Quebec’s Finance minister, Michel Audet, reiterated today that the province remains committed to the passport model of securities regulation.

In a statement at the opening of the conference of Ministers of Finance in Niagara-on-the-Lake today, Quebec reaffirmed its commitment to the passport system. The Minister of Finance also noted that Quebec, under the leadership of the Council of Ministers for Securities Regulation, has worked for two years with all the provinces and territories, except Ontario, to set up the passport system.

Quebec has taken legislative and regulatory steps to enable the implementation of this initiative to harmonize and simplify securities laws throughout Canada, it noted. “In its most recent study on the economic outlook, the OECD ranks Canada second for its securities regulations. I reaffirm Quebec’s full support for the passport system,” Audet concluded.

The meeting marked the beginning of discussions on the issue of the vertical and horizontal fiscal imbalance. “I believe that this process, which will last many months, will be complex and difficult. Before starting to discuss specific amounts of money, we have to step back, return to principles and ask what is the ultimate purpose of the exercise, Audet indicated.

Audet reiterated that Quebec is seeking a lasting, long-term solution that will serve the interests of all partners of the federation. He also indicated that the equalization program must be based on clear and general-application principles.

Concerning the other fiscal arrangements between the two orders of government, “the principles of autonomy and accountability of the provinces must prevail,” the minister said. “That is why Quebec prefers unconditional cash transfers and/or a new division of tax room between the two orders of government,” Audet indicated.