Journals of the Senate
58 Elizabeth II, A.D. 2009, Canada
Journals of the Senate
2nd Session, 40th Parliament
Issue 69
Tuesday, November 17, 2009
2:00 p.m.
The Honourable Noël A. Kinsella, Speaker
The Members convened were:
The Honourable Senators
Andreychuk, Angus, Banks, Brazeau, Brown, Callbeck, Campbell, Carignan, Champagne, Charette-Poulin, Cochrane, Comeau, Cools, Cowan, Dallaire, Dawson, Demers, Downe, Eaton, Eggleton, Fairbairn, Finley, Fortin-Duplessis, Fox, Fraser, Frum, Furey, Gerstein, Grafstein, Greene, Harb, Hervieux-Payette, Housakos, Hubley, Jaffer, Johnson, Joyal, Kinsella, Lang, Lapointe, LeBreton, Losier-Cool, Lovelace Nicholas, MacDonald, Mahovlich, Manning, Martin, Meighen, Milne, Mitchell, Mockler, Munson, Murray, Neufeld, Ogilvie, Oliver, Patterson, Pépin, Peterson, Poy, Prud'homme, Raine, Robichaud, Rompkey, Segal, Seidman, Smith, St. Germain, Stewart Olsen, Stollery, Stratton, Tardif, Tkachuk, Wallace, Wallin, Watt, Zimmer
The Members in attendance to business were:
The Honourable Senators
Andreychuk, Angus, Banks, Brazeau, Brown, Callbeck, Campbell, Carignan, Champagne, Charette-Poulin, Cochrane, Comeau, Cools, *Cordy, Cowan, Dallaire, Dawson, *Day, Demers, Downe, Eaton, Eggleton, Fairbairn, Finley, Fortin-Duplessis, Fox, Fraser, Frum, Furey, Gerstein, Grafstein, Greene, Harb, Hervieux-Payette, Housakos, Hubley, Jaffer, Johnson, Joyal, *Kenny, Kinsella, Lang, Lapointe, LeBreton, Losier-Cool, Lovelace Nicholas, MacDonald, Mahovlich, Manning, Martin, *Massicotte, Meighen, Milne, Mitchell, Mockler, *Moore, Munson, Murray, Neufeld, *Nolin, Ogilvie, Oliver, Patterson, Pépin, Peterson, Poy, Prud'homme, Raine, *Rivard, Robichaud, Rompkey, Segal, Seidman, 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
Tabling of Documents
The Honourable the Speaker tabled the following:
Report of the Privacy Commissioner of Canada for the fiscal year ended March 31, 2009, pursuant to the Privacy Act, R.S.C. 1985, c. P-21, sbs. 40(1).—Sessional Paper No. 2/40-850.
Audit Report of the Privacy Commissioner of Canada on the Financial Transactions and Reports Analysis Centre of Canada, pursuant to the Proceeds of Crime (Money Laundering) and Terrorist Financial Act, S.C. 2000, c. 17, sbs. 72.(2).—Sessional Paper No. 2/40-851.
Tabling of Reports from Inter-Parliamentary Delegations
The Honourable Senator Grafstein tabled the following:
Report of the Canadian Delegation of the Canada-United States Inter-Parliamentary Group respecting its participation at the 19th Annual Summit of the Pacific NorthWest Economic Region, held in Boise, United States, from July 12 to 16, 2009. —Sessional Paper No. 2/40-852.
ORDERS OF THE DAY
GOVERNMENT BUSINESS
Bills
Orders No. 1 to 3 were called and postponed until the next sitting.
Inquiries
Order No. 2 was called and postponed until the next sitting.
Motions
The Honourable Senator Comeau moved, seconded by the Honourable Senator Stratton:
That the Standing Joint Committee on the Library of Parliament be authorized to examine and report upon the expenditures set out in Parliament Vote 10 of the Supplementary Estimates (B) for the fiscal year ending March 31, 2010; and
That a message be sent to the House of Commons to acquaint that House accordingly.
The question being put on the motion, it was adopted.
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The Honourable Senator Comeau moved, seconded by the Honourable Senator Mockler:
That the Standing Senate Committee on National Finance be authorized to examine and report upon the expenditures set out in the Supplementary Estimates (B) for the fiscal year ending March 31, 2010, with the exception of Parliament Vote 10.
The question being put on the motion, it was adopted.
OTHER BUSINESS
Senate Public Bills
Orders No. 1 to 9 were called and postponed until the next sitting.
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Resuming debate on the motion of the Honourable Senator Ringuette, seconded by the Honourable Senator Pépin, for the second reading of Bill S-241, An Act to amend the Office of the Superintendent of Financial Institutions Act (credit and debit cards).
A point of order was raised concerning the acceptability of the bill.
After debate,
Pursuant to rule 18(3), the Speaker will hear further arguments.
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Orders No. 11 to 21 were called and postponed until the next sitting.
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Resuming debate on the motion of the Honourable Senator Callbeck, seconded by the Honourable Senator Dallaire, for the second reading of Bill S-234, An Act to amend the Canada Pension Plan (retroactivity of retirement and survivor's pensions).
After debate,
The Honourable Senator Callbeck moved, seconded by the Honourable Senator Robichaud, P.C., that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
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Order No. 23 was called and postponed until the next sitting.
Commons Public Bills
Order No. 1 was called and postponed until the next sitting.
Reports of Committees
Resuming debate on the motion of the Honourable Senator Chaput, seconded by the Honourable Senator Hubley, that the fourth report of the Standing Senate Committee on Official Languages, entitled Reflecting Canada's Linguistic Duality at the 2010 Olympic and Paralympic Winter Games: A Golden Opportunity, Follow-up Report, tabled in the Senate on September 15, 2009, be adopted and that, pursuant to rule 131(2), the Senate request a complete and detailed response from the government, with the Minister of Canadian Heritage and Official Languages and the President of the Queen's Privy Council for Canada being identified as ministers responsible for responding to the report.
After debate,
The question being put on the motion, it was adopted.
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Orders No. 2 to 4 were called and postponed until the next sitting.
Other
Orders No. 8, 9, 7 (motions), 1 and 27 (inquiries) were called and postponed until the next sitting.
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Resuming debate on the motion of the Honourable Senator Grafstein, seconded by the Honourable Senator Day:
That,
(a) Canada supports the democratic aspirations of the people of Iran;
(b) Canada condemns the use of violence and force by Iranian authorities against their own people to suppress pro- democracy demonstrations following the Iranian presidential elections of June 12, 2009;
(c) Canada condemns the use of torture by Iranian authorities;
(d) Canada calls for the immediate release of all political prisoners held in Iran;
(e) Canada calls on Iran to fully respect all of its human rights obligations, both in law and in practice;
(f) Canada condemns Iran's complete disregard for legally binding UN Security Council Resolutions 1696, 1737, 1747, and 1803 and International Atomic Energy Agency requirements;
(g) Canada affirms its opposition to nuclear proliferation and condemns any pursuit by Iran of nuclear weapons capability;
(h) Canada recommends to international organizations of which it is a member that a new set of targeted sanctions be implemented against Iran, in concert with allies, unless Iran comes into compliance with its human rights and nuclear obligations in law and in practice.
After debate,
The Honourable Senator Comeau, for the Honourable Senator Di Nino, moved, seconded by the Honourable Senator Andreychuk, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
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Orders No. 58, 73, 13, 67 (motions) and 2 (inquiry) were called and postponed until the next sitting.
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Resuming debate on the inquiry of the Honourable Senator Milne calling the attention of the Senate to recent developments concerning the Canadian industrial hemp industry.
After debate,
The Honourable Senator Comeau, for the Honourable Senator Raine, moved, seconded by the Honourable Senator Stratton, that further debate on the inquiry be adjourned until the next sitting.
The question being put on the motion, it was adopted.
MESSAGES FROM THE HOUSE OF COMMONS
A message was brought from the House of Commons with a Bill C-51, An Act to implement certain provisions of the budget tabled in Parliament on January 27, 2009 and to implement other measures, to which it desires the concurrence of the Senate.
The bill was read the first time.
The Honourable Senator Comeau moved, seconded by the Honourable Senator Champagne, P.C., that the bill be placed on the Orders of the Day for a second reading two days hence.
The question being put on the motion, it was adopted.
Other
Resuming debate on the motion of the Honourable Senator Grafstein, seconded by the Honourable Senator Fairbairn, P.C.:
That the Senate endorse the following Declaration, adopted by the Conference on Combating Antisemitism, held at London, United Kingdom, from February 15 to 17, 2009:
THE LONDON DECLARATION ON COMBATING ANTISEMITISM
Preamble
We, Representatives of our respective Parliaments from across the world, convening in London for the founding Conference and Summit of the Inter-parliamentary Coalition for Combating Antisemitism, draw the democratic world's attention to the resurgence of antisemitism as a potent force in politics, international affairs and society.
We note the dramatic increase in recorded antisemitic hate crimes and attacks targeting Jewish persons and property, and Jewish religious, educational and communal institutions.
We are alarmed at the resurrection of the old language of prejudice and its modern manifestations — in rhetoric and political action — against Jews, Jewish belief and practice and the State of Israel.
We are alarmed by Government-backed antisemitism in general, and state-backed genocidal antisemitism, in particular.
We, as Parliamentarians, affirm our commitment to a comprehensive programme of action to meet this challenge.
We call upon national governments, parliaments, international institutions, political and civic leaders, NGOs, and civil society to affirm democratic and human values, build societies based on respect and citizenship and combat any manifestations of antisemitism and discrimination.
We today in London resolve that;
Challenging Antisemitism
1. Parliamentarians shall expose, challenge, and isolate political actors who engage in hate against Jews and target the State of Israel as a Jewish collectivity;
2. Parliamentarians should speak out against antisemitism and discrimination directed against any minority, and guard against equivocation, hesitation and justification in the face of expressions of hatred;
3. Governments must challenge any foreign leader, politician or public figure who denies, denigrates or trivialises the Holocaust and must encourage civil society to be vigilant to this phenomenon and to openly condemn it;
4. Parliamentarians should campaign for their Government to uphold international commitments on combating antisemitism — including the OSCE Berlin Declaration and its eight main principles;
5. The UN should reaffirm its call for every member state to commit itself to the principles laid out in the Holocaust Remembrance initiative including specific and targeted policies to eradicate Holocaust denial and trivialisation;
6. Governments and the UN should resolve that never again will the institutions of the international community and the dialogue of nation states be abused to try to establish any legitimacy for antisemitism, including the singling out of Israel for discriminatory treatment in the international arena, and we will never witness — or be party to — another gathering like Durban in 2001;
7. The OSCE should encourage its member states to fulfil their commitments under the 2004 Berlin Declaration and to fully utilise programmes to combat antisemitism including the Law Enforcement programme LEOP;
8. The European Union, inter-state institutions and multilateral fora and religious communities must make a concerted effort to combat antisemitism and lead their member states to adopt proven and best practice methods of countering antisemitism;
9. Leaders of all religious faiths should be called upon to use all the means possible to combat antisemitism and all types of discriminatory hostilities among believers and society at large;
10. The EU Council of Ministers should convene a session on combating antisemitism relying on the outcomes of the London Conference on Combating Antisemitism and using the London Declaration as a basis.
Prohibitions
11. Governments should take appropriate and necessary action to prevent the broadcast of explicitly antisemitic programmes on satellite television channels, and to apply pressure on the host broadcast nation to take action to prevent the transmission of explicitly antisemitic programmes;
12. Governments should fully reaffirm and actively uphold the Genocide Convention, recognising that where there is incitement to genocide signatories automatically have an obligation to act. This may include sanctions against countries involved in or threatening to commit genocide or referral of the matter to the UN Security Council or initiate an inter-state complaint at the International Court of Justice;
13. Parliamentarians should legislate effective Hate Crime legislation recognising "hate aggravated crimes'' and, where consistent with local legal standards, "incitement to hatred'' offences and empower law enforcement agencies to convict;
14. Governments that are signatories to the Hate Speech Protocol of the Council of Europe 'Convention on Cybercrime' (and the 'Additional Protocol to the Convention on cybercrime, concerning the criminalisation of acts of a racist and xenophobic nature committed through computer systems') should enact domestic enabling legislation;
Identifying the threat
15. Parliamentarians should return to their legislature, Parliament or Assembly and establish inquiry scrutiny panels that are tasked with determining the existing nature and state of antisemitism in their countries and developing recommendations for government and civil society action;
16. Parliamentarians should engage with their governments in order to measure the effectiveness of existing policies and mechanisms in place and to recommend proven and best practice methods of countering antisemitism;
17. Governments should ensure they have publicly accessible incident reporting systems, and that statistics collected on antisemitism should be the subject of regular review and action by government and state prosecutors and that an adequate legislative framework is in place to tackle hate crime.
18. Governments must expand the use of the EUMC 'working definition' of antisemitism to inform policy of national and international organisations and as a basis for training material for use by Criminal Justice Agencies;
19. Police services should record allegations of hate crimes and incidents — including antisemitism — as routine part of reporting crimes;
20. The OSCE should work with member states to seek consistent data collection systems for antisemitism and hate crime.
Education, awareness and training
21. Governments should train Police, prosecutors and judges comprehensively. The training is essential if perpetrators of antisemitic hate crime are to be successfully apprehended, prosecuted, convicted and sentenced. The OSCE's Law enforcement Programme LEOP is a model initiative consisting of an international cadre of expert police officers training police in several countries;
22. Governments should develop teaching materials on the subjects of the Holocaust, racism, antisemitism and discrimination which are incorporated into the national school curriculum. All teaching materials ought to be based on values of comprehensiveness, inclusiveness, acceptance and respect and should be designed to assist students to recognise and counter antisemitism and all forms of hate speech;
23. The OSCE should encourage their member states to fulfill their commitments under the 2004 Berlin Declaration and to fully utilise programmes to combat antisemitism including the Law Enforcement programme LEOP;
24. Governments should include a comprehensive training programme across the Criminal Justice System using programmes such as the LEOP programme;
25. Education Authorities should ensure that freedom of speech is upheld within the law and to protect students and staff from illegal antisemitic discourse and a hostile environment in whatever form it takes including calls for boycotts;
Community Support
26. The Criminal Justice System should publicly notify local communities when antisemitic hate crimes are prosecuted by the courts to build community confidence in reporting and pursuing convictions through the Criminal Justice system;
27. Parliamentarians should engage with civil society institutions and leading NGOs to create partnerships that bring about change locally, domestically and globally, and support efforts that encourage Holocaust education, inter-religious dialogue and cultural exchange;
Media and the Internet
28. Governments should acknowledge the challenge and opportunity of the growing new forms of communication;
29. Media Regulatory Bodies should utilise the EUMC 'Working Definition of antisemitism' to inform media standards;
30. Governments should take appropriate and necessary action to prevent the broadcast of antisemitic programmes on satellite television channels, and to apply pressure on the host broadcast nation to take action to prevent the transmission of antisemitic programmes;
31. The OSCE should seek ways to coordinate the response of member states to combat the use of the internet to promote incitement to hatred;
32. Law enforcement authorities should use domestic "hate crime'', "incitement to hatred'' and other legislation as well as other means to mitigate and, where permissible, to prosecute "Hate on the Internet'' where racist and antisemitic content is hosted, published and written;
33. An international task force of Internet specialists comprised of parliamentarians and experts should be established to create common metrics to measure antisemitism and other manifestations of hate online and to develop policy recommendations and practical instruments for Governments and international frameworks to tackle these problems.
Inter-parliamentary Coalition for Combating Antisemitism
34. Participants will endeavour to maintain contact with fellow delegates through working group framework; communicating successes or requesting further support where required;
35. Delegates should reconvene for the next ICCA Conference in Canada in 2010, become an active member of the Inter-parliamentary Coalition and promote and prioritise the London Declaration on Combating Antisemitism.
After debate,
In amendment, the Honourable Senator Prud'homme, P.C., moved, seconded by the Honourable Senator Comeau, that the words "That the Senate endorse'' at the beginning of the motion be replaced by the words "That the Senate take note of''.
After debate,
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Pépin, that further debate on the motion in amendment be adjourned until the next sitting.
The question being put on the motion, it was adopted.
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Orders No. 68, 10, 51 (motions), 10 (inquiry) and 25 (motion) were called and postponed until the next sitting.
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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.
Debate concluded.
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Orders No. 23 and 13 (inquiries) were called and postponed until the next sitting.
MOTIONS
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Joyal, P.C.:
That the Senate endorse the following Resolution, adopted by the OSCE Parliamentary Assembly at its 18th Annual Session, held at Vilnius, Lithuania, from June 29 to July 3, 2009:
RESOLUTION ON ANTI-SEMITISM
1. Reaffirming the commitments made by the participating States at previous OSCE conferences in Vienna (2003), Berlin (2004), Brussels (2004) and Cordoba (2005) regarding legal, political and educational efforts to fight anti- Semitism,
2. Reaffirming, in particular, especially the 2002 Porto Ministerial Decision condemning "anti-Semitic incidents in the OSCE area, recognising the role that the existence of anti-Semitism has played throughout history as a major threat to freedom'',
3. Recalling the 2005 OSCE PA Washington Declaration, the 2006 OSCE PA Brussels Declaration, the 2007 OSCE PA Kyiv Declaration and the 2008 OSCE PA Astana Declaration, and the resolutions adopted on combating anti-Semitism,
4. Saluting the commitment and activities of past and present Personal Representatives to the Chairman-in-Office on Combating Anti-Semitism,
5. Welcoming the efforts of the parliaments of participating States to combat anti-Semitism as highlighted in the Follow-Up Report to the Astana Declaration,
6. Hailing the work of the Conference on Combating Anti-Semitism, held in London, United Kingdom, from 15 to 17 February 2009,
The OSCE Parliamentary Assembly:
7. Remains greatly concerned at the increase in xenophobia and other forms of intolerance directed towards vulnerable groups during the economic crisis, including an increase in anti-Semitism characterised by claims that Jews were responsible for the economic crisis;
8. Endorses the declaration of the London Conference on Combating Anti-Semitism, and reaffirms in particular:
a. concern for the dramatic increase in recorded anti-Semitic hate crimes and attacks targeting Jewish persons and property, and Jewish religious, educational and communal institutions and the incidents of government- backed anti-Semitism in general, and state-backed genocidal anti-Semitism, in particular;
b. the role parliamentarians, governments, the United Nations and regional organisations should play in combating anti-Semitism in all its forms, including denial of the Holocaust, and in reaffirming the principles of tolerance and mutual respect;
c. its call upon national governments, parliaments, international institutions, political and civic leaders, NGOs and civil society to affirm democratic and human values, build societies based on respect and citizenship and combat any manifestations of anti-Semitism and discrimination;
d. that the participating States of the OSCE must fulfil their commitments under the 2004 Berlin Declaration and fully utilise programmes to combat anti-Semitism including the Law Enforcement programme;
e. that appropriate and necessary action should be taken by governments to develop strategies to address television broadcasts and other uses of the media and Internet that promote anti-Semitism, while ensuring that such strategies and any related legislation fully respect the freedoms of expression, assembly and association, and are not used to repress peaceful activities of civil society, of political or religious groups, or of individuals;
f. that, with the support of the OSCE, measures must be adopted to assess the effectiveness of existing policies and mechanisms in countering anti-Semitism, including the establishment of publicly accessible incident reporting systems, and the collection of statistics on anti-Semitism;
g. the importance of education, awareness and training throughout the judicial and school systems in countering anti-Semitism;
h. the importance of engagement with civil society institutions and leading NGOs to create partnerships that bring about change locally, domestically and globally, and support efforts that encourage Holocaust education, inter-religious dialogue and cultural exchange;
i. that the OSCE should seek ways to co-ordinate the response of participating States to combat the use of the Internet to promote incitement to hatred; and,
j. the establishment of an international task force of Internet specialists comprised of parliamentarians and experts in order to create common metrics to measure anti-Semitism and other manifestations of hate online and to develop policy recommendations and practical instruments for governments and international frameworks to tackle these problems;
9. Applauds the extensive work of the OSCE Office for Democratic Institutions and Human Rights to combat manifestations of anti-Semitism and other forms of intolerance, including: the publication of an Annual Hate Crimes Report that monitors manifestations of anti-Semitism; development of Holocaust Remembrance and Hate Crimes Legislation guidelines and other educational materials to combat anti-Semitism; and training of government and civil society members to monitor, report on and prevent manifestations of anti-Semitism.
After debate,
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Dallaire, 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 Grafstein moved, seconded by the Honourable Senator Munson:
That the Senate endorse the following Resolution, adopted by the OSCE Parliamentary Assembly at its 18th Annual Session, held at Vilnius, Lithuania, from June 29 to July 3, 2009:
RESOLUTION ON WATER MANAGEMENT IN THE OSCE AREA
1. Reaffirming the OSCE's comprehensive approach to security that includes the politico-military, economic, environmental and human dimensions,
2. Recalling the OSCE's role in encouraging sustainable environmental policies that promote peace and stability, specifically the 1975 Helsinki Final Act, the 1990 Concluding Document of the CSCE Conference on Economic Co-operation in Europe (Bonn Document), the 1999 Charter for European Security adopted at the Istanbul Summit, the 2003 OSCE Strategy Document for the Economic and Environmental Dimension (Maastricht Strategy), other OSCE relevant documents and decisions regarding environmental issues, and the outcome of all previous Economic and Environmental Fora, which have established a basis for the OSCE's work in the area of environment and security,
3. Recognising that water is of vital importance to human life and that it is an element of the human right to life and dignity,
4. Alarmed by the fact that almost one billion people in the world lack access to safe drinking water, and that two out of every five people live without basic sanitation services, contributing to more than 2 million deaths every year,
5. Recalling that the United Nations Millennium Development Goal 7 (Ensure Environmental Sustainability), Target 3, calls on the nations of the world to work towards halving, by 2015, the proportion of the population without sustainable access to safe drinking water and basic sanitation,
6. Noting the ongoing severity of water management issues and the scarcity of water resources faced by many States in the OSCE region, affected in particular by unregulated social and economic activities, including urban development, industry, and agriculture, and which continue to have an impact on human health, the environment, the sustainability of biodiversity and aquatic and land-based eco-systems, and affect political and socio-economic development,
7. Concerned at the ongoing situation whereby certain areas and people in the pan-European and North American region of the OSCE area lack access to safe drinking water and adequate sanitation,
8. Recalling the OSCE's Madrid Declaration on Environment and Security adopted at the 2007 Ministerial Council, which draws attention to water management as an environmental risk which may have a substantial impact on security in the OSCE region and which might be more effectively addressed within the framework of multilateral co-operation,
9. Hailing the work of the OSCE Economic and Environmental Forum in raising awareness of water management issues and promoting regional co-operation throughout the OSCE area, including in South-Eastern Europe, South Caucasus and Central Asia,
10. Hailing the achievements of the OSCE project on "South Caucasus River Monitoring'', which concluded in February 2009 after six years during which it introduced new parameters for water quality monitoring, harmonised sampling and testing methodologies, trained local staff and established data sharing systems accessible to all partners via the Internet in Armenia, Azerbaijan and Georgia,
11. Recalling the OSCE PA's 2008 Astana Declaration and the resolution it adopted on water management,
12. Hailing the follow-up report on the 2008 Astana Declaration which highlighted initiatives undertaken by Belarus, Hungary, Italy, Lithuania, the Russian Federation, and the United States of America to improve water management practices,
13. Hailing the numerous national and international reports and scientific studies on water management that generate knowledge and inform sound policy development,
The OSCE Parliamentary Assembly:
14. Calls on participating States to address the question of sustainable access to clean water and sanitation globally, in particular given that sustainable access to clean water and sanitation are effective deterrents to infectious diseases;
15. Calls on participating States to undertake sound water management to support sustainable environmental policies and to apply the measures necessary to implement the 2007 Madrid Declaration on Environment and Security;
16. Expresses support for the ongoing work and commitment of the Office of the Co-ordinator of OSCE Economic and Environmental Activities in raising awareness of water management challenges and promoting opportunities for participating States to exchange best practices, including its projects in Georgia, Moldova, Tajikistan, Turkmenistan and Uzbekistan;
17. Encourages the decision-making bodies of the OSCE to continue to set a direction on water management challenges and support the activities of the Office of the Co-ordinator of OSCE Economic and Environmental Activities and OSCE field presences that raise awareness of water management challenges in the OSCE area and identify environmentally sustainable solutions;
18. Expresses support for the Environment and Security Initiative, which brings together the United Nations Development Programme, the United Nations Environmental Programme, the OSCE, NATO, the United Nations Economic Commission in Europe, and the Regional Environmental Centre for Central and Eastern Europe, to assess environmental challenges, including those relating to water resource management, and to implement projects that raise awareness of these challenges, build capacities and strengthen institutions in order to address them;
19. Encourages OSCE participating States to continue their work with other regional and international institutions and organisations with respect to water management solutions;
20. Supports the establishment of regional and cross-border co-operative activities between scientists and specialists who work to share technologies and best practices, develop country-specific water strategies and expertise, mitigate shared water challenges, foster international co-operation and defuse cross-border tensions.
After debate,
The Honourable Senator Grafstein moved, seconded by the Honourable Senator Callbeck, that further debate on the motion be adjourned until the next sitting.
The question being put on the motion, it was adopted.
REPORTS DEPOSITED WITH THE CLERK OF THE SENATE PURSUANT TO RULE 28(2):
Government response, dated November 6, 2009, to the third
report of the Standing Senate Committee on Official Languages entitled
Francophone Arts and Culture: Living Life to its Fullest in Minority Settings,
tabled in the Senate on June 4, 2009.—Sessional Paper No. 2/40-842S.
(Pursuant to rule 131(4), the report and the response were deemed referred to
the Standing Senate Committee on Official Languages.)
Government response, dated November 13, 2009, to the
fourth report of the Standing Senate Committee on Agriculture and Forestry
entitled Beyond Freefall: Halting Rural Poverty, tabled in the Senate on
June 4, 2009.—Sessional Paper No. 2/40-843S.
(Pursuant to rule 131(4), the report and the response were deemed referred to
the Standing Senate Committee on Agriculture and Forestry.)
Copy of the Rules amending the Bankruptcy and Insolvency General Rules (SOR/2009-218) made by Order in Council P.C. 2009-1208 on July 30, 2009, pursuant to the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sbs. 209(2).—Sessional Paper No. 2/40-844.
Interim Order Respecting the Immediate Distribution of the Vaccine for the Novel Influenza A H1N1 Virus (P.C. 2009-1857, JUS-611152 and JUS-611224), dated November 5, 2009, pursuant to the Food and Drugs Act, R.S.C. 1985, c. F-27, sbs. 30.1(6) and (7).—Sessional Paper No. 2/40-845.
Copy of the Rules amending the Bankruptcy and Insolvency General Rules (SOR/2009-270) made by Order in Council P.C. 2009-1581 on September 17, 2009, pursuant to the Bankruptcy and Insolvency Act, R.S.C. 1985, c. B-3, sbs. 209(2).—Sessional Paper No. 2/40-846.
Report of the Canadian Dairy Commission, together with the Auditor General's Report, for the dairy year ended July 31, 2009, pursuant to the Financial Administration Act, R.S.C. 1985, c. F-11, sbs. 150(1).—Sessional Paper No. 2/ 40-847.
Actuarial Report (including certification of assets) on the Public Service Death Benefit Account as at March 31, 2008, pursuant to the Public Service Superannuation Act, R.S.C. 1985, c. P-36, s. 59(1).—Sessional Paper No. 2/40-848.
Summaries of the amended Corporate Plan for 2009-2013 and of the Capital Budget for 2009 of the Canada Development Investment Corporation, pursuant to the Financial Administration Act, R.S.C. 1985, c. F-11, sbs. 125(4).—Sessional Paper No. 2/40-849.
ADJOURNMENT
The Honourable Senator Comeau moved, seconded by the Honourable Senator Patterson:
That the Senate do now adjourn.
The question being put on the motion, it was adopted.
(Accordingly, at 4:53 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 Carignan replaced the Honourable Senator Rivard (November 16, 2009).
Standing Senate Committee on Banking, Trade and Commerce
The Honourable Senator Zimmer replaced the Honourable Senator Carstairs, P.C. (November 17, 2009).
The Honourable Senator Carstairs, P.C., replaced the Honourable Senator Massicotte (November 17, 2009).
Standing Committee on Internal Economy, Budgets and Administration
The Honourable Senator Jaffer replaced the Honourable Senator Dawson (November 5, 2009).
The Honourable Senator Stollery replaced the Honourable Senator Tardif (November 5, 2009).
The Honourable Senator Downe replaced the Honourable Senator Hubley (November 5, 2009).
Standing Senate Committee on Legal and Constitutional Affairs
The Honourable Senator Mockler replaced the Honourable Senator Nolin (November 16, 2009).
The Honourable Senator Banks replaced the Honourable Senator Poulin (November 5, 2009).
The Honourable Senator Campbell replaced the Honourable Senator Banks (November 5, 2009).
The Honourable Senator Poulin replaced the Honourable Senator Mercer (November 5, 2009).
Standing Senate Committee on National Finance
The Honourable Senator Greene replaced the Honourable Senator Dickson (November 16, 2009).
The Honourable Senator MacDonald replaced the Honourable Senator Tkachuk (November 16, 2009).
The Honourable Senator Tkachuk replaced the Honourable Senator Di Nino (November 16, 2009).
Standing Senate Committee on National Security and Defence
The Honourable Senator Day replaced the Honourable Senator Mitchell (November 17, 2009).
The Honourable Senator Wallin replaced the Honourable Senator Lang (November 17, 2009).
The Honourable Senator Lang replaced the Honourable Senator Wallin (November 16, 2009).
The Honourable Senator Mitchell replaced the Honourable Senator Day (November 12, 2009).
The Honourable Senator Day replaced the Honourable Senator Dallaire (November 5, 2009).
Standing Senate Committee on Social Affairs, Science and Technology
The Honourable Senator Raine replaced the Honourable Senator Keon (November 16, 2009).
The Honourable Senator Banks replaced the Honourable Senator Fairbairn, P.C. (November 16, 2009).
The Honourable Senator Mitchell replaced the Honourable Senator Dyck (November 16, 2009).
The Honourable Senator Segal replaced the Honourable Senator Stewart Olsen (November 5, 2009).
Standing Senate Committee on Transport and Communications
The Honourable Senator Seidman replaced the Honourable Senator Plett (November 17, 2009).
The Honourable Senator Jaffer replaced the Honourable Senator Mercer (November 17, 2009).