Jim Flaherty

[Jobs and Economic Growth Act, June 7th, 2010]

moved that the bill be concurred in.

[Securities, May 25th, 2010]

Mr. Speaker, one thing is clear. In the world of capital markets regulation, there are more and more complex products being sold or sought to be sold to investors.

We know that investors and ordinary Canadians need protection in Canada and they need better protection than is provided by 13 separate regulators with 13 separate sets of rules. That is one of the reasons that we are proposing a Canadian securities regulator.

Members should look at the Earl Jones situation in Quebec and listen to what Joey Davis said. He said, “We support the idea of a single national regulatory body overseeing financial organizations....”

[Securities, May 25th, 2010]

Mr. Speaker, as I always say, our intention is to move forward with the provincial and territorial governments that are prepared to cooperate on this issue. We will respect the provinces' jurisdiction in this regard. Participation is on a voluntary basis. It is a decision that rests with the government of Quebec and the other provinces.

[Questions on the Order Paper, May 25th, 2010]

Mr. Speaker, please be advised that the Office of the Superintendent of Financial Institutions, OSFI, is an independent, arm’s length agency of the Government of Canada that was established to prudentially regulate and supervise federal financial institutions and private pension plans, in order to contribute to public confidence in the Canadian financial system.

OSFI was established on July 2, 1987, by the Office of the Superintendent of Financial Institutions Act, OSFI Act. Under the OSFI Act, the superintendent is solely responsible for exercising the authorities provided by various federal financial and pension legislation. The superintendent is required to report to the Minister of Finance from time to time on the administration of the financial institutions legislation.

With regard to a) Pursuant to the Insurance Companies Act, federally regulated life insurance companies are required to maintain adequate capital in relation to their operations. The minimum continuing capital and surplus requirements, MCCSR, for life insurance companies, established by OSFI, sets out the framework within which the superintendent assesses whether life insurance companies maintain adequate capital.

Prior to the October 2008 changes to the insurance companies’ capital requirements for segregated fund guarantees, OSFI initiated a process to review and update the industry’s capital adequacy rules. However, significant developments in global financial markets, in particular, extreme volatility in international stock markets, hastened that review.

The October 2008 revisions to insurance companies’ segregated fund guarantee MCCSR rules and its accompanying letter can be found online at: www.osfi-bsif.gc.ca/app/DocRepository/1/eng/guidelines/capital/guidelines/Revisions_Seg_Fund_MCCSR_Guid_e.pdf (MCCSR Revisions) and www.osfi-bsif.gc.ca/app/DocRepository/1/eng/guidelines/capital/guidelines/Revisions_Seg_Fund_MCCSR_Guid_LET2_e.pdf (Accompanying Letter).

With regard to b) As stated in the aforementioned accompanying letter from OSFI’s Robert Hanna, Assistant Superintendent – Regulation Sector: “These revisions seek to reduce volatility in capital requirements, to ensure that appropriate capital is held in respect of longer term payment obligations and shorter term payment obligations and to increase capital as payment dates become more proximate”.

With regard to c) With respect to OSFI’s power to regulate compensation and bonuses, OSFI has a supervisory mandate to ensure that banks have in place effective governance practices. In exercising that mandate, OSFI has the ability to require that a bank’s remuneration policies and practices do not expose the bank to undue risk, consistent with the financial stability board’s principles for sound compensation practices.

If OSFI were to identify a deficiency in a bank’s remuneration policies or practices, OSFI could take a number of measures pursuant to its supervisory authority, including as an initial measure, informing the bank of the need for corrective action.

In addition, please be advised the Government of Canada is committed to implementing the financial stability board, FSB, principles and implementation standards on sound compensation practices and has written to large banks and insurance companies outlining the expectation that they adopt the FSB principles and to ensure compensation practices are aligned. Following the G20 leaders’ commitment in Pittsburgh in September 2009 to reform compensation practices to support financial stability, the FSB has undertaken a review of implementation by jurisdictions and will propose additional measures as required. The review was published on March 30, 2010 (for more information, please visit: www.financialstabilityboard.org/list/fsb_publications/index.htm).

With regard to d) With respect to the lobbying activities of Manulife Financial and then President and Chief Executive Officer, Mr. Dominic D'Alessandro, please visit: https://ocl-cal.gc.ca/app/secure/orl/lrrs/do/_ls70_ls75_ls62_ls6c_ls69_ls63_ls53_ls75_ls6d_ls6d_ls61_ls72_ls79?_ls6c_ls61_ls6e_ls67_ls75_ls61_ls67_ls65=_ls65_ls6e_ls5f_ls43_ls41&_ls72_ls65_ls67_ls44_ls65_ls63=540062&_ls73_ls65_ls61_ls72_ls63_ls68_ls50_ls61_ls67_ls65=publicBasicSearch&_ls73_ls4d_ls64_ls4b_ls79=1273704363812&_STRTG3=tr.

[The Economy, May 13th, 2010]

Mr. Speaker, the Liberals like to talk about the 1990s. I understand the Liberal leader was not in the country in the 1990s but he should speak to some Canadians who were actually in Canada at the time, for example, the Liberal member for Toronto Centre who, when he was premier in the mid-1990s, had this to say, “When the federal [Liberal] government decided in its wisdom that it would cut back unilaterally, particularly in the area of social assistance, it had a major and devastating effect on the people of [Ontario]”, and the nurses and the students and all the others.

The people of Ontario remember well.

[Securities, May 13th, 2010]

Mr. Speaker, I know we will be going on a parliamentary break now, which is probably a good idea because I think the member for the Bloc needs a rest. He is aligning himself with Power Corporation. I never thought I would hear that in this place the socialist party from Quebec aligning itself with Power Corporation.

It should be known, of course, that the comments by Power Corporation covered both sides of the issue and it does want to see more work done on it.

The point is this that those provinces that wish to join the common securities regulator can and those that do not can continue regulating in their own jurisdictions. The choice is for Quebec.

[Securities, May 13th, 2010]

Mr. Speaker, the AMF can continue in existence if that is what the Government of Quebec wants. We will respect provincial jurisdictions. The provinces' and territories' participation will be voluntary. Quebec and Quebec alone will decide if it wants to continue with AMF regulations.

[Taxation, May 13th, 2010]

Mr. Speaker, I know what the Liberal government wreaked on the Canadian people in the mid-1990s, what it did to our schools, what it did to higher tuition in universities, what it did to our hospitals and what it did to nurses. All of those things, that is what the Liberals did in the 1990s.

This is Canada. We have the best fiscal situation in the G7. We have the soundest financial system in the G7. We have the highest credit rating in the world. The hon. member should be proud of the performance of his country and stop knocking it.

[Taxation, May 13th, 2010]

Again, Mr. Speaker, I think I am in good company with respect to the tax issue. The member for Markham—Unionville said, “corporate tax cuts are one of the best strategies to attract investment and help manufacturers battered by the high Canadian dollar”.

At least that is how he felt in 2007. He may have been philosophically misguided since then, but still, most Canadians believe in the reduction of taxes. They see it in the strength of our economy. They see the strength of our economy precisely because we have reduced the cost of doing business in this country.

[Taxation, May 13th, 2010]

Mr. Speaker, I thank the member opposite for the lobbed question.

I know the Liberals are in favour of raising taxes but most Canadians do not want to pay more taxes and they do not want to go through the cuts that the Liberal government made in the mid-1990s.

I am in good company with a former premier of Ontario, the member for Toronto Centre, when he criticized the federal government for cutting expenses on the backs of nurses, students, teachers and--