House Standing Committee on Finance (May 31, 2024)
ANNEX B: Past FCAC appearances at FINA and recent coverage of FINA business
- On February 13, 2024, FCAC appeared as a witness as part of FINA’s study of “Policy Decisions and Market Forces that have led to Increases in the Cost of Buying or Renting a Home in Canada”.
- Questions from Committee members focused on FCAC’s Mortgage Guideline (including its relation to OSFI’s stress test and the impact of variable rate mortgages), as well as the effectiveness of the complaints-handling regime and FCAC’s role it
- On October 18, 2023, FCAC was invited to appear as part of the same study. At this earlier date the study focused on aspects of housing that largely fell outside of the Agency’s mandate, and consequently FCAC declined. Discussions have evolved since then, and the Mortgage Charter was introduced as a part of the Fall Economic Statement.
Summary of recent media coverage of FINA business
The House finance committee aims to complete study of Liberal government's omnibus budget bill by next Tuesday.
Liberal MP Ryan Turnbull's proposal, accepted unanimously, includes at least 12 hours of witness testimony on Bill C-69.
Former Bank of Canada governor Mark Carney may testify for two hours on Budget 2024, the economy, and the environment.
Carney's potential appearance has stirred Conservative criticism and speculation about his Liberal leadership ambitions.
Carney's testimony remains uncertain, requiring majority support from committee members.
Committee resolves debate over time limits for budget study with Turnbull's motion.
Future discussions will focus on topics such as money laundering, housing affordability, and inflation in Canada.
The Liberal government's push to quickly pass its omnibus budget bill, Bill C-69, has encountered obstacles.
Despite passing second reading, the bill's study by the House finance committee faces uncertainty.
Liberal MP Ryan Turnbull proposed time limits on the committee's study to ensure passage before summer recess.
Conservatives opposed Turnbull's motion, arguing it limits discussion on the budget, resulting in prolonged debate.
The committee has devoted multiple meetings to discussing the motion and its amendments without resolution.
NDP's support ensures eventual passage of the budget, though debate continues.
Finance Minister Chrystia Freeland emphasizes the urgency of passing the Budget Implementation Act.
After passage, Liberals will reintroduce legislation for capital gains tax changes separately.
Pundits view the separation of tax changes from the budget as a political strategy to corner Conservative Leader Poilievre.
Canada's economic conditions have worsened, with per-person GDP lagging behind peer countries and business investment declining.
The regulatory burden in Canada has significantly increased, with regulations growing from about 66,000 to 72,000 between 2009 and 2018.
Regulatory compliance costs Canadian businesses $38.8 billion annually, equivalent to 731 million hours or nearly 375,000 full-time jobs.
Small businesses bear a disproportionate burden, paying up to five times more per employee for regulatory compliance than larger businesses.
The Trudeau government has introduced numerous regulatory initiatives, including Bill C-69, Bill C-48, and electric vehicle mandates, contributing to the regulatory burden.
Examples of government red tape include appliance standards, home efficiency standards, banning single-use plastics, and emissions regulations.
Deregulatory efforts in British Columbia resulted in a 37 percent reduction in regulatory requirements by 2004.
Advocates suggest reducing recent regulatory expansions and revisiting older regulations to alleviate the burden on Canadian businesses and citizens and improve economic competitiveness.