Madam Speaker, it is with pleasure that I rise to speak on these specific amendments in Group No. 2.
First, with regard to Motion No. 2 and the stiffer penalties for violations of the rules relative to consumer protection, while I understand the hon. member's notion of making the punishment even more onerous, the fact is that the legislation would give a greater amount of intrusion and regulation of the financial services sector than any other sector or industry in Canada. I understand the hon. member's philosophical foundation for the amendment but I disagree fundamentally with his intention.
On Motion No. 9, I generally agree with the notion that we need to improve and increase levels of flexibility for the Canadian financial services sector players which include the banks, credit unions et cetera. The greater level of flexibility in ownership rules for small banks makes a great deal of sense if we are serious about increased levels of competition. I would not agree with Motion No. 9 in general because I think it is contrary to the principles of the MacKay report and to the general direction that I believe is sound in terms of moving toward greater levels of flexibility in the financial services sector to increase the level of competition and ultimately services to consumers.
Motion No. 10 is very well placed. While I may disagree with it, it is important that the hon. member presented it. It points out the hypocrisy on the part of the Liberals. It was Liberal policy to have a $3 basic account. Now the Liberals are lining up opposed to it.
Are we prepared to have these kinds of rules for every industry? For instance there is the food distribution business. Clearly food is a necessity since we cannot live without food and we also cannot live without shelter, unless we were to pass laws that would require grocery stores and distribution companies or real estate developers to provide a basic level of service to people at very low levels of cost or perhaps even free. It is incorrect and not logical for us to impose these same levels of onerous restrictions and over regulation on the financial services sector.
If I disagree with some elements of the legislation, they are the parts that would lead to a greater level of intrusion and over regulation of the financial services sector than any other industry in Canada. The motion in some ways would make it even worse, more onerous and unfair.
Probably it is good politics to present motions that are anti-bank but it may also be very bad public policy if in fact our interests are consistent with the long term interests of Canadians. In general, greater levels of regulation can also lead to greater levels of cost of compliance and ultimately higher levels of services charges for consumers and/or lower returns for bank shareholders. The bank shareholders include about seven million Canadians indirectly or directly who are counting on their long term returns from their investments, particularly for retirement income.
Motion No. 11 deals with prohibition of bank closures for any reasons but non-profitability. It is very intrusive and difficult to determine. Frankly this gets into issues of bookkeeping and cost allocation. It would be almost impossible to implement the principle of the motion.
Again, there is a greater level of transparency and there is a process put in place for branch closures in the legislation which goes quite a long way further than we have seen in the past.
I do agree with the hon. member in terms of the notion that the credit unions should be engaged more actively when there are going to be branch closures in order to ensure that every possible avenue has been identified and pursued to ensure continued services to communities, particularly smaller communities. I think the Bank of Montreal and the credit union movement have created a very positive example of how that level of co-operation can benefit consumers and citizens in smaller communities.
I think it was about a year ago when a number of Bank of Montreal branches closed in the western provinces, but instead of waiting for public backlash the Bank of Montreal pre-emptively negotiated with and announced a deal with the credit unions, which resulted in only a minimal disruption of services to consumers in those communities. I support that kind of initiative.
In terms of Motion No. 14, again I am supportive. It is consistent with the underpinnings of the co-operative movement, the credit union movement and the distinct democratic culture of the credit union and co-operative movements. If we are serious about enabling the credit unions to compete more effectively with banks, the amendment in fact makes a great deal of sense, because it enables them to compete and at the same time remain consistent with the democratic underpinnings of their movement.
As a result, I think this is a positive amendment and it is regrettable that the government does not support it. On the one hand the government is saying it wants to create greater levels of competition from the credit union movement, and on the other hand it is not providing the legislative vehicle through which to ensure that the credit union movement can also take advantage of this greater level of competition. I support Motion No. 14.