Mr. Speaker, I appreciate the opportunity to speak about the government's position on Bill C-473, concerning the balanced representation of men and women on boards of directors of federal crown corporations.
This government wants to see women fully participating, not only in the senior ranks of crown corporations, but also throughout the public service and the private sector.
In a modern, progressive democracy like Canada, women contribute in every respect to corporate enterprises and it has long been acknowledged that the presence of women on corporate boards brings a different perspective and a very important voice to Canadian corporations.
It makes perfect sense that increasing opportunities for women to sit on boards of directors would be good for Canadian women, for Canadian companies, as well as for the economy and economic growth. Not only does it make sense, but it is also the right thing to do.
However, we know that, despite the ever-increasing numbers of women with higher levels of education and significant professional experience, they are under-represented on boards of directors and in senior leadership positions in Canada.
That is exactly why we have taken concrete action to change the situation.
On April 5 the Minister for Status of Women announced the launch of the Government of Canada's Advisory Council on Women on Corporate Boards. This advisory panel will include such notable Canadian women as the president of Sun Life Québec, Isabelle Hudon; Venture Communications CEO Arlene Dickinson; former Ontario finance minister Janet Ecker; Canadian Federation of Independent Business chairwoman Catherine Swift; and Senator Linda Frum.
This panel will advise the minister on how industry can increase the number of women on corporate boards. It will also be asked to find the best way to measure the participation of women on boards and in senior management positions and whether the government should be involved. What is more, it will be asked to suggest ways of recognizing or rewarding companies that have met their own targets for increasing the representation of women, and it will report back with its recommendations this fall.
We welcome the minister's announcement. We applaud it because we support equitable representation of women at all levels in the workforce and broader diversity on corporate boards.
Of course, as economic action plan 2012 confirms, we have committed to supporting the creation of opportunities not only for women but also for all under-represented labour groups, including visible minorities, aboriginals and people with disabilities.
Having said that, Bill C-473 would achieve its objective of enhancing gender balance on boards of directors and in crown corporations through legislated quotas.
Here are the facts about Bill C-473.
Bill C-473, as proposed, would amend the Financial Administration Act to impose gender quotas for the boards of directors of crown corporations. The rollout would be 30% in the second year, 40% in the fourth year and 50% in the sixth year and onward. For boards of eight members or fewer, the difference between the number of directors of each sex could not be greater than two.
The bill also states that appointments that violate these quotas would be invalid, and the responsible minister, with the approval of the governor in council, would need to fill the position immediately in order to respect quota levels and ensure boards have the required number of members for decision-making purposes.
In addition, we believe Bill C-473, when combined with the existing provisions of the Financial Administration Act, could provide grounds for rendering decisions of boards invalid, with the potential to disrupt crown corporations' operations.
There are a number of problems with legislated quotas. The most obvious is that legislated quotas are rigid and arbitrary thresholds that would negatively affect the appointment process. The appointment process has to remain flexible enough to attract qualified men and women who have the range of skills, expertise and experience needed by the boards of directors to effectively fulfill their mandates. The process also has to be flexible enough to allow us to fulfill our commitments to reflect Canada's linguistic and regional diversity on these boards.
Yes, we want to advance the representation of women on boards, but we are also committed to fair treatment for all under-represented employment equity groups. That includes not only women but also visible minorities, aboriginal people and people with disabilities. Legislated quotas may constrain our ability to meet our goals in these areas.
There is a better way to achieve gender balance on the boards of crown corporations.
Key Canadian groups that promote gender equality on boards of directors—for instance, groups like the Canadian Board Diversity Council, the WXN community, the Institute of Corporate Directors and Catalyst Canada—do not support legislated quotas. I repeat, those groups do not support quotas. They believe that efforts to promote qualified candidates in the business community and to recognize and encourage business leaders are more effective.
Allow me to reiterate our position in this matter. Women are truly essential to the business success of the country's corporations, in both private and public sectors. That is why, in economic action plan 2012, we created an advisory council to promote and boost the participation of women on corporate boards in the private and public sectors.
However, in the public sector, legislated quotas are not in the best interests of women or the corporations they would serve. It is always interesting when legislation and private member's bills of this nature come forward and it is clear that the solution that has already been taken by government was voted against by the presenting member.