Government of Canada Sends Worldwide Message in Opposition to a Global Bank Tax

OTTAWA, May 18, 2010 — Industry Minister Tony Clement and Foreign Affairs Minister Lawrence Cannon spoke in Ottawa today as part of a worldwide campaign by senior Canadian ministers expressing the Government of Canada’s staunch opposition to the imposition of a global bank tax on financial institutions. Echoing Ministers Clement’s and Cannon’s messages were Finance Minister Jim Flaherty in Mumbai, India; Treasury Board President and Minister for the Asia–Pacific Gateway Stockwell Day in Beijing, China; and International Trade Minister Peter Van Loan in Washington, D.C.

“Canada’s banking sector has been recognized as the world’s soundest,” said Minister Clement. “Our banks acted responsibly to avoid trouble throughout the recession, and it makes no sense to impose a punitive tax on them now.”

While the federal government is committed to establishing a strong regulatory framework for the global financial sector, it will oppose any efforts to impose a bank tax that would place Canada’s banks at a competitive disadvantage. Instead, Canada is urging other countries to consider capital rules that would support their banks in holding contingency funds that would be available if they face distress.

“Canada is, and will remain, opposed to a tax that would penalize financial institutions that remained strong and prosperous while many of the world’s banks failed,” affirmed Minister Clement.

The World Economic Forum and Moody’s Corporation have ranked Canada’s banking system as the soundest in the world, and the Government of Canada is committed to maintaining the conditions necessary for Canadian banks to succeed.

To read the full text of Minister Clement’s statement, please visit the Industry Canada Media Room.

For further information (media only), please contact:

Lynn Meahan
Press Secretary
Office of the Honourable Tony Clement
Minister of Industry
613-995-9001

Media Relations
Industry Canada
613-943-2502