Proceedings of the Standing Senate Committee on
Banking, Trade and Commerce
Issue 4 - Minutes of Proceedings
OTTAWA, Wednesday, December12, 2007
(7)
[Français]
The Standing Senate Committee on Banking, Trade and Commerce met at 4:15 p.m., this day, in room 9, Victoria Building, the Chair, the Honourable W. David Angus, presiding.
Members of the committee present: The Honourable Senators Angus, Biron, Eyton, Fitzpatrick, Goldstein, Harb, Massicotte, Meighen, Ringuette and Tkachuk (10).
In attendance: JuneDewetering and Philippe Bergevin, Analysts, Parliamentary Information and Research Services, Library of Parliament.
Also in attendance: The official reporters of the Senate.
Pursuant to the order of reference adopted by the Senate on Tuesday, December4, 2007, the committee began its study ofBillC-10, An Act to amend the Income Tax Act, includingamendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act.
APPEARING:
Ted Menzies, M.P., Parliamentary Secretary to the Minister of Finance
WITNESSES:
Department of Finance Canada:
Gérard Lalonde, Director, Tax Policy Branch;
Grant Nash, Acting Chief, Tax Policy Branch.
Society of Trust and Estate Practitioners (STEP):
Stewart Lewis, Chief Executive Officer;
Paul LeBreux, Past Chair;
Robin J. MacKnight, Counsel and Director, STEP Canada.
Stikeman Elliott:
Charles C. Gagnon, Counsel.
At 4:30 p.m., Mr.MacKnight and Mr.Gagnon each made a statement and, together with the other witnesses, answered questions.
At 5:05 p.m., Mr.Menzies made a statement and, together with the other witnesses, answered questions.
At 7:05 p.m., pursuant to rule92(2)(e), the committee proceeded to study its draft agenda (future business).
Pursuant to subsection14(1) of the Conflict of Interest Code for Senators, a declaration of private interests was made as follows:
— By oral and written declarations, the Honourable Senator Angus indicated for the record that he believes to have a private interest that might be affected by or perceived to be affected by the deliberations of the Standing Senate Committee on Banking, Trade and Commerce in respect to BillC-10. The general nature of such interest is that he is a partner in the Montreal office of the law firm Stikeman Elliot, LLP and a member of that firm, Mr.Charles Gagnon, will be making representation to the committee on behalf of clients who are seeking amendments to the bill.
At 7:20 p.m., the committee adjourned to the call of the chair.
ATTEST:
OTTAWA, Thursday, December13, 2007
(8)
[Français]
The Standing Senate Committee on Banking, Trade and Commerce met at 10:50 a.m., this day, in room 505, Victoria Building, the Chair, the Honourable W. David Angus, presiding.
Members of the committee present: The Honourable Senators Angus, Eyton, Goldstein, Harb, Massicotte, Moore, Nolin, Ringuette and Tkachuk (9).
Other senator present: The Honourable Senator Kenny (1).
In attendance: JuneDewetering and Philippe Bergevin, Analysts, Parliamentary Information and Research Services, Library of Parliament.
Also in attendance: The official reporters of the Senate.
Pursuant to the order of reference adopted by the Senate on Tuesday, December4, 2007, the committee continued its study of BillC-10, An Act to amend the Income Tax Act, including amendments in relation to foreign investment entities and non-resident trusts, and to provide for the bijural expression of the provisions of that Act.
WITNESSES:
Investment Counsel Association of Canada:
Katie A. Walmsley, President;
Tom Johnston, Chair, ICAC Industry, Regulation & Tax Committee;
Pamela Moore, Chair, ICAC Member Services Committee.
Department of Finance Canada:
Gérard Lalonde, Director, Tax Policy Branch;
Brian Ernewein, General Director, Tax Policy Branch;
Grant Nash, Acting Chief, Tax Policy Branch.
Ms.Walmsley and Mr.Johnston each made a statement and, together with the other witnesses, answered questions.
At 12:25 p.m., the committee suspended its work.
At 1 p.m., the committee resumed its work.
It was agreed to postpone the clause-by-clauseof BillC-10 to a later date.
At 1:05 p.m., pursuant to the order of reference adopted by the Senate on Tuesday, November15, 2007, the committee continued its study of BillC-12, An Act to amend the Bankruptcy and Insolvency Act, the Companies' Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005. (For complete text of the order of reference, see proceedings of the committee, Issue No. 2.)
It was agreed that the committee proceed to clause-by-clauseconsideration of BillC-12.
It was agreed that the clauses of the Bill be grouped by the table of provisions.
It was agreed that the title stand postponed, on division.
It was agreed that clauses 1 to 60, the amendments in respect of the Bankruptcy and Insolvency Act, carry, on division.
It was agreed that clauses 61 to 82, the amendments in respect of the Companies' Creditors Arrangement Act, carry, on division.
It was agreed that clauses 83 to 94, the amendments in respect of the Wage Earner Protection Program Act, carry, on division.
It was agreed that clauses 95 to 109, the amendments in respect of Chapter 47 of the Statutes of Canada, 2005, carry, on division.
It was agreed that clause110, the transitional provisions in respect of the Bankruptcy and Insolvency Act, carry, on division.
It was agreed that clause111, the transitional provisions in respect of the Companies' Creditors Arrangement Act, carry, on division.
It was agreed that clause112, the coordinating amendments in respect of BillC-52, carry, on division.
It was agreed that clause113, in respect of the coming into force, carry, on division.
It was agreed that the title carry, on division.
The committee proceed to consider draft observations.
It was agreed that BillC-12 be adopted without amendment, on division, but with the following observations:
As was the case with BillC-55, An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act and to make consequential amendments to other Acts, we are reporting BillC-12 without having conducted our usual comprehensive study and review. We are doing so in support of stakeholders who have indicated that certain aspects of the bill should be implemented without delay in order to assist those workers who have unpaid wages or earned vacation pay.
As the Committee noted in our Seventeenth Report in the 38th Parliament, we unanimously support and approve of wage earner protection for the workers of bankrupt employers. In our November2005 report, we indicated that enhanced protection for these vulnerable creditors was long-overdue. More than two years later, we continue to believe that the need is urgent.
That having been said, we are mindful that some stakeholders have reservations about several provisions of BillC-12 as well as about certain other aspects of Canada's bankruptcy and insolvency regime. In his appearance before the Committee on 29 November2007, the Minister of Labour indicated the possibility that, perhaps as early as next year, further amendments to the regime could occur. Within this context, we intend to continue our work on this important framework legislation, and will be inviting submissions from stakeholders early in 2008. It is our hope that recommendations made as a consequence of this study will receive serious consideration by the government.
Finally, the Committee reiterates the point made in our observations on BillC-55: the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act constitute framework legislation that affects the Canadian economy and all Canadians. We believe it essential that ongoing review occur in order to ensure that the legislation is appropriately amended from time to time and continues to meet its intended goals.
It was agreed that the chair report BillC-12 without amendment to the Senate, on division.
At 1:15 p.m., the committee adjourned to the call of the chair.
ATTEST:
Line Gravel
Clerk of the Committee