Sarkis Assadourian

[Bank Act, November 28th, 1996]

moved that Bill C-335, an act to amend the Bank Act (foreign banks), be read the second time and referred to a committee.

Madam Speaker, it is an honour for me to rise to debate at second reading my private member's bill, Bill C-335, an act to amend the Bank Act, with particular focus on foreign banks. I am sorry that the committee did not see fit to make this bill a votable item. However, we are here to discuss the issue and to make a point.

The purpose of the bill is to open the Bank Act to foreign competition so that they can provide more money to small business people in Canada and create more jobs.

This bill amends the Bank Act to require the minister to consider a commitment to serving small and medium size business in Canada as a factor in deciding whether to grant letters patent to foreign banks to operate in Canada.

It is interesting to point out at the outset the interest which the banking industry has taken in this bill. I have received correspondence from the Canadian Bankers Association which states that over 80 per cent of small businesses have their loans approved and that Canadian banks are giving strong support to Canada's small businesses.

I have statistics which were prepared by the hon. member for Trinity-Spadina which indicate that the Bank of Montreal increased its loans to small business by $110 million in the period September 30, 1995 to December 31, 1995. The CIBC decreased its loans to small business by $152 million. The National Bank decreased its loans to small business by $600,000 during the same period. The Royal Bank decreased its loans to small business by $111 million. The Scotiabank increased its loans to small business by $171 million. The TD Bank decreased its loans to small business by $116 million. The net loss to business people in Canada was $104 million in that period as compared with the previous period.

I mention these statistics because, as we all know, banks have announced profits of over $6 billion this week. That is a 20 per cent increase in their profits, but they have decreased their loans to small business.

Recently Toronto-Dominion's incoming chief executive told an audience in Ottawa that a strong and healthy country requires strong and healthy banks. It is also true that strong and healthy banks require a strong and healthy country.

Small businesses create over 80 per cent of the new jobs in Canada. Greater competition in the banking system will accelerate the funding of small and medium size businesses and create more jobs for Canadians. Economic growth will allow Canadians to work. It is better than depending on social work programs.

I believe the increased competition will generate better service and lower the costs that Canadians now pay for their banking services.

This week I picked up three brochures from the Bank of Nova Scotia, Bank of Montreal and CIBC. When I checked their service charges some of them were identical. Just like the gas stations, they charge the same price. For example, it costs the same amount for an NSF cheque, for each cheque you write, for monthly service charges. It does not matter which bank you go to, all charge the same price. Maybe my colleague can tell me that in western Canada they do not do the same but here in Ottawa, the nation's capital, that is how they charge.

My bill mirrors the opinion of two recent parliamentary committees, the Senate banking committee and the House of Commons finance committee. In separate reports they both recommended that we open the system to foreign banks in order to have more competition so consumers and business people alike will have flexibility in dealing with their bank.

In announcing the House of Commons standing committee on finance recommendations, the chairman and my colleague, the member of Parliament for Willowdale said: "This will allow greater flexibility for and more financial assistance for more financial institutions to come into Canada and provide more competition and services to Canadians". The recommendations of the committee are in response to the federal government's white paper on financial reports released earlier this year.

Foreign banks have been restricted by current restrictions and have warned that their numbers will decline unless the rules are eased. There used to be 62 foreign banks operating in Canada and now we have only 46. The less foreign banks we have the less competition there is and more freedom for the banks to charge as they wish.

The foreign banks have indicated that easing the rules will prompt them to expand their lending activities and look for new markets in the area of small and medium size businesses. Other foreign banks that have not yet entered Canada will take a second look and come in to operate in this market.

I should point out that the Canadian Bankers Association is in agreement with the committee's proposals. A spokesman for the CBA said that the proposed changes will bring economic benefits. The CBA's position is: "This is very positive for the foreign banking community. If the proposals are adopted, it would make Canada attractive to foreign lenders. I would expect you would see

the Americans looking at entering the market again, and the British banks".

The changes proposed by Bill C-335 will ensure that any foreign bank wishing to operate in Canada will intend to make and will be capable of making a contribution to the financial system in Canada by promoting the financial stability of and providing support for small and medium size businesses.

The Young Liberals at their convention also pushed through a resolution critical of chartered banks' record in financing small and medium size businesses. These young Canadians recognize the importance of this sector and their resolution shows that greater attention should be paid to how the big six banks meet this important need. After all, the future belongs to them. They are concerned with their future. We have to support them in their resolution so we can see competition in the banks.

In conclusion, I ask for the consideration of my fellow members in debating the merits of Bill C-355. My bill is consistent with the policy of the Government of Canada and with the findings of the parliamentary committees. It should be viewed as an extension of the job creation strategy of the government.

The central point of government policy is that the ownership of financial institutions is a privilege, not a right. With privileges come responsibilities and this bill merely requires new foreign banks to satisfy the minister as to how they will meet those responsibilities.

[Tobacco Industry, November 28th, 1996]

Mr. Speaker, my question is for the Minister of Health.

Last year the Supreme Court of Canada struck down the Tobacco Products Control Act. With 40,000 Canadians dying prematurely every year and $3.5 billion in direct health care costs to Canadians, the toll of tobacco on society is clear.

Can the Minister of Health tell the House when he will bring forward new legislation to deal with this issue, the health of Canadians and the tobacco industry?

[Canada Elections Act, November 26th, 1996]

Madam Speaker, I followed the comments of the hon. member who said that during the last three and a half years the Reform Party provided good leadership in the House. If that is the case, why is the Reform Party standing at 11 per cent in the national polls? It is sinking in Alberta and in the rest of the west.

What would the hon. member suggest we do, go back to the old system where the rich and powerful control the House? Or does he want to adopt our revision of the Canada Elections Act so it will be open to each and every citizen in this land, no matter where they come from, on an equal basis?

[Canada Elections Act, November 26th, 1996]

Oh, come on. That is not true.

[Great Lakes Region Of Africa, November 18th, 1996]

Madam Speaker, I was embarrassed to see my hon. colleague take advantage of this situation to make a personal attack on the Chair which was not called for.

I have a question for the hon. member. This morning at ten o'clock in Room 209 of the West Block a briefing was held. The member was not there. If he had been there he would have known the kind of support we are providing to the army, how many aircraft we are shipping there and what kind of aircraft we are shipping. He would have received all the information he asked for in his questions today when he was addressing the issue.

The member mentioned the red book commitment to consult Parliament. We have been doing that. I believe this is the fourth time we have consulted Parliament on important issues, specifically on human rights and peacekeeping issues.

Can he name any other institution in the world in any country which provides a peacekeeping force where they consult the opposition members before they send in the troops? I urge him to elaborate on that so we can be informed of his point of view and can carry on the discussion of this issue in a similar fashion.

[Great Lakes Region Of Africa, November 18th, 1996]

Mr. Speaker, this is a very interesting question.

I am sure the hon. member knows that the world ignored many genocides before, including the 1915 genocide of Armenians which I just mentioned. Just because we did not react then or in 1959, 1965 or 1975, two wrongs do not make a right. It is time we took a stand.

At that time of course the hon. member was not a member of Parliament and could not speak up. I was not a member of Parliament and could not speak up. It is good that both of us are here today so we can react to this situation and make sure that what happened in the past as a wrong does not occur again.

My best message to the hon. member is that two wrongs do not make a right.

[Great Lakes Region Of Africa, November 18th, 1996]

Mr. Speaker, I was pleased to hear during the briefing that after 1994 we saw on TV the Government of Canada responded generously with a $50 million contribution to the situation there. Of that, $27 million has already been spent mostly on NGOs and humanitarian institutions like the Red Cross, Canadian or international.

We also spent quite a bit of money to provide them with a legal system so that those who commit genocide and crimes against humanity can be prosecuted. That is important. Those who commit crimes should know there are consequences to it. They cannot have a free lunch if they commit genocide or other crimes. That is a very important point and it is money very well spent. I am happy the government spent that kind of money for this purpose so we can prevent this from happening again in the future.

[Great Lakes Region Of Africa, November 18th, 1996]

Mr. Speaker, I thank the government, the Prime Minister, the Minister of Foreign Affairs and the Minister of National Defence for providing us with this opportunity to speak on this very important issue.

This is the third or fourth debate we have had on such an important issue since the beginning of this Parliament almost three years ago. I also have to mention that this is probably the only Parliament in western civilization which provides an opportunity for its members of Parliament, the backbenchers and the critics from the opposition parties to speak individually on such issues of importance as this one.

Over the past 30 or 40 years we have engaged in peacekeeping in maybe 2,000 locations. Each one has different characteristics, a different perspective and each one calls for a different mission. With respect to this mission the situation is changing every hour. The situation was different last week from the situation we are now in and the situation tomorrow will probably be a different one again. Nobody knows. There is a massive migration of population

from one country to another. We cannot stop it but we can be there to help them out to achieve that goal.

On April 23, a few months ago, the House passed a motion recognizing the tragedy which fell upon the Armenian people in 1915. At that time we adopted a motion that each year, April 22 to 27 would be a week of remembrance regarding the inhumanity of people toward one another. This is a perfect occasion to use that motion to promote a common understanding among mankind and to make sure that what happened in the past does not repeat itself. We can do our best to prevent that situation and this is one such situation.

The whole western civilization responded positively to the Prime Minister's message to help the people in Rwanda and Zaire to make sure they get back to their communities and villages so that they can start to live in peace and prosperity as they did many many years before.

This morning, foreign affairs, CIDA and national defence provided us with a very important briefing at which members of the opposition party were also present. The Reform and the Bloc Quebecois representatives were there. In that briefing they discussed three situations: NGO aid to the people in the central African nation; the military operations that are taking place now to prepare for a continuation of the mission; and our own foreign aid to the region so we can help build the communities so people can live in peace and harmony.

Last week I was in Germany with colleagues from the Bloc Quebecois and Reform. I discussed this issue with my Reform Party friend from Red Deer. He agrees basically with everybody else that this mission has to take place. He agrees also that we have to make sure we do our bit to help civilization overcome this difficulty.

What we do not agree upon, and I respect his point view, is that we have to get ready, to prepare ourselves. How long do these people have to wait for Canada, for the United States, for Germany and for France to get ready? If they have to wait for us to get ready, there will be a long wait. I am sure my colleague agrees with me it would be a long and difficult wait. By then probably half the people would be dead and we would not be able to help them.

Remember that in April 1995 we saw bodies floating in the river and the lake. We had to do something then. The mission was not complete. I am sorry it did not come to a satisfactory end.

This is the opportunity for us to do the best we can. I am sure at the end of the day the Reform Party and the Bloc Quebecois will agree that this mission must go forward. It may not be perfect but nothing and nobody is perfect. However, we cannot afford to wait any longer.

Again I thank all members and especially the government for giving us the opportunity to speak on this issue. I hope that at the end of the day we are much wiser when we go forward with this mission to protect innocent human lives so they can build their lives in peace and harmony.

[Afghanistan, October 22nd, 1996]

Mr. Speaker, my question is for the Minister for International Co-operation and Minister responsible for Francophonie.

Following reports in Afghanistan indicating that human rights are not being respected, especially for women, can the minister indicate to this House what actions Canada is taking to deal with this grave situation in Afghanistan?

[Bank Act, October 7th, 1996]

moved for leave to introduce Bill C-335, an act to amend the Bank Act (foreign banks).

Mr. Speaker, the purpose of this bill is to open the Bank Act to foreign banks, foreign competition, so that they can provide more money to small businesses in Canada and create more jobs.

For the last two years the banks, the so-called big six, made $5.6 billion in profit and had more lay-offs to Canadians. This act requires them to open their purse to small businesses to give more money. Some are doing it but some are not doing enough.

This requires them to give small business more money in order to create more jobs for Canadians to work rather than to depend on social welfare programs.

(Motions deemed adopted, bill read the first time and printed.)