Mr. Speaker, today I rise to speak to Bill C-26. After examining this bill in the parliamentary committee, I thought that it would be very favourably received since the Government of Quebec has had legislation for the last two decades that manages the payday loans issue through the Office de la protection du consommateur.
Quebeckers who are listening to the debate today must be wondering why this question has still not been resolved. They must be asking themselves, "Is there not legislation under which this issue could be dealt with?" The answer is no. In the rest of Canada, that is not the case.
I saw this in committee. The representatives of the three federalist parties joined together and systematically, and very firmly, opposed a slight amendment being made to provide that in the event that a province—such as Quebec—already had a law that addressed this issue adequately, no in-depth study would be done. The jurisdiction of the province would be respected. The provincial authorities have decided that this is the right approach. At that point, notice would simply be taken that the law and the mechanics were already in place. That is the law that would prevail.
The payday loans question is important because it often affects people with very low incomes or people who suddenly need financial loans. In the rest of Canada, a flourishing industry has developed that engages in all sorts of conduct. Some work according to all the rules, others less so. I perfectly understand that there would be a desire to deal with this issue. The Bloc has never objected to this kind of legislation being applied in the provinces where there is not already legislation in this area and where the provinces decide to apply it.
Our opposition to the bill arises out of the fact that there is already a law in Quebec. My colleague said earlier that he had a problem with the Bloc's approach and that he needed proof. This is not the Bloc's approach; it is Quebec's approach.
The present federalist liberal government in Quebec City is of the same view as the Bloc on this point. We have checked with the office of the minister. The office of the minister wanted Quebec to be able to say, by giving notice to the federal government, “We already have legislation that deals with the question of payday loans, and accordingly it is that legislation that will apply in Quebec.”
In actual fact, though, this is not the answer we received. The provincial government will have to submit its legislation to the federal government. There will be studies of the appropriateness of the bill and how we are dealing with this problem. Then it will be referred to the Governor in Council. It is quite a production.
Although this is a provincial jurisdiction, that is to say, an area that is Quebec’s responsibility, and although Quebec has had 20 years of experience and there are no problems with the application of the law, we still have to go and seek the blessing of our big brother in Ottawa.
It is totally incomprehensible that a Conservative government like this one, which claimed that it would show more respect for areas of provincial jurisdiction, would act in this way. There is even talk of a bill to provide a framework for the federal government’s spending power.
They say that Quebec is a nation. The Prime Minister himself introduced a motion in the House to this effect. But at the first opportunity, when they finally have a chance to show they are going to do things differently, the bulldozer is there ready to go. The steamroller is right there. They are going to standardize everything all across Canada.
The provinces will all be required to justify their legislation. Even 20 years of experience in this area does not matter. According to the federal government, that is not how these issues can be resolved.
It is important to know that under the practices developed in Quebec over the years, the maximum currently acceptable rate is 35%. That is very different from what is seen in the rest of Canada. Thanks to the Office de la protection du consommateur, the various roles are well defined and understood. We do not have any problems with this industry. To the extent that it exists, particular practices have been accepted and excesses are prohibited. Quebeckers are legally entitled to a maximum rate of about 35%.
People who want to make a pile of money in a hurry on the backs of those who are not very well off financially by providing these kinds of services have less incentive to try to do so.
The Criminal Code refers to a rate of 60%. Now, the government wants each province to pass legislation in this area if it sees fit, whereas Quebec has already done so.
The bill states that the federal government will designate provinces. It is therefore giving itself the right to veto the measures taken by a province that requests an exemption. A province cannot just send a letter to say that it already has legislation in place. A province that has legislation like what Quebec has had for 20 years must come, hat in hand, and ask for an exemption from a government that has been unable to solve this problem for 25 years. It is like saying, “We have a law. Will you let us enforce it?” This is typical of the federal government, especially senior bureaucrats, who want to have “One Canada, One Nation“ here in Ottawa.
The reality is quite a different matter. Obviously, jurisdictional legislation will not change the world, but this is an example of a situation where, in a year when the federal government recognized Quebec as a nation, it is also telling Quebec: “You are a nation, but when it comes to payday loans, we do not recognize what you are doing and we want the right to give our OK”. This is the federal government's double standard.
In its policy statements and in its day-to-day behaviour, the government is taking the old approach that Quebeckers have often criticized. We hope that payday loans can continue to be dealt with the way they have been by the Government of Quebec and that the federal government will end up giving its blessing very quickly. The fact remains that this is written in law. This is something that is inconsistent with sharing jurisdictions and does not respect the expertise developed over the years.
There is no doubt that in the rest of Canada it is important to have a way to deal with this situation. We know this by the letters received from people who tell us about what is going on in the rest of Canada. There truly are behaviours that need to be brought into line. There needs to be a framework. Quebec has had this framework for 20 years now. If the provinces want to see how it works, they can contact the Government of Quebec to see the method that was developed. If they want to use it, all the better. If they decide to do something else, that is their choice. There is no problem. We will respect their jurisdictions.
The position the Bloc Québécois is defending today is not one of “sovereignists”, it is the position of the Government of Quebec, the current federalist government and the previous governments of Quebec. It is governments and people who have witnessed the role of the Office de la protection du consommateur. These are people who represented very different opinions on a national level, people such as Ms. Bacon, who is in the other place, and Ms. Payette, who was a Quebec minister for the Parti Québécois. She brought about some significant changes in our society and continues to do so today through her writings. These were people with very different opinions, but they had a frame of reference at the Office de la protection du consommateur, which is an example and a very interesting model. Today, Quebec is getting a rather discouraging message from the federal government.
I was even more surprised by the attitude in committee. Tomorrow in the Committee on Industry, a report will be tabled on the manufacturing sector and, without revealing the content of the report, it will be quite unequivocal about the action that should be taken in this sector.
Now, when a question of jurisdiction arises and a tiny change is needed in our legislation to ensure that Quebec's areas of jurisdiction are being respected, the three federalist parties rise to say: “No, we cannot spend time on a small amendment. There is no satisfying Quebec on this. Quebec must conform to the same requirements as the others”. This is an example of what we have seen in the past, and there are many such examples. We did not think we would see it again here today in a bill such as the one now before us.
With respect to the payday loan industry, we are told that it arose in Canada mainly in the early 1990s. I believe the Office de la protection du consommateur was already regulating the loan sector to some extent. This is likely why Quebec did not experience any serious abuses in this industry.
Jurisdiction is shared to a certain degree, since Quebec and the provinces have responsibility for local trade and commerce and civil law. There is also shared jurisdiction over contracts and consumer protection.
The federal government estimates that this industry now comprises more than 1,300 points of sale. Their distribution is very uneven and Quebec has very few such businesses. In practice, anyone in Quebec who is listening to this debate likely believes that this issue has already been resolved and must be wondering why a new bill has been introduced on this topic. I would like to explain to them that the industry grew at very different rates in Quebec and in Canada.
Little is heard about this issue in Quebec, because it has been resolved for several years now, in fact, for decades. The new situation in the rest of Canada must be corrected. We agree with the substance of this bill. However, when it comes to respecting jurisdictions, the bill does not in any way meet Quebec's requirements.
When I was working in committee on this issue, thanks to the marvels of modern communication technology, I received notices from the Government of Quebec, calling for a debate to pass the proposed amendment.
Meanwhile, members of the various parties said that it was not an important issue. The deputy minister of the department, the senior public servant, had just told us that this would not have any implications for Quebec and that it was wrong to believe that federal approval would be required. Just then, I received a cabinet memo from the Quebec Minister of Justice on my Blackberry stating the exact opposite.
Such a striking example shows us that there are still too many things to be changed in this system for there to be true respect. If there is no respect for our jurisdiction in matters such as this one, which is very important, imagine what will happen with even more significant issues.
Individuals are forced to borrow money against their wages and have to deal with people who charge ridiculous rates. There must be oversight in this area.
On this matter I agree with my Liberal colleague from Prince Edward Island who spoke earlier. We must also examine the overall implications and what must be done. It is not true that the issue will be resolved by a mere rap on the knuckles of those who do wrong. An enforcement component must be put in place. However, there is also the question of the environment in which people work, as well as what is required of banking institutions.
My NDP colleague was saying that the banks have not done their job. I think there is some truth to that. In Quebec, we have the Desjardins movement. In recent years, profitability has been a major consideration, but it has nonetheless developed a means of helping individuals who are having a little more difficulty. This has prevented an unhealthy industry from emerging.
In my riding, credit unions have a special committee that looks at such issues when it is urgent. This has led to a more humane approach to these situations. This is what will have to be put in place by the provinces that need to develop legislation. With the bill before us, they will require federal government approval when they table their legislation. Perhaps this does not bother the other provinces and they agree with this way of doing things.
The government should have respected the fact that each province moves at its own pace. If the government truly respected jurisdiction in this matter, this bill would have contained an amendment making it possible for us to adopt it immediately. I sent amendments to each member of the committee. Making them would have indicated a change in attitude on the government's part toward recognizing Quebec's expertise in this matter, which is not currently the case. At the same time, the legislation would have been adopted faster so that the situation could be addressed appropriately in all Canadian provinces.
In light of these factors, I believe you will understand why the Bloc Québécois cannot vote for this bill in its current form: it does not respect Quebec's jurisdiction. There is still time for the federal government to amend the bill. We can easily reach a compromise. I would ask the government to check its source within the Quebec government because that government's position on this issue is the same as the Bloc Québécois'. The bill would be much more acceptable if it were amended to take into account Quebec's expertise and to respect its jurisdiction. It that were to happen, we would have the opportunity to adopt a functional bill as soon as possible, one that respects provincial jurisdiction and Quebec's jurisdiction in this matter and that recognizes the expertise we have developed.
Today, a quick look at every province reveals that there is one province where payday lending is not a problem: Quebec. The other provinces have a serious problem. That is clear from the members' eagerness to pass this bill even if it means encroaching on Quebec's jurisdiction in committee.
Today's debate in this House will make the public aware of this situation. Quebec is being treated like a child with respect to this practice. Quebec has the expertise, the jurisdiction and the power to implement its legislation, but the federal government is imposing its own way of dealing with the payday loan issue.
I hope that the members of this House will pay attention to what we are saying. I will be available to answer any questions and address any comments from colleagues who are not members of the committee but who would like to have a say in this matter.