Journals of the Senate
58 Elizabeth II, A.D. 2009, Canada
Journals of the Senate
2nd Session, 40th Parliament
Issue 55
Wednesday, September 30, 2009
1:30 p.m.
The Honourable Noël A. Kinsella, Speaker
The Members convened were:
The Honourable Senators
Baker, Brazeau, Brown, Bryden, Callbeck, Carignan, Carstairs, Charette-Poulin, Cochrane, Comeau, Cook, Cools, Cordy, Cowan, Dallaire, Dawson, Day, De Bané, Demers, Di Nino, Downe, Duffy, Eaton, Eggleton, Fairbairn, Finley, Fox, Fraser, Frum, Furey, Gerstein, Grafstein, Greene, Harb, Hervieux-Payette, Housakos, Hubley, Johnson, Joyal, Keon, Kinsella, Lapointe, LeBreton, Losier-Cool, MacDonald, Mahovlich, Manning, Massicotte, Meighen, Mercer, Mockler, Moore, Munson, Murray, Nancy Ruth, Nolin, Ogilvie, Patterson, Pépin, Plett, Prud'homme, Ringuette, Rivard, Robichaud, Rompkey, Segal, Seidman, Smith, Stewart Olsen, Stollery, Stratton, Tardif, Tkachuk, Wallace, Wallin, Watt, Zimmer
The Members in attendance to business were:
The Honourable Senators
*Andreychuk, *Angus, Baker, Brazeau, Brown, Bryden, Callbeck, *Campbell, Carignan, Carstairs, Charette-Poulin, Cochrane, Comeau, Cook, Cools, Cordy, Cowan, Dallaire, Dawson, Day, De Bané, Demers, Di Nino, Downe, Duffy, *Dyck, Eaton, Eggleton, Fairbairn, Finley, Fox, Fraser, Frum, Furey, Gerstein, Grafstein, Greene, Harb, Hervieux-Payette, Housakos, Hubley, *Jaffer, Johnson, Joyal, *Kenny, Keon, Kinsella, *Lang, Lapointe, LeBreton, Losier-Cool, MacDonald, Mahovlich, Manning, Massicotte, *McCoy, Meighen, Mercer, *Merchant, *Milne, *Mitchell, Mockler, Moore, Munson, Murray, Nancy Ruth, *Neufeld, Nolin, Ogilvie, *Oliver, Patterson, Pépin, Plett, Prud'homme, *Raine, Ringuette, Rivard, Robichaud, Rompkey, Segal, Seidman, *Sibbeston, Smith, *St. Germain, Stewart Olsen, Stollery, Stratton, Tardif, Tkachuk, Wallace, Wallin, Watt, Zimmer
The first list records senators present in the Senate Chamber during the course of the sitting.
An asterisk in the second list indicates a senator who, while not present during the sitting, was in attendance to business, as defined in subsections 8(2) and (3) of the Senators Attendance Policy.
PRAYERS
SENATORS' STATEMENTS
Some Honourable Senators made statements.
DAILY ROUTINE OF BUSINESS
Presentation of Reports from Standing or Special Committees
The Honourable Senator Stratton presented the following:
Wednesday, September 30, 2009
The Committee of Selection has the honour to present its
THIRD REPORT
Your committee recommends a change of membership to the following committee:
Standing Senate Committee on Energy, the Environment and Natural Resources
The Honourable Senator Seidman added as a member of the Standing Senate Committee on Energy, the Environment and Natural Resources.
Respectfully submitted,
TERRY STRATTON
Chair
With leave of the Senate,
The Honourable Senator Stratton moved, seconded by the Honourable Senator Tkachuk, that the report be adopted now.
The question being put on the motion, it was adopted.
ORDERS OF THE DAY
A point of order was raised with respect to Senators' Statements.
Debate.
SPEAKER'S RULING
Honourable senators, let me thank Senator Comeau for raising this matter. I find it very helpful that we have this dialogue around this particular topic and that we have the various views brought to bear on it.
As we know, this honourable house traces part of its ancestry to the House of Lords and, up until recently, there was no Speaker in the House of Lords. There is now. There is a Lord Speaker in the House of Lords and prior thereto it was the Lord Chancellor who sat on the Woolsack. As we all know, it was not the role of the Lord Chancellor or the noble lord sitting on the Woolsack to decide points of order, a tradition we should reflect upon to see whether we should go back there. This honourable senator would be happy to go back that way.
The house is the house of all honourable senators. That is why, when rising, we address each other as honourable senators. I know that many make reference to the Speaker, but the tradition is to address honourable senators. The house is run by all honourable senators, and the Speaker does not occupy the position of primus inter pares. I have a seat in the chamber and at any time I am able to leave the chair and go to my place and participate in debate. That helps to underscore the fact that each of us in this chamber has a responsibility for the good operation and the maintenance of order and the dignity of this house.
Now, with reference to the particular case of Senators' Statements, I think we are making a little bit of progress on keeping them well within the parameters of the rule, but all rules are written in language, and language is written by humans, and humans are not infallible with most of the things that we do, including writing rules.
We interpret them as best we can. I welcome Senator Comeau's suggestion that perhaps I express my views as to how I understand this rule. I attempted to do it yesterday and on four prior occasions.
However, it does say here under rule 22(4):
When "Senators' Statements'' has been called, Senators may, without notice, raise matters they consider need to be brought to the urgent attention of the Senate.
This is the point that Senator Comeau was underscoring for us— that it is the judgment of the honourable senator who rises to make his or her statement. They may consider it, but if it is outside the rules, then the rules trump the individual senator's consideration or prudential judgment.
Certainly, whoever sits in the Speaker's chair — and any honourable senator at any moment in time could be sitting in the Speaker's chair— would not want to be in the position of always trying to make a judgment upon what the judgment is of the honourable senators who rose and participated in Senators' Statements on the basis of what he or she may consider to be a matter that fits within the rule 22(4).
However, as I sat here and heard the honourable senator's initiated statement— maybe I misunderstood it and if I did I apologize for that— I understood the statement in the vein of the Notice of Inquiry which is recorded in the Hansard English and French version at page 1395. As I recall yesterday, it was in French when Senator Comeau said:
Hon. Gerald J. Comeau (Deputy Leader of the Government): Honourable senators, I give notice that, two days hence, on behalf of the government:
I will call the attention of the Senate to Canada's Economic Action Plan — A Third Report to Canadians, tabled in the House of Commons on September 28, 2009, by the Minister of Transport, Infrastructure and Communities, the Honourable John Baird, P.C., M.P., and in the Senate on September 29, 2009.
I did say, as I looked at the Order Paper today, the government's inquiry is not on it, but notice had been given. I was not sure whether technically there is a distinction, but I think it better to err on the side of prudence. Honourable senators, it is my belief that we exercise prudential judgment.
It is a political body that we are part of, and, under our Westminster system, political bodies are a good thing. It is the engine room of our Westminster system. None of us is offended by observations and interventions that are political as such. This is a political body, and political parties in our system of governance are a good thing.
Having said that, if I was in error, I apologize for any error that I made. Once again, I wish to thank honourable senators for having been observant at the time of Senators' Statements to make a declaration well within the terms of reference of rule 22.
GOVERNMENT BUSINESS
Bills
Orders No. 1 to 5 were called and postponed until the next sitting.
OTHER BUSINESS
Senate Public Bills
Orders No. 1 to 20 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 Bacon, for the second reading of Bill S-218, An Act to amend the Parliamentary Employment and Staff Relations Act.
After debate,
The Honourable Senator Comeau, for the Honourable Senator Andreychuk, moved, seconded by the Honourable Senator Stratton, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
Resuming debate on the motion of the Honourable Senator McCoy, seconded by the Honourable Senator Wallace, for the second reading of Bill S-206, An Act respecting the office of the Commissioner of the Environment and Sustainable Development.
After debate,
The Honourable Senator Cools moved, seconded by the Honourable Senator Segal, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
Reports of Committees
Orders No. 1 to 8 were called and postponed until the next sitting.
Other
Orders No. 13, 1 and 25 (inquiries) were called and postponed until the next sitting.
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Resuming debate on the motion of the Honourable Senator Segal, seconded by the Honourable Senator Brown:
That the Senate embrace the need to consult widely with Canadians to democratize the process of determining the composition and future of the Upper Chamber by urging the Government to:
(a) invite all provincial and territorial governments in writing to assist immediately in the selection of Senators for appointment by democratic means, whether by holding elections to fill Senate vacancies that might occur in their province or territory or through some other means chosen by them;
(b) institute a separate and specific national referendum on the future of the Senate, affording voters the chance to choose abolition, status quo, or an elected Upper Chamber; and
(c) pursue the above initiatives independently of any legislation that it may introduce in this Parliament for reforming the existing term and method of appointment of Senators.
After debate,
The Honourable Senator Murray, P.C., moved, seconded by the Honourable Senator Wallin:
That the original question be now put.
After debate,
The Honourable Senator Tardif moved, seconded by the Honourable Senator Rompkey, P.C., that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
Orders No. 86 (motion) and 27 (inquiry) were called and postponed until the next sitting.
° ° °
Orders No. 28 and 44 (motions) were called and pursuant to rule 27(3) were dropped from the Order Paper.
° ° °
Orders No. 58, 73 and 13 (motions) 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 Grafstein:
That,
Whereas works of art and historical objects, including silver baskets offered as wedding gifts to the Duke of York (who later became King George V), as well as a porcelain set decorated with war scenes by the Canadian Maritime artist Alice Hagen, kept at the Governor General's residence at Rideau Hall but shelved during the last few years, have recently been sold online through the Department of Public Works;
Whereas there does not seem to be any adequate policy regarding the status and management of works of art and historic objects previously at Rideau Hall;
Whereas there is an urgent need to prevent the scattering of other such items without any regard to their historical character or the protection of Canadian heritage,
It is moved that this chamber:
deplore that decorative items related to Canada's history, and in the past to Rideau Hall, were sold publicly without any regard to their special importance to Canadian heritage;
express its surprise that no heritage management policy at Rideau Hall prevents such scatterings;
demand that the contents of rooms reserved for official functions at Rideau Hall be subsequently managed by an authority at arm's length from the building's occupants in order to preserve their historical character;
that the National Capital Commission carefully manage the art and artifacts previously in use at Rideau Hall; and
that surplus moveable art or decorative works of art be offered first to the Canadian Museum of Civilization, Library and Archives Canada or Canadian museums recognized for their role and mandate in preserving and promoting our country's historical heritage.
After debate,
Further debate on the motion was adjourned until the next sitting in the name of the Honourable Senator Oliver.
° ° °
Orders No. 2 (inquiry), 67, 42, 46 (motions), 6 (inquiry), 10, 8 and 9 (motions) were called and postponed until the next sitting.
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Resuming debate on the inquiry of the Honourable Senator Cowan, calling the attention of the Senate to the critical importance of scientific research to the future of Canada and to the well-being of Canadians.
After debate,
The Honourable Senator Day moved, seconded by the Honourable Senator Callbeck, that further debate on the inquiry be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
Resuming debate on the motion of the Honourable Senator Grafstein, seconded by the Honourable Senator Baker, P.C.:
That the Senate endorse the following Resolution, adopted by the OSCE Parliamentary Assembly at its 17th Annual Session, held at Astana, Kazakhstan, from June 29 to July 3, 2008:
RESOLUTION ON A MEDITERRANEAN FREE TRADE AREA
1. Reiterating the fundamental importance of the economic and environmental aspects of the OSCE concept of security,
2. Recognizing that without economic growth there can be no peace or stability,
3. Recalling the importance that the OSCE Parliamentary Assembly accords to the development of international trade, as underlined by the Assembly's fifth economic conference on the theme of Strengthening Stability and Co- operation through International Trade, which was held in Andorra, in May 2007,
4. Maintaining that creating a free trade area will, inter alia, contribute significantly to the efforts to achieve peace,
5. Recalling that the European Union itself was made possible by the establishment of free-trade areas, first the European Coal and Steel Community in 1951 and then the European Economic Community in 1957,
6. Recalling the Helsinki Final Act of 1975, in which OSCE participating States expressed their intention "to encourage with the non-participating Mediterranean States the development of mutually beneficial co-operation in the various fields of economic activity'' and to "contribute to a diversified development of the economies of the non-participating Mediterranean countries'',
7. Recalling the Helsinki Final Act, in which OSCE participating States recognized "the importance of bilateral and multilateral intergovernmental and other agreements for the long-term development of trade'' and undertook "to reduce or progressively eliminate all kinds of obstacles to the development of trade'',
8. Celebrating the decision made at the OSCE Summit in Budapest in 1994 to create a Contact Group with Mediterranean Partners for Cooperation,
9. Expressing support for the Barcelona Declaration of 1995 regarding the establishment of a free trade area between the members of the European Union and all Mediterranean states by 2010,
10. Saluting the American Middle East Free Trade Area Initiative (MEFTA) launched in 2003,
11. Concerned by the slow pace of economic development in the Middle East, especially in the agriculture sector and the knowledge-based economy, where two-thirds of the population is under the age of 35,
12. Considering the obstacles to economic growth posed by agricultural trade and tariff barriers, as discussed at the OSCE Parliamentary Assembly meeting in Rhodes in 2004,
13. Considering the lack of direct foreign investment in Middle Eastern Arab countries and the concentration of such investment in a small number of these countries,
14. Noting that despite the efforts made in the Middle East to stimulate free trade, economic growth in Mediterranean countries is markedly stronger in the Israel-Europe-North America axis than among countries in the region, and
15. Encouraged by the increased literacy rate and the increased participation of women in the domestic economies of countries in the Mediterranean basin,
The OSCE Parliamentary Assembly:
16. Recommends the creation of a Mediterranean Economic Commission whose objective would be to quickly reduce trade barriers and facilitate the transition to a knowledge-based economy in countries in the region;
17. Recommends the creation of a Mediterranean Agricultural Marketing Board whose objective would be to create jobs in the agriculture sector for young people in the region;
18. Invites OSCE participating countries and partner states for co-operation to intensify their efforts under the Barcelona Process and to more fully benefit from the MEFTA Initiative in order to expedite the establishment of a free-trade area among all Mediterranean countries.
After debate,
The Honourable Senator Grafstein, for the Honourable Senator Joyal, P.C., moved, seconded by the Honourable Senator Day, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
Resuming debate on the motion of the Honourable Senator Segal, seconded by the Honourable Senator Oliver:
That the Standing Senate Committee on Social Affairs, Science and Technology be authorized to examine and report on the implementation of a guaranteed annual income system, including the negative income tax model, as a qualitative improvement in income security, with a view to reducing the number of Canadians now living under the poverty line;
That the Committee consider the best possible design of a negative income tax;
That the Committee submit its final report no later than December 31, 2009; and
That the Committee retain all powers necessary to publicize its findings until 90 days after the tabling of the final report.
After debate,
The Honourable Senator Comeau moved, seconded by the Honourable Senator Demers, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
Resuming debate on the inquiry of the Honourable Senator Grafstein, calling the attention of the Senate to the following Declaration on Strengthening the Financial System, adopted by the G20 on April 2, 2009, at the London Summit:
DECLARATION ON STRENGTHENING THE FINANCIAL SYSTEM LONDON SUMMIT, 2 APRIL 2009
We, the Leaders of the G20, have taken, and will continue to take, action to strengthen regulation and supervision in line with the commitments we made in Washington to reform the regulation of the financial sector. Our principles are strengthening transparency and accountability, enhancing sound regulation, promoting integrity in financial markets and reinforcing international cooperation. The material in this declaration expands and provides further detail on the commitments in our statement. We published today a full progress report against each of the 47 actions set out in the Washington Action Plan. In particular, we have agreed the following major reforms.
Financial Stability Board
We have agreed that the Financial Stability Forum (FSB) should be expanded, given a broadened mandate to promote financial stability, and re-established with a stronger institutional basis and enhanced capacity as the Financial Stability Board. The FSB will:
- assess vulnerabilities affecting the financial system, identify and oversee action needed to address them;
- promote co-ordination and information exchange among authorities responsible for financial stability;
- monitor and advise on market developments and their implications for regulatory policy;
- advise on and monitor best practice in meeting regulatory standards;
- undertake joint strategic reviews of the policy development work of the international Standard Setting Bodies to ensure their work is timely, coordinated, focused on priorities, and addressing gaps;
- set guidelines for, and support the establishment, functioning of, and participation in, supervisory colleges, including through ongoing identification of the most systemically important cross-border firms;
- support contingency planning for cross-border crisis management, particularly with respect to systemically important firms; and
- collaborate with the IMF to conduct Early Warning Exercises to identify and report to the IMFC and the G20 Finance Ministers and Central Bank Governors on the build up of macroeconomic and financial risks and the actions needed to address them.
Members of the FSB commit to pursue the maintenance of financial stability, enhance the openness and transparency of the financial sector, and implement international financial standards (including the 12 key International Standards and Codes), and agree to undergo periodic peer reviews, using among other evidence IMF / World Bank public Financial Sector Assessment Program reports. The FSB will elaborate and report on these commitments and the evaluation process.
We welcome the FSB's and IMF's commitment to intensify their collaboration, each complementing the other's role and mandate.
International cooperation
To strengthen international cooperation we have agreed:
- to establish the remaining supervisory colleges for significant cross-border firms by June 2009, building on the 28 already in place;
- to implement the FSF principles for cross-border crisis management immediately, and that home authorities of each major international financial institution should ensure that the group of authorities with a common interest in that financial institution meet at least annually;
- to support continued efforts by the IMF, FSB, World Bank, and BCBS to develop an international framework for cross-border bank resolution arrangements;
- the importance of further work and international cooperation on the subject of exit strategies;
- that the IMF and FSB should together launch an Early Warning Exercise at the 2009 Spring Meetings.
Prudential regulation
We have agreed to strengthen international frameworks for prudential regulation:
- until recovery is assured the international standard for the minimum level of capital should remained unchanged;
- where appropriate, capital buffers above the required minima should be allowed to decline to facilitate lending in deteriorating economic conditions;
- once recovery is assured, prudential regulatory standards should be strengthened. Buffers above regulatory minima should be increased and the quality of capital should be enhanced. Guidelines for harmonisation of the definition of capital should be produced by end 2009. The BCBS should review minimum levels of capital and develop recommendations in 2010;
- the FSB, BCBS, and CGFS, working with accounting standard setters, should take forward, with a deadline of end 2009, implementation of the recommendations published today to mitigate procyclicality, including a requirement for banks to build buffers of resources in good times that they can draw down when conditions deteriorate;
- risk-based capital requirements should be supplemented with a simple, transparent, non-risk based measure which is internationally comparable, properly takes into account off-balance sheet exposures, and can help contain the build-up of leverage in the banking system;
- the BCBS and authorities should take forward work on improving incentives for risk management of securitisation, including considering due diligence and quantitative retention requirements, by 2010;
- all G20 countries should progressively adopt the Basel II capital framework; and
- the BCBS and national authorities should develop and agree by 2010 a global framework for promoting stronger liquidity buffers at financial institutions, including cross-border institutions.
The scope of regulation
We have agreed that all systemically important financial institutions, markets, and instruments should be subject to an appropriate degree of regulation and oversight. In particular:
- we will amend our regulatory systems to ensure authorities are able to identify and take account of macro- prudential risks across the financial system including in the case of regulated banks, shadow banks, and private pools of capital to limit the build up of systemic risk. We call on the FSB to work with the BIS and international standard setters to develop macro-prudential tools and provide a report by autumn 2009;
- large and complex financial institutions require particularly careful oversight given their systemic importance;
- we will ensure that our national regulators possess the powers for gathering relevant information on all material financial institutions, markets, and instruments in order to assess the potential for their failure or severe stress to contribute to systemic risk. This will be done in close coordination at international level in order to achieve as much consistency as possible across jurisdictions;
- in order to prevent regulatory arbitrage, the IMF and the FSB will produce guidelines for national authorities to assess whether a financial institution, market, or an instrument is systemically important by the next meeting of our Finance Ministers and Central Bank Governors. These guidelines should focus on what institutions do rather than their legal form;
- hedge funds or their managers will be registered and will be required to disclose appropriate information on an ongoing basis to supervisors or regulators, including on their leverage, necessary for assessment of the systemic risks that they pose individually or collectively. Where appropriate, registration should be subject to a minimum size. They will be subject to oversight to ensure that they have adequate risk management. We ask the FSB to develop mechanisms for cooperation and information sharing between relevant authorities in order to ensure that effective oversight is maintained where a fund is located in a different jurisdiction from the manager. We will, cooperating through the FSB, develop measures that implement these principles by the end of 2009. We call on the FSB to report to the next meeting of our Finance Ministers and Central Bank Governors;
- supervisors should require that institutions which have hedge funds as their counterparties have effective risk management. This should include mechanisms to monitor the funds' leverage and set limits for single counterparty exposures;
- we will promote the standardisation and resilience of credit derivatives markets, in particular through the establishment of central clearing counterparties subject to effective regulation and supervision. We call on the industry to develop an action plan on standardisation by autumn 2009; and
- we will each review and adapt the boundaries of the regulatory framework regularly to keep pace with developments in the financial system and promote good practices and consistent approaches at the international level.
Compensation
We have endorsed the principles on pay and compensation in significant financial institutions developed by the FSF to ensure compensation structures are consistent with firms' long-term goals and prudent risk taking. We have agreed that our national supervisors should ensure significant progress in the implementation of these principles by the 2009 remuneration round. The BCBS should integrate these principles into their risk management guidance by autumn 2009. The principles, which have today been published, require:
- firms' boards of directors to play an active role in the design, operation, and evaluation of compensation schemes;
- compensation arrangements, including bonuses, to properly reflect risk and the timing and composition of payments to be sensitive to the time horizon of risks. Payments should not be finalised over short periods where risks are realised over long periods; and
- firms to publicly disclose clear, comprehensive, and timely information about compensation. Stakeholders, including shareholders, should be adequately informed on a timely basis on compensation policies to exercise effective monitoring.
Supervisors will assess firms' compensation policies as part of their overall assessment of their soundness. Where necessary they will intervene with responses that can include increased capital requirements.
Tax havens and non-cooperative jurisdictions
It is essential to protect public finances and international standards against the risks posed by non-cooperative jurisdictions. We call on all jurisdictions to adhere to the international standards in the prudential, tax, and AML/CFT areas. To this end, we call on the appropriate bodies to conduct and strengthen objective peer reviews, based on existing processes, including through the FSAP process.
We call on countries to adopt the international standard for information exchange endorsed by the G20 in 2004 and reflected in the UN Model Tax Convention. We note that the OECD has today published a list of countries assessed by the Global Forum against the international standard for exchange of information. We welcome the new commitments made by a number of jurisdictions and encourage them to proceed swiftly with implementation.
We stand ready to take agreed action against those jurisdictions which do not meet international standards in relation to tax transparency. To this end we have agreed to develop a toolbox of effective counter measures for countries to consider, such as:
- increased disclosure requirements on the part of taxpayers and financial institutions to report transactions involving non-cooperative jurisdictions;
- withholding taxes in respect of a wide variety of payments;
- denying deductions in respect of expense payments to payees resident in a non-cooperative jurisdiction;
- reviewing tax treaty policy;
- asking international institutions and regional development banks to review their investment policies; and,
- giving extra weight to the principles of tax transparency and information exchange when designing bilateral aid programs.
We also agreed that consideration should be given to further options relating to financial relations with these jurisdictions.
We are committed to developing proposals, by end 2009, to make it easier for developing countries to secure the benefits of a new cooperative tax environment.
We are also committed to strengthened adherence to international prudential regulatory and supervisory standards. The IMF and the FSB in cooperation with international standard-setters will provide an assessment of implementation by relevant jurisdictions, building on existing FSAPs where they exist. We call on the FSB to develop a toolbox of measures to promote adherence to prudential standards and cooperation with jurisdictions.
We agreed that the FATF should revise and reinvigorate the review process for assessing compliance by jurisdictions with AML/CFT standards, using agreed evaluation reports where available.
We call upon the FSB and the FATF to report to the next G20 Finance Ministers and Central Bank Governors' meeting on adoption and implementation by countries.
Accounting standards
We have agreed that the accounting standard setters should improve standards for the valuation of financial instruments based on their liquidity and investors' holding horizons, while reaffirming the framework of fair value accounting.
We also welcome the FSF recommendations on procyclicality that address accounting issues. We have agreed that accounting standard setters should take action by the end of 2009 to:
- reduce the complexity of accounting standards for financial instruments;
- strengthen accounting recognition of loan-loss provisions by incorporating a broader range of credit information;
- improve accounting standards for provisioning, off-balance sheet exposures and valuation uncertainty;
- achieve clarity and consistency in the application of valuation standards internationally, working with supervisors;
- make significant progress towards a single set of high quality global accounting standards; and,
- within the framework of the independent accounting standard setting process, improve involvement of stakeholders, including prudential regulators and emerging markets, through the IASB's constitutional review.
Credit Rating Agencies
We have agreed on more effective oversight of the activities of Credit Rating Agencies, as they are essential market participants. In particular, we have agreed that:
- all Credit Rating Agencies whose ratings are used for regulatory purposes should be subject to a regulatory oversight regime that includes registration. The regulatory oversight regime should be established by end 2009 and should be consistent with the IOSCO Code of Conduct Fundamentals. IOSCO should coordinate full compliance;
- national authorities will enforce compliance and require changes to a rating agency's practices and procedures for managing conflicts of interest and assuring the transparency and quality of the rating process. In particular, Credit Rating Agencies should differentiate ratings for structured products and provide full disclosure of their ratings track record and the information and assumptions that underpin the ratings process. The oversight framework should be consistent across jurisdictions with appropriate sharing of information between national authorities, including through IOSCO; and,
- the Basel Committee should take forward its review on the role of external ratings in prudential regulation and determine whether there are any adverse incentives that need to be addressed.
Next Steps
We instruct our Finance Ministers to complete the implementation of these decisions and the attached action plan. We have asked the FSB and the IMF to monitor progress, working with the FATF and the Global Forum, and to provide a report to the next meeting of our Finance Ministers and Central Bank Governors.
After debate,
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Mahovlich, that further debate on the inquiry be adjourned until the next sitting.
The question being put on the motion, it was adopted.
INQUIRIES
The Honourable Senator Callbeck called the attention of the Senate to the inability of Canadians in rural and remote regions to receive timely access to emergency passport services.
After debate,
The Honourable Senator Tardif moved, seconded by the Honourable Senator Cowan, 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 Cochrane moved, seconded by the Honourable Senator Di Nino:
That the Senate of Canada,
in commemoration of the 80th anniversary of the October 18, 1929 decision of the Judicial Committee of the Privy Council that recognized women as "persons'' in law eligible for appointment to the Senate of Canada, and
in acknowledgement of the important contributions women have made in the Senate of Canada, posthumously recognize Emily Murphy, Nellie McClung, Irene Parlby, Louise McKinney and Henrietta Muir Edwards, popularly known as the "Famous Five'', as Honorary Senators.
After debate,
The Honourable Senator Pépin moved, seconded by the Honourable Senator Tardif, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
° ° °
The Honourable Senator Cowan moved, seconded by the Honourable Senator Fraser:
That, in accordance with rules 74(1) and 62(1)(i), the Standing Senate Committee on National Finance be authorized to examine the subject-matter of Bill C-50, An Act to amend the Employment Insurance Act and to increase benefits, introduced in the House of Commons on September 16, 2009, in advance of the said bill coming before the Senate.
After debate,
The question being put on the motion, it was adopted.
REPORTS DEPOSITED WITH THE CLERK OF THE SENATE PURSUANT TO RULE 28(2):
Reports of the Office of Infrastructure of Canada for the fiscal year ended March 31, 2009, pursuant to the Access to Information Act and to the Privacy Act, R.S.C. 1985, c. A-1 and P-21, sbs. 72(2).—Sessional Paper No.2/40-697.
Report to Parliament on the Government of Canada's Official Development Assistance for the fiscal year ended March 31, 2009, pursuant to the Official Development Assistance Accountability Act, S.C. 2008, c. 17, s. 5.—Sessional Paper No.2/40-698.
Report of the Canadian Nuclear Safety Commission, together with the Auditor General's Report, for the fiscal year ended March 31, 2009, pursuant to the Nuclear Safety and Control Act, S.C. 1997, c. 9, s. 72.—Sessional Paper No.2/ 40-699.
Reports of the National Energy Board for the fiscal year ended March 31, 2009, pursuant to the Access to Information Act and to the Privacy Act, R.S.C. 1985, c. A-1 and P-21, sbs. 72(2).—Sessional Paper No.2/40-700.
Reports of the Canadian Wheat Board for the fiscal year ended March 31, 2009, pursuant to the Access to Information Act and to the Privacy Act, R.S.C. 1985, c. A-1 and P-21, sbs. 72(2).—Sessional Paper No.2/40-701.
Reports of the Canadian Food Inspection Agency for the fiscal year ended March 31, 2009, pursuant to the Access to Information Act and to the Privacy Act, R.S.C. 1985, c. A-1 and P-21, sbs. 72(2).—Sessional Paper No.2/40-702.
ADJOURNMENT
The Honourable Senator Comeau moved, seconded by the Honourable Senator Carignan:
That the Senate do now adjourn.
The question being put on the motion, it was adopted.
(Accordingly, at 3:47 p.m. the Senate was continued until 1:30 p.m. tomorrow.)
Changes in Membership of Committees Pursuant to rule 85(4)
Standing Senate Committee on Agriculture and Forestry
The Honourable Senator Hubley replaced the Honourable Senator Mercer (September 30, 2009).
Standing Senate Committee on Banking, Trade and Commerce
The Honourable Senator Hubley replaced the Honourable Senator Peterson (September 30, 2009).
Standing Senate Committee on Fisheries and Oceans
The Honourable Senator Dallaire replaced the Honourable Senator Poy (September 30, 2009).
The Honourable Senator Cook replaced the Honourable Senator Dallaire (September 30, 2009).
The Honourable Senator Dallaire replaced the Honourable Senator Cook (September 30, 2009).
Standing Senate Committee on Foreign Affairs and International Trade
The Honourable Senator Fortin-Duplessis replaced the Honourable Senator Frum (September 30, 2009).
Standing Senate Committee on Human Rights
The Honourable Senator Demers replaced the Honourable Senator Martin (September 29, 2009).
The Honourable Senator Dallaire replaced the Honourable Senator Lovelace Nicholas (September 29, 2009).
Standing Committee on Internal Economy, Budgets and Administration
The Honourable Senator Stratton replaced the Honourable Senator Prud'homme, P.C. (September 30, 2009).
Standing Senate Committee on Legal and Constitutional Affairs
The Honourable Senator Carignan replaced the Honourable Senator Dickson (September 29, 2009).
Standing Senate Committee on National Finance
The Honourable Senator Robichaud, P.C., replaced the Honourable Senator Chaput (September 30, 2009).
The Honourable Senator Mitchell replaced the Honourable Senator Downe (September 29, 2009).
Standing Senate Committee on National Security and Defence
The Honourable Senator Moore replaced the Honourable Senator Day (September 30, 2009).
Standing Senate Committee on Social Affairs, Science and Technology
The Honourable Senator Rivard replaced the Honourable Senator Martin (September 30, 2009).
The Honourable Senator Martin replaced the Honourable Senator Stratton (September 30, 2009).