The Minister of Labour, Jean-Pierre Blackburn introduced a ways and means motion on December 11, 2006, to introduce an Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors Arrangement Act, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005.
The next step is a vote on the motion and introduction of the actual bill.
The bankruptcy reform legislation is not without controversy. The Legislation was rushed into law to beat the non confidence vote held on November 28, 2005. The Senate committee expressed its disappointment in the “fast tracking” of the legislation that did not allow it to hear the many groups that were scheduled to make representations. As a result the Senate Committee received assurances that there would be the opportunity for the Senate Committee to review the legislation in early 2006 and that the legislation would not come into force until June 30, 2006 at the earliest. The Minister of Industry, David L. Emerson, confirmed this in a letter dated November 24, 2005.
A report to the Senate, prepared by insolvency experts and stakeholders after many months of work, was largely ignored in the legislation.
The Canadian Association of Insolvency and Restructuring Professions (CAIRP) supports the new laws but is suggesting some changes.
Many trustees across Canada are unhappy with the new laws because it takes discretion away from trustees and makes the process more formula based. Also, what has been a tenet in Canadian bankruptcy, that an unfortunate but honest debtor deserves a fresh financial start, is being eroded.
On the whole bankruptcies are going to be more costly to debtors and it’s going to take longer to get a discharge.
For more about bankruptcy reform please refer to these blogs.
During the past two weeks the proposed changes to the ‘Bankruptcy and Insolvency Act, The Wage Earners Protection Act…’ have been a topic of discussion in the House of Commons virtually every day.
The Minister of Labour, Jean-Pierre Blackburn, who tabled the Ways and Means motion (mentioned above) in December 2006 is claiming the Bloc does not support the bill and, therefore, he cannot proceed.
Members of the Bloc have risen repeatedly in the House of Commons to propose the amendment and attempt to have the bill tabled (as have Liberals, and other members of the Conservative party) but the Minister of Labour refuses to accept it.
Look for yourself at the debates on the parliamentary webs (http://www.parl.gc.ca/common/index.asp?Language=E – see House of Commons latest debates – ) then contact your MLA to let him/her know your stance and ask them to put pressure on the Minister of Labour to table this bill!
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