The House of Commons Standing Committee on Finance’s report on pre-budget consultations, tabled in the House of Commons yesterday, includes a recommendation that the Government consider reviewing the mandate of Farm Credit Canada (FCC).
FCC, a commercial Crown corporation, is not required to provide loans in a manner which complements the activities of private-sector financial institutions and has thus become a direct competitor to financial institutions in rural Canada, in particular Credit Unions and Caisses populaires.
That exact concern was stated during the 2013 Pre-Budget Consultations hearings of the Standing Committee on Finance (FINA) and the hearings of the Special Committee on Co-operatives (COOP) in the summer of 2012. You can find transcripts of the hearings and the reports of both committees on their respective pages using the following links.
Furthermore, unlike Export Development Canada or the Business Development Bank of Canada, FCC is not subject to a Parliamentary review of its mandate.
I would like to thank my colleague Scott Brison, Liberal Finance and National Revenue Critic, for his dedication and his hard work on the committee and for championing this recommendation.
To conclude, it is my hope that the Government will seriously consider implementing this recommendation and undertake a review of the mandate of FCC to ensure that it continues to play an appropriate role in the competitive marketplace of loans.
The Honourable Mauril Bélanger, M.P. for Ottawa—Vanier
Liberal Advocate for Co-operatives