Madam Speaker, I am very pleased to rise again in discussion with my hon. colleagues on the other side of the House on a question I asked in June.
As we start off, let us look at a report by the Certified General Accountants Association of Canada in July of this year, which reported that total household debt in Canada had hit $1.5 trillion. On September 13, Statistics Canada reported that household credit market debt rose to 149% of disposable income in the second quarter. At the same time, due to falling share prices and pension assets, average household net worth fell by 0.3%.
Canadians are feeling squeezed in every direction. As savings disappear, credit becomes both more important to families and more dangerous, both to individuals and to the economy as a whole. Because of this we need comprehensive legislation designed to protect Canadians from the predatory practices of credit card companies and some banks.
Far too many Canadians sign up for credit cards with low introductory rates, only to see their rates soar once the period ends. Too many students and low-income Canadians are aggressively pursued by credit card issuers and end up taking on debt that they are realistically unable to repay. Far too many Canadians are charged excessive fees and penalties for paying their balance a few days late or a few dollars short.
It is not only consumers who are being gouged by credit card companies and some of the banks. On the first anniversary of the government's voluntary code of conduct, the Canadian Federation of Independent Business published a report card on the voluntary code. Its findings were that small-business margins were being eroded by credit card merchant fees. In fact, the Competition Bureau has already ruled that Visa and MasterCard's “honour-all-cards rule”, which forces small businesses to accept higher cost premium cards, is anti-competitive.
It is time for the government to act to protect consumers, to protect small businesses and to protect the Canadian economy.
Just this Tuesday, the finance committee heard from a senior private sector economist who pointed out the precarious situation of our economy. Douglas Porter, deputy chief economist at BMO Nesbitt Burns, said that there was a 35% chance of Canada entering a recession in the next year. We need to ensure that the government acts now to ensure that consumers are protected in case the worst happens. The government's wait and see approach is fundamentally flawed. It is better to treat the cause now than to apply a band-aid once it is too late.
In April 2009 the 40th Parliament adopted my motion for the government to introduce comprehensive credit card legislation to protect consumers. The problems facing the global economy may be different today, but this issue continues to affect Canadian consumers and small businesses.
When will the government recognize this and make the legislative changes required to continue to protect consumers and small businesses?