Madam Speaker, to begin I would like to say to the industry critic for the Reform Party and the critic from the Bloc Quebecois that as we in committee designed this bill we had a very constructive debate, a very solid exchange of views. I am happy to see that this spirit is continuing today in the House, because it is important that we put this bill through the House today, with all the responsibility we have been given to make sure we do the right thing.
At the same time, members must realize that this Business Development Bank of Canada is an instrument that we need to act as a catalyst with the small and medium size business community and it must be done. This bill must be passed before this House adjourns.
I now want to deal with the Reform Party member's concerns about this area of the bill on these motions. I want to humbly differ with him. Where the member has said that we are not specific about the options the bank may choose to get into and therefore the crown's liability might be increased, I differ with that.
I want to be very specific. Under section 30 of the bill, it is entitled the debt to equity ratio. Section 30 is very specific. The aggregate of (a) the borrowings of the bank under subsection 18(1) and section 19 and (b) the contingent liabilities of the bank in the form of guarantees given by it must not at any time exceed 12 times the equity of the bank.
We go on and we are very specific about the definition of equity:
For the purpose of subsection (1), the equity of the Bank consists of
(a) the amounts paid for its shares, including any contributed surplus;
(b) the retained earnings of the Bank, which may be positive or negative;
(c) the amounts paid to the Bank as capital by Parliamentary appropriation; and
(d) such proceeds of debt instruments, hybrid capital instruments or any other arrangements as may be prescribed as equity by the Governor in Council.
What I am suggesting by that very specific control the bank has is that the amendment the Reform Party is putting forward is not necessary because any activity in respect to the concern of the member of the Reform Party could only be undertaken if it met the bank's eligibility criteria. If the eligibility criteria were not met, then the bank could not proceed holus-bolus on its own.
I believe that the bill, as it stands, amply covers the Reform Party's concerns.