Mr. Chairman, I am introducing Bill 13, An Act To Amend the Financial Administration Act. This bill amends the Financial Administration Act in two ways: by permitting the Minister of Finance to invest surplus money in accordance with the regulations and policies established by the Financial Management Board, and by clarifying the definition of a Public Officer.
Sections 57 and 81 of the Financial Administration Act, which defines the securities eligible for investment by the government and by public agencies, makes reference to the federal Canadian and British Insurance Companies Act. This act was repealed in 1991 and, therefore, the reference is no longer appropriate.
Bill 13 amends the Financial Administration Act to outline the investments in securities, investments or loans which may be made by the Minister of Finance.
Currently, Mr. Chairman, subsections 57(1)(A) and (B) are very narrow in scope because reliance was placed on subsection 57(1)(C) for inclusion of all other acceptable investments. With the repeal of the federal Canadian and British Insurance Companies Act, section 57(1)(C) became meaningless and it is now necessary to amend each subsection to permit the Minister of Finance to invest surplus money in accordance with the regulations and policies established by the Financial Management Board.
However, these amendments, Mr. Chairman, do not broaden the range of investments permitted under the act but provide enhanced flexibility for the Department of Finance to invest the government's funds. The department has developed internal investment policies consistent with these guidelines and these policies are regularly reviewed by a departmental investment committee.
Mr. Chairman, Bill 13 also changes the definition of "Public Officer" from "individual" to "person". Since the legal definition of a "person" includes a corporation, this amendment will allow the Minister of Finance to appoint a corporate agent, such as a fund manager, to invest the government's money. This change will allow the government to access the broader and more sophisticated knowledge of fund managers expert in the investing business.
The investment powers and responsibilities of the act are delegated to the deputy minister of Finance by directive. The deputy minister is responsible for ensuring prudent investment and management of government funds. Thank you, Mr. Chairman.