FINA Committee Meeting

Meeting No. 173

Wednesday, March 17, 1999

The Standing Committee on Finance met in camera at 3:36 p.m. this day, in Room 208, West Block, the Chair, Maurizio Bevilacqua, presiding.

Members of the Committee present: Carolyn Bennett, Maurizio Bevilacqua, Scott Brison, Nick Discepola, Ken Epp, Sophia Leung, Karen Redman, Nelson Riis, Monte Solberg, Paul Szabo and Tony Valeri.

Acting Members present: Jason Kenney for Richard Harris, Paul Steckle for Tony Valeri, Serge Cardin for Yvan Loubier.

In attendance: From the Library of Parliament: Marion Wrobel, Senior Analyst.

The Chair presented the Sixth Report of the Sub-Committee on Agenda and Procedure, which was concurred in and reads as follows:

It was agreed, - That the Committee will consider a draft final report on the Report on the Future of the Canadian Financial Services Sector (MacKay Report) on Wednesday, March 17, 1999; and

That opposition parties wishing to submit a dissenting opinion may do so provided that such opinions are delivered to the clerk of the Committee, in both official languages, no later than Tuesday, March 23, 1999.

It was agreed: - That the Committee host a dinner on the evening of Monday, April 19, 1999 during which it will meet with five representatives of the Brazilian House of Representatives Finance Committee to discuss Canada’s credit union system.

It was agreed: - That the Committee strike a sub-committee to consider the implications of the income tax structure on Canadian families; and

That the Research Officer from the Library of Parliament be instructed to draft terms of reference for the study to be considered by the Committee at its next meeting.

In accordance with its mandate under Standing Order 108(2), the Committee resumed its examination of the Report of the Task Force on the Future of the Canadian Financial Services Sector (see Minutes of Proceedings dated Monday, September 21, 1998, Meeting No. 106).

The Committee proceeded to consider a draft report.

Moved, - That the draft Report be adopted as the Committee’s Fifteenth Report to the House and that the Chair be instructed to present it to the House.

After debate, the question was put on the motion and it was agreed to, on division.

It was agreed, - That the title of the Fifteenth Report be The Future Starts Now: A Study on the Financial Services Sector in Canada.

It was agreed, - That the Committee authorize the printing of dissenting opinions from the opposition parties, provided they be no more than two pages in length and be submitted to the Clerk in both official languages no later than 4:30, o’clock, p.m., on March 24, 1999.

It was agreed, - That the Chair, researchers and Clerk be authorized to make such typographical and editorial changes as may be necessary without changing the substance of the report.

At 3:50 o’clock, p.m., the Committee proceeded to consider its future business.

It was agreed, - That the Committee authorise the payment of expenses incurred for extending hospitality to a Brazilian congressional delegation, for a dinner meeting held in the Parliamentary Restaurant on Monday, April 19, 1999, and that these expenses be paid out of the Committee's approved budget for the fiscal year ending March 31, 2000.

It was agreed, - That, pursuant to Standing Order 108(1), a Sub-Committee of the Standing Committee on Finance be established to consider the implications of the income tax structure on Canadian families and to report thereon to the Standing Committee.

Moved, - That the Sub-Committee be composed of 2 members of the Reform Party, one member from each of the three other opposition parties and six government members.

After debate, the question being put on the motion, it was, by a show of hands, negatived: YEAS: 2; NAYS: 9.

Moved, - That the Sub-Committee be composed of one member from each of the four opposition parties and five government members and that the Sub-Committee members be named after the usual consultations.

The question being put on the motion, it was agreed to, on division.

It was agreed, - That Nick Discepola would chair the Sub-Committee.

It was agreed, - That the Sub-Committee would report back to the main Committee on or before June 15, 1999.

The Committee proceeded to consider draft terms of reference for the Sub-Committee’s examination of the implications of the income tax structure on Canadian families, which were presented as follows:

"The House of Commons Standing Committee on Finance will establish a Sub-Committee to study the tax and transfer system as it applies to families with dependent children. This investigation is to examine the impact of federal policies and determine if they meet the goals of the Government of Canada, to provide support to families with dependent children in an equitable manner.

The Sub-Committee is to consider the situation of different family configurations (single parent, dual parent-single earner, dual parent-dual earner) at various income levels to establish if the above-noted goals are being consistently met.

In this respect, the Sub-Committee will hear from expert witnesses and other interested parties, and report its findings to the Standing Committee on Finance by June 15, 1999. The Sub-Committee Report should include estimates of the financial impact on families and the fiscal consequences to the government of any recommendations it might make."

Moved, - That the words "meet the goals of the Government of Canada, to provide support to" in the second sentence of the first paragraph be deleted and be replaced by the word "treat".

After debate, the question being put on the motion it was agreed to.

Consequently, paragraph two is also modified to read "goal is" in place of "goals are".

The amended terms of reference were approved and read as follows:

The House of Commons Standing Committee on Finance will establish a Sub-Committee to study the tax and transfer system as it applies to families with dependent children. This investigation is to examine the impact of federal policies and determine if they treat families with dependent children in an equitable manner.

The Sub-Committee is to consider the situation of different family configurations (single parent, dual parent-single earner, dual parent-dual earner) at various income levels to establish if the above-noted goal is being consistently met.

In this respect, the Sub-Committee will hear from expert witnesses and other interested parties, and report its findings to the Standing Committee on Finance by June 15, 1999. The Sub-Committee Report should include estimates of the financial impact on families and the fiscal consequences to the government of any recommendations it might make.

It was agreed, - That the main Committee would support a decision by the Sub-Committee to travel, should the Sub-Committee so decide.

At 4:25 o’clock, p.m., the Committee proceeded to consider a draft proposal for briefing sessions and Pre-Budget Consultations.

It was agreed, - That the Clerk and the Research Officer prepare a program for a briefing session or sessions on the general theme of productivity to be held during the last two weeks of April and/or the first week of May. It was also agreed, that the issue of self-employment be addressed.

It was agreed, - That the draft proposal for the 1999-2000 Pre-Budget Consultations be discussed at the Committee’s next meeting.

At 4:30 p.m., the Committee adjourned to the call of the Chair.

Pat Steenberg

Clerk of the Committee