Journals of the Senate
56 Elizabeth II, A.D. 2007, Canada
Journals of the Senate
1st Session, 39th Parliament
Issue 87
Thursday, April 19, 2007
1:30 p.m.
The Honourable Noël A. Kinsella, Speaker
The Members convened were:
The Honourable Senators
Adams, Andreychuk, Angus, Atkins, Bacon, Baker, Banks, Biron, Bryden, Callbeck, Cochrane, Comeau, Cook, Cools, Cordy, Cowan, Dallaire, Dawson, Day, De Bané, Di Nino, Eyton, Fitzpatrick, Fortier, Fox, Furey, Grafstein, Gustafson, Harb, Jaffer, Johnson, Joyal, Kenny, Keon, Kinsella, LeBreton, Losier-Cool, Mahovlich, Massicotte, Meighen, Mercer, Mitchell, Moore, Munson, Murray, Nolin, Oliver, Phalen, Poulin (Charette), Ringuette, Rivest, Robichaud, Rompkey, St. Germain, Segal, Spivak, Stollery, Stratton, Tardif, Tkachuk, Trenholme Counsell, Watt, Zimmer
The Members in attendance to business were:
The Honourable Senators
Adams, Andreychuk, Angus, Atkins, Bacon, Baker, Banks, Biron, Bryden, Callbeck, *Carstairs, Cochrane, Comeau, Cook, Cools, Cordy, Cowan, Dallaire, Dawson, Day, De Bané, Di Nino, Eyton, Fitzpatrick, Fortier, Fox, *Fraser, Furey, *Goldstein, Grafstein, Gustafson, Harb, Jaffer, Johnson, Joyal, Kenny, Keon, Kinsella, LeBreton, Losier-Cool, Mahovlich, Massicotte, Meighen, Mercer, *Milne, Mitchell, Moore, Munson, Murray, Nolin, Oliver, Phalen, Poulin (Charette), Ringuette, Rivest, Robichaud, Rompkey, St. Germain, Segal, *Smith, Spivak, Stollery, Stratton, Tardif, Tkachuk, Trenholme Counsell, Watt, Zimmer
PRAYERS
SENATORS' STATEMENTS
Some Honourable Senators made statements.
DAILY ROUTINE OF BUSINESS
Presentation of Reports from Standing or Special Committees
The Honourable Senator Grafstein presented the following:
Thursday, April 19, 2007
The Standing Senate Committee on Banking, Trade and Commerce has the honour to present its
FIFTEENTH REPORT
Your Committee, to which was referred Bill C-26, An Act to amend the Criminal Code (criminal interest rate), has, in obedience to the Order of Reference of Wednesday, February 28, 2007, examined the said Bill and now reports the same without amendment. Your Committee appends to this report certain observations relating to the Bill.
Respectfully submitted,
JERAHMIEL S. GRAFSTEIN
Chair
Observations to the fifteenth report of the Standing Senate Committee on Banking, Trade and Commerce
The Standing Senate Committee on Banking, Trade and Commerce has the honour to report Bill C-26, An Act to amend the Criminal Code (criminal interest rate), without amendment, but with the following observations.
The Committee has decided to report Bill C-26 without amendment, even though we have reservations about the Bill as drafted, because of the following factors.
First, the Committee unanimously supports measures designed to facilitate the protection of consumers in respect of payday loan services and does not wish to delay access to legislated protection for these borrowers, some of whom we believe to be vulnerable. We have some familiarity with the section of the Criminal Code that would be amended by the Bill as well as with issues related to payday lending. In particular, in 2005, we examined a bill proposed by our former colleague, Senator Plamondon, which also sought to amend section 347 of the Criminal Code, and — in the context of our study of consumer protection in the financial services sector — heard from witnesses on the subject of alternative financial service providers, particularly payday lenders.
We continue to be somewhat puzzled by the reasons underlying the rapid growth of the payday lending sector. This growth suggests that the services provided by such lenders are needed by consumers. Important considerations for us are the reasons for the emergence and growth of this sector as well as what appears to us to be a lack of involvement by chartered banks in short-term, low-value lending.
During its recent presentation to us on Bill C-37, the Canadian Bankers Association indicated that it, too, is perplexed. It also indicated that the chartered banks provide a range of credit options on a short-term basis. Nevertheless, the Committee believes that the payday lending sector's growth may be related, in part, to a relative unwillingness by Canada's chartered banks to lend to certain borrowers, who then become customers of payday lenders. Consequently, we urge Canada's chartered banks — which are federally regulated, belong to an independent complaint resolution mechanism, and are involved in some aspects of financial education — to begin making short- term, low-value loans.
Moreover, we believe that implementation of the proposed legislation could result in the federal government granting exemptions to designated provinces with insufficient assurances that provincial actions would provide the level and nature of consumer protection in this sector that this Committee seeks. As well, there is no assurance that all provinces will enact protection measures following enactment of this legislation. Finally, we are concerned that a patchwork of non-uniform protection measures could develop across the country.
Thus, we urge provinces, in adopting consumer protection measures pursuant to this Bill regarding the payday lending sector, to include minimum requirements in at least the following areas: limitations on rollovers and back-to- back loans; mandatory participation by payday lenders in an independent complaint resolution mechanism; mechanisms ensuring full and accurate disclosure of contract terms; acceptable debt collection practices; and a right for the borrower to rescind the loan and obtain full reimbursement no later than the end of the day following the making of the loan. Efforts made by payday lenders in the area of consumer financial education would also be welcome.
Consistent with the Committee's mandate, we will continue to monitor developments in the payday lending sector, and hope that the enactment of Bill C-26 will allow effective protection to consumers. In our view, if the provinces fail to meet minimum standards in the areas indicated above, the federal government should take appropriate legislative action.
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Banks, that the bill be placed on the Orders of the Day for a third reading at the next sitting.
The question being put on the motion, it was adopted.
The Honourable Senator Grafstein, Chair of the Standing Senate Committee on Banking, Trade and Commerce, presented its sixteenth report (Bill C-36, An Act to amend the Canada Pension Plan and the Old Age Security Act, without amendment).
The Honourable Senator Angus moved, seconded by the Honourable Senator Eyton, that the bill be placed on the Orders of the Day for a third reading at the next sitting.
The question being put on the motion, it was adopted.
Government Notices of Motions
With leave of the Senate,
The Honourable Senator Comeau moved, seconded by the Honourable Senator Oliver:
That when the Senate adjourns today, it do stand adjourned until Tuesday, April 24, 2007, at 2 p.m.
The question being put on the motion, it was adopted.
ORDERS OF THE DAY
GOVERNMENT BUSINESS
Bills
Order No. 1 was called and postponed until the next sitting.
Inquiries
Order No. 1 was called and postponed until the next sitting.
Motions
Order No. 1 was called and postponed until the next sitting.
Reports of Committees
Orders No. 1 to 3 were called and postponed until the next sitting.
OTHER BUSINESS
Senate Public Bills
Orders No. 1 and 2 were called and postponed until the next sitting.
Resuming debate on the motion of the Honourable Senator Grafstein, seconded by the Honourable Senator Joyal, P.C., for the second reading of Bill S-204, An Act respecting a National Philanthropy Day.
After debate,
The Honourable Senator Comeau moved, seconded by the Honourable Senator Oliver, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
Orders No. 4 to 7 were called and postponed until the next sitting.
Resuming debate on the motion of the Honourable Senator Harb, seconded by the Honourable Senator Keon, for the second reading of Bill S-221, An Act to establish and maintain a national registry of medical devices.
After debate,
The Honourable Senator Comeau moved, seconded by the Honourable Senator Cochrane, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
Order No. 9 was called and postponed until the next sitting.
Commons Public Bills
Order No. 1 was called and postponed until the next sitting.
Resuming debate on the motion of the Honourable Senator Di Nino, seconded by the Honourable Senator Cochrane, for the second reading of Bill C-252, An Act to amend the Divorce Act (access for spouse who is terminally ill or in critical condition).
After debate,
The question being put on the motion, it was adopted.
The bill was then read the second time.
The Honourable Senator Comeau moved, seconded by the Honourable Senator Oliver, that the bill be referred to the Standing Senate Committee on Social Affairs, Science and Technology.
The question being put on the motion, it was adopted.
Orders No. 3 to 5 were called and postponed until the next sitting.
Reports of Committees
Orders No. 1 to 4 were called and postponed until the next sitting.
Resuming debate on the motion of the Honourable Senator Banks, seconded by the Honourable Senator Dallaire, for the adoption of the twelfth report of the Standing Senate Committee on National Security and Defence (budget—study on the need for a National Security Policy), presented in the Senate on March 29, 2007.
After debate,
The question being put on the motion, it was adopted, on division.
Orders No. 6 to 13 were called and postponed until the next sitting.
Order No. 14 (seventh report of the National Security and Defence Committee) was called and pursuant to rule 27(3) was dropped from the Order Paper.
Orders No. 15 to 18 were called and postponed until the next sitting.
Other
Orders No. 92 (motion), 21, 19 (inquiries), 168 (motion), 11, 27, 28 (inquiries), 140 (motion) and 3 (inquiry) were called and postponed until the next sitting.
Resuming debate on the inquiry of the Honourable Senator Banks calling the attention of the Senate to the failure of the Government of Canada to carry out its constitutional duty to appoint qualified persons to the Senate.
After debate,
The Honourable Senator Day moved, seconded by the Honourable Senator Dallaire, that further debate on the inquiry be adjourned until the next sitting.
The question being put on the motion, it was adopted.
Orders No. 23, 22, 9, 12, 14, 8 and 25 (inquiries) were called and postponed until the next sitting.
Resuming debate on the motion of the Honourable Senator Joyal, P.C., seconded by the Honourable Senator Robichaud, P.C.:
That the Senate congratulates the Honourable Noël Kinsella on his appointment as Speaker and expresses its confidence in him while acknowledging that a Speaker, to be successful and effective in the exercise of the duties of that office, requires the trust and support of a majority of the Senators.
After debate,
The question being put on the motion, it was adopted.
Orders No. 119 (motion), 20 and 15 (inquiries) were called and postponed until the next sitting.
Resuming debate on the inquiry of the Honourable Senator Mitchell calling the attention of the Senate to the stated intention of the Canadian government to weaken the Kyoto Protocol, and to dismantle 15 climate change programs, including the One-Tonne Challenge and the EnerGuide program.
After debate,
The Honourable Senator Banks moved, seconded by the Honourable Senator Day, that further debate on the inquiry be adjourned until the next sitting.
The question being put on the motion, it was adopted.
MOTIONS
The Honourable Senator Poulin moved, seconded by the Honourable Senator Tardif:
That the Standing Senate Committee on Human Rights, in the spirit of reflection and commemoration of International Women's Day and the 25th anniversary of the patriation of the Constitution and its Canadian Charter of Rights and Freedoms, be authorized:
(a) to examine and report on all issues related to female representation in Parliament, including the barriers to the participation of women in federal politics;
(b) to propose positive measures for electoral and other reforms that will
i) promote gender equity in Parliament, and
ii) achieve an increase in the number of women in Parliament;
(c) to consider the status of female representation in other legislative assemblies for comparative purposes in formulating proposed measures; and
That the Committee present its report no later than June 29, 2007.
After debate,
The Honourable Senator Tardif moved, seconded by the Honourable Senator Cowan, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
ADJOURNMENT
The Honourable Senator Comeau moved, seconded by the Honourable Senator Cochrane:
That the Senate do now adjourn.
The question being put on the motion, it was adopted.
(Accordingly, at 4:30 p.m. the Senate was continued until Tuesday, April 24, 2007 at 2 p.m.)
Changes in Membership of Committees Pursuant to Rule 85(4)
Standing Senate Committee on Agriculture and Forestry
The name of the Honourable Senator Peterson substituted for that of the Honourable Senator Zimmer (April 18).
Standing Senate Committee on Banking, Trade and Commerce
The name of the Honourable Senator Cordy substituted for that of the Honourable Senator Goldstein (April 19).
Standing Senate Committee on Energy, the Environment and Natural Resources
The names of the Honourable Senators Dawson and Robichaud substituted for those of the Honourable Senators Milne and Sibbeston (April 18).
Standing Senate Committee on Foreign Affairs and International Trade
The name of the Honourable Senator Mahovlich substituted for that of the Honourable Senator Banks (April 19).
Standing Senate Committee on Legal and Constitutional Affairs
The names of the Honourable Senators Banks and Zimmer substituted for those of the Honourable Senators Tardif and Watt (April 19).