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Vol. 137, No. 23 June 7, 2003 Regulations Amending the Potato Wart Compensation RegulationsStatutory Authority Plant Protection Act Sponsoring Agency Canadian Food Inspection Agency REGULATORY IMPACT ANALYSIS STATEMENT Description The purpose of the Plant Protection Act is to protect plant life (environment) and the agricultural and forestry sectors of the Canadian economy by preventing the importation, exportation and spread of plant pests (e.g. insects and diseases), and where the Minister determines that, in the circumstances, it is necessary and cost-justifiable to control or eradicate plant pests. Potato wart is a disease of potatoes caused by the presence of the soil-borne fungal pathogen, Synchytrium endobioticum. Although not a threat to human health, potato wart is a disease of quarantine significance that renders potatoes unmarketable and reduces yield. The disease attacks the growing points on the potato plant, such as eyes, buds and stolon tips and can remain dormant in the ground for as long as 40 years or more as resting spores. On October 24, 2000, the Canadian Food Inspection Agency (CFIA) confirmed the presence of potato wart disease in a single field in Prince Edward Island and took immediate steps to prevent its spread. These measures included immediately quarantining the area where the disease was found (infested field), establishing a safety zone around the affected area (buffer zone), placing a prohibition on the movement of potatoes and equipment from the affected area and intensifying inspection and surveillance activities. In addition, equipment used on the infested field that was subsequently used on other fields was required to be cleaned and disinfected. In October 2001, the Potato Wart Compensation Regulations came into force. These Regulations were intended to provide compensation to growers who incurred financial losses as a result of complying with phytosanitary measures ordered by the CFIA under the authority of the Plant Protection Act. In May 2001, 236 notices were issued by the CFIA to affected growers. The provisions of the Plant Protection Act allow the Minister to order compensation for specific actions taken to achieve this compliance. However, the current provisions do not provide for compensation to all growers who owned or leased affected land and who suffered losses as a result of actions taken in order to achieve compliance with the Plant Protection Act. This amendment makes minor administrative adjustments such that all growers who incurred losses as a result of taking phytosanitary measures will be able to claim compensation. This is a minor modification of existing provisions and there will be little or no impact on the general public or the environment. Alternatives Option 1 Status Quo Under the existing Regulations, some growers who suffered losses as a result of carrying out required phytosanitary activities cannot be compensated. This would put those growers who could not be compensated at a competitive disadvantage as compared to those who did receive compensation. Option 2 Implementation of amendment (preferred option) Implementing this minor adjustment will allow for compensation of all affected growers. Benefits and Costs This is a minor adjustment that will extend compensation to a small number of growers. There will be a minor financial impact for the Government of Canada and a minor administrative impact on the Agency. It is not expected that there would be any costs for industry. Consultation Affected growers expressed support for extending compensation to all affected growers. Compliance and Enforcement There are no enforcement or compliance issues with respect to this amendment. Contact Mr. Robert Carberry, Executive Director, Plant Products Directorate, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario K1A 0Y9, (6l3) 225-2342 (extension 4751) [Telephone], (613) 228-6606 (Facsimile). PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council, pursuant to paragraph 47(q) of the Plant Protection Act (see footnote a) , proposes to make the annexed Regulations Amending the Potato Wart Compensation Regulations. Interested persons may make representations respecting the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Robert Carberry, Executive Director, Plant Products Directorate, Canadian Food Inspection Agency, 59 Camelot Drive, Nepean, Ontario, K1A 0Y9. Tel.: (613) 225-2342 (4751); Fax: (613) 228-6606. Ottawa, May 29, 2003 EILEEN BOYD Assistant Clerk of the Privy Council REGULATIONS AMENDING THE POTATO WART COMPENSATION REGULATIONS AMENDMENTS 1. Paragraph 2(1)(a) of the Potato Wart Compensation Regulations (see footnote 1) is replaced by the following: (a) received a notice in the year 2000 or 2001 under the Plant Protection Act or the Plant Protection Regulations and disposed of potatoes or potato by-products, treated equipment or a place used in the production of potatoes or was prohibited or restricted from using a place because of infestation or suspected infestation by potato wart; 2. Section 5 of the Regulations is replaced by the following: 5. The compensation to be paid to a grower who operates a farm on Category C land must not exceed (a) in respect of a loss suffered because of the disposal of potatoes or potato by-products, the total of the grower's direct costs for the disposal, to a maximum of $30,000; and (b) in respect of a loss suffered because of the cleaning and disinfection of equipment used in the production of a crop referred to in Schedule 2, the total of the grower's direct costs for the cleaning and disinfection that were incurred from the date of issuance of the notice requiring the cleaning and disinfection to July 4, 2001, to a maximum of the applicable amount set out in Table 1, 2 or 3 of that Schedule. 3. Subparagraph 9(e)(iii) of the Regulations is replaced by the following: (iii) if the land owned or leased by the grower is Category C land, (A) the grower's direct costs for the disposal of potatoes and potato by-products, and (B) an itemized list of any equipment set out in the applicable table to Schedule 2 that was required to be cleaned and disinfected, the number of times that the cleaning and disinfection occurred and the grower's direct costs for the cleaning and disinfection, COMING INTO FORCE 4. These Regulations come into force on the day on which they are registered. [23-1-o] Disclosure of Charges (Retail Associations) RegulationsStatutory Authority Cooperative Credit Associations Act Sponsoring Department Department of Finance REGULATORY IMPACT ANALYSIS STATEMENT Disclosure of Charges (Retail Associations) Regulations Disclosure of Interest (Retail Associations) Regulations Disclosure on Account Opening by Telephone Request (Retail Associations) Regulations Insurance Business (Cooperative Credit Associations) Regulations Investments in Associations and Cooperatively-owned Entities Regulations Description The Canadian financial services sector has been undergoing rapid change for the better part of a decade. In 1996, the federal government created the Task Force on the Future of the Canadian Financial Services Sector to review and advise on the nature of change taking place in the sector. In 1998, the Task Force issued a report which included numerous conclusions and recommendations. These findings were carefully reviewed by committees of both the House of Commons and the Senate. These committees largely endorsed the findings of the Task Force. Based on the work of the Task Force and the parliamentary committees, the federal government issued a policy paper in June 1999 entitled Reforming Canada's Financial Services Sector: A Framework for the Future. This document served as the policy foundation for Bill C-8, An Act to Establish the Financial Consumer Agency of Canada and to Amend Certain Acts in Relation to Financial Institutions (FCA Act). Bill C-8 received Royal Assent on June 14, 2001. The FCA Act provides for significant amendments to the laws governing federal financial institutions. As an integrated package, the amendments brought about by the FCA Act promote efficiency and growth in the financial services sector, foster domestic competition, empower and protect consumers of financial services, and improve the regulatory environment for financial institutions. A key characteristic of the FCA Act is the use of regulations to provide for a more flexible regulatory framework for the financial sector. This allows the Government to make modest policy adjustments to the framework in response to significant changes taking place in the global environment in which financial institutions operate. Many regulations are being proposed or modified in order to achieve this policy objective of creating a more flexible regulatory regime. The remaining amendments bring existing regulations in line with changes made to the financial institutions statutes under the FCA Act. This is the twelfth package of regulations that has been brought forward to complete the policy intent of the FCA Act. The first eight groups of regulations were published in the Canada Gazette, Part II, on October 24, 2001, November 21, 2001, March 13, 2002, April 10, 2002, July 31, 2002, June 19, 2002, July 31, 2002, and October 9, 2002, respectively. A tenth package was published in the Canada Gazette, Part II, on February 26, 2003. The ninth and eleventh packages were pre-published in the Canada Gazette, Part I, on November 30, 2002, and February 15, 2003, respectively. This document discusses the regulatory impact of the following proposed new regulations: Disclosure of Charges (Retail Associations) Regulations; Disclosure of Interest (Retail Associations) Regulations; Disclosure on Account Opening by Telephone Request (Retail Associations) Regulations These regulations mirror the existing consumer disclosure regulations under the Bank Act and the Trust and Loan Companies Act. The regulations deal with disclosure of charges and interest requirements on opening accounts (in branch and by telephone request). The regulations apply these disclosure requirements to retail associations, which, under the Cooperative Credit Associations Act, are permitted to provide financial services directly to the public. Insurance Business (Cooperative Credit Associations) Regulations These regulations provide cooperative credit associations with equivalent rules governing the distribution of insurance that currently apply to banks, trust companies and loan companies. This includes the ability of associations to sell permitted credit-related insurance products either in-branch or through target marketing. An earlier version of these regulations were pre-published in the Canada Gazette, Part I, on March 29, 1997. Investments in Associations and Cooperatively-owned Entities Regulations These regulations create two exceptions to the general restriction found in the Cooperative Credit Associations Act preventing associations from having a substantial investment in certain entities (such as other financial institutions) without controlling that entity. This general rule may conflict with the sector's practice of cooperative ownership. These regulations allow an association to have a substantial investment in another association without having to control it provided a group of associations has enough shares among themselves to collectively control the investment. The regulations also allow an association to have a substantial investment in an entity that is otherwise required to be controlled if another association controls that entity. It is expected that around ten regulations will be brought forward for publication within the next few months. These remaining regulations will complete the policy package envisaged by the June 1999 policy paper and the FCA Act. Alternatives The enclosed regulations are required in order to bring the policy intent underlying the FCA Act into effect. They are required to round out the implementation the new policy framework, as outlined in the description. As such, no alternatives to the Regulations were considered. Benefits and Costs The enclosed regulations are integral to the overall policy objectives of the FCA Act. As such, their cost-benefit justification cannot be separated from the overall costs and benefits of the legislative package itself. The FCA Act provides an improved regulatory structure that balances the competing interests of stakeholders. While individual legislative measures may impose some burden on a particular stakeholder group, there are overall net benefits for all stakeholders. For example, Consumers benefit from strengthened consumer protection measures, a more transparent complaints handling process, and the advantages brought about by increased competition. Financial institutions may face modestly increased regulation through enhanced regulatory rules and a strengthened consumer protection regime. However, they benefit from greater organizational flexibility and broader powers. The creation of the Financial Consumer Agency of Canada (FCAC) is expected to have an annual budget of about $7 million, the cost of which will be passed on to financial institutions in the form of allocated assessment. The Office of the Superintendent of Financial Institutions (OSFI) may face moderately increased regulatory challenges as a result of provisions intended to encourage new entrants, but the potential cost is offset by improved prudential regulatory powers and increased competition. The exact cost implications for OSFI of the legislative package are not easily calculable. The transfer of responsibility for administering the consumer provisions of the financial institutions legislation to the FCAC will reduce OSFI's costs. The relaxed new entrant requirements may increase OSFI's workload and costs, some of which will be borne by the new entrants. However, the streamlined approval process will reduce the cost of regulation and cost burden directly borne by financial institutions. In all, it is expected that OSFI's cost of regulation will not increase substantially. Each of the regulations included in this and subsequent packages is intended to implement a specific aspect of the overall policy structure introduced by the FCA Act. The regulations may either be beneficial, cost/benefit neutral, or impose a burden on one or more relevant stakeholder groups. Since the weighing of costs and benefits has been done at the legislative level, the regulations must be examined in light of their contribution to the balance of the overall policy framework that was approved in the FCA Act. While most regulations merely round out the policy intention of a provision in the legislation, in a few cases the scope of the burden borne by a stakeholder group is at least partially determined by the regulations. We note the following regulations in this regard: Disclosure of Charges (Retail Associations) Regulations, Disclosure of Interest (Retail Associations) Regulations, and Disclosure on Account Opening by Telephone Request (Retail Associations) Regulations. These regulations impose disclosure obligations on retail associations that deal with the public. These disclosure requirements are consistent with requirements that are imposed on other deposit-taking and lending institutions set up under the federal legislation. We believe that these disclosure requirements represent an appropriate balance between protecting the interests of consumers while minimizing the cost burden on financial institutions. Consultation The FCA Act and its related regulations are part of a policy development process dating back to 1996. At every stage of the process, stakeholders have been consulted. More recently, working drafts of the enclosed regulation were shared with stakeholders and, wherever feasible, their comments have been reflected in revisions. The following organizations were consulted: Action Réseau Consommateur (Fédération nationale des associations de consommateurs du Québec) Bourse de Montréal Canadian Bankers Association Canadian Community Reinvestment Coalition Canadian Life and Health Insurance Association Canadian Securities Administrators ComTel (TelPay) Consumers' Association of Canada CPA Stakeholders Advisory Council Credit Union Central of Canada Democracy Watch Fédération des caisses Desjardins Insurance Bureau of Canada Insurance Consumer's Group Interac Association Investment Dealers Association of Canada Investment Funds Institute of Canada Mutual Fund Dealers Association National Anti-Poverty Organization Option Consommateurs Public Interest Advocacy Centre Service d'aide aux consommateurs/Consumer Aid Services Compliance and Enforcement The Office of the Superintendent of Financial Institutions will be responsible for ensuring compliance with prudential aspects of the Regulations. The Financial Consumer Agency of Canada will be responsible for ensuring compliance with consumer-related regulations. Contact Gerry Salembier, Director, Financial Institutions Division, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, East Tower, 15th Floor, 140 O'Connor Street, Ottawa, Ontario K1A 0G5, (613) 992-1631 (Telephone), (613) 943-1334 (Facsimile). PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council, pursuant to sections 385.09 (see footnote b) , 385.28 (see footnote c) and 463 (see footnote d) of the Cooperative Credit Associations Act (see footnote e) , proposes to make the annexed Disclosure of Charges (Retail Associations) Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, 15th Floor, East Tower, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5. Ottawa, May 29, 2003 EILEEN BOYD Assistant Clerk of the Privy Council
Disclosure of Interest (Retail Associations) RegulationsStatutory Authority Cooperative Credit Associations Act Sponsoring Department Department of Finance REGULATORY IMPACT ANALYSIS STATEMENT For the Regulatory Impact Analysis Statement, see the Disclosure of Charges (Retail Associations) Regulations. PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council, pursuant to section 385.09 (see footnote f) , subsection 385.1(6) (see footnote g) and sections 385.28 (see footnote h) and 463 (see footnote i) of the Cooperative Credit Associations Act (see footnote j) , proposes to make the annexed Disclosure of Interest (Retail Associations) Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, 15th Floor, East Tower, 140 O'Connor Street, Ottawa, Ontario K1A 0G5. Ottawa, May 29, 2003 EILEEN BOYD Assistant Clerk of the Privy Council
Disclosure on Account Opening by Telephone Request (Retail Associations) RegulationsStatutory Authority Cooperative Credit Associations Act Sponsoring Department Department of Finance REGULATORY IMPACT ANALYSIS STATEMENT For the Regulatory Impact Analysis Statement, see the Disclosure of Charges (Retail Associations) Regulations. PROPOSED REGULATORY TEXT Notice is hereby given that the Governor in Council, pursuant to section 385.09 (see footnote k) , subsection 385.1(6) (see footnote l) and sections 385.28 (see footnote m) and 463 (see footnote n) of the Cooperative Credit Associations Act (see footnote o) , proposes to make the annexed Disclosure on Account Opening by Telephone Request (Retail Associations) Regulations. Interested persons may make representations with respect to the proposed Regulations within 30 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Mr. Gerry Salembier, Financial Sector Policy Branch, Department of Finance, L'Esplanade Laurier, 15th Floor, East Tower, 140 O'Connor Street, Ottawa, Ontario, K1A 0G5. Ottawa, May 29, 2003 EILEEN BOYD Assistant Clerk of the Privy Council
S.C. 1990, c. 22 SOR/2001-451 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 339 S.C. 1991, c. 48 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 339 S.C. 1991, c. 48 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 313 S.C. 2001, c. 9, s. 339 S.C. 1991, c. 48 |
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