Mr. Speaker, on behalf of the government and the good people of Pitt Meadows—Maple Ridge—Mission who support a strong Canadian economy, I rise in support of the jobs and economic growth bill.
Budget 2010 and the jobs and economic growth bill outline a positive and ambitious plan to strengthen Canada's economy, and a plan that is working. Indeed the IMF just forecasted Canada's economic growth to be at the head of the pack for the G7 and all countries with advanced economies this year and next year as well. The IMF also singled out Canada for praise, saying:
Canada entered the global crisis in good shape, and thus the exit strategy appears less challenging than elsewhere.
This follows an OECD report earlier this month also predicting Canada's economic growth will, by a wide margin, lead all G7 countries this year, so we are off to a good start this year.
Statistics Canada announced that Canada's economy grew by 6.1% in the first quarter of 2010, representing both the strongest quarterly rate of economic growth in a decade and the strongest growth in the G7. What is even better, Canada's economy continues to create jobs. In fact, May represented the eighth month of job gains in the past ten months. In May we saw 24,000 jobs created. This follows a record-breaking 108,000 new jobs created in April. In fact, overall, since July of last year, Canada has created almost 310,000 new jobs.
Clearly our government is on the right track. Our economy is growing and we are creating jobs for Canadians, and it is being noticed around the world. The influential magazine The Economist recently called Canada “an economic star”. The OECD said that Canada's economy “shines”. Standard & Poor's, the world's premier credit rating agency, also said:
Of the other G7 countries...Canada is posting the best fiscal results. Canada also best weathered the financial crisis...is now well positioned to continue to outperform...
World leaders are also singling out Canada. U.S. President Barack Obama praised Canada, saying:
—in the midst of this enormous economic crisis, I think Canada has shown itself to be a pretty good manager of the financial system in the economy...And I think that’s important for us to take note of...
This reinforces what we said all along. While not immune from the global recession, Canada's economy did enter it, but will exit it in the strongest position.
However, the global recovery remains fragile. We must stay on track to ensure that our economic recovery remains strong. Our top priority remains the economy and implementing Canada's economic action plan to create jobs, lower taxes, foster growth and invest in better infrastructure.
Budget 2010 and the jobs and economic growth bill is one way our government is staying focused on the economy. I am here to speak about some of the budget 2010 measures that are laying the foundation for Canada's future economic prosperity.
Budget 2010 and the jobs and economic growth bill introduce measures that will help businesses access the financing they need to support the recovery, improve the framework of our financial sector and pursue a more forward-looking approach to protecting consumers of financial products and services.
Canada's financial sector has been widely acknowledged as one of the strongest in the world. The World Economic Forum, for example, rated Canada's banking system the soundest in the world. Well capitalized financial institutions and sound regulation have meant that financial institutions in Canada were better able to weather the global financial crisis than those in many other countries, perhaps all other countries. Over the past year, Canada's economic action plan provided measures to support financial institutions and the financial system in the midst of extraordinary circumstances. In particular, the global economic crisis made it difficult for Canadian banks and other lenders to obtain funds from international markets at reasonable costs.
To soften the impact of this crisis, Canada's economic action plan included measures to provide up to $200 billion to support lending to Canadian households and businesses. This helped to keep credit flowing to Canadian consumers and businesses throughout the crisis and helped Canada's financial sector improve its global competitive advantage.
Nevertheless, ensuring that businesses of all sizes have adequate access to financing to acquire vehicles and equipment is increasingly important as the economic recovery matures.
Our government is not content to rest on our laurels. We are continuing to find ways to improve the financial sector framework.
As outlined in the jobs and economic growth bill, Canada is home to a strong and vibrant credit union industry that provides financial services to millions of Canadian consumers and small businesses. To promote the continued growth and competitiveness of the sector and enhance financial stability, the jobs and economic growth act, Bill C-9, will enable credit unions to incorporate and continue their operations as federal entities. Allowing credit unions to grow and be competitive on a national scale will broaden choices for consumers by helping credit unions to attract new members and improve services to existing members across provincial borders.
Why would we want to delay such a positive part of the jobs and economic growth act? We need to pass Bill C-9. Indeed, let us read what the Case for Progress Committee, a coalition of several credit unions such as B.C. credit unions FirstWest and Vancity, had to say about this measure.
It said that the federal government’s plans to introduce legislation that would make it easier for credit unions to operate nationally was applauded and supported by committee, a group composed of credit unions across Canada. It said that the legislation would give Canadian credit unions more choices in their growth options by allowing them to operate outside their traditional provincial boundaries, and would also strengthen the credit union system. It said we were marking a ”historic milestone” today, that this new legislation would benefit all Canadians by increasing their choices in selecting a financial institution. It would strengthen the stability and competitiveness of the entire financial services industry in Canada.
From my home province of B.C., Tracy Redies, president and CEO of Coast Capital Savings, praised these measures, saying that credit unions are:
—a very, very vibrant part of the financial services industry in Canada and I think the pending legislation will enable it to continue to grow and prosper and...that's good for Canada.
I agree with her.
If we go to the other side of the country, we can listen to Jamie Baillie, president and CEO of Credit Union Atlantic, who said, “this measure will promote the continued growth and competitiveness of the sector and enhance financial stability...This provides a framework for a more competitive banking system in Canada and will enable further growth of the credit union alternative”.
Clearly, this measure is supported from coast to coast and deserves to be passed by the House.
However, this is not all the government is doing to support consumers and to promote the efficient functioning of the financial system. The Canadian payments system is a vital support to the economy, linking Canadians, merchants and financial institutions together and facilitating payment transactions through, for example, credit and debit card networks and clearing and settlement systems.
In November 2009 our government released for public comment a proposed code of conduct for the credit and debit card industry in Canada, which responds to issues raised by stakeholders in the debit and credit card markets. The code, which was developed in consultation with market participants, aims to promote fair business practices and ensure that merchants and consumers clearly understand the costs and benefits associated with credit and debit cards.
In April the government released the final code for voluntary adoption by the industry within a few weeks. To support adoption of the code, the jobs and economic growth act would provide the Minister of Finance with the authority to regulate the market conduct of the credit and debit card networks and their participants if necessary.
We have heard very positive responses since we announced it and participants have already agreed to sign on to the code. For instance, the Canadian Federation of Independent Grocers, or CFIG, commented:
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.
CFIG also welcomed the decision by the Minister to bring in legislation that will give the government the ability to regulate the market if the voluntary Code of Conduct does not work...the Code...provides retailers with choice and ensures that our members can continue to compete as important members of the food industry and the communities they serve across the country.
The Canadian Federation of Business, the CFIB, was also very supportive. Its president, Catherine Swift, said:
[The] 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. We are particularly pleased that government is being proactive in helping to lay the groundwork in advance of major expected campaigns on the part of Visa and MasterCard in the debit card industry. 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.
This part was confirmed at the finance committee hearings from the Retail Council of Canada when it said:
[We] commend the minister and the Government of Canada for establishing a card payment regulatory framework, and for equipping the Financial Consumer Agency of Canada with the tools it needs to monitor and enforce compliance with the code of conduct changes, changes that are both contained in Bill C-9.
As the Retail Council of Canada correctly pointed out, many of these important changes to help our small businesses will only take effect with the passage of the jobs and economic growth act, Bill C-9.
That is not all we are doing to safeguard our financial sector in the jobs and economic growth act. A few other measures we are taking include: amending the Proceeds of Crime (Money Laundering) and Terrorist Financing Act in order to enhance the government's ability to protect Canada's financial system from money laundering and terrorist financing activities; amendments to protect depositors in the event of an institution failure; extending the due date for filing annual GST returns from three months to six months after year-end for certain financial institutions; and much more.
While not as high profile, these measures are nonetheless important to the efficient functioning of our financial sector.
The global economic recession clearly demonstrated the importance of a strong, well-regulated financial sector. Around the world, Canadians were bombarded with news of bank failures and bailouts. In Canada, we did not have any bank failures or bailouts, showcasing the strength of our financial sector to the world.
As a result of our strong financial system, Canada is doing better than our G7 partners. We entered this recession later and are exiting it in a stronger position than our international peers.
For the average Canadian this means stronger economic growth and more jobs for Canadians. It means that for the first time in a generation, Canada's unemployment rate is nearly 1.5% lower than the United States. It means that when Canadians go to their local bank branch, they do not have to worry that their bank will close its doors to them.
Clearly the continued strength of our financial system is important for our government and Canadians. While our financial system is strong, we will not rest on our laurels, as I have said, but we will continue to move forward and find ways to further improve our financial system.
Budget 2010 and the jobs and economic growth act would do just that. The actions and measures in this legislation are important and contribute to a well-functioning financial system that meets the needs of Canadians and supports our future economic prosperity.
We must pass Bill C-9, the jobs and economic growth act, to help build our financial sector for the future and, in turn, create the jobs and economic growth that Canadians need and deserve.
