The majority of the other provinces do wish to allow the payday lending industry—we have any number of them in Ottawa operating in storefront operations—to operate in a lawful, regulated environment. The consumer affairs ministries of those provinces have accepted that there is a demand for those kinds of loans and those kinds of circumstances, but that the lenders cannot operate viably in the circumstances in which they do with an effective annual rate of interest at 60%. That is a compound rate of interest covering all fees and charges, including the application fee and everything else. The provinces wish to be able to regulate them and set a total cost of borrowing that will be higher than 60%, which will allow for a viable industry but not provide for excessive fees and charges. The provinces have been asking the federal government for the ability to regulate their business practices, for us to provide and exemption from section 347 so that they can do it.
On December 12th, 2006. See this statement in context.