Ottawa, December 8th, 2011 - Yesterday, the Vice-President of the Senate Banking, Trade and Commerce Committee, Senator Céline Hervieux-Payette, questioned the Minister of Finance, the Honourable Jim Flaherty on the flaws contained in Bill S-5: the Financial System Review Act.

 ”What I deplore is that the so-called public consultations were done online at the last minute and that the reports submitted to the Minister will not be released to the public,” stated Senator Hervieux-Payette. 

The Senator recalled that in 1995 the Liberal government instructed the Banking Committee to undertake a yearlong comprehensive review of the Bank Act. “It is this revision that guaranteed the strength of the Canadian financial system,” she said.

The Senator questioned the need to transfer the Superintendent of Financial Institution`s responsibility in approving certain transactions to the Minister of Finance. “Either our system is stable and the transfer of responsibility is useless, or our system is flawed, and the government knows something we don`t,” she said.

In addition, S-5 disregards that Canadians have a debt to income ratio of 148%. “The government has no intention of helping the middle class by capping interest rates on credit cards and reducing the debt load of Canadians. This is unfortunate, “she said.

Finally Senator Hervieux-Payette strongly suggested that the Minister of Finance task the Banking Committee with a timely and transparent review of all legislation touching the financial sector.