Bill C-385

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First Reading

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	1st Session, 37th Parliament, 49-50 Elizabeth II, 2001
	House of Commons of Canada
	BILL C-385
	An Act to facilitate micro credit for self-sufficiency
Preamble	Whereas Canada's financial institutions hold a special position in Canada's financial sector and, in view of this position and the historic profitability of their business, they should be able to contribute more to the country's growth by giving more guidance, services and credit to the smaller and less well established entrepreneur and to those who are unemployed or who have low or inconsistent incomes; and
	Whereas such people need extra financial, guidance and support in order to be able to manage their financial positions and develop self-sufficiency and security; and
	Whereas some cooperatives and other organizations already offer micro credit and some service organizations have worked to obtain financial services from financial institutions for the persons to whom they provide services, but much more is needed; and
	Whereas Parliament is of the opinion that a government initiative to encourage a greater role by financial institutions in micro credit and a recognition of those institutions that are active in the micro credit sector would be effective;
	Now, Therefore, Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:

Short title	1. This Act may be cited as the Micro Credit Act.
Definitions	2. The definitions in this section apply in this Act.
``financial institution'' « institution financière »	``financial institution'' means a bank to which the Bank Act applies, a credit union or any other organization prescribed by the Minister as a financial institution.
``micro credit'' « micro-finan cement »	``micro credit'' means
	(a) credit and other financial services to small businesses and new businesses where the total amount of credit supplied by one financial institution to a borrower does not exceed five thousand dollars; and
	(b) banking and other financial services and financial advice for persons who are unemployed or who have low or inconsistent incomes.
``Minister'' « ministre »	``Minister'' means the Minister of Finance.
Minister to convene conference	3. (1) Within six months after the coming into force of this Act, the Minister shall, in cooperation with the Minister of Industry, convene a conference of:
	(a) ministers of the Crown responsible for finance and financial institutions in each province;
	(b) financial institutions;
	(c) organizations with investment capital that could be made available for micro credit;
	(d) the Business Development Bank of Canada;
	(e) representatives of public organizations and programs and private sector cooperatives and other organizations that already offer micro credit services;
	(f) representatives of non-profit and service organizations that offer counselling and support to persons who need micro credit;
	(g) representatives of small business; and
	(h) representatives of the poor and unemployed.
Object of conference	(2) The object of the conference is to find ways of establishing and coordinating micro credit services from financial institutions and supporting and expanding services that they and other organizations already offer, and to make recommendations to the federal and provincial governments thereon, including, but not limited to:
	(a) providing banking services and financial counselling for persons who need micro credit and professional financial services; and
	(i) who are operating or planning small business ventures,
	(ii) who are unemployed, or
	(iii) who have low or inconsistent incomes;
	(b) finding innovative ways to secure micro credit in a manner that accommodates those with moderate net assets and limits the amount of security held to what is reasonably necessary and thereby allow for security to be available to suppliers and others who provide credit;
	(c) supporting and expanding services related to micro credit that are already available through the public sector and the private sector and providing more capital for such services;
	(d) using the skills and contacts of the non-profit and service organizations that offer social services to those who also need micro credit; and
	(e) reporting on the performance of financial institutions in the field of micro credit and giving recognition to those financial institutions that offer such services and encouraging those who do not, to do so.
Report to Parliament	(3) The Minister shall prepare a report on the conference and cause a copy to be laid before each House of Parliament on any of the first five days the House sits after the expiry of ninety days following the last day of the conference.
Referred to committee	(4) The report, on being laid before the House of Commons, is automatically referred to the standing committee of the House appointed to deal with matters related to industry and the committee shall consider the report and report on it to the House.
Report of performance	4. (1) In respect of 2001 and every succeeding year, any financial institution may submit to the Minister the information prescribed by order of the Minister on its activities in the field of micro credit.
Privacy	(2) No information shall be submitted or prescribed under subsection (1) that could identify any person who has sought or received advice, credit or any other service from a financial institution.
Micro credit report	5. (1) In respect of 2001 and every succeeding year, the Minister and the Minister of Industry shall jointly publish a report showing the performance in the field of micro credit by every financial institution that has provided information under section 4 and may identify those that have not submitted information.
General publication	(2) The publication of the report referred to in subsection (1) shall include publication in newspapers and other forms of public media and shall be sufficient to secure wide public attention.
Criteria for recognition	6. The Minister and the Minister of Industry shall jointly establish criteria of performance by a financial institution in providing and granting micro credit and providing support for services already available as referred to in paragraph 3(2)(c) which, if achieved by a financial institution, will entitle the institution to describe itself as being recognized by the Government of Canada as a micro credit specialist.

Bill C-385

BILL C-385