Jim Flaherty

[The Economy, September 21st, 2010]

Mr. Speaker, I listened with interest to the member for Kings—Hants.

Neither the Liberal caucus nor the Liberal Party has ever encountered a problem they did not believe could best be solved by throwing copious quantities of taxpayers' money at it. They are tax and spendaholics.

[The Economy, September 21st, 2010]

Mr. Speaker, we are on budget track. That is the difference between us and the members opposite, who want to revoke the tax remissions we are offering to create jobs in this country. We have about 430,000 net new jobs now compared to the 400,000 we lost during the course of the recession. The economic action plan does require a deficit, and we went ahead with that deficit. It has worked for our country, and thank goodness we did it. The member would do well to have listened more carefully to those remarks today.

[Questions on the Order Paper, September 20th, 2010]

Mr. Speaker, the government recently released the finalized version of the Code of Conduct for the Credit and Debit Card Industry in May 2010. For more information, please visit www.fin.gc.ca/n10/10-049-eng.asp.

Businesses voiced real concerns about the lack of choice they have had in accepting debit and credit card payments, and about the costs involved. These added business costs are borne by merchants and may be passed on to consumers, which makes this an issue of importance to all Canadians. The code of conduct encourages choice and competition. It gives merchants the freedom to choose which card networks they use, helps them control their costs, allows them to pass on savings to their customers, and much more.

The government is particularly pleased that it was able to work constructively and cooperatively to launch this code with the financial service industry, consumer advocacy groups, retail /merchant advocacy groups, and other public interest groups. Prior to the release of the finalized code, the Minister of Finance met with a wide range of groups and organizations to discuss the state of the credit and debit card industry in Canada. Discussions focused on key issues such as transparency, disclosure, payment card branding and co-badging, as well as business practices in the industry.

Indeed, a draft code of conduct was released for a 60-day public comment period in November 2009. For more information, please visit www.fin.gc.ca/n08/09-109-eng.asp. During that period, all Canadians were invited to submit their views on how best to monitor compliance with the proposed code. Their views were taken into account when developing the revised code of conduct, which was released in April 2010. For more information, please visit www.fin.gc.ca/n10/10-029-eng.asp, and the aforementioned finalized version in May 2010.

Following is a small sampling of the reaction to the Code of Conduct:

Retail Council of Canada: “This is a solid victory for merchants across the country and a major step toward addressing imbalances in the Canadian payments system.”

Canadian Council of Grocery Distributors: “[The Ccode] is an important win for both merchants and customers … the Government of Canada deserve a great deal of credit for taking critical steps towards developing a Canadian payments system that is competitive, fair and provides clarity for both merchants and customers.”

Canadian Federation of Independent Grocers, CFIG: “The Code of Conduct is a very positive step and we are very pleased to note that many of the concerns CFIG has raised on behalf of independent retail grocers, such as negative option billing practices, have been heard and responded to, by the government.” Canadian Federation of Independent Business, CFIB: “the[(CFIB] welcomes today's announcement … This Code, which very closely resembles the Code put forward by CFIB in mid-2009, will help increase transparency and restore fairness to small businesses and consumers in their credit and debit card transactions … Today's announcement of a finalized Code constitutes an important step and is timely as we enter the summer season that is so vital to so many businesses, especially coming out of a recession … These developments will create a better future for merchants and help ensure a fair and transparent credit and debit card market instead of just letting large industry players call all the shots. Our organization applauds the implementation of this Code which will provide merchants with greater clarity and clout in changes to the debit and credit card market.”

Option consommateurs: “enthusiastically welcomes … the new Code of Conduct for Debit and Credit Cards by the Minister of Finance. [The Finance Minister] has listened to consumers and incorporated their interests in this new code … The new code guarantees consumer choice.”

Consumers Association of Canada, “welcomed the Code.”

Interac Association: “After a comprehensive consultation period with stakeholders, the Minister has developed meaningful and practical solutions that will effectively address significant concerns that have been raised by merchants and consumers about changes taking place in Canada's debit marketplace … It is clear that (the Finance Minister) has heard the concerns of merchants and consumers, concerns that we share, and has responded with an appropriate and pragmatic Code of Conduct … Without question, the Code helps build that by re-establishing choice and transparency in the marketplace for merchants and consumers, which we support.”

TD Bank Financial: “We believe that this Code will give merchants a greater voice in the payments market, while also balancing the interests of the other participants in this industry. This Code will provide greater pricing transparency for merchants and that’s a great outcome.”

Desjardins Group: “welcomes the Code of conduct for the credit and debit card industry … Merchants will now be better informed of costs associated with accepting credit and debit card payments and will be able to freely choose which payment options they will accept … These rules will foster healthy competition among service providers in the Canadian debit and credit card market.”

Vancouver Sun editorial: “We were pleased to see the code of conduct for credit and debit card markets introduced this month by federal Finance Minister … the voluntary code is an important step toward allowing merchants to have some control over costs and to maintaining a relatively low-cost cashless purchasing alternative that benefits consumers and retailers alike while still allowing for competition between providers.”

[Pensions, September 20th, 2010]

Mr. Speaker, what the official opposition actually had suggested in the House was some sort of voluntary new CPP method. This was rejected unanimously by our partners in the federation when we met and discussed the issue because it would not work and because the CPP would be unable to administer it.

If the opposition is prepared to work with us on the constructive solutions that most of the provinces agree with, we are more than happy to work with it on those.

[Pensions, September 20th, 2010]

Mr. Speaker, we are all committed to ensuring Canadians have the best possible retirement income system. We have been listening to Canadians in public consultations. Several of the provinces have gone out to listen to Canadians to ensure that we arrive at the correct solutions. Our officials have continued to work on this since we had the federal-provincial-territorial finance ministers meeting on Prince Edward Island in June.

It is a complex issue. It has to be worked out between the federal government and the provinces, and we are working in that co-operative way.

[Government Spending, September 20th, 2010]

Mr. Speaker, first of all, the member opposite should get his facts right. We went through a difficult time in Canada during the recession that came from outside this country.

We did lose almost 400,000 jobs, but as of today we have recovered 430,000 net new jobs in this country. We have recovered more than all the jobs that were lost during the recession. Why is that? Because of sound economic management which is admired around the world.

[Government Spending, September 20th, 2010]

Mr. Speaker, there are two clearly different approaches. One is to reduce taxes, help Canadians and help their families. We have done that for more than four years now.

The other approach is to raise taxes, which is what the official opposition plans to do. As the Leader of the Opposition said last year, “Federal taxes must go up; we will have to raise taxes”. That is the position of the Leader of the Opposition: tax and spend.

Our position is to give Canadian families a break.

[Government Spending, September 20th, 2010]

Mr. Speaker, we are proud of the tax relief that we have provided to Canadians; it is about $3,000 per family across the country so far.

We have reduced taxes of all kinds in this country, including personal income taxes, helping, as I say, typical families get along in what has been a difficult recession.

The rest of the world looks at Canada as the way to handle an economic downturn. We are the model. We are the rising star, according to the OECD and The Economist. Canadians can be proud of the way their government has handled the recession.

[Securities, June 17th, 2010]

Yes, it will be a voluntary system. You have listened closely. It is a voluntary system. That is correct. Voluntary means voluntary, nothing else.

[Securities, June 17th, 2010]

Mr. Speaker, as I have been saying, it will be a system that is—