Madam Speaker, I want to tell you how proud I am that the occupant of the Chair is a woman. Women often have to work really hard to get certain prestigious positions. So, it is always with pride that I take the floor when you are presiding over our proceedings.
First, I would like to say that the Bloc Quebecois supports Bill C-8, and to reassure certain groups, we agree that the bill ought to be passed as quickly as possible so we can have a swift and smooth transition.
Nonetheless, the bill as it stands does not meet all the requirements of certain groups.
The most important thing for Quebec is to protect the largest bank in Quebec, the National Bank. This is a very important concern for our nation. This bank is the Quebec's largest bank, and Quebec businesses have their money there.
This bill will make the National Bank more vulnerable than the big Canadian banks, and that is unacceptable. This bill provides for a three tier system, as far as individual control of banks goes.
I would like to explain once more something I have already talked about in the House, and I think I made myself clear at the time. Let me just go over the general concept to show the people who are watching, as well as you, Madam Speaker, what is going on in that system that we want to create and that seems acceptable to us.
As we all know, for the big Canadian banks, the Royal Bank for example, voting shares that one shareholder can own increase from 10 to 20%. So, for banks with assets worth $5 billion or more, one shareholder could own 20% of the bank's shares.
The problem is, however, and this is the case in Quebec, that small banks, those with assets worth less than $5 billion, the Minister of Finance is allowing one shareholder to own up to 65% of the bank's voting shares. This means that one shareholder could purchase 65% of the shares of the National Bank. That individual would control the assets of the Quebec people. It is incredible. Why is there such a difference?
Why is one shareholder allowed to own 20% of the Royal Bank's voting shares, but when it comes to the National Bank, a single shareholder, it could be a foreigner, if he has the money and holds 65% of the bank's voting shares, could decide to transfer the bank's head office, lay people off, transfer the bank's assets, transfer Quebecers' money outside the country because he is a foreigner, and the whole company will be administered in a foreign country?
So, those are the people's concerns. What will happen? In fact, jobs will probably be lost, and it is unacceptable to think that only one individual can manage most of this financial institution's assets. That is why we are denouncing this situation.
However, there was a certain change while this bill was being studied. Mr. Landry, now the Premier of Quebec, made demands that were incorporated in this bill. However these demands are like guidelines on the reclassification of the banks that were included before in schedule 1, banks with equity capital of less than $5 billion, of which the National Bank is one.
The idea was to include these guidelines in the bill, but they remained guidelines. It is a small step, but not enough for us. We must really ensure that these guidelines are incorporated in the bill. I would like to quote some of them:
All transactions involving a reclassification will be evaluated on the basis of merit. It will have to be shown that the operation will add to the bank's growth potential and that it will lead to better customer service.
The guidelines also state:
In determining whether a transaction involving a reclassification is in the public interest, the Minister of Finance shall take into consideration all the factors he considers relevant, including the security and solidity of the bank, the direct and indirect jobs, the location of the decision-making centre and the management of the bank, the needs of consumers, the bank's business and activities and the bank's prospects for the future in the context of world markets.
These elements, as they are not in the bill, may be amended by the minister as he sees fit. This is a matter of concern for us. It is all very nice that these guidelines were accepted, but what bothers us is that they are not included in the bill. They may be respected or not, as the minister sees fit.
The public as well as parliamentarians must put a great deal of trust in the minister right now, because he tells us is completely sincere. However if a new minister comes along, because ministers do change, whose philosophy is different from that of the current minister who wants us to trust him, how could we be sure that what we ask this new minister with a different philosophy will be respected? It is very important that this be included in the bill.
This process has to become more transparent and it should not cause us any more problem. Right now, there is something of a sword of Damocles over the National Bank because everything is up to the minister and nothing is set out in the bill. If it were, we could always refer to the legislation to show what the intent was, but it is not the case.
As I said earlier, we support the bill. We have worked very hard. My colleague from St-Hyacinthe—Bagot has even tabled a brief with the committee. He has put forward points that were included in the bill. However, we feel that we have been elected to protect the interests of Quebec consumers in our ridings. We are somewhat concerned right now, and when I say somewhat, I really mean to say that we are very concerned about the situation in which this bill puts the National Bank and the small banks with less than $5 billion in capital.
I raise the issue, but this is a concern not only for members of the Bloc Quebecois, but also for the directors of the National Bank. In view of this, the National Bank decided a few weeks ago to adopt a series of rules in order to prevent a hostile takeover at its expense. Looking for strategic partners, the president of the National Bank said that maintaining the head office in Montreal was simply not negotiable.
The shareholders passed two resolutions to protect the National Bank against a hostile bid. They agreed to drag things out so the directors would have more time to examine other bids. They also agreed to drop the limit on the number of common shares that could be issued by the bank. These measures clearly illustrated the concerns generated by the new environment.
With this bill, the Minister of Finance is giving himself the power to determine at his discretion, the future of Quebec's major banks. As I mentioned before, we find it unacceptable that this discretionary power has such sway, more even than the law itself.
In concluding, I would like to say once again that we will support this bill, but we would like the Minister of Finance to take into account the concerns of Quebecers and of the members of the Bloc Quebecois.