Mr. Speaker, I am pleased to rise on the subject of Bill C-100, an act to amend, enact and repeal certain laws relating to financial institutions. Permit me first to say that the Bloc Quebecois disagrees with three aspects of Bill C-100.
The objectives of the bill are highly laudable, particularly the one aimed at reducing the potential for systemic risk-the creation of the domino effect-within financial circles. For those who are not familiar with these financial terms, there is potential for systemic risk when one financial institution is unable to meet its obligations and drags the entire financial sector along with it. It is a sort of domino effect where one institution is unable to pay another, the other cannot pay the next, and so on. In short, we end up with a financial catastrophe such as we saw recently in western Canada.
Reducing the potential for systemic risk is highly laudable. However, when it serves as a pretext to slip through the back door into exclusive provincial jurisdiction, and specifically that of Quebec, it is no longer acceptable. I refer here to the securities sector. Securities do not escape from the application of the new provisions on financial institutions. Under subsection 92(13) of the
Constitution Act, 1982, jurisdiction over the securities sector is a matter for the provinces, for the Government of Quebec.
This jurisdiction, based on the Government of Quebec's exclusive powers over property and civil rights, was confirmed by the case law of the Supreme Court of Canada, which added provincial regulation of the securities market to property and civil rights. It has been clear since 1982. Now the bill is directly targeting the field of securities.
This is strange. We are barely over a constitutional debate, a referendum campaign, in which our colleagues opposite argued: "Yes, we will make certain changes to the system. Yes, we will respect Quebec's jurisdiction. Yes, we will have a good understanding in the future". This is what they told Quebecers, they said: "If you vote no to Quebec sovereignty, things will go well, you will see". A few weeks after the result, Quebec is being treated with arrogance and cynicism with the tabling of a bill such as Bill C-100.
What is more, this bill, in addition to invading Quebec's exclusive jurisdiction, accords unheard of powers to the Bank of Canada and the Department of Finance.
I am referring to the provisions on pages 117 and 118 of the bill, which stipulate that the Bank of Canada may enter into an agreement with a clearing house or a participant, or both, in respect of: netting arrangements; risk sharing and risk control mechanisms; certainty of settlement and finality of payment; the nature of financial arrangements among participants; the operational systems and financial soundness of the clearing house.
In addition, the Directives section of the bill provides that, and I quote: "Where the Governor of the Bank is of the opinion that a clearing house or participant is engaging in or is about to engage in any act, omission or course of conduct that results or is likely to result in systemic risk being inadequately controlled-the excuse of systemic risk, or-that the designated clearing and settlement system in respect of the clearing house or participant is operating or is about to operate in a way that results or is likely to result in systemic risk being inadequately controlled, the Governor may issue a directive in writing-not a proposal or suggestion but a written directive-to the clearing house or participant requiring it to cease or refrain from engaging in the act, omission or course of conduct, and perform such acts as in the opinion of the Governor are necessary to remedy the situation".
Do you know what this means? It means that the Governor of the Bank of Canada could issue directives not only to clearing houses but also to participating institutions telling them how to conduct their business. It means that, if the institution is a participant, as specified in this provision, the Governor of the Bank of Canada could tell this institution what to do; it makes no difference whether this institution is a provincially chartered bank or a player in the securities industry.
Under this bill, the Governor of the Bank of Canada may issue directives to a clearing house or a participant. This means that he could-he has the authority to do so-issue directives to an institution like Fiducie Desjardins, Lévesque Beaubien Geoffrion and Leclerc, and Desjardins' central branches for example. These are all provincially chartered institutions in the securities industry. Such an invasion is unacceptable.
I would say that this invasion is even worse than the recent federal invasion in the area of manpower training for example. It is worse in the sense that it touches one of Quebec's sacred cows. It touches an area under the exclusive jurisdiction of the Government of Quebec, as recognized in the Constitution imposed on us by the current Prime Minister in 1982.
It takes a great deal of self-righteousness and cynicism to do something like that.