House of Commons photoLost his last election, in 2015, with 29% of the vote.
Financial System Review Act March 27th, 2012
Mr. Speaker, I appreciate the member's question.
The bill includes measures to update the laws governing financial institutions, measures that will promote financial stability and ensure that Canadian financial institutions continue to function in a business environment that supports competition, efficiency and global stability.
Financial System Review Act March 27th, 2012
Mr. Speaker, I want to take this opportunity to thank the constituents of the great Kenora riding for giving me the opportunity to speak on their behalf with respect to Bill S-5.
This is an obligatory and largely routine piece of legislation, but it is essential for the continued strength and security of Canada's financial system that our constituents rely on every day, be it to cash a cheque, to apply for a mortgage or to buy that first home.
As background for all Canadians, legislation governing federally regulated financial institutions is reviewed every five years by the government to ensure the stability of the Canadian financial system. The last legislative review was completed in 2007 through Bill C-37 in the 39th Parliament. In 2001, a similar review was completed with Bill C-8 in the 37th Parliament.
I should also let the House and our constituents know that it is crucial that today's act be passed by April 20, 2012. This is the legislated sunset date, and passage must be achieved by then to allow the Canadian financial system to function in the manner that it has been doing.
In September 2010, the present five-year review began. This was kicked-off with an open and public consultation process. The Minister of Finance invited all Canadians to give their views on how to improve the financial system. Throughout that consultation, many Canadians gave their ideas and suggestions on how to further reinforce and strengthen our financial system. Indeed, much of that comment is reflected within the financial system review act that we are debating today. To be sure, today's act takes into consideration the feedback from industry groups, consumer groups and other Canadians to make measured, technical adjustments to strengthen Canada's regulatory framework.
I would also draw the attention of Canadians to the fact that today's act has already been reviewed and approved by the Senate banking, trade and commerce committee as well as the House of Commons finance committee and the great work of those members. Both committees undertook a comprehensive and efficient review of this act. It included talking to organizations like the Financial Consumer Agency of Canada, the Credit Union Central of Canada, the Office of the Superintendent of Financial Institutions Canada, the Canadian Life and Health Insurance Association, the Canadian Bankers Association and the Canadian Payments Association. This was an impressive catchment of stakeholders.
I want to thank each of the witnesses who spoke on the financial system review act in front of both committees for providing their important input. I will note that witnesses, while acknowledging the act's technical nature, were very supportive of it overall. For example, the Canadian Life and Health Insurance Association declared, “Bill S-5 represents a welcome fine-tuning of the various financial institution statutes”.
At this time I will quickly review some of the initiatives taken in today's act.
Once more, even though the majority of these initiatives are largely technical, they are indispensable for the security of Canada's financial system. That is why today's act would make the following alterations: modernizing legislation to uphold financial stability and guarantee that Canada's financial institutions continue to operate in a competitive, efficient, effective and stable environment; improving the consumer protection framework, including expanding powers for the Financial Consumer Agency of Canada to better protect consumers; and reducing the red tape and regulatory burden on financial institutions.
Other measures contained in today's act include the following: clarifying that all Canadians, including bank customers, are able to cash government cheques under $1,500 free of charge at any bank in Canada; removing duplicative disclosure requirements for federally regulated insurance companies; offering adjustable policies in foreign jurisdictions, thus cutting their red tape burden; encouraging competition and innovation by allowing co-operative credit associations to provide technology services to a broader market; and improving the capacity of regulators to efficiently share information with international counterparts while respecting the privacy of clients.
There are more, but I want to emphasize that the significance of this act provides for a safe and secure financial system.
It is a system that has endured for Canadians during the recent global economic crisis that saw the failure of some of the best known banks around the world. Indeed, in recent years Canadians have recognized just how important a sound financial banking system really is for our country's economy.
Undeniably our system has been a model for countries around the globe. Canada proudly did not have to bail out, nationalize or buy equity stakes in its banks, in stark contrast to the U.S., the United Kingdom and countries in Europe. In fact the World Economic Forum has ranked Canada's financial system as the soundest in the world for four straight years. Our safe and secure financial system is envied the world over.
It was remarked in the well-known publication Forbes, “With no bailouts, it is the soundest system in the world, marked by steady and responsible continuation of lending and profits”.
Constantine Passaris, a University of New Brunswick economics professor, adds:
The financial tsunami of 2008 swept around the world with devastating economic consequences. Banks proved to be particularly vulnerable to the credit crunch that followed....
There is no denying that our Canadian banks proved significantly resilient....
The Canadian way is to record our national achievements in a low-key and understated manner. There is one economic achievement however, that has made the world stand up and notice. Indeed, in this case, we cannot hide from the international spotlight and we can proudly accept the global applause....
We appreciate these comments. Indeed, many of the financial sector solutions now promoted internationally are modelled on our Canadian system. With today's bill, Canada's financial system will remain secure and serve as a fundamental source of strength for Canada's economy moving forward.
The financial system is one of the most important aspects of Canada's economy and jobs, totalling approximately 7% of Canada's economy. What is more, it provides employment, good, well-paying jobs for more than 750,000 Canadians. Our financial sector also provides financing to the housing markets and other markets that rely on borrowing, and in that respect the financial services sector is a significant presence in the day-to-day lives of all Canadians.
The Financial System Review Act will help support a proven framework that benefits all Canadians who use or are impacted by the financial services sector.
The long established practice of regularly reviewing the financial institution regulatory framework is also a distinctive and positive practice that sets Canada apart from the world. Indeed, it has been vital to ensuring the stability of the sector. All Canadians would acknowledge the significance of frequently examining how we can better ensure our financial system's safety and soundness for the benefit of all Canadians. Today's bill accomplishes just that.
I encourage members to support today's bill and ensure it passes in a timely manner. I appreciate having the occasion to support this important piece of legislation.
Financial System Review Act March 27th, 2012
Mr. Speaker, in this debate there are few things that we do know. One is that the new leader of the NDP is a supporter of higher taxes on Canadian families. Indeed, he wants to slap a new tax on every banking transaction and appears to be proud of that. To quote directly from his leadership policy platform, he said he would “Make the implementation of a Financial Transaction Tax a key priority....”
Does the NDP member support a new tax on everyday banking? Would a GST hike be next?
Financial System Review Act March 27th, 2012
Madam Speaker, I am going to keep chipping away at this idea of the authority of the minister under this version of the legislation to approve foreign acquisitions. We have heard from across the floor, in a number of debates here, about the importance of protecting against that. The criteria that the minister would include under these circumstances, and they are very hard-wired, would be the stability and best interests of the financial sector. As well, the timeline is hard-wired. It requires the minister's consideration in 30 days or it will be deemed approved. The minister has 30 days to deny or ask for an extension.
Does the member across the way think this is an appropriate authority under the legislation and that those timelines are reasonable?
Financial System Review Act March 27th, 2012
Madam Speaker, earlier I had asked one of the opposition members a question about the authority to approve foreign acquisitions by banks being returned to the minister in this legislation. The global banking crisis has highlighted additional risk factors that support more oversight to keep our financial system secure and, therefore, this legislation will require ministerial approval when a federally regulated financial institution acquires a major foreign entity that significantly increases its assets by more than 10%. I wonder if the member could comment on the particular two criteria that the minister would consider.
Financial System Review Act March 27th, 2012
Madam Speaker, I appreciate the member's intervention today. As he said earlier, there are a number of technical aspects to this, and he spoke about some of the things that he viewed should have been done. However, there were some key things that were accomplished through the legislation that were different from previous versions of the legislation. One of those was the approval of foreign acquisitions by banks. Under this legislation, the authority to approve foreign acquisitions by banks is being returned to the minister.
In his appreciable understanding of this legislation, why does he think that is important?
Financial System Review Act March 27th, 2012
Madam Speaker, there are some really technical pieces to this legislation. Amongst those technical pieces are measures such as thresholds for bank ownership and ownership thresholds on financial institutions.
Can the member tell me why the large bank ownership threshold is being increased as part of this piece of legislation?
Aboriginal Affairs March 16th, 2012
Mr. Speaker, our government has already made great strides in improving education outcomes for all first nations students by seeking tangible results. We are signing tripartite partnership agreements with the provinces and the first nations communities. We have developed an innovative program like the first nations students success program. These are producing real results. We continue to invest in on reserve school infrastructure, rehabilitating and replacing schools. We will stay on track with that course.
Air Service Operations Legislation March 13th, 2012
Mr. Speaker, I feel like I have just been listening to the Flight of the Bumblebee and it is hard to answer a question that long.
We are concerned about families, and that is why we are acting. We are concerned that we are not focusing on the broader issues at stake. Folks in the great Kenora riding want to know if they can get home. They do not have an Air Canada that lands in the Kenora riding but they still depend on that airline, in particular, for the safe transportation of persons and goods. That affects the economy of the great Kenora riding and that is what we are here to defend. That is what I was sent to Ottawa to defend, and by golly I am going to defend it.
Air Service Operations Legislation March 13th, 2012
Mr. Speaker, I appreciate the question—I think. It is true that our priority is the economy, and the health and safety of all Canadians and their families. In the short term, this is a serious situation for Canada's economy, especially in regions such as the one I come from, as I mentioned a few minutes ago. With regard to future generations, our government will work hard to serve the interests of Canadians in the event that a situation might have a serious impact on the health and safety of Canadians and the economy.