Bill would protect savings plans from creditors

It is often said that time flies on the government side of the house, but moves much more slowly when in opposition.

I mention this as it was recently the sixth-year anniversary of my first private member’s bill becoming law. Bill C-311 removed prohibition-era federal restrictions that blocked direct-to-consumer shipping of wine.

The Conservative government used a similar mechanism to also include craft beer and artisan spirits, all in an effort to open up our borders to increased inter-provincial trade.

A private members bill or motion is one of many ways an MP can introduce legislation.

In the case of my former bill, many Okanagan wineries were frustrated at the inability to even be able to legally sell to citizens from other provinces who visited their winery in person, as it was illegal to transport that wine home across a provincial border.

More recently, credit unions faced a threat from the Office of the Superintendent of Financial Institutions that would have banned credit unions from using terms such as bank, banking or banker.

After hearing of this problem, I wrote several MP reports on the subject and heard almost unanimous feedback, in some cases even outrage, at the thought of the long arm of Ottawa attacking credit unions in this way.

In response, I tabled another private members bill, Bill C-379, that called for the Bank Act to be amended to ensure that credit unions could continue to use these terms.

I was particularly pleased when an independent senator, appointed by the prime minister, contacted me with an interest to potentially sponsor my bill in the Senate.

Fortunately, and full credit to the Liberal government, they included the spirit of my bill in their recent Budget Implementation Act.

This will ensure credit unions and caisse populaires will no longer face this threat.

Last week before the House of Commons adjourned, I tabled my latest private member’s bill.

Bill C-410 proposes to amend the Bankruptcy and Insolvency Act to protect Registered Education Savings Plans (RESP) and Registered Disability Savings Plans (RDSP) from seizure by creditors in the case of bankruptcy or insolvency.

RESPs and RDSPs are important saving tools for Canadians.

Currently a trustee in bankruptcy can permit creditors to seize the holdings of any RESP or RDSP in the event the account owner files for bankruptcy.

By extension, this can include accounts dedicated to provide care for severely disabled children. It can also include education accounts for children.

Bill C-410 will prevent this from happening in a similar way as how Registered Retirement Savings Plans and Registered Retirement Income Funds are protected now.

I was honoured to hear that the Canadian Association of Social Workers has responded positively to Bill C-410. However, it is unclear if the Liberals and NDP will support my new bill.

I will continue to solicit input from industry, citizens and Parliamentarians over the summer recess.

To that end, my question is: Do you support Bill-410, proposing to protect families caring for a family member with disabilities and parents saving for their children’s education.

Dan Albas is the member of Parliament for Central Okanagan-Similkameen-Nicola. Email: Dan.Albas@parl.gc.ca. Phone: 1-800-665-8711.