Hallan, go ahead, please.
5:20 p.m.
Conservative
Jasraj Singh Hallan Conservative Calgary Forest Lawn, AB
Thank you, Mr. Chair.
I'll concede my time to Mr. Chambers.
5:20 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Thank you very much.
Mr. Leblanc, how many individuals max out their tax-free savings account and their RRSP account every year? You may not have that off the top of your head, but could you provide it to the committee if you don't have it today?
5:20 p.m.
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
Sure. I can give you an overview now. About 8% of people have a TFSA, which is about 4% of the adult population. For RRSPs, you're looking at not quite 10% of earners.
We will provide more complete information in writing.
5:20 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
Thank you. I appreciate that.
The reason this is relevant is that the tax-free home savings account is likely to benefit only those individuals who have income or monetary resources at the end of each year. These two numbers will be a predictor of how many people might actually avail themselves of it. That sounds like a fairly low number to me—perhaps the NDP may agree—when we are looking at who will benefit.
5:20 p.m.
Director, Personal Income Tax Division, Tax Policy Branch, Department of Finance
I think you could expect not only those who are constrained by their RRSP and TFSA limits to open a first home savings account. In fact, the tax treatment of a first home savings account is preferential to what it is for either of those two other vehicles. We'll see. Every individual will make their choice, but you can expect that if people are looking to save for a home, over time a good number will probably see this as their number one option.
5:20 p.m.
Conservative
Adam Chambers Conservative Simcoe North, ON
I agree. I guess time will tell what the uptake is.
I still submit that a far easier and simpler solution would have been just to, in one fell swoop, not require people to repay money from the homebuyers' plan. It would have been a far easier, faster and more effective way to help a greater number of individuals, but that's a policy choice that I know the government makes, and not the department.
My final question is with respect to the bank tax. Perhaps that is for Mr. Baylor. Is there a precedent of any government, ever before in history, going to an industry or a taxpayer and saying, “That tax year that was closed multiple years ago is now being reopened by the government, and your tax rate is changing”?
5:20 p.m.
Senior Director, Saving and Investment Section, Business Income Tax Division, Tax Policy Branch, Department of Finance
We'd have to look into that. I'm not sure. My colleague might know. She might weigh in.
Pascale, do you—