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The ministry of Finance is not known whether the abolition of the Rooms will lead to savings

by

Denis Méthot

1 June 2018 13:30

The ministry of Finance of Quebec said ignore if the abolition of the Rooms and their integration to theAuthority of the financial markets would lead to economies. Or even if the contrary, it may cause an increase in the cost of the permit of representatives.

The assistant deputy minister policies regarding financial institutions and corporate law, Richard Boivin, said he did not know, in response to questions the deputy’s pq’s Nicolas Marceau, Thursday, at Quebec, during the detailed study of bill 141. The member for Rousseau has sought to know if this operation was going to generate gains, if it would cost zero, or if it would result in additional costs.

Not a financial goal for the department

Mr. Boivin responded that the department was not mentally retarded. “There are costs inherent in regulation and supervision that comes protect the public. Our concerns were more about the protection of the public. Is that the efficiency will also lead a efficiency ? If this is the case, so much the better. It has not been working to find a regulation that would cost cheaper to the industry. It must pay to be regulated, and what one wants to look at it, it is the efficiency of the framing system. We did not make precise calculations as to the costs, but it is clear that the activity will be the same. “

According to the deputy minister, there would be no problems at the level of the facilities and infrastructure to integrate the two Rooms within the Authority. He believes that the cost of the employees should be the same, without to be however certain.

“There should not be any additional costs, said Mr. Boivin. It may be that the Authority will be able to manage at lower cost. This is not the goal, ” he insisted.

Possible increase in permits

Nicolas Marceau was then asked to know what would happen if the process is more expensive in the end. “The Authority would have the power to increase its regulations on the cost inherent to the permit, replied Richard Boivin. Essentially, in the future, it is by the cost of the licence that the Authority will fund. I imagine that the cost of the Rooms will be integrated eventually in the cost of permits and that, in the end, we will have at worst the same amounts or may be lesser amounts. “Mr. Boivin was recognized not to be able to bring certainty to this level.

Mr. Boivin has backed her up by stating that the Authority had looked at how it could manage its new activities. “There is every reason to believe that the global system of coaching should not cost more expensive. If there are, what, we might find a form of synergy that may lead to maintain the costs and perhaps the decline. We can’t make commitments at this stage on the actual results. “

The Québec Finance minister, Carlos J. Leitão, then brought to the defence of his under-minister. “The goal is not to lead to a reduction in costs, but the effectiveness of the regulation. We are convinced that there is a synergy and that the costs will eventually decrease, ” -he said.

$ 400 for a permit ?

The argument does not seem to have convinced the spokesperson for the Parti Québécois in the field of public finance. He has revealed to a parliamentary committee to have made its own calculations. It is estimated that it will cost 394 $ annually to obtain a license as a representative in damage insurance. The minister and the deputy minister did not deny this figure.

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