Hon. Marc Gold (Government Representative in the Senate): Thank you for your question. The problem you described is unacceptable. The Canadian government agrees that fraud and the illegal use of that money are unacceptable in our society. I’m sure everyone here and across Canada agrees as well.

I don’t have the information you want about the number of cases and criminal gangs. I’ll look into it and get back to you shortly.

Senator Gold: I trust the police and governmental authorities to conduct their own investigation. The Government of Canada is always willing to work in good faith with our provincial, territorial and municipal partners to better protect us from fraud.

[English]

The Hon. the Speaker: Senator Woo, there are senators who wish to ask questions. Will you take questions?

Senator Patterson: Thank you, Senator Woo, for the thoughtful and erudite speech; I have got to remember senatorial libertarianism.

You spoke in praise of the system for assigning committee seats to senators, but this also includes the very important question of selecting chairs and deputy chairs. That’s not an easy task, being a chair or deputy chair. I don’t need to tell anyone. You need to have a rigorous understanding of the parliamentary process and respect for a balanced and respectful approach and order in the committee. Yet we’ve had total rookie senators appointed to important committees with no experience whatsoever in these areas in the parliamentary process.

Senator Woo, would you say that the current selection process and, in particular, the selection of chairs and deputies, is based on merit or is more based on group affiliation and a kind of popularity-contest vote from the groups, regardless of experience or merit, to date?

Senator Woo: Yes, of course.

Hon. Dennis Glen Patterson: May I have a question?

Senator Black: Thank you.

(On motion of Senator Ataullahjan, debate adjourned.)

On the Order:

Resuming debate on the motion of the Honourable Senator Pate, seconded by the Honourable Senator Miville-Dechêne, for the second reading of Bill S-212, An Act to amend the Criminal Records Act, to make consequential amendments to other Acts and to repeal a regulation.

The Hon. the Speaker pro tempore: Are senators ready for the question?

The Hon. the Speaker: Anybody opposed to leave, please say no.

The Hon. the Speaker: Senator Carignan, your time is up, but other senators would like to ask you some questions. Are you asking for five more minutes?

Senator Carignan: I am asking for five more minutes. If senators agree, I would be pleased to answer questions.

The Hon. the Speaker pro tempore: Is leave granted, honourable senators?

Hon. Mobina S. B. Jaffer: Honourable senators, with leave of the Senate and notwithstanding rule 5-5(b), I move that the bill be read the third time now.

Hon. René Cormier: Would Senator Carignan take a question?

Senator Carignan: Yes.

The Hon. the Speaker: Senator Carignan, some senators would like to ask you questions. Will you take some questions?

Senator Carignan: Yes, of course, Your Honour.

Hon. Ratna Omidvar: Honourable senators, with leave of the Senate and notwithstanding rule 5-5(b), I move that the bill be read the third time now.

The Hon. the Speaker: Are senators ready for the question?

Hon. Yonah Martin (Deputy Leader of the Opposition): Honourable senators, I rise today to speak briefly as critic for Bill S-216, formerly Bill S-222, An Act to amend the Income Tax Act (use of resources), also known as the Effective and Accountable Charities Act.

Our leader, Senator Don Plett, was the critic of this bill in the last Parliament and commended Senator Omidvar for doing her work on this issue and for bringing this bill forward. In this new parliamentary session, Senator Omidvar reintroduced her Senate public bill and has already spoken very clearly to the importance of this bill; thus, I will keep my remarks brief like Senator Mercer, who was the chair of the Special Senate Committee on the Charitable Sector, a committee on which, along with Senator Omidvar, I had a chance to serve as well.

We heard first-hand from witnesses and organizations about the issues affecting charities across Canada. Our study brought to light many of the challenges faced by the charitable sector and highlighted key changes that need to be made.

Bill S-216 will do exactly that. It will amend the Income Tax Act to permit charities to provide their resources to a person who is not a qualified donee provided that they take reasonable steps to ensure that those resources are used exclusively for a charitable purpose.

I will quote from some very credible witnesses who were heard at the Standing Senate Committee on National Finance in the last Parliament. They said it best, as did Senators Omidvar and Mercer.

Terrance S. Carter, Managing Partner of Carters Professional Corporation, said:

. . . the amendments proposed in Bill S-222 would, one, lift an unnecessary burden from Canadian charities that have been hampered far too long by antiquated income tax provisions that are out of touch with reality and international standards; and two, would replace it with a regime of resource accountability that would allow charities to work with non-qualified donees, both internationally and domestically, in order to more effectively achieve their charitable purposes.

Bruce MacDonald, President and Chief Executive Officer of Imagine Canada, said:

This bill is another example of the need to evolve the regulatory and legislative framework in which social good takes place. . . . This is a common sense approach to improving the ability of charities to work in meaningful partnership with non-charities in a manner that ensures both accountability and transparency. . . .

In short, I strongly support Senator Omidvar’s bill and ask all honourable colleagues to approve speedy passage of this bill in our chamber so that a message can be sent to the House of Commons to bring us one step closer to bringing Canadian law governing the charitable sector into the 21st century.

Finally, in Senator Plett’s own words: This bill is long overdue. Thank you.

(1640)

Some Hon. Senators: Question.

Hon. David M. Wells: Would Senator Carignan take a question?