Mr. Speaker, the intent of Bill C-226 is to require the administrator of a pension plan to prepare an annual report on the social, ethical and environmental factors that have been considered, during the previous year, in the selection, retention and liquidation of investments under the administrator's responsibility.
That means the administrator presents an annual report and indicates how and why the funds were invested. Ultimately, the intent of the bill is to increase transparency regarding the choices made by the administrator of the workers' savings.
To answer the question of the government member, the legislative amendment will not force pension committees to make socially responsible investments. That would be desirable. That is what we would like, but this amendment would go as far as to compel them to adopt a policy of making socially responsible investments and informing the plan's members about it.
What we are asking for today is just a step in the right direction. Let us take that step and, later, we can strengthen the legislation or amend it to make that demand on administrators. For the time being, however, the responsible thing to do would have been for the government to support this bill, which would have allowed us to do so. Administrators would like to be required to submit an annual report, but this possibility is not available to them at present because of the absence from the legislation of a specific definition of what fiduciary obligations are.
Our government colleague said earlier that the amendment would impose an obligation on administrators. That is not the purpose of this bill. Noting in this bill will force pension committees to make socially responsible investments. What the amendment does say, however, is that it would desirable for them to do so.
Canada-wide, this represents nearly $600 billion, including $90 billion for federally regulated corporations. This money collected from the workers has become one of the major forces driving globalization. These investors have in their hands considerable power to influence the creation of sustainable development all over the world.
The legislative amendment would have businesses draw up a more detailed balance sheet than a mere financial statement. My colleague also said that all investors have to do is ask for the statement and the administrators will provide it. However, we seldom see a single investor ask for a statement. It would take someone with no concern for transparency to say, “No problem; they will get a statement if they ask for it”. Often, one has to go through access to information to get it. That can take months. These are cumbersome administrative procedures.
To ensure maximum transparency and flexibility, why not ask pension plan administrators to present an annual report—that is perfectly acceptable—and tell us how they invested our money?
Mr. Speaker, at this time, I wish to seek the consent of the House to make this bill votable.