Debates of June 20th, 2017

Indian Act

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

The question is on Motion No. 2. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

In my opinion the nays have it.

And five or more members having risen:

The recorded division on Motion No. 2 stands deferred.

The next question is on Motion No. 4. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those in favour of the motion will please say yea.

[Some hon. members]

Yea.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

All those opposed will please say nay.

[Some hon. members]

Nay.

[The Assistant Deputy Speaker, Liberal, Anthony Rota]

In my opinion the nays have it.

And five or more members having risen:

The recorded division on Motion No. 4 stands deferred.

Normally at this time the House would proceed to the taking of the deferred recorded divisions at the report stage of the bill. However, pursuant to orders made on Tuesday, May 30, the divisions stand deferred until June 21, at the expiry of the time provided for oral questions.

The House resumed from April 6 consideration of Bill C-25, An Act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act, and the Competition Act, as reported (with amendment) from the committee, and of the motions in Group No. 1.

Canada Business Corporations Act

[Kevin Lamoureux, Liberal, Parliamentary Secretary to the Leader of the Government in the House of Commons]

Mr. Speaker, I enjoyed listening to the debate on the previous bill. It was encouraging to hear many comments recognizing the importance of June 21, which is National Aboriginal Day. This day has been celebrated for many years. It is a celebration of Canada's indigenous culture, a very unique heritage. I look forward to celebrating tomorrow. The debate we had is a step forward. National Aboriginal Day needs to be recognized.

Let me get to Bill C-25, an act that would amend the Canada Business Corporations Act. It is important we move forward with the bill. I would encourage all members of the House to support it.

When we think of the corporations, over one-quarter of a million corporations in every region of our country fall under the Canada Business Corporations Act, or the CBCA,. Under that is a general framework for operations that in essence provides guidance.

Canada carries a tremendous amount of influence well beyond our borders. When we talk about that framework for businesses or corporations in general, whether they be non-profit, for profit, cooperatives, or whatever they might be, it is important we have an opportunity to not only demonstrate strong leadership in Canada but outside of Canada as well.

One of the things we really should spend time talking about, with respect to Bill C-25, is the opportunity for diversity, which is one of the biggest selling points for me. The bill recognizes the importance of annual general meetings, among other things, involving corporations. For me, the highlight is that we are demonstrating the benefits of Canada's diversity. When we talk about diversity, we talk not only about minorities but also of gender.

Over the last number of decades, virtually since the creation of legislation to provide guidance, to provide that general framework, it really has not been overly successful in ensuring diversity within those thousands of corporate boards. The legislation before us would send a strong message.

I believe that message will be well-received by all those who are responsible corporate citizens, directors on boards, and who understand the true value of diversity. We recognize that excluding individuals hurts us all. Opening doors and at the very least being aware of diversity will enhance the quality of life of all Canadians.

When I reflect on what we have accomplished over the last number of months, one of the things I am proud of is the fact that we have a Prime Minister who has demonstrated from day one how important it is to recognize diversity. All one needs to do is to take a look at the individuals who sit around the cabinet table. I would challenge anyone to mention any previous government that has seen such great diversity in cabinet, which is gender balanced.

The Prime Minister has been fairly well recognized as a feminist Prime Minister, not only by individuals from every region of the country but other countries abroad. When I had the opportunity to share some thoughts on the bill, the aspect that really came to mind was diversity.

In the future, the backbone of our economy will be our small businesses? The best way to advance Canada's middle class is to ensure there is a better sense of productivity, of diversity, that we all move forward together. If we are successful in doing that, we will have a healthier middle class and those aspiring to be part of it.

Today, we find more male-dominated boards, even in ethnicity and the lack of diversification. Many corporations, and do not want to use one brush with which to paint all corporations, have recognized the value of diversity and have taken it upon themselves to act on that. Those more progressive corporations that have recognize the value of this will reap the benefits in the future.

Let us bring it to this legislation. This issue of diversity is now being promoted in a very tangible way, and it has been done in several ways. That is why I wanted to share with members very important aspect of the legislation.

I want to highlight some of the summaries. It is important to recognize that we are reforming some aspects of the process for electing directors of certain corporations and cooperatives. That is one of the greatest appeals of diversity. We are looking at modernizing communications between corporations and/or cooperatives and their shareholders or their members. It is important to recognize that we are clarifying that corporations and cooperatives are prohibited from issuing share certificates and warrants in bearer form. It is also important to recognize that we are requiring certain corporations to place before their shareholders, at every annual meeting, information about the diversity among directors and members of senior management.

These are all very important aspects, changes that affect more than just the Canada marketplace framework or assist in that framework. They go beyond the Canada Business Corporations Act.

It is important to recognize that these amendments will help increase shareholder democracy and participation. They will also increase women's participation on corporate boards and in senior management in recognition of these changes, also allowing Canada's framework laws to better reflect modern ways of doing business.

We have a wonderful opportunity to demonstrate leadership on this file, a file that touches literally well over a quarter million corporation in every region of our country. I would encourage members opposite to get behind Bill C-25. Jointly we can send a very powerful message. That message has been sent in the past, but it will be reinforced by supporting this legislation. I encourage members to vote yes.

[Ziad Aboultaif, Conservative, Edmonton Manning, AB]

Mr. Speaker, listening to the member opposite on this interjection, it is very hard to determine whether he meant to encourage us to support the bill based on what he called diversity. I was lost in the process on diversity whether it is a diversity of corporations or the diversity of business opportunities. He linked productivity to diversity. I would be very interested to know if the member opposite can advise us on the productivity level in Canada in comparison to other G7 countries, and whether he is satisfied with our productivity level or not. I would be very much interested in knowing where we stand in terms of productivity among similar countries.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, maybe I could answer the question by indicating that when we think of the number of corporations and the many different boards out there, one could argue that the more there is diversity from within the board, the more we would be able to apply widgets, products, or expertise, the many different skills we have to offer not only here in Canada but also to the world.

That is demonstrated through the fact that we are a trading nation, and the better we will all be. When the member makes reference to productivity, there is always room for improvement, but I believe Canada and Canadians do exceptionally well. We have seen that in many different industries in Canada. For now, by supporting this legislation, we are saying we believe in more transparency and accountability at the corporate board level. We believe in diversity at the corporate board level, along with our co-operatives and non-profits.

[Greg Fergus, Liberal, Hull—Aylmer, QC]

Mr. Speaker, I thank my colleague from Winnipeg North for giving such an interesting speech

I think that our government’s leitmotif is evidence-based decision-making.

My colleague raised the matter of diversity. I had the privilege of reading the study by a professor with the University of Toronto’s Rotman School of Management. He fully demonstrated how important diversity is to the resilience and profitability of Canadian businesses. The more diversity there is, in terms of either a gender balance or having individuals from cultural communities, the more these businesses are profitable and resilient in the face of change.

I wonder if my hon. colleague could expand on this.

[Kevin Lamoureux, Liberal, Winnipeg North, MB]

Mr. Speaker, it was interesting to listen to the minister responsible for the legislation when he brought it forward. He talked about the importance of innovation, and Canada's role with respect to that, and then tied in, as the member has done, the importance of diversity.

I have given many speeches not only inside the House but beyond the House, and in particular, in my home province. I talk about one of the natural assets Canada has which is its connections around the world. We are a multicultural society, second to no other. If we recognize just how enriched we are with our diversity, that enables us to break down many international barriers.

We have a strategic advantage over many other countries around the world. If we take advantage of that diversity, and see that incorporated in both private and public sectors, Canada and our middle class will do exceptionally well. When I say the middle class, it goes far beyond that. That is why I encourage members to look at the legislation, and see the bigger picture. Canada can develop strong leadership on this file.

[Dave MacKenzie, Conservative, Oxford, ON]

Mr. Speaker, I am pleased to speak at report stage of Bill C-25, an act to amend the Canada Business Corporations Act, the Canada Cooperatives Act, the Canada Not-for-profit Corporations Act, and the Competition Act.

I will tell members that we will be supporting the bill. It is a bill that essentially came from the Conservative Party in the last Parliament.

Bill C-25 would aim to make changes to the corporate governance regime for reporting issuers incorporated under the Canada Business Corporations Act. The CBCA is the incorporating statute for nearly 270,000 corporations. Although most of these are small or medium-sized and privately held, a large number of Canada's reporting issuers are also governed by the CBCA.

The proposed amendments in Bill C-25 cover several key corporate governance matters: majority voting, individual voting, annual elections, notice and access, diversity-related disclosures, and shareholder proposal filing deadlines. If enacted, these changes will affect about 600 of the approximate 1,500 companies on the TSX.

Bill C-25 is also the minister's second piece of legislation that has come straight from our previous Conservative government's 2015 budget. For those in the House not aware, I will read an excerpt from page 140 of our previous Conservative government's economic action plan 2015:

The Government will propose amendments to the CBCA to promote gender diversity among public companies, using the widely recognized “comply or explain” model...Amendments will also be proposed to modernize director election processes and communications...strengthen corporate transparency through an explicit ban on bearer instruments...amendments to related statutes governing cooperatives and not-for-profit corporations will also be introduced.

When it comes to modernizing corporate governance and reducing red tape, the previous Conservative government made massive strides. We believe in fostering an environment in which businesses could grow and contribute to Canada's long-term prosperity. I am pleased to see that the Liberals have moved forward with the comply or explain model. It has been proven that more diverse boards lead to better overall decision-making, better boards, better organization, and better economics.

However, with all the hard work our previous Conservative government did on the bill, which is still being continued by the Liberals, the Liberals want to use our past legislation and call it their own. I suppose this does free up some time, which the Prime Minister has made clear is a priority for him. Hopefully, this will allow the Liberal Party to focus on what it feels is more important to Canadians, photo ops and selfies.

Back in 2015, the Conservative Party knew that this bill needed a couple of amendments. The motion put forward by the NDP and the proposed amendments to Bill C-25 are similar to the amendments we proposed in committee, and we the Conservative Party are in support of that motion.

In 2010, a House of Commons committee led a statutory review of Canada's federal corporate governance framework, which led to further consultation in 2014 by Industry Canada. After hearing from witnesses, the Conservative Party put forward two amendments to make the bill stronger, and like the motion put forward by the NDP, these amendments included defining the term diversity, and requested a review to take place on the diversity section after three years. Even back in 2015, these amendments were voted down by the Liberal Party. We, the official opposition, will stand with the NDP and many witnesses to the committee on the importance to define diversity in the bill.

The NDP amendment defines diversity as:

information respecting gender representation and diversity—including in regard to colour, race, religion, national or ethnic origin, age, sex, sexual orientation, gender identity or expression, or mental or physical disability— among the directors and among members of senior management as defined by regulation as well as any prescribed information respecting diversity.

For a party that claims to fight for diversity, the Liberals are not even willing to tell Canadians what they mean by the word diversity. Does this sound familiar to anyone else? Well, it should.

The second amendment, suggested by almost all witnesses, was to ensure that a review of the diversity policy would happen. The timelines varied from one to five years. As a result, the opposition agrees that a three-year review would be best. We chose this time frame, because it would allow for results to come in, and if changes were necessary, they could be made promptly. Furthermore, we took into consideration the federal election, which could cut into the review if a two-year timeline was suggested. A three-year review would occur after any upcoming election.

We recognize that businesses play a vital role in creating jobs and generating economic growth, and that strong business strategies are central to a company's success in creating and sustaining a competitive edge. Changes proposed to the Competition Act would do just that. They would reduce business uncertainty and create a competitive marketplace, and prevent anti-competitive practices. The amendments would also reduce the administrative burden on businesses.

Modernizing the acts addressed in Bill C-25 is a welcome improvement to the federal corporate statute, and a reflection of the need to enhance the corporate governance practices in companies. With these amendments, suggested by the NDP, Bill C-25 will be Canada's next step in modernizing corporate governance.

The official opposition will stand with the NDP and the committee witnesses to have these amendments made to Bill C-25.

[The Acting Speaker (Mr. David de Burgh Graham), Liberal, David Graham]

Resuming debate.

Is the House ready for the question?

[Some hon. members]

Question.

[The Acting Speaker (Mr. David de Burgh Graham), Liberal, David Graham]

The question is on Motion No. 1. Is it the pleasure of the House to adopt the motion?

[Some hon. members]

Agreed.

No.

[The Acting Speaker (Mr. David de Burgh Graham), Liberal, David Graham]

All those in favour of the motion will please say yea.