Canada’s PM dispatches his ministers around the world to discourage international bank tax

Canada to voice international bank tax opposition

TORONTO — Canada’s prime minister has dispatched his top ministers around the world to wage a campaign against a proposed international bank tax that he said would unfairly penalize Canadian banks.

Prime Minister Stephen Harper noted Monday that Canada has not experienced the failure of any major financial institution and says it would be unfair to punish the nation’s banks for the misdeeds of others. Harper spoke at a G-8 and G-20 youth forum in Parliament ahead of the G-8 and G-20 summit in Canada next month.

Five cabinet ministers will deliver speeches in Washington, Shanghai, Ottawa and Mumbai, India, on Tuesday to express Canada’s opposition to a bank tax.

The tax is being pushed by European countries and has the backing of the U.S.

Canada has avoided government bailouts and there has been no crippling mortgage meltdown or banking crisis in Canada, where there is greater oversight of mortgages.

Harper said Canadian banks were required to maintain higher capital ratios and invest more prudently because of government regulation.

“They were not able to exploit some of the opportunities that got so many of these other western banks into trouble,” Harper said. “That’s why we think it would obviously be unfair to come in and now say Canadian banks and other banks, who weren’t part of the problem, now have to further limit their opportunities by paying tax.”

The prime minister also said you can’t tax a financial sector into stability.

International Trade Minister Peter Van Loan will speak to the U.S. Chamber of Commerce in Washington on Tuesday and Finance Minister Jim Flaherty will give a speech hosted by the Confederation of Indian Industry in Mumbai.

Minister for the Asia-Pacific Gateway Stockwell Day will speak at a Canada-China Business Council luncheon in Shanghai and Industry Minister Tony Clement and Foreign Minister Lawrence Cannon will conduct a news conference in Ottawa.