Jim Flaherty

[Questions on the Order Paper, June 19th, 2009]

Mr. Speaker, according to the latest available pension plan financial statements, www.osfi-bsif.gc.ca/app/DocRepository/1/eng/reports/osfi/ar0708_e.pdf, there were 1,350 private pension plans registered under the Pension Benefits Standards Act, 1985, PBSA, and supervised by the Office of the Superintendent of Financial Institutions (OSFI). Of those plans, there were 351 defined benefit plans, 904 defined contribution plans and 95 combination plans. These plans covered over 594,000 members, of which 391,000 were in a defined benefit plan, 104,000 in a defined contribution plan and 99,000 in a combination plan. Total assets for these plans were $132 billion, with $109 billion in defined benefit plans, $4 billion in defined contribution plans and $19 billion in combination plans. OSFI regulates approximately 7 percent of pension plans in Canada. The other 93 percent are under provincial regulation, representing 5.2 million members with total assets of $961 billion. 53 percent of federally regulated pension plan assets were invested in equities, 39 percent in debt instruments and 8 percent in diversified and other assets.

In April 2009, OSFI reported, www.osfi-bsif.gc.ca/app/DocRepository/1/eng/media/nr_esr_e.pdf, that the average estimated solvency ratio for federally regulated defined benefit plans was 0.85 in December 2008. Estimated solvency ratios are determined by dividing a plan’s estimated assets by the plan’s estimated liabilities, using assumptions consistent with the plan being terminated. OSFI continues to monitor the funding situation of plans carefully and is taking steps, where necessary, to protect the rights and interests of plan beneficiaries.

The government has taken action to better protect the pensions of working Canadians by making amendments to the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act that will grant super priority status to outstanding employer and employee pension contributions in both bankruptcy and corporate restructuring. This super-priority status became law in bankruptcy in July 2008.

Given the present extraordinary circumstances affecting private pension plans, the Government took action in Budget 2009, presented to the House of Commons on January 27, 2009, and the 2008 Economic and Fiscal Statement by providing temporary solvency funding relief that will facilitate an orderly return to full funding while protecting the security of benefits. The regulations implementing this temporary relief were pre-published in the Canada Gazette on April 4th.

The federal government also launched public consultations on pension issues in January with the release of a consultation paper (http://www.fin.gc.ca/n08/09-005-eng.asp). As part of the consultation process, the Parliamentary Secretary to the Minister of Finance led public meetings across Canada in March and April. To become better familiarized with this consultation process, please visit http://www.fin.gc.ca/n08/09-018-eng.asp

[Questions on the Order Paper, June 19th, 2009]

Mr. Speaker, the Canada Pension Plan Investment Board, CPPIB, was established by an act of Parliament in 1997. The mandate of the board is to invest the funds transferred by the CPP in the best interests of CPP plan members, maximizing the rate of return without undue risk of loss. All changes to the CPP require the approval of at least two-thirds of the provinces representing at least two-thirds of the population, plus the federal government.

It should be noted that the CPPIB is neither a department nor an agency of the Crown; rather it is governed by a board of directors of twelve experienced professionals who are appointed by the federal government in consultation with provinces, operating at arm's length from the government. The board is required to be accountable to Canadians, Parliament, and the provinces through regular reports of its activities and the results achieved.

To that effect, the CPPIB recently released its annual report on May 28, 2009 which responds to many questions. The report is available at http://www.cppib.ca/Publications/annual_report.html. Also, a copy of CPPIB code of conduct is available at http://www.cppib.ca/files/PDF/Code_Of_Conduct_Oct01_2008.pdf.

[Questions on the Order Paper, June 19th, 2009]

Mr. Speaker, a number of initiatives are currently underway to improve financial literacy for Canadians; however, our government believed it was time to better organize efforts. To that effect, budget 2009, presented to the House of Commons on January 27, 2009, committed $5 million over two years, 2009-10 and 2010-11, to establish an independent task force.

This task force will make recommendations to the Minister of Finance on a cohesive national strategy on financial literacy, and include representatives of the business and education sectors, volunteer organizations, and academics, and will be supported by a federal secretariat. The task force is expected to be launched in the spring of 2009.

With respect to how improving financial literacy will help Canadians, our government believes that financial literacy is an important life skill that empowers consumers to make the best financial decisions in their particular circumstances. Increased financial literacy allows consumers to act knowledgeably and with confidence to look after their own best interest and achieve their personal and financial goals.

Individuals like John Hope Bryant, founder, chairman and CEO of Operation HOPE, Inc. and vice-chairman of the United States President Barack Obama's Advisory Committee on Financial Literacy and Peter Nares, founder and executive director of Social and Enterprise Development Innovations, SEDI, have publicly echoed that sentiment and applauded our government’s initiatives in that regard, declaring that: “Financial literacy entails developing skill sets people will use every day to make better decisions … (the Conservative) government has taken some important steps in this direction. In 2007, (the) government mandated that the Financial Consumer Agency of Canada begin addressing financial literacy matters. Funding was provided in the subsequent federal budgets. However, in fiscal 2009, the Canadian government has the opportunity to grab hold of this issue as our major trading partners have done. The commitment to form an independent, multi-sector task force to develop a national strategy on financial literacy is the first step in a process that could help Canadians make better financial decisions. It could also help Canadians better weather the economic storms that will inevitably blow through the global economy from time to time”.

[The Economy, June 16th, 2009]

Mr. Speaker, I can hear the member for Notre-Dame-de-Grâce—Lachine. She might want to listen so she will understand what is going on in terms of the deficit. She might want to read the document.

The member for Markham—Unionville's former employer, the Royal Bank of Canada, has predicted economic growth at 2.5% in 2010.

[The Economy, June 16th, 2009]

The plan, Mr. Speaker, is actually on page 61, but the member does not want to read it.

The majority of the stimulus in this year's deficit is one time spending. It ends after two years. It is use it or lose it. Some of the tax measures, like the home renovation tax credit, will end next February.

[The Economy, June 16th, 2009]

Mr. Speaker, on page 61 of the report to Canadians, we laid out the breakdown of the deficit this year, and $22.4 billion are temporary measures. In the previous budget in January of this year, which the member opposite supported, we laid out a plan over time to get back into surplus by 2013-14. We remain on track to do that with the predictions with respect to economic growth.

I look forward to reporting in detail as usual in the fall economic statement.

[Business of Supply, June 15th, 2009]

Mr. Speaker, I listened carefully to what has been said about jurisdiction and I would remind hon. members that the Hockin report specifically said that the option will exist for jurisdictions in Canada to join the common securities regulator or not. In this way, we totally respect the competencies of the respective jurisdictions in Canada, including Quebec. That is what is being proposed. That is not a question that needs to go to any court anywhere because no government and no jurisdiction would be obliged to join the national common securities regulator.

[The Economy, June 15th, 2009]

Neither of the above, Mr. Speaker.

I appreciate the views expressed by the Parliamentary Budget Officer. He is making an assumption. He says in his remarks, 1.3% growth for 2010, which is what one of the banks had. This morning, RBC has its estimate at 2.5% for 2010; Scotia Bank is also at 2.5%. Mr. Page is way off.

[The Economy, June 15th, 2009]

Mr. Speaker, the context, of course, is that we are in a global recession.

I just came back from a meeting of the G8 finance ministers and I can tell the House that Canada is the envy of the industrialized world in terms of the size of the deficit that we are running. It is relatively small. We are on track to eliminate the deficit and to move into surplus in 2013-14.

[Finance, June 11th, 2009]

Mr. Speaker, we are actually ahead of President Obama in our economic action plan. January 27 was the day they sponsored it.

On job creation, using the calculations of the FCM, or the Federation of Canadian Municipalities, at $1 billion and 11,000 jobs, given what has flowed so far, that is 132,000 jobs. Not only that, there are 120,000 jobs being protected by work-share. That is over 200,000 already this year, which is more than we said we would do in the economic action plan.