House of Commons photoWon his last election, in 2011, with 78% of the vote.
The Economy May 29th, 2009
Mr. Speaker, the answer to that is no. We have a very competent finance minister, who has done a great job of leading us through the outcome of a worldwide recession. In fact, we have put $29 billion, almost 2% of the GDP, into the economy as stimulus money this year.
We care about Canadians. We are helping Canadians. We are there to help industries that are struggling. We are there to help those who are unemployed.
Canada Pension Plan Investment Board May 29th, 2009
I said in answer to an earlier question, Mr. Speaker, that even for those who are arm's length from the government, such as this independent body that was established by an act of Parliament that most parliamentarians voted for, we expect compensation to be reasonable.
The compensation has been reduced by 31% since last year. In actuality, it is over a four-year average. Over that four years, that is a very sound investment board.
Canada Pension Plan Investment Board May 29th, 2009
Mr. Speaker, the hon. member actually does have a point for a change, and now we know where he is going. It is important that all levels of departments do the best with taxpayer money.
The Canada Pension Plan Investment Board is an independent body but it must be reasonable in its own compensation.
The Economy May 29th, 2009
Mr. Speaker, once again, I am not sure where the hon. member is getting his facts. I was in a meeting on Monday with our finance minister and all of the finance ministers from across this country. There was nothing but glowing compliments for how the government is handling this worldwide recession.
It is in partnership with those provinces that we have been able to put a stimulus fund together that is probably larger than every other one in the world. It is, indeed, the largest in the G7.
If that is not enough for the hon. member, what would he have us do?
The Economy May 29th, 2009
Mr. Speaker, I always need to listen very closely when the Liberals are asking questions because one question will be, “Why is the deficit so large?” The next one will be, “How can we make it larger?”
I am not just sure on which side of that this falls today, but I do need to remind the hon. member that there is one position that this government has taken, and that is to help Canadians. We put in place an economic action plan that will help Canadians.
I should remind that hon. member that at one point he did vote for that. That is what will help Canadians through this, not rhetoric from the Liberal Party suggesting bigger deficit, lower deficit.
Mr. Speaker, I again thank my hon. colleague for his efforts and his encouragement for us to make the right moves.
Part of the right moves that we have made in support of our industries and our small businesses is to reduce the small business tax rate, as well as to increase the small business tax rate threshold and to increase the lifetime capital gains exemption for small business owners.
I also draw the member's attention to the words of his Liberal colleague, the member for Scarborough Southwest, in this weekend's Toronto Sun:
We have the best banking system on the globe. The cynical and critical discourse aimed at our banks is troubling.... Instead of having pride in our banking system, we have a penchant to bank bash.
I encourage all colleagues in this House to work to help protect consumers, and we hope that we can do that.
Mr. Speaker, I would like to thank my friend, the member for Pickering—Scarborough East, for his question, as well as his work on the joint committee to which he referred.
In recent months, concerns surrounding the practices of card issuers have garnered increasing attention in the areas, as the member has said, of interchange fees as well as interest rates, business practices and marketplace structure.
Parliament is formally examining this important issue, as the House of Commons finance and industry committees along with the Senate banking committee are currently undertaking studies. In fact, as a member of the finance committee, when possible I have participated in the joint finance-industry hearings on this very subject. We heard from the processors of debit, credit and the gift card transactions. Additionally, the Competition Bureau has also launched an investigation on the competitive environment in which interchange fees are set.
As part of our economic action plan, our government recently announced strong new consumer protection rules with respect to credit cards. Among the new proposed regulations are summary boxes on contracts and applications, clearer implications of minimum payments, timely advanced disclosures of interest rate changes, a minimum 21-day grace period, express consent for credit card increases and limits on debt collection practices, and more.
We believe that when Canadians make the choice to use a credit card, they are not signing away all their rights. As well, Canadians should not need a magnifying glass and a dictionary to read their credit card agreements or applications, and they should not have to be a lawyer to understand them either.
We are focusing on greater clarity and more timely disclosure from credit card issuers when dealing with consumers. Our new consumer friendly rules will empower Canadians by making it easier for them to shop around for the credit card best suited to their needs without fearing they will be taken advantage of later.
Numerous public interest groups applauded our aggressive consumer friendly measures. For instance, the Consumers Association of Canada remarked that all of the things the finance minister has done are actually just what it asked for and that overall, it has to congratulate him.
The Retail Council of Canada declared that it was “pleased that the finance minister has taken these steps today. It demonstrates that the federal government recognizes just how serious the problem has become”.
The Canadian Restaurant and Foodservices Association noted:
Restaurant owners across Canada support [the finance minister]'s announcement today as a first step in establishing the rules of play for credit cards in Canada...the Minister recognized concerns about the interchange fees that merchants pay as well. “We are thrilled that the Minister recognizes there are two types of credit card consumers: those who use cards to make payments and those who accept payments by credit card”.
We have moved to protect consumers by introducing tough new regulations.
Adjournment Proceedings May 25th, 2009
Mr. Speaker, while we took strong action to protect consumers using credit cards, the NDP members voted against it. What would they do instead? Interfere and control key aspects of the Canadian banking sector by dictating interest rates, something our government and the vast majority of public interest groups understand would be ineffective and unfeasible.
Listen to Duff Conacher of the Canadian Community Reinvestment Coalition. He said, “The problem with a cap on rates is where do you put it? Any number would be pretty arbitrary. And the banks are quite likely...to deny credit to some people”.
We also help consumers make informed credit card choices through the Financial Consumer Agency of Canada where they can compare packages and services. I would invite all Canadians to visit this website at www.fcac.gc.ca.
Adjournment Proceedings May 25th, 2009
Mr. Speaker, I am happy to take this opportunity to inform Parliament about the important new proposed regulations that the Minister of Finance announced last week to limit business practices not beneficial to consumers, and provide clear and timely information to Canadians about credit cards.
This announcement follows through on our commitment in budget 2009 to ensure Canadian consumers using credit cards are treated fairly.
Unfortunately, the NDP members voted against the commitment in our economic action plan along with every single initiative we have introduced to protect consumers of financial products, but that is their record.
The NDP members voted against protecting credit card users, against improving financial literacy and against protecting consumers of stocks and other investments with a Canadian securities regulator. The list goes on and on.
The proposed regulations announced last week will first of all mandate an effective minimum 21 day interest free grace period on all new credit card purchases when a customer pays the outstanding balance in full.
The regulations will lower interest rate costs by mandating allocations of payments in favour of the consumer. They will also allow consumers to keep better track of their personal finances by requiring express consent for credit limit increases, as well as limit debt collection practices that financial institutions use in contacting a consumer to collect on a debt.
The regulations will also prohibit over the limit fees solely arising from holds placed by merchants. They will ensure clear information on credit contracts and application forms through a summary box that will set out key features such as interest rates and fees. They will assist consumers to manage their credit card obligations by providing information on the time it would take to fully repay the balance if only the minimum payment is made very month.
The regulations will mandate advance disclosure of interest rate increases prior to their taking effect, even if this information had been included in the credit contract. The proposed regulations would apply to credit cards issued by federally regulated institutions. Some provisions in the regulations would have a broader application to other financial products, such as fixed and variable rate loans as well as lines of credit.
I note that our announcement was warmly received by numerous public interest groups. For example, Casey Cosgrove, Director of Financial Literacy Initiatives, Social and Enterprise Development Innovations, applauded it as it would “contribute to financial literacy by bringing clearer and more transparent information to consumers”.
Mel Fruitman, Vice President of Consumers' Association of Canada, on CTV Newsnet, heralded the announcement claiming it would “solve some of the most egregious practices of the credit card companies...it's a big step in the right direction towards helping us control the amounts we pay on our credit cards...it will greatly improve the situation”.
Even the Toronto Star cheered our Conservative government's action, noting that “welcome regulatory changes that will both introduce more transparency to the system and save consumers more money”.
Adjournment Proceedings May 25th, 2009
Mr. Speaker, it is always more effective with finger pointing.
While the Liberal leader muses about increasing taxes, we are lowering taxes and keeping them lower even for Dorval airport. Indeed, in budget 2009 we delivered $20 billion in personal income tax relief.
The Liberal leader apparently does not approve of lower taxes and is demanding we impose new job-killing taxes. What do Canadians think about the Liberal leader's musings? To quote from The Windsor Star:
[T]he last thing that Canadians want to hear during a recession is a politician talking about tax increases. But [the] federal Liberal Leader...has said he won't rule out a tax hike....
[His comments] ... should be setting off alarm bells with taxpayers.