moved:
Motion No. 8
That Bill C-2, in Clause 53, be amended by adding after line 15 on page 28 the following:
“(1.1) A regulation made under paragraph (1)(b) must reflect the objects of the Board as set out in section 5.”
Mr. Speaker, this is another amendment to Bill C-2. It is still time for government members to see the light and to support amendments that will make the Canada pension plan more fair, more transparent, more performing and more accountable to those who contribute to it. I hope government members will support this amendment.
This is an addition to clause 53 of the bill, which deals with the regulations that the governor in council may make.
In its current form, clause 53 basically provides that the governor in council may make regulations: (a) specifying which provisions of the Pension Benefits Standards Act of 1985 apply to the board; (b) respecting the investments the board may make; (c) prescribing anything that the act provides.
Clause 53 also deals with the coming into effect of regulations. We are pleased to see that a regulation has no force or effect until it has been approved by at least two thirds of the participating provinces having in total not less than two thirds of the population.
The purpose of our proposed amendment to clause 53 is to require the governor in council to take into account the objects of the board, as set out in clause 5 of the bill.
Allow me to read clause 5 so that hon. members can understand the scope of the obligation that we want to impose on the governor in council:
- The objects of the Board are a ) to manage any amounts that are transferred to it under section 111 of the Canada Pension Plan in the best interests of the contributors and beneficiaries under that Act; and b ) to invest its assets with a view to achieving a maximum rate of return, without undue risk of loss, having regard to the factors that may affect the funding of the Canada Pension Plan and the ability of the Canada Pension Plan to meet its financial obligations.
Therefore, by passing our amendment the governor in council would be bound by this mission as it is detailed in clause 5. This would ensure that after the three year phase-in period the government exercises its ability to restrict investment under clause 53(1)(b) in a manner that reflects the best interest of the beneficiaries.
This would be done by requiring that such regulations be made with a view to ensuring that the plan's investment advisers are subject to the prudent person rule. To take effect, any regulation that is not passed with a view to those objectives would have to be approved by two-thirds of the participating provinces with two-thirds of the population.
Bill C-2 provides the government with the ability to set through regulations the kinds of investments the board may make. This may preclude the board from making investments that are in the best interests of the beneficiaries, for example, through limits on foreign investments or the government could choose to simply list certain sectors at the expense of others.
We want to ensure that this plan operates in the best interest of the beneficiaries free from any political, economic and social objectives.