Mr. Speaker, I am pleased to rise to respond to the concerns raised by the member for Hamilton East—Stoney Creek.
The government very much understands the value of secure and sustainable pensions and has taken action on a number of fronts.
On the narrower issue of bankruptcies and restructurings, the government has already taken steps to protect pensioners by amending insolvency laws. For example, in July 2008 we amended the Bankruptcy and Insolvency Act to provide a higher priority for outstanding pension contributions so that those amounts would be paid to pensioners ahead of even secured creditors. In September 2009 we made similar changes to the Companies' Creditors Arrangements Act, dealing with pensions in the case of firms undergoing a restructuring.
However, attempting to deal with unfunded pension liabilities through insolvency legislation can have a significant impact.
Canada's insolvency laws aim to encourage restructuring as evidence shows that this leads to better recovery for creditors and preserves more jobs. We must be careful therefore before changing the priority assigned to various claims in insolvency, as doing so can have a significant impact on a businesses ability to restructure, the availability and cost of credit and on the other creditors of an insolvent company, including small suppliers, independent business partners, landlords and many others.
However, the longer term answer to pension security requires a multi-faceted approach. Prevention and proactive solutions must be the order of the day if we are to ensure adequate retirement security for Canadians.
That is why last October, in the federal domain, the Minister of Finance announced some important reforms. A number of these reforms are now coming to fruition with the government's recent passage of Bill C-9, Jobs and Economic Growth Act, which among other things, implements important changes to strengthen federally regulated private pension plans.
Complementing the act are changes to the relevant sections of the pension benefits standards regulations that the minister proposed in early May. These changes will enhance protection for plan members, reduce funding volatility and modernize the rules for investments by pension funds. They will allow sponsors to better manage their funding obligations and give them greater flexibility in investment allocations.
The member should rest assured that for its part the federal government, after considered deliberation to reconcile the needs and perhaps at times conflicting advice received from stakeholders, will make the necessary choices and do the right thing for Canadians.