Mr. Speaker, I am pleased to speak to what is an important issue for many people but not one that is part of their dinner table conversation every evening. Nevertheless, certainly in the constituency I represent, Surrey North, it is one that affects the lives of people daily.
Most people who are members of a family, be it a lone parent family or an extended family, are trying to make enough money simply to feed the children, maybe to get them new sneakers for school, maybe to pay for field trips, and to have a safe roof over their heads. Those people do not have the time or the opportunity, or perhaps the knowledge to read in any great depth the Bank Act, the regulations within it and how they might affect their family. Constituents count on their MPs to represent them and to be their voices in this Parliament. Some people have the time to sit down and work this through, but for those who may not have that opportunity, there are some questions that they would be asking us.
I represent Surrey North, which is one of five constituencies in Surrey. The city of Surrey has 400,000 people. The average three bedroom house is worth about $350,000. That is an average starter home, which for many people would be wonderful, but there are many young people who will not get into the housing market.
One of the recommendations made by the Consumers' Association of Canada had to do with the limitation on first mortgage funding. I realize there are some disadvantages to raising first mortgage funding from 75% to 95%, but I am not sure that the risks outweigh the benefits. There are many people, some of whom perhaps are our children or grandchildren, who, if they stay in urban areas like the B.C. lower mainland, Toronto, Montreal, Calgary or Edmonton, will never get into the housing market because they do not have $50,000 to $60,000 or more for a down payment. That recommendation made by the CAC should have been looked at very carefully. I recognize there are challenges with it, but I think that the benefits outweigh the challenges.
One of the things that my constituents will notice on a fairly regular basis has been talked about at some length lately, and that is the use of automated teller machines, ATMs, and not just the use of ATMs but the cost of using ATMs.
Some of my family have been living in Great Britain for the last three years. When I was visiting there, I discovered there was no charge for using a debit card. I was quite surprised, because I know what the charge is for using one here. People may not talk about the Bank Act at the dining room table, maybe because they are too busy trying to make sure there is enough food on it, but people do notice the charges when they use the ATMs.
Some people only take out very small amounts, maybe because that is all they have in the bank. They may be paying 25% on what they are taking out, and that is just to get the money out. They cannot get into the bank during what are called regular working hours, or their bank branch has closed and they cannot get to a bank of any kind. The ATM fees are ones that people notice with great regularity.
When folks pick up either a newspaper to which they have a subscription or pick up one of the free dailies out there and see a huge headline in big bold print that says, “Bank Profits $19 Billion”, they look at their bank statements.
I do not know whether everybody in the House looks rigorously at their bank statement every month, but people who do not have very much money look at their bank statements regularly. They are just cutting the line. The speaker from the Bloc, who would have much more money than some of the people I have talked about, said earlier that he ran into a difficulty with having money in the bank but not being able to access it. However, these folks pay attention to that part.
When they see bank profits of $19 billion, they do not know why they have to pay money to take their money out of the bank. Nobody wants the banks to suffer losses. People would expect the banks to make a profit. They invest their money. That is why people put money in banks. However, charging twice for the money they invest for us seems to my constituents to be a little beyond the realm of reason.
I do not happen to currently live in a rural area, but I have lived in a rural area in a small town of 1,600 people and the bank closed. The next bank was about 42 miles away. What is the responsibility of the banks when they close? Is it simply to pack up the boxes, lay off the staff and move out town?
I know motions were put forward to the committee on public accountability for bank closures or proposed bank closures. I know the motion was defeated. I do not know what we expect people to do. Perhaps people who have cars or trucks and can drive in every kind of weather et cetera, can get to that town 42 miles away. Otherwise, what does one do?
If people cannot get the cash from the bank, they might do the rest of their banking online, which is a presumption that everybody owns a computer and has Internet service. There are parts of provinces where Internet services are not available to them. Also some people do not have computers or if they have, they not have Internet service.
The fact is there is no accountability for those people who have supported and counted on that bank. In a small town a different relationship is built with a bank than in a big city. It becomes part of the family, something that they count on, or some buddy to count on, the bank manager or others in the bank, and that is gone. Where does one go for advice? Where does one even go to take money out? An amendment to suggest that there be some accountability for that was defeated.
As I said, I live in an urban area. I do not consider that to be an issue for me, but it would be for many of the MPs who represent their constituents in the House.
One success is the member for Winnipeg North has put forward a motion to review ATM fees. I congratulate her for that. I hope, as I think others do, that the standing committee will look at banks and subsidiaries, other financial agents and networks that provide financial services to people. I hope everybody will come forward to testify so the results of the study will be comprehensive.
This is one of the things that constituents count on us to do. They cannot do this for themselves. They do not have the time nor the expertise. They expect us to do it. We have that responsibility.
We have heard a lot about accountability and transparency. I do not know if those words still mean anything, but we hear a lot of talk about transparency. I spent too many years teaching college, I guess, because for me transparency is a slide on top of an overhead. Nevertheless, the concept is important.
The motion to publicize the names of banks that violated the consumer provisions of the act was disallowed. The names of businesses that violate their business licence are published by the Better Business Bureau. The names of physicians or teachers who have been disciplined or have had their licences removed are published. The public has the right to know. The motion that we publish the names of banks that violated consumer provisions of the act was defeated.
Why should violations by institutions that make a $19 billion profit be disallowed when we hear a great outcry from the public, and often a very legitimate outcry? Constituents in my riding want to know if teaches, or physicians, or accountants or anybody for that matter have violated their professional code of ethics or their business licences. They want to know who these individuals are. Why should banks be somehow exempt from this? I am very puzzled and somewhat disappointed that the motion was defeated.
If we buy something at a store and we ask the price, we are told, for example, that it costs $7.99, just like it says on the tag. The store discloses the price. However, when we asked about the mandatory disclosure of ATM fees, which was another motion put forward, we were denied.
My bank provides a service to me. I do not provide a service to it. Yet I am not allowed to know what ATM fees are so I can make some comparisons, as anybody would if they were good consumers. Good consumers want to know how much something costs, no matter what they buy. Somehow the committee felt there could not be mandatory disclosure of ATM fees. Perhaps there is some extremely complex reason that I fail to understand as to why these fees cannot be disclosed.
Constituents in my riding do not think there is any reason why these fees cannot be disclosed. That is one thing they understand. They understand credit card interest and they understand their ATM machines and what they pay to use them. They do not have time for the rest. My constituents are raising families and trying to get their kids to soccer, read report cards, take part in school curricula. They do not have the time to look at this kind of information on a regular basis. The publication of this information would be a real service to people. It certainly would be a real service to people in my riding of Surrey North.
Earlier the member for the Bloc spoke about holding cheques. If people live below the poverty line and get a cheque, they do not have the luxury of waiting a week for somebody to clear it. They need that cheque for food. Maybe their child has a chance to participate in sports and they need to buy soccer boots to participate. They need to cash the cheque, not have it held for 24 hours.
I put a Government of Canada cheque in the bank the other day. From what I hear, its reputation is superb, but the cheque was held by the bank for 72 hours. For me it did not matter, but for those people who truly are living from dollar to dollar, to hold a cheque like that is not fair, it is not right and it is not just. It may prevent them from buying a prescription for penicillin, for which they did not budget, for a child who has a rip-roaring ear infection or for somebody else in the family who needs something that requires a medical fee. They need it then, not in a week when the medication will not work on that child who has laid in pain for the week. I am using a very simple example in that case, but in the lives of most people they are simple examples.
We have people who do not have an address. They live on the streets. None of us wish for this, and people are working at ways to correct that situation, but thousands and thousands of people still live on the streets. How do they bank because they do not have an address? There are all kinds of banks that discriminate against people because they do not have a home address. This is one of the issues that should have and could have been addressed, but it was not.
I have talked about the credit card fees and interest rates. We can say people should not run up their credit cards because they have such a high interest rates and the cards will never be paid off. How many of us have been in a position of having to make the decision to feed the kids, or fill a prescription?
We hear a lot in the news about pharming of identity information on the Internet and the fact that there is no public disclosure when there has been a breach of security. No one has a duty to notify me or any of us. Yet this has happened recently to stores and companies and people have been up in arms that they have not been notified. It is terrible that these companies have not notified these individuals, but what about the duty of banks to notify any of us. Maybe some of us if that happened would not have our rent cheque bounce. Companies do not have a duty to call and say their security systems have been breached, that there has been identity fraud and that individuals have been affected by this. The motion to include that was defeated as well.
There are many missed opportunities in this bill. The comments of the CAC have been very relevant about what could have been accomplished and was not.
With that I will close and say that while I know we have a duty to review the Bank Act every five years, I hope we will take it more seriously than a housekeeping measure.