Debates of May 25th, 2015

Finance—Main Estimates 2015-16

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, in April, the government announced major improvements to the Code of Conduct for the Credit and Debit Card Industry in Canada. These changes address issues raised by merchants and consumers. This improved code of conduct provides greater flexibility and protection to merchants and more choice to consumers.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, again, the Minister of Finance is not answering the question. I guess he will allow surcharging.

Does the minister intend to get rid of the rule that requires merchants to accept every credit card from the same credit card company? We want short answers.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, in April, the government launched public consultations on the oversight of national retail payment systems, in order to further enhance consumer protection.

The Canadian Federation of Independent Business says, and I quote:

[The code] has served merchants extremely well....[It] has done an excellent job in ensuring some fair ground rules and maintaining Canada’s low-cost debit system.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, I asked a simple question and I want a simple answer.

Will the minister require special branding for premium cards to ensure more transparency for both merchants and consumers, yes or no?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, last fall the government accepted the voluntary commitments by Visa and MasterCard to reduce credit card fees to an average effective card rate of 1.5% for the next five years.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, if I understood correctly, the minister does not intend to require special branding for premium cards to help merchants and consumers. I will go on to the next question.

Does the minister want to put in place a dispute resolution mechanism that will enable Canadian businesses to assert their rights when they encounter problems specifically related to payment processors?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, I quoted the Canadian Federation of Independent Businesses and I will now quote the National Post: the code played a big role in saving low-cost debit in Canada and gave merchants some degree of power in dealing with the payments industry.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, once again, let us check and see if the minister knows his numbers.

Since it is so important, can the minister tell us approximately how much it costs Canadian consumers per year to withdraw their own money from an ATM? I have the answer. Does the minister?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, in Canada, consumers have an array of choices. For example, consumers can chose from over 100 different types of bank accounts, with a mix of features and fees, from 40 different providers.

In fact, almost one-third of Canadians currently pay no monthly banking fees for their bank accounts.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, unless they pay monthly fees, it costs consumers from $1.50 to $6 to withdraw money from an ATM. Obviously, the Minister of Finance does not go the ATM very often, but ATM fees cost Canadians over $420 million a year.

Does the minister know how much it costs to withdraw money from an ATM in the United Kingdom? I look forward to hearing his answer.

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, at the beginning of this year, I was pleased to announce that the major banks in Canada had publicly committed to enhancing low-cost bank accounts. The maximum monthly fee for these accounts is $4. They are available to all Canadians. Low-cost bank accounts allow consumers to make 12 transactions per debit card per month and exercise chequing privileges without any additional fees for deposits, debit cards, pre-authorized payment forms and monthly printed statements. The eight main banks in Canada also—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order.

The hon. member for Québec for one final question.

[Annick Papillon, NDP, Québec, QC]

Mr. Chair, I am pleased to hear that the minister realizes it costs Canadian taxpayers $4 per transaction, based on the type of ATM, for a total of $420 million a year. In the United Kingdom, 97% of ATM withdrawals are free.

Does the Minister of Finance think that the amount Canadian consumers pay to withdraw their own money from ATMs is justified, when he sees what happens in other countries, where people do not have to pay to withdraw their hard-earned money?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, the monthly maximum is $4 for low-cost accounts. These accounts are offered to all Canadians. Something else that is very important is that Canada's eight major banks are also committed to offering similar no-fee accounts to vulnerable Canadians. Furthermore, these banks are committed to providing free monthly credit card statements to their clients.

[Andrew Cash, NDP, Davenport, ON]

Mr. Chair, I would like to start with the issue of banking fees. How much do pay-to-pay fees in the banking sector cost Canadians each year?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, we are the only party that has stood up for consumers by lowering taxes and putting more money into their pockets.

Unlike the Liberals and the NDP who would raise taxes on middle-class consumers, our government has reduced taxes for the middle class. We have taken action to improve low-cost bank accounts and expand no-cost banking options for more than seven million Canadians.

[Andrew Cash, NDP, Davenport, ON]

Mr. Chair, according to the Public Interest Advocacy Centre, that dollar amount is up to $180 million a year.

The government finally agreed with the NDP and prohibited some pay-to-pay fees on monthly bills and statements. Why did the government exempt the banking sector from this prohibition?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, our government believes that financial consumer interests are protected by high-quality regulatory frameworks designed to give consumers the tools they need to make effective financial decisions, an accessible complaints handling process and a competitive market which provides choice to consumers. The government does not generally regulate the day-to-day operations of financial institutions, including fees.

In Canada, consumers have a vast array of choices. For example, they can choose from over 100 different types of bank accounts.

[Andrew Cash, NDP, Davenport, ON]

Mr. Chair, in the last months the big banks have increased fees on basic transactions. Does the government's code of conduct apply to these new fees?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, as I said, the government does not generally regulate fees, but there is an array of choices, over 100 different types of bank accounts, with a mix of features and fees, from 40 different providers.

In fact, almost one-third of Canadians currently pay no monthly banking fees for their bank accounts. Last year, as I said, we were pleased to announce that Canada's eight largest banks were publicly committed to enhancing low-cost bank accounts. The monthly fee for these accounts is $4.

[Andrew Cash, NDP, Davenport, ON]

Mr. Chair, I would like to switch to the issue of youth unemployment. How many Canadians are stuck in unpaid internships across Canada?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, we have taken action to help low-income youth and youth looking for jobs. We will continue to provide support by way of student loans and apprenticeship programs. We are extending support by reforming the Canada student loans program to reduce financial barriers to post-secondary education.

[Andrew Cash, NDP, Davenport, ON]

Mr. Chair, it is a simple question. Does the minister know how many Canadians are stuck in unpaid internships across the country?

[Joe Oliver, Conservative, Eglinton—Lawrence, ON]

Mr. Chair, under our Conservative government, Canada will continue to have one of the lowest youth unemployment rates in the G7. Since 2006, our government has helped over six million youth obtain skills, training and jobs. However, we recognize that more must be done. That is why our budget will support the launch of a new labour market information—

[The Assistant Deputy Chair, Conservative, Bruce Stanton]

Order, please. The hon. member for Davenport.