Question period
Finance: National Securities regulation
Hon. Céline Hervieux-Payette: Honourable senators, my question is for the Leader of the Government in the Senate. As she surely knows, the Fédération des chambres de commerce du Québec and some large Quebec companies, including Cascades, Quebecor, Jean Coutu, Industriel Alliance and many more, oppose centralizing the securities commissions. There is no evidence to suggest that centralization would be either relevant or effective when it comes to preventing the moral and financial crisis we are experiencing.
I want to emphasize that the OECD has ranked Canada second in the world with respect to securities regulation.
And, as I am sure honourable senators know, neither the single American securities commission nor the single British securities commission managed to protect investors; both failed to see the crisis coming.
Despite these facts, the Prime Minister is stubbornly going ahead with his plan to create a single commission even though it is neither sensible nor in the interests of the provinces, including Quebec, which want nothing to do with it. In light of growing opposition on the part of Quebec business leaders, can the minister tell us when her government, specifically her Prime Minister, will reconsider this proposal, which is neither desired nor desirable, thereby saving the $250 million already set aside for that purpose in the budget?
[English]
Hon. Marjory LeBreton (Leader of the Government): Honourable senators, Canada is the only industrialized country without a national securities regulator. Canada will be participating in G8 and G20 meetings. There has been and will continue to be a call for more financial regulations and international coordination. With these international pressures on us, we continue to be questioned about our fragmented system at home when we are dealing with our international partners.
As the honourable senator is aware, and as has been stated many times, this is a voluntary initiative. A clear majority of the provinces and territories are committed to or are open to working towards a single securities regulator. This is a voluntary initiative, and I am aware of some of the objections to it in the Province of Quebec. However, some industries and some people in Quebec are able to see the virtue of a single securities regulator.
This is a voluntary effort. If the Province of Quebec decides that it does not want to participate, that should not impede the desires of other provinces that wish to have a single securities regulator.
Senator Hervieux-Payette: Honourable senators, the leader is arguing that we are the only country without a national organization. I must remind her that the Prime Minister is travelling around the world now telling people we have a different law, that is why we are different and they are all having problems. Either we go along with the rest and go down the drain, or we have our own rules. Our system has prevailed.
When will the leader’s government table a study that will demonstrate, beyond any reasonable doubt, that we need that regulator and it is not for political purposes?
Senator LeBreton: Honourable senators, while travelling around the world representing us so very well, the Prime Minister and the Minister of Finance have discussed the notion of the global bank tax. Both have said that they do not believe Canada should be punished with this tax. The Prime Minister pointed out that Canada has handled it finances very well and did not have any bank failures, nor did the Canadian government become involved in any bailouts. The Prime Minister stated that Canada should not be punished for all of its good work. Honourable senators, with regard to when our government will table its intentions, the honourable senator knows that the government is seeking an opinion from the Supreme Court of Canada to provide legal certainty on Parliament’s authority to establish such a common securities regulator. Once that process is complete, we will table the plan.
